BILLIONS of pesos in tobacco excise tax shares earmarked for local governments in Northern Luzon for 2023, 2024 and 2025 remain unreleased, triggering warnings from industry leaders that the prolonged delay is crippling agriculture and leaving thousands of farmers without promised government support. Leaders from tobacco-producing areas in the Ilocos Region said the non-release of funds mandated under Republic Act (RA) 7171 has created severe service gaps at a time when farming costs are rising, threatening the livelihoods of rural families who rely on tobacco as a primary source of income. Former Ilocos Sur governor Luis “Chavit” Singson, author of RA 7171, said the delay persists despite the signing of the P6.79-trillion national budget for 2026. He said the failure to remit the excise tax shares from the previous three years has stalled programs meant to promote farmer self-reliance and local development. “The withholding of these funds has resulted in critical service gaps that threaten the socioeconomic stability of the North,” Singson said following consultations with local government officials. “These shares, established under RA 7171, are intended to provide LGUs (local government units) with consistent resources to support the farmers who form the backbone of the tobacco industry.” Singson said the three-year delay has prevented LGUs from responding to urgent needs for public services, effectively freezing projects vital to the independent development and fiscal autonomy of tobacco-producing areas. He also said the tobacco industry remains a significant contributor to the national economy. RA 7171 mandates that a portion of tobacco excise taxes be allocated to provinces, cities and municipalities producing tobacco to fund livelihood programs, infrastructure, health services and other initiatives for farming communities. Singson expressed hope that the appointment of acting Budget Secretary Rolando Toledo could help address what he described as compliance-related bottlenecks that have slowed the release of funds. “The North has always stood as a pillar of support for this administration, and we believe that this partnership should be reflected in the timely support of our communities,” he said. “We are hopeful that the 2023, 2024 and 2025 funds can reach our LGUs within the next 30 days to prevent further hardship for our tobacco farmers and to uphold the spirit of local autonomy.” Ilocos Sur, which topped the Commission on Audit’s list of provinces in terms of reported revenues in 2024 — driven largely by tobacco excise tax allocations — is planning to expand its irrigation, road and tourism infrastructure. Singson, however, pointed to the irony of the continued withholding of the province’s tobacco excise tax shares, saying these funds are essential to advancing such projects and sustaining agricultural communities across Northern Luzon.