The Department of Agriculture (DA) and the Department of the Interior and Local Government (DILG) have issued tax break rules covering farm warehouses in a bid to reduce operating costs.
Agriculture Secretary Francisco Tiu Laurel Jr. and Interior and Local Government Secretary Juanito Victor Remulla Jr. signed a Joint Memorandum Circular (JMC), which outlined the guidelines for exempting eligible farm storage facilities from local real property taxes.
The government noted that producers continue to grapple with elevated logistics and transport costs, making efficient storage increasingly essential to reducing waste and improving farm profitability.
The JMC stipulated the requirements, procedures, and responsibilities of national agencies and local government units (LGUs), providing qualified beneficiaries certainty in availing themselves of the tax exemption.
It also operationalizes the Sagip Saka Act, exempting qualified structures, buildings, and warehouses used for storing farm inputs and outputs from real property tax, provided their assessed value does not exceed P3 million.
For the DA chief, the issuance was ‘an important step’ in the government’s continuing efforts to fully realize the vision and promise of the Sagip Saka Act, adding that the guidelines ‘finally establish a clear and uniform framework for implementing one of the law’s key incentives.’
He also said the incentive encourages investments in storage infrastructure to enhance the country’s agricultural supply chain.
‘Storage facilities are critical components of agricultural development. They help reduce post-harvest losses, preserve product quality, improve inventory management, and support more efficient marketing and distribution of agricultural products.’
He said the tax savings can be redirected toward better farm inputs, modern storage systems, post-harvest facilities, equipment, technology adoption, and enterprise expansion.
The DA chief, however, stressed that the policy’s success will hinge on its effective implementation, urging LGUs to work closely with the DA so qualified beneficiaries can readily access the incentive.