DA, DILG spells out framework for tax break
The Department of Agriculture (DA) and the Department of the Interior and Local Government (DILG) are pushing for tax relief for eligible farm facilities pursuant to the Sagip Saka Act.
For this purpose, the two agencies signed a joint memorandum circular that establishes a clear and uniform framework for granting property tax exemptions to qualified structures, buildings and warehouses used for storing farm inputs and outputs under the law.
The law applies this to facilities with an assessed value of up to P3 million. The DA said these establishments should be registered in the Registry System for Agri Storage.
Officials said that while local government units (LGUs) may lose revenue due to tax breaks, such a measure will go a long way toward advancing the agriculture sector’s development.
“This is something that we need to do in order to help our agriculture sector, our farmers particularly,” Interior Undersecretary Marlo Iringan said in a press briefing on Wednesday.
“I think eventually the LGUs will realize the beauty and the benefit of these incentives which we are giving our agriculture sector,” Iringan said.
Agriculture Secretary Francisco Tiu Laurel Jr. said he hopes that any tax savings will be reinvested into better farm inputs, modern storage systems, postharvest facilities, equipment, technology adoption and enterprise expansion, particularly for small farmers, fisherfolk, cooperatives and agricultural enterprises.
“The hope is our farmers and fisherfolk will also level up … Our goal here is enterprise development. Any incentive given to small players, our hope is they grow, invest more in their industry and improve their lives,” he said.
