AN ACT TO STRENGTHEN AGRICULTURE AND FISHERIES MODERNIZATION IN THE PHILIPPINES BY EXTENDING THE EFFECTIVITY OF TAX INCENTIVES AND ITS MANDATED FUNDING SUPPORT

Case Overview and Summary

Summary of Republic Act No. 9281

Strengthening Agriculture and Fisheries Modernization in the Philippines

- Extension of Tax Incentives and Mandated Funding Support (Sections 109 and 112 of Republic Act No. 8435 amended)

• Tax Incentives (Section 1):
- Enterprises engaged in agriculture and fisheries are exempted from paying tariff and duties for importation of agriculture and fishery inputs, equipment, and machinery until 2015. (Section 109)
- Imported items must be for the exclusive use of the importing enterprise.
- Implementing rules and regulations to be formulated within 90 days by the Department of Agriculture, Department of Finance, and Board of Investment.

• Mandated Funding Support (Section 2):
- The Department of Budget and Management is mandated to annually include and release an amount not less than P17 billion until 2015 for the implementation of the Agriculture and Fisheries Modernization Act. (Section 112)
- The amount is in addition to the annual budget of the Department of Agriculture and not subject to mandatory reserves.
- The Department of Agriculture shall formulate, develop, and implement programs and services to improve the quality of life of farmers, fisherfolk, and their families.

• Additional Funding Sources:
- 20% of proceeds from securitization of government assets, including Subic, Clark, and other special economic zones. (Section 112)
- 50% of net earnings of the Public Estates Authority or its successor agency.
- Loans, grants, bequests, or donations from local or foreign sources.
- 40% of the TESDA Skills Development Fund.
- Net proceeds from privatization of Food Terminal Inc., Bureau of Animal Industry, Bureau of Plant Industry, and other assets identified by the DA Secretary.
- Proceeds from the Minimum Access Volume in accordance with Republic Act No. 8178.
- A portion of proceeds from countervailing, anti-dumping, and special safeguard duties collected from agricultural imports.
- 50% of the Support Facilities and Services Fund under Republic Act No. 6657.

• Effectivity:
- The Act shall take effect 15 days from the date of its publication in the Official Gazette or in at least two newspapers of general circulation, whichever comes earlier. (Section 3)