The Department of the Interior and Local Government (DILG) and the Department of Agriculture (DA) have issued joint guidelines granting real property tax exemptions to qualified agricultural storage facilities under the Sagip Saka Act.
DILG Secretary Jonvic Remulla and DA Secretary Francisco P. Tiu Laurel Jr. signed the Joint Memorandum Circular on Wednesday at the DA Central Office in Quezon City.
The circular directs local government units to exempt from real property tax structures, buildings, and warehouses used directly and exclusively for storing agricultural inputs and outputs, provided the assessed value of the property does not exceed P3 million.
The tax exemption is being implemented under Republic Act No. 11321, or the Sagip Saka Act, as part of government efforts to lower production costs and increase the income of farmers and fisherfolk.
Remulla said the measure reflects the government’s commitment to helping ease the burden on the country’s food producers.
“Napakahirap maging magsasaka sa Pilipinas… Tulungan natin sila. Magkaisa tayo para sa Bagong Pilipinas,” Remulla said.
“Bawat piso na ibinabawas sa kanilang produksyon ay nakakadagdag sa kanilang kita,” he added.
To ensure immediate implementation, Remulla ordered the prompt dissemination of the circular to all LGUs, which are tasked to enforce the policy.
Under the guidelines, the DILG will provide policy guidance to LGUs to ensure the effective implementation of the tax exemptions. It will also assist the DA in conducting nationwide orientation activities.
Tiu Laurel said the issuance of the guidelines would help ensure that the benefits of the Sagip Saka Act reach farmers, fisherfolk, cooperatives, and rural enterprises.
“Today’s signing demonstrates a shared commitment to ensuring that the law delivers real value where it matters the most: in farms, fishing communities, cooperatives, and rural enterprises,” Tiu Laurel said.
In a recorded video message, Senator Francis “Kiko” Pangilinan, principal author of the Sagip Saka Act, urged LGUs to promptly update their local revenue codes, simplify application procedures, and inform qualified farmers, fisherfolk, and other beneficiaries about the incentive.
The signing was witnessed by DILG Undersecretary for Local Government Marlo L. Iringan and officials from both agencies.
Enacted in 2019, the Sagip Saka Act seeks to strengthen the livelihoods of farmers and fisherfolk by improving market access, expanding government support, and increasing their competitiveness.
The DILG said it remains committed to working with LGUs to fully implement policies that strengthen the agricultural sector and improve the welfare of farming and fishing communities.
