Tax break guidelines for farm storage facilities out

MANILA, Philippines — A memorandum circular setting uniform guidelines for exempting owners of eligible farm storage facilities from paying real property taxes has been signed between the Department of the Interior and Local Government (DILG), and the Department of Agriculture.

The DA said the move aims to lower operating costs and encourage greater investments in post-harvest infrastructure.

The memorandum, signed by DA chief Francisco Tiu Laurel Jr. and DILG Secretary Jonvic Remulla, highlights the government’s commitment to fully implement Sagip Saka Act.

Section 12(b) of Sagip Saka Act exempts owners of qualified farms structures, buildings and warehouses used for storing farm inputs and outputs, from paying real property tax provided the assessed value of the property does not exceed P3 million.

The signing advances Executive Order 101 issued in 2025, mandating the full implementation of Sagip Saka Act, and strengthening coordination among agencies in delivering the law’s benefits to farmers, fisherfolk, cooperatives, associations and agricultural enterprises.

The memorandum lays down the requirement, procedures and responsibilities of national and local government units in granting tax exemptions to qualified beneficiaries.