Asia Times - News and analysis from throughout Southeast Asia

Southeast Asia

Philippine farmers laud tobacco ruling

CABUGAO, Ilocos Sur - Philippine farmers have endorsed a recent move by the National Tobacco Administration (NTA) to collect non-tax revenues from tobacco-buying firms and manufacturers engaged in the export and import of leaf tobacco or cigarettes or both.

The endorsement was made by farmers during a series of provincial tobacco assemblies conducted by the NTA in Pangasinan, La Union, Ilocos Sur, Ilocos Norte and Abra some two weeks ago, just before the start of the tobacco planting season.

Carlos Cachola, president of the Philippine Association of Tobacco-based Cooperatives (PATCO), said it is about time tobacco manufacturers shared a little of their export and import incomes with the government.

If this is done, he said, the proceeds of this will go a long way in helping farmers produce high-quality tobacco which will eventually benefit tobacco buyers.

NTA administrator Carlitos Encarnacion thanked the farmers for their endorsement as he disclosed that this is the first time in 17 years that the NTA is discharging its full mandate as embodied in its charter or Executive Order No 245.

The charter was issued by then-president President Corazon C Aquino in 1987.

He said the move is now being undertaken in response to President Gloria Macapagal-Arroyo's call for government agencies to generate non-tax revenues.

Encarnacion explained that his agency's mandate includes the issuance of export and import permits and export and import commodity clearances covering the export and import of tobacco, tobacco products and cigarettes.

NTA actually started charging exporters and importers two months ago P5 for every case of exported cigarettes. Each case has 50 reams, which means one case has 500 packs of cigarettes.

Cachola explained that the charge "would not hurt the businessmen" as he claimed that they are making big money in the export market "with their selling price of $5 to $6 per pack".

"Their gross earning per case would be at least $2,500 [P140,912]," he said.

Encarnacion said that the NTA board of directors approved the move toward full exercise of the NTA mandate.

Meanwhile, some cigarette manufacturers had asked the NTA to review its mandate in charging fees because there is a possibility it would complicate other rules in the national government, especially regarding the international agreement on the World Trade Organization.

(Asia Pulse/PNA)

Oct 9, 2004

No material from Asia Times Online may be republished in any form without written permission.

Privacy and Legal Policies