The Department of the Interior and Local Government and the Department of Agriculture have signed a Joint Memorandum Circular exempting qualified agricultural storage facilities from real property tax, a measure aimed at lowering production costs and increasing the income of farmers and fisherfolk under the Sagip Saka Act.
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, as long as the property’s assessed value does not exceed P3 million.
DILG Secretary Jonvic Remulla said the policy reflects the government’s commitment to easing the burden on the country’s food producers.
“Napakahirap maging magsasaka sa Pilipinas… Tulungan natin sila. Magkaisa tayo para sa Bagong Pilipinas, “Bawat piso na ibinabawas sa kanilang produksyon ay nakakadagdag sa kanilang kita.” Remulla said.
To ensure immediate implementation, Remulla ordered the prompt dissemination of the JMC to all LGUs, which are tasked with enforcing the policy.
Under the circular, the DILG will provide policy guidance to LGUs to support the effective implementation of the tax exemptions and assist the DA in conducting nationwide orientation activities.
Agriculture Secretary Francisco P. Tiu Laurel Jr. said the guidelines will help ensure that the benefits of the Sagip Saka Act reach the communities they are meant to serve.
“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 immediately update their local revenue codes, simplify application procedures, and actively inform qualified farmers, fisherfolk, and other beneficiaries about the tax incentive.
The memorandum was signed during a ceremony at the DA Central Office in Quezon City, led by Remulla and Tiu Laurel. DILG Undersecretary for Local Government Marlo L. Iringan and officials from both agencies served as witnesses.
Republic Act No. 11321, or the Sagip Saka Act, was enacted in 2019 to strengthen the livelihoods of farmers and fisherfolk by improving market access, expanding government support, and enhancing their competitiveness.
The DILG said it remains committed to working with LGUs to fully implement policies that support the agricultural sector and improve the welfare of farming and fishing communities.