The Department of Agriculture (DA) on Wednesday partnered with the Department of the Interior and Local Government (DILG) to implement tax exemption rules for agricultural structures nationwide.
Agriculture Secretary Francisco Tiu Laurel Jr. signed a joint memorandum circular (JMC) with DILG Secretary Jonvic Remulla to establish the guidelines and operationalize Section 12(b) of the Sagip Saka Act.
In a press conference, Tiu Laurel said the JMC provides a uniform framework that will help advance the benefits of tax incentives in the agriculture sector.
“Every peso counts kaya makakatulong talaga ito na mabawasan ang (that’s why this is a huge help to reduce the) operating costs or cost of production. Of course, dapat mas malaki ‘yung kikitain ng mga magsasaka at mangingisda (the income of farmers and fishers must be higher),” he said.
For his part, Remulla ordered the immediate information dissemination of the tax exemption rule across local government units (LGUs) nationwide.
“Inaatasan ko ang ating Undersecretary (Marlo) Iringan na ikalat kaagad-agad sa ating lahat ng local government units, lahat ng barangay ang tungkol dito sa (I am now ordering Undersecretary Iringan to disseminate it to all our LGUs and all barangays, forthwith, all the information about this) joint memorandum circular,” he said in a separate speech.
Under the circular, structures, buildings and warehouses used for storing farm inputs and outputs are qualified for tax exemption, provided that the assessed value does not exceed PHP3 million.
Tiu Laurel said the tax exemption can help boost savings of local farmers, fishers, cooperatives, associations and agricultural enterprises across the country.
“I would say a range of PHP500 per year up, sa (in) rural areas, up to PHP12,000 per year,” he said, citing the potential annual savings depending on the agricultural structure.
Tax savings can also be redirected toward better farm inputs, modern storage systems, post-harvest facilities, equipment, technology adoption and enterprise expansion, particularly for small farmers, fisherfolk, cooperatives and agricultural enterprises, he added.
Besides savings, the tax exemption rule also seeks to encourage the establishment of more structures, which will help minimize post-harvest losses, ease production costs and boost farmers and fishers’ income.
“What is important is magkaroon ng maraming storage, di bale na sigurong gamitin ng tao ‘yung batas at magtayo ng maliliit (to have many storage, regardless if the people will use the law to build small structures), all over the place, it still benefits the country,” Tiu Laurel said.
The DILG, meanwhile, expressed commitment to a swift nationwide information campaign to ensure LGUs’ compliance.
“Third quarter, tapos na ‘yung dissemination sa ating local governments. And then they have to revisit their tax code, their revenue code. And then enact the order in proper ordinances,” Iringan said. (PNA)
