Press Release
March 28, 2008


Senator Edgardo J. Angara has filed a bill exempting agricultural inputs - which form the very backbone of the sustainable growth envisioned for the country - from the Value-Added tax (VAT).

"The government should exempt agricultural inputs like fertilizer, insecticide, pesticide, tractor, trailers, trucks, harvesters, hybrid seeds, genetic materials, sprayers, and other equipments from VAT to allow our farmers to increase their production and make them competitive."

Currently, only certain agricultural inputs are exempted from the VAT. This leads the seller or importer to pass on or shift to the consumers, specifically the farmers and livestock growers which lead to higher overhead costs that shall ultimately be burdened by the average Filipino family, he said.

He said crop and livestock farmers were highly dependent on agricultural inputs that are still priced high despite of the steadily appreciating peso, forcing stunted growths in agriculture.

"Though the VAT system is highly commendable because it establishes a wider tax base, there is still a need to further revise it, and the best way to do this is to insert revisions in the Agriculture and Fisheries Modernization Act (AFMA).

Angara stressed that the continuous non-exemption of these vital inputs fosters a circuitous drain on the average farmer and consumer which sadly does not help our plight one bit.

As stated in AFMA, "Taxation policies must not deter the growth of value-adding activities in the rural areas," he cited.

Angara is the author of the AFMA in 1997, which benefited farmers and fisherfolk with improved seeds and plant materials, better irrigation, better financing and market access.

News Latest News Feed