The Department of Agriculture (DA) and the Department of the Interior and Local Government (DILG) have signed a joint memorandum circular, exempting farm storage facilities from local real property taxes.
The signing ceremony took place at the DA's offices in Quezon City, with Agriculture Secretary Francisco P. Tiu Laurel, Jr. and Interior and Local Government Secretary Juanito Victor C. Remulla, Jr. in attendance.
The circular implements the Sagip Saka Act, which provides tax exemptions to qualified structures, buildings, and warehouses used for storing farm inputs and outputs.
Agriculture Secretary Francisco P. Tiu Laurel, Jr. stated that the exemptions will allow farmers, fisherfolk, cooperatives, and agricultural enterprises to direct their full resources towards productive investments, such as better inputs, improved equipment, and business expansion.
"At a time when fuel and logistics costs remain challenging, every peso counts," Secretary Laurel said.
Interior and Local Government Secretary Juanito Victor C. Remulla directed Undersecretary for Local Government Marlo L. Iringan to notify local government units, municipalities, and barangays about the circular.
Secretary Remulla emphasized that the exemptions will help farmers' incomes, as every peso lowered in their production costs will make a significant difference.
Undersecretary Marlo L. Iringan noted that the DA and DILG expect the circular to be fully complied with by the third quarter, allowing local governments time to revise their revenue codes and enact necessary ordinances.
