The DILG and DA have rolled out real property tax exemptions for qualified farm storage facilities under the Sagip Saka Act, directing LGUs to exempt warehouses and structures worth up to P3 million to cut production costs, boost farmer and fisherfolk incomes, and strengthen rural livelihoods.
The Department of the Interior and Local Government (DILG) and the Department of Agriculture (DA) on Wednesday signed a Joint Memorandum Circular (JMC) implementing real property tax (RPT) exemptions for qualified agricultural storage facilities under Republic Act No. 11321, or the Sagip Saka Act, providing farmers and fisherfolk with additional support to reduce production costs and increase their incomes.
The JMC directs local government units (LGUs) to exempt from RPT structures, buildings, and warehouses used directly and exclusively for storing agricultural inputs and outputs, provided the property's assessed value does not exceed P3 million.
DILG Secretary Jonvic 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.”
To ensure the immediate implementation of the incentive, Remulla directed the prompt dissemination of the JMC to all LGUs, which are responsible for enforcing the policy.
Under the JMC, the DILG will provide policy guidance to LGUs to ensure the effective implementation of the tax exemptions and assist the DA in conducting nationwide orientation activities.
DA Secretary Francisco P. Tiu Laurel Jr. said the issuance of the guidelines ensures that the benefits of the Sagip Saka Act reach those who need them most.
“Today’s signing demonstrates a shared commitment to ensuring that the law delivers real value where it matters 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, called on LGUs to promptly update their local revenue codes, simplify application procedures, and actively inform qualified farmers, fisherfolk, and other beneficiaries about the incentive.
The signing was held at the DA Central Office in Quezon City and was led by Secretaries Remulla and Tiu Laurel, with DILG Undersecretary for Local Government Marlo L. Iringan and officials from both agencies serving as witnesses.
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 reaffirmed its commitment to working with LGUs to fully implement policies that strengthen the agricultural sector and improve the welfare of farming and fishing communities.
