MEMORANDUM CIRCULAR NO. 61
MEMORANDUM CIRCULAR NO. 61 -
PRESCRIBING THE GUIDELINES FOR THE IMPLEMENTATION OF R.A. NO. 7171
DATED JANUARY 9, 1992
In order to insure the effective
implementation of R.A. No. 7171 entitled, "An Act to Promote the
Development of the Farmers in the Virginia Tobacco-producing
Provinces", and providing for the share of such beneficiary provinces
equivalent to 15% of the excise taxes on locally manufactured Virginia
type cigarettes, the following guidelines are hereby
promulgated.
1.0
COVERAGE
1.1
This implementing circular shall cover the Department of Budget and
Management, the Bureau of Internal Revenue, the National Tobacco
Administration, and Provinces producing Virginia Tobacco.
2.0 FUNCTIONAL
RESPONSIBILITIES OF CONCERNED AGENCIES
2.1
The Department of Budget and Management shall:
2.1.1
Include in the Internal Revenue Allotment (IRA) portion of the National
Expenditure Program (NEP) which shall serve as the basis for inclusion
in the annual GAA General Appropriations Act (GAA), an amount
equivalent to 15% of the excise taxes on locally manufactured Virginia
type cigarettes based on actual BIR collection for the second calendar
year preceding the year of distribution.
2.1.2 On the
basis on NTA Certification, determine the (1) qualified beneficiary
provinces by taking into account their average annual Virginia Tobacco
production which should not be less than one million kilos, and (2)
compute the corresponding amount of their respective shares, based on
the adjusted Virginia Tobacco acceptances.
2.1.3 Taking
into account the cash management and programming procedures, and
budgetary constraints, to issue a funding check directly to the
beneficiary provinces monthly, based on the Advice of Allotment
released for this purpose.
2.2
The Bureau of Internal Revenue shall:
2.2.1
Collect and set aside the equivalent of 15% of the said excise tax
collections on locally manufactured Virginia type cigarettes for the
second calendar year preceding the year of distribution.
2.2.2 Submit
to the DBM for the purpose of budget preparation, a certification as to
the amount set aside not later than April 15 of the current year.
2.3 The
National Tobacco Administration shall:
2.3.1
Implement a system for documentation and reporting of Virginia Tobacco
production and Tobacco Acceptances by the Trading Centers in the
beneficiary provinces, and such other information as may be deemed
necessary for the purpose.
2.3.2 Provide
the Department of Budget and Management (DBM) and the Local Government
Units (LGUs) concerned with a certification duly approved by the NTA
Administration, of Virginia Tobacco production and Virginia Tobacco
acceptances by provinces for the immediate past year, provided,
however, that such CERTIFICATION shall be submitted to the DBM not
later than the first quarter of the current year.
2.4 Local
Government Units
2.4.1
The beneficiary provinces shall record separately the receipts and
disbursements of funds in order to account the balance of the funds
released to them.
2.4.2 The
provinces concerned shall ensure that the projects to be implemented
are duly approved by the Sangguniang Panlalawigan through an
appropriation ordinance or resolution.
3.0 GUIDELINES
3.1
Basis in the computation of fund equivalent to fifteen (15%) percent.
3.1.1
The fund equivalent to fifteen (15%) percent of the excise taxes on
locally manufactured Virginia type cigarettes shall be computed based
on the actual collections, as certified by the Bureau of Internal
Revenue (BIR), for the second calendar year preceding the year of
distribution (budget year).
3.2
Determination of Qualified Provinces.
3.2.1
The qualified beneficiary provinces shall be determined by DBM based on
their average annual production of not less than one million kilos for
the immediate past two (2) years using as basis the CERTIFICATION duly
approved by the NTA administrator.
3.2.2 The
initial year for purposes of determining the average annual production
shall start in 1991 onwards.
3.3 Financing
and Remittance Scheme, and Utilization.
3.3.1
The fund allotted equivalent to the said fifteen (15%) percent shall be
divided on a pro-rata basis among such beneficiary provinces based on
the respective annual volume of adjusted virginia tobacco acceptances
for the immediate past year as certified by the National Tobacco
Administration. For purposes of determining the pro-rata shares, the
immediate past year should be understood to mean two years preceding
the budget year. If year 1994 is the budget year, two years preceding
is year 1992.
3.3.2 The
Department of Budget and Management shall release such share directly
to the provinces concerned on a quarterly basis by way of issuance of
Advice of Allotment and cash allocation using the certification issued
by the Bureau of Internal Revenue as to the amount of the said excise
tax actually collected and remitted to the Bureau of Treasury, subject
to usual cash programming procedure and budgetary constraint.
3.3.3 The
respective shares of the beneficiary provinces shall be issued as a
special account under the general fund of the provinces to be utilized
for the following projects:
3.3.3.1
Cooperative projects that will enhance better quality of products,
increase productivity, guarantee the market and as a whole increase
farmers' income;
3.3.3.2
Livelihood projects particularly the development of alternative farming
systems to enhance farmers' income;
3.3.3.3
Agro-industrial projects that will enable tobacco farmers in the
Virginia tobacco producing provinces to be involved in the management
and subsequent ownership of these projects such as post-harvest and
secondary processing like cigarette manufacturing and by-product
utilization; and
3.3.3.4
Infrastructure projects such as farm-to-market roads.
4.0 This
Circular shall take effect immediately.
Manila, July 13, 1993.
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