Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS ENCISO VIII 
EXPLANATORY NOTE 
Organic and inorganic fertilizers aim to achieve the same thing - help plants grow at 
the rate and in the abundance required by the demand of man’s consumption. While 
both are used for the same purpose, chemical or inorganic fertilizers are primarily 
relied upon by the agriculture industry worldwide since they are in a form readily 
absorbed by plants, thus allowing an instantaneous boost of minerals and nutrients 
in the soil. Chemical fertilizers have greatly contributed to increased agricultural 
production; however, they do not add or maintain soil organic matter and their 
continued use can damage the soil1.  
In the long run, chemical fertilizers damage the soil. Additionally, leaching, the 
process by which fertilizers are washed by rain or irrigation below the level of plant 
roots, could lead to the contamination of nearby ecosystems. In fact, the Renmin 
University of China found out in its research that farms in China use 40% more than 
the needs of the plants resulting in about 10 million tons of fertilizer every year being 
discharged into surrounding rivers and lakes2. Unsurprisingly, agriculture is one of 
China’s largest sources of pollutants. 
The Philippines adopts the same agricultural practices, and suffers from it. 
Agriculture contributes directly to water nitrate pollution through fertilizer runoff 
because too much nitrogen fertilizer is applied to crop soils, and the excess that is 
not used by the plants pollutes groundwater, rivers, and coastal areas3. In fact, as far 
back as 1998, the Environment and Natural Accounting Resources Project (ENRAP) 
estimated that the agriculture industry pollutes Philippine waters by as much as 
1,892 kilograms of nitrogen per square kilometer per year, resulting in large algal 
blooms in vulnerable areas of the ocean. 
1 http://www.futuredirections.org.au/publication/management-soil-nutrients-chemical-fertilisers-not/ 
2 https://www.reuters.com/article/us-china-agriculture-fertiliser/china-needs-to-cut-use-of-chemical-fertilizers-research-
idUSTRE60D20T20100114
3 http://www.greenpeace.to/publications/gpsea_agrochemical-use-in-the-philip.pdf 
July 11, 2022
5:21 pm
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This bill recognizes that it is about time to abandon agricultural practices that are 
cheap, easy, and quick but are ultimately destructive of the soil and the Philippine 
waters. Hence, the State must extend its support to the use of organic fertilizers. 
The bill aims to ease the tax burden of all local manufacturers of organic fertilizers by 
mandating that they shall be exempt from the payment of all kinds of taxes or 
imposts whether local or national within a period of five years, provided that the 
exemption shall cover any equipment, material, components, supplies, used directly 
in the production and distribution of such product and the income derived from such 
activity. 
Additionally, local manufacturers shall enjoy preferential treatment from government-
owned or controlled banking or financial institutions in the processing of their loan 
applications with liberalized terms of payments and interest rates. 
It is never too late to do the right thing. In the move towards a more sustainable and 
productive agriculture industry, the State has to prioritize measures that encourage 
its farmers and manufacturers to do what is right – use and support organic 
fertilizers. 
In view of the foregoing premises, the swift passage of this bill is sought. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
 MIGUEL LUIS R. VILLAFUERTE  
TSUYOSHI ANTHONY G. HORIBATA 
 NICOLAS ENCISO VIII 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS ENCISO VIII 
AN ACT PROVIDING FOR INCENTIVES TO THE MANUFACTURING OF 
ORGANIC FERTILIZERS AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives in Congress 
assembled: 
SECTION 1. Declaration of Policy. It is the declared policy of the State that 
the use of organic materials especially in agriculture be encouraged and promoted in 
order to contribute to the preservation of the ecological balance. Therefore, the State 
shall extend the necessary incentives for the production and use of organic fertilizer. 
SECTION 2. All local manufacturers of organic fertilizers shall be exempt from 
the payment of all kinds of taxes or imposts whether local or national within a period 
of five years, provided that the exemption shall cover any equipment, material, 
components, supplies, used directly in the production and distribution of such 
product and the income derived from such activity. 
SECTION 3. In addition to the foregoing incentives, manufacturers of organic 
fertilizers shall be given preferential treatment by government-owned or controlled 
banking or financial institutions in the processing of loan applications, liberalized 
terms of payments and interest rates. 
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SECTION 4. All laws, decrees, orders, rules, and regulations, and other 
issuances or parts thereof related to the same subject matter are considered 
modified, amended, revised or supplemented by this Act. 
 
SECTION 5. This Act shall take effect after its publication once a week for two 
consecutive weeks in a newspaper of national circulation. 
 
Approved,