Implementing the Coconut Productivity Program

Case Overview and Summary

Summary of Executive Order No. 1064

Accelerated Coconut Productivity Program
- The Philippine Coconut Authority (PCA) is directed to formulate and implement an accelerated coconut hybrid planting and replanting program aimed at increasing farm productivity. (Section 1)
- The program shall involve approximately 30,000 hectares per annum and prioritize devastated areas in Visayas and Mindanao initially. (Section 1)
- The program shall be financed by collections from the basic export duty on coconut products and additional funding from general revenues. (Section 2)

Incentives for Private Sector Participation
- Financial assistance is granted to any person or entity engaging in a project for planting or replanting with high-yielding and precocious coconut planting materials. (Section 3)
- Project guidelines:
    - Prepared in accordance with the approved farm developmental plan. (Section 3.1)
    - Commit to full development, including 4-year maintenance and infrastructure. (Section 3.2)
    - Fully implemented within 7 years from plan approval. (Section 3.3)

Incentives and Benefits:
- Tax credits or duty rebates for export duties paid, equal to the amount invested in the project or program. (Section 4.1)
    - Tax credit certificates issued by the Ministry of Finance upon PCA certification.
    - Tax credits valid for 10 years and negotiable.
- Refund in lieu of tax credit, issued by the Ministry of Finance upon PCA certification. (Section 4.2)
    - Refund limited to the amount invested and within 4 years from planting or 7 years from eligibility.
- Import duty exemptions for machinery, equipment, and spare parts for the project. (Section 4.3)
- Exemption from donor's and donee's taxes for contributions to the program or project. (Section 4.4)
- Exemption from real property taxes for 10 years on lands, improvements, machinery, and equipment in the project. (Section 4.5)

Penalties and Repeals
- Failure to complete the project within the specified period results in forfeiture of incentives and benefits. (Section 5)
- Violations are punishable under Section 1, Article IV of Presidential Decree No. 1468, as amended. (Section 6)
- Inconsistent laws, orders, and regulations are repealed, amended, or modified accordingly, except those implementing Presidential Decree No. 1960 and Presidential Decree No. 1468, as amended. (Section 7)