Published — June 15, 2021
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
After reading Incentives for the Production and the Propagation of Organic Farm Inputs Under Organic Agricultural Act , you may also read, What is Organic Agricultural Act?
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The government extends incentives for the production and propagation of organic farm inputs
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Incentives are provided to farmers whose farms have been duly certified as compliant to the Philippine National Standards (PNS)
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Tax incentives are given to purely organic agriculture entities or farmers
Under the Organic Agricultural Act, the government extends incentives for the production and propagation of organic farm inputs by maximizing their use in all government and government supported agricultural production, research and demonstration programs.
Incentives are also provided to farmers whose farms have been duly certified as compliant to the Philippine National Standards (PNS). Further, the Department of Agriculture (DA) may give cash reward in recognition of the best organic farm in the country. The DA, the Department of Agrarian Reform (DAR), the Department of Science and Technology (DOST), the Department of Interior and Local Government (DILG), the Department of Trade and Industry (DTI), the Department of Education (DepED), the Department of Finance (DOF), the Land Bank of the Philippines (LBP), and other government lending and non-lending institutions shall also assist organic input producers and organic farmers through the provision of adequate financial, technical, marketing and other services and resources. These include, but shall not be limited to the following:
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Exemption from the payment of duties on the importation of agricultural equipment, machinery and implements;
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Identification by Local Government Units (LGUs) of local taxes that may be offered as incentives to organic input production and utilization;
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Provision of preferential rates and special window to organic input producers and users by the LBP;
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Subsidies for certification fees and other support services to facilitate organic certification;
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Zero-rated value-added tax (VAT) on transactions involving the sale/purchase of bio-organic products, whether organic inputs or organic produce; and
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Income tax holiday and exemption for seven (7) years, starting from the date of registration of organic food and organic input producers on all income taxes levied by the National Government.
The tax incentives shall be given only to purely organic agriculture entities or farmers and shall be subject to the accreditation of the Bureau of Agriculture and Fisheries Product Standards (BAFPS) and periodic reporting by the BAFPS to the Department of Finance (DOF). Note that said incentives shall be available only to Micro, Small and Medium Enterprises (MSMEs).
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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