THE House of Representatives is working with the Department of Agriculture to come up with a list of agricultural sectors that will qualify for tax incentives, a legislator said on Monday.
Albay Rep. Jose Ma. Clemente “Joey” S. Salceda, who chairs the Ways and Means committee, said that he is discussing the list with Agriculture Secretary William D. Dar.
The Corporate Recovery and Tax Incentives for Enterprises (CREATE) law overhauled the tax incentive system to make them more performance-based and time-bound.
“We will discuss (the list) in a committee hearing on Monday,” Mr. Salceda said in a statement.
The CREATE law is the second package of the Comprehensive Tax Reform Program that also reduces the corporate income tax to 20% from 30%.
Mr. Salceda added that food prices are a major component of the inflation basket, the Philippines needs to invest in agriculture.
“Food prices drive overall prices. Agriculture output drives food prices,” he said. “If we want to keep overall prices in control, we need to invest heavily in agriculture.”
He added that he expects the amended Agri-Agra law, which will be passed soon, to fund more agricultural activity.
He added that the law, which requires financial institutions to observe lending quotas for agricultural ventures but has met with uneven compliance, has been expanded to include investments like cold storage and agricultural infrastructure.
Mr. Salceda said that the government needs to invest in improving crop yields, reducing waste and improving marketing to encourage farmers to produce food.
“Farmer financial security and national food security are closely tied. If you want farmers to keep farming keep the farming business profitable,” he said. — Jaspearl Emerald G. Tan
