Billions of pesos (1 peso currently equals 0.017 USD) in tobacco excise tax shares earmarked for Philippine tobacco-growing provinces from 2023 to 2025 remain unreleased, triggering mounting frustration among industry leaders and farmers in the Ilocos region, according to the Philippine Star. Long regarded as the “Solid North” that underpinned President Ferdinand Marcos Jr.’s electoral support, tobacco farmers now warn that the government’s failure to remit funds mandated under Republic Act 7171 threatens rural livelihoods amid rising production costs. Industry representatives said the prolonged delay has crippled critical programs intended to support farmer self-reliance and local development.
Former Ilocos Sur governor Luis “Chavit” Singson, author of RA 7171, said that despite the signing of the P6.79-trillion ($115.4 billion) 2026 national budget, excise tax shares from the previous three years remain unpaid. He warned that the withholding of funds has created service gaps that undermine socio-economic stability in tobacco-producing areas, preventing local government units from addressing urgent needs and advancing infrastructure and agricultural projects. Singson emphasized that tobacco remains a pillar of the national economy and that the law was designed to provide local government units with consistent, predictable resources.
Singson expressed cautious optimism that the appointment of Acting Budget Secretary Rolando Toledo could help resolve compliance bottlenecks delaying the releases. He urged the national government to honor its commitments, calling for the funds to be released within 30 days to avert further hardship. Pointing to Ilocos Sur’s plans to expand irrigation, road networks, and tourism infrastructure, he described it as ironic that excise tax shares vital to these initiatives remain withheld, despite the province being recognized by the Commission on Audit as the country’s richest.
