By Benjamin Cuaresma
MANILA — The Department of Agriculture (DA) and the Department of the Interior and Local Government (DILG) have signed a Joint Memorandum Circular (JMC) exempting qualified agricultural warehouses and storage facilities from paying real property taxes, a move aimed at lowering production costs and strengthening the country’s food supply chain.
The agreement, signed Wednesday by Agriculture Secretary Francisco Tiu Laurel Jr. and Interior Secretary Jonvic Remulla, seeks to fully implement the tax incentives provided under the Sagip Saka Act (Republic Act No. 11321) for farmers, fisherfolk, agricultural cooperatives, and rural enterprises.
Under the memorandum, qualified warehouses, storage facilities, and other agricultural structures used for storing farm inputs and harvested products will be exempt from real property taxes, provided their assessed value does not exceed P3 million.
Agriculture Secretary Tiu Laurel said the tax incentive would allow agricultural producers to reinvest their savings into improving farm productivity and expanding their operations.
“By reducing the cost of maintaining eligible storage facilities, farmers, fisherfolk, cooperatives, and agricultural enterprises can channel more resources into better farm inputs, upgraded equipment, improved post-harvest systems, and business expansion,” Tiu Laurel said.
He noted that the measure comes at a crucial time when farmers continue to grapple with rising fuel prices, logistics expenses, and production costs.
To ensure immediate implementation, Interior Secretary Jonvic Remulla directed DILG Undersecretary for Local Government Mario Iringan to disseminate the new guidelines to all local government units (LGUs).
Remulla emphasized that reducing production costs directly translates into higher income for farmers.
“Every peso saved from production costs means additional earnings for our farmers. We must continue helping them improve their livelihood,” Remulla said.
According to the DA, the Joint Memorandum Circular provides clear guidelines on the requirements, procedures, and responsibilities of national agencies and local governments in granting the tax exemption, giving qualified beneficiaries greater certainty in availing themselves of the incentive.
The department said the policy fulfills a key provision of the Sagip Saka Act, which was enacted to improve farmers’ access to markets, enhance food security, and strengthen the competitiveness of Philippine agriculture.
Senator Francis “Kiko” Pangilinan, principal author of the law, welcomed the implementation of the measure, saying it would encourage farmers and fisherfolk to invest in small-scale warehouses, fish cages, seaweed dryers, and other essential post-harvest facilities without the burden of additional property taxes.
He said improved storage facilities would help protect agricultural produce and fisheries from spoilage, reduce post-harvest losses, minimize food waste, and contribute to a more stable food supply.
The Department of Agriculture said the tax exemption goes beyond providing financial relief, as it is expected to encourage greater investment in agricultural infrastructure throughout the country.
Officials believe the policy will strengthen agricultural value chains, improve storage capacity, reduce post-harvest losses, enhance food distribution, and increase the overall competitiveness of the Philippine agriculture sector by lowering operational costs and improving productivity from farm to market.
ia/xf
