Written by Leilani Adriano / Correspondent
Wednesday, 21 July 2010
20:05

LAOAG CITY, Ilocos Norte—The Land Bank of the Philippines (LandBank) is making available its more than P240-million loan for Ilocos farmers should the national government, under the new administration of President Noynoy Aquino release the long-overdue tobacco excise tax for the province.

The multimillion-peso fund could have been released earlier this year during the time of the Arroyo administration by way of its monetization program, but it was successfully blocked by a majority of then members of the Ilocos Norte board apparently for fear that the money would be used by the previous local administration in the election campaign.

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 provincial board members has revisited the once-controversial tobacco excise tax with the LandBank offering its services to the provincial government. This is to grant a loan of more than P240 million, equivalent to the province’s unreleased tobacco excise tax.

Provincial treasurer Josephine Calajate said the Department of Budget and Management (DBM) earlier issued a notice of payment schedule for the arrears of the tobacco excise tax.  This meant that the amount accumulated from 2002 to 2008 could readily be made available to the more than 80, 000 farmers of Ilocos Norte, subject to terms and conditions set by the national government.

To formalize this, members of the eighth Sangguniang Panlalawigan unanimously approved on July 19 a resolution authorizing Ilocos Norte Gov. Imee R. Marcos to negotiate and enter into a loan agreement with LandBank in the amount of not more than P240, 487,104.

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