source: The Ilocos Times
Loan to cover province’s xcise tax share
BY LEILANIE G. ADRIANO
THE LAND Bank of the Philippines (LBP) is making available more than a P240 million-peso loan for Ilocos Norte farmers provided the national government releases the long overdue tobacco excise tax share of the province.
The province’s excise tax share could have been released to the provincial government earlier this year, or during the waning months of the Arroyo administration through its monetization program but this was blocked by majority of the members of the Sangguniang Panlalawigan after they expressed fears that the amount could be used in the election campaign of the previous provincial government administration.
The tobacco excise tax is managed by the Development Bank of the Philippines and underwritten by the Land Bank of the Philippines.
But now that the election is over, the new set of SP members has returned its sights on the tobacco excise tax where LBP is offering its services to the provincial government through a grant of a loan more than P240 million, or equivalent to the province’s unreleased tax share.
According to provincial treasurer Josephine Calajate, the Department of Budget and Management earlier issued a notice of payment schedule for the arrears of the tobacco excise tax share, which means that the accumulated amount from 2002 to 2008 can be made available to more than 80,000 farmers in Ilocos Norte subject to terms and conditions set by the national government.
To formalize this, the 8th Sangguniang Panlalawigan unanimously approved on July 19 a resolution authorizing Ilocos Norte Gov. Ma. Imelda “Imee” R. Marcos to negotiate and enter into a loan agreement with LBP in the amount of not more than P240,487,104.
Calajate further explained that the “notice of payment schedule” from the DBM will be used as “collateral” for the LBP loan grant if the provincial government decides to get the P240 million lump sum.
When this is availed of, at least P1.2 million of the P240 million will be used for documentary stamp taxes, Calajate added.
Before the May elections, other cities and municipalities in Ilocos Norte as well as neighboring tobacco-producing provinces availed of the monetization program as they said they needed to immediately address various farmers’ concerns, mostly infrastructures destroyed by typhoons previously.
