Property tax exemptions granted to farm storage facilities

THE Department of Agriculture (DA) said it and the Department of the Interior and Local Government (DILG) signed a joint memorandum circular exempting farm storage facilities from local real property taxes.

Agriculture Secretary Francisco P. Tiu Laurel, Jr. and Interior and Local Government Secretary Juanito Victor C. Remulla, Jr. conducted a ceremonial signing at the DA’s offices in Quezon City.

The circular implements of the Sagip Saka Act, which grants tax exemptions to qualified structures, buildings, and warehouses used for storing farm inputs and outputs.

Mr. Laurel said that the exemptions bring forward the operationalization of the law, which was written by Senator Francis Pancratius N. Pangilinan, whose office was also represented at the signing.

Mr. Laurel said the tax exemptions allow farmers, fisherfolk, cooperatives, and agricultural enterprises to direct their full resources towards productive investments, better inputs, improved equipment, upgraded post-harvest systems, and business expansion.

“At a time when fuel and logistics and production costs remain challenging, every peso counts,” Mr. Laurel said.

Mr. Remulla directed Undersecretary for Local Government Marlo L. Iringan to notify local government units, municipalities, and barangays about the circular.

“Every peso lowered in their production costs could help with our farmers’ incomes,” Mr. Remulla said.

Mr. Iringan told reporters that both the DA and the DILG expected the circular to be fully complied with, ideally by the third quarter to allow local governments time to revise their revenue codes, and enact the necessary ordinances. — Marron Joshua F. Mendoza