Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City, Metro Manila

FIFTEENTH CONGRESS
Third Regular Session

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House Bill No.

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“43 AUG 2012,
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Introduced by Honorable Erico B. Aumentado

EXPLANATORY NOTE

The devastating floods causing tremendous damage to lives and properties are due
partly to the denudation of our forest land, private properties, idle lands, and watershed
areas of the public domain

This slow reforestation of these lands is due to the lack of incentive by both the national
and local governments. It has been noted that the LGUs, in more cases than not, have
imposed high realty taxes on trees as improvement of the taxable land which
discouraged land owners to plant forestal or even fruit bearing trees thereon because
of exorbitant local taxation

The reforestation by the private sector of public lands, watershed and denuded forest
lands, is not moving fast enough for lack of incentives and government support.

It must be emphasized that trees are vital in the environmental ecosystem. The trees
can serve as flood controls, typhoon breakers, and in the case of mangroves, as tidal
buffers which mitigates the impact of tidal action in the shorelines. The trees also can
help preserve underground water, and ensure water to rivers, creeks and streams that
feeds into hydro power and irrigation facilities to irrigate ricelands and, in some cases,
provide potable water to the inhabitants.

As aptly said by internationally renowned Architect Felino Palafox, Jr., the trees are
elements to our environment and major components in flood controls as well as wind
and tidal breakers. They must be preserved which could only be done by providing the
planters with incentives as a seven-year tax free regime to allow them time to grow and
nourish their trees. In fact, taxes and fees should only be enforced by the government
when the trees are being harvested for commercial purposes.

Therefore, approval of this bill is earnestly requested

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
Third Regular Session

House Bill No.

Introduced by Honorable Erico B. Aumentado

AN ACT
PROVIDING FOR A SEVEN (7) — YEAR TAX FREE INCENTIVE FOR TREE
PLANTATION IN PRIVATE AND PUBLIC LANDS, AND FOR OTHER PURPOSES

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

Section 1. Short Title. This act shall be known as the “Tree Planting Seven-Year
Incentive Act of 2012".

Section 2. The trees planted in private and public lands are hereby declared free
from taxation or government fees within a period of seven (7) years to allow the planters
thereof time to care, nourish and maintain the growth of trees until they shall reach the
commercial value stage thereof.

Section 3. This incentive shall also cover trees planted in watershed areas to
accelerate the reforestation of denuded watershed which are needed to sustain the flow
of rivers, streams and creeks especially those supporting potable drinking water, hydro
electric power, and irrigation facilities

Section 4. All laws, presidential decrees, executive orders, rules and regulations
or parts thereof which are inconsistent herewith are hereby deemed repealed or
modified accordingly

Section 5. This Act shall take effect fifteen (15) days after its publication in at
least (2) national newspapers of general circulation.

Approved