FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES —)
First Regular Session )

HOUSE OF REPRESENTATIVES

is61

House Bill No.

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

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

It is 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, it is believed that
the same may not have an adverse impact on local government finance since the
tands 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 earnestly requested.

RUFYS B. RODRIGUEZ

MAXIMO B. RODRIGUEZ, JR.


FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

1661

House Bill No.

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

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.