Reduction of the Research and Regulation Fee of Gross Purchase Price of Flue-Cured Tobacco
Letter of Instructions No. 183, issued on April 16, 1974, addresses the challenges faced by local cigarette manufacturers and tobacco exporters due to rising costs in tobacco processing. To support these industries, the directive reduces the research and regulation fee on flue-cured tobacco from four percent of the gross purchase price to a flat fee of ten centavos (P0.10) per kilogram, shifting the financial burden from producers to buyers. This measure aims to stabilize selling prices for cigarettes and buying prices for leaf tobacco, while also relieving farmers from the financial pressures associated with trading centers. The changes are effective immediately.
April 16, 1974
LETTER OF INSTRUCTIONS NO. 183
| TO | : | The Chairman-General Manager |
| Philippine Virginia Tobacco Administration |
In view of the increased costs in the redrying and processing of tobacco, which have adversely affected local manufacturers of cigarettes and exporters of tobacco, it is necessary that an adequate incentive be provided to said manufacturers and exporters to enable them to maintain the present level of selling prices of cigarettes, with respect to the manufacturers, and that of buying prices of leaf tobacco, in the case of the exporters. cdt
Likewise, it is necessary that tobacco farmers be relieved of the present burden of contributing to the support of trading centers.
To accomplish the above aims, it is hereby directed that the research and regulation fee of four per cent of the gross purchase price of every kilogram of flue-cured tobacco sold, paid by the producer-seller, as provided in Letter of Instructions No. 166 dated February 25, 1974, be reduced to a straight fee of ten centavos (P0.10) per every kilogram of flue-cured tobacco sold, to be paid by the buyer.
This takes effect immediately. cd
April 16, 1974.