Manila, Philippines — The Department of Agriculture (DA) and the Department of the Interior and Local Government (DILG) have agreed to implement an exemption from local real property tax for storage facilities used for agricultural products.
Under a signed Joint Memorandum Circular by the two agencies, owners of land, buildings, or warehouses used as storage for harvested palay and other agricultural inputs will no longer be required to pay taxes.
This applies to properties with an assessed value not exceeding ₱3 million.
According to the DILG and DA, this measure will help reduce operational costs.
The tax savings may also be used for further investments in post-harvest facilities, the purchase of quality inputs, more modern storage systems, and other forms of support for farmers and fisherfolk.
Meanwhile, part of the agreement is also the strengthening and implementation of the Sagip Saka Act, which allows local government units to directly purchase products from farmers without going through middlemen.
To ensure proper implementation of the new policy, the DILG will issue policy guidelines to all LGUs, which will be responsible for enforcing the directive.