SIXTEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez’
Representative Maximo B. Rodriguez, Jr.

House Bill No. 2227
EXPLANATORY NOTE

This bill seeks to exempt from real property tax the trees and improvements on
lands covered by Certificates of Stewardship Contracts under the Integrated Social
Forestry Program of the Department of Environment and Natural Resources.

The last two decades saw the alarming degradation and loss of the country's
natural resources. The escalation of kaingin farming and illegal logging activities has
prompted the government to come up with innovative programs to arrest the deforestation
problem. One such program is the Integrated Social Forestry Program (ISFP) of the
Department of Environment and Natural Resources (DENR). The ISFP is a people-
oriented program designed to improve the socio-economic conditions of upland farmers
and communities who depend on forestlands for their livelihood, enhance ecological
stability, and maximize upland productivity. Since its inception, the farmer-grantees have
already developed several hectares of forestlands. Assisted by the national and local
governments as well as lending institutions, the income levels of the grantees have
increased, their dwellings improved, and literacy rates enhanced. It has been noted,
however, that based on the provisions of the Local Government Code of 1991 and prior
legislative issuances, real property owned by the Republic of the Philippines or any of its
Political subdivisions, the beneficial use of which has been granted, for consideration or
otherwise, to a taxable person, is subject to real property tax. Hence, lands covered by
Certification of Stewardship Contracts (CSC) under the ISFP, including the trees and
improvements thereon, are subject to real property tax.

Itis emphasized however, that the ISFP was implemented to democratize the use
of public lands, promote a more equitable distribution of forest bounty under the
stewardship principle, reduce poverty, promote social justice and protect the environment.
In this regard, it is proposed that trees and other improvements on lands covered by the
ISFP be exempted from the real property tax imposed under the Local Government Code
of 1991. While the proposal could reduce the revenue of local government units from this
source, itis believed that the same may not have an adverse impact on local government
finance since the lands would still be subject to the basic and additional real property tax
under the Code.

In view of the foregoing, approval of the bill is eamestly requested

MAXIMO B. RODRIGUEZ, JR.


SIXTEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES )
First Regular Session

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and

House Bill No. 8287

AN ACT
EXEMPTING FROM REAL PROPERTY TAX THE TREES AND OTHER
IMPROVEMENTS ON LANDS COVERED BY CERTIFICATES OF STEWARDSHIP
CONTRACTS UNDER THE INTERGRATED SOCIAL FORESTRY PROGRAM

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. - Trees and other improvements on lands covered by Certificates of
Stewardship Contracts under the Integrated Social Forestry Program of the Department
of Environment and Natural Resources (DENR) shall be exempt from the real property
tax under Section 232 of the Local Government Code of 1991

SEC. 2. Rules and Regulations. - The Department of Finance, in consultation
with the Department of Environment and Natural Resources, shall promulgate the rules
and regulations as may be necessary to implement the provisions of this Act.

SEC. 3. Repealing Clause. - All laws, decrees, orders, rules and regulations and
other issuances or parts thereof which are inconsistent with this Act are hereby repealed,
modified or amended accordingly.

SEC. 4. Effectivity. - This Act shall take effect fifteen (15) days after the
completion of its publication in the Official Gazette or in at least two (2) newspapers of
general circulation.

Approved,