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NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SEN
S.B. No. fift20
23 JSN 23 PI2H0
RLCElVhD BY.
Introduced by SENATOR IMEE R. MARCOS
AN ACT
PROVIDING IMMUNITY FROM ALL TAXES THE SALE OF FERTILIZERS AND 
PESTICIDES TO ALL FARMERS, WHETHER CORPORATE OR OTHERWISE,
AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Article II, Section 9 of the Constitution provides that the "State shall promote a 
just and dynamic social order that will ensure the prosperity and independence of the 
nation and free the people from poverty through policies that provide adequate social 
services, promote full employment, a rising standard of living, and an improved quality 
of life of all."
Article XII, Section 1 of the Constitution also states that the "goals of the national 
economy are a more equitable distribution of opportunities, income, and wealth; a 
sustained increase in the amount of goods and services produced by the nation for the 
benefit of the people; and an expanding productivity as the key to raising the quality 
of life for all, especially the underprivileged."
The Philippines is considered an agricultural country where about 11 million of 
its population depend on it for livelihood. Statistics show that the country is the 8th 
largest producer of rice in the world. Ironically, it is also the world's largest importer of 
rice with 2.9 metric tons of rice that was imported during the year 2021. Our country 
heavily relies on the importation of rice from Thailand and Vietnam to augment our 
produce to feed the burgeoning population. The United States Department of 
Agriculture estimated that the Philippines' rice importation volume for 2022 and 2023 
will reach 3.1 metric tons. Thus, a disruption of production of rice in these countries, a 
thinly traded commodity in the world, would spell a serious threat to our food security.
While every administration's priority road map includes food security, the target 
to attain self-sufficiency in the production of rice remains elusive. Scientific studies 
show that fertilizers and pesticides play significant role in boosting up crops' yield and


have been widely used in the country. Unfortunately, prices of these products continue 
to increase while prices of farm produce, especially on rice, are spiraling down. Thus, 
farmers are compelled to apply lesser amount of fertilizer or pesticide than 
recommended which results in much lesser production.
This bill seeks to grant the sale of fertilizers and pesticides immunity from all 
taxes. This measure will certainly uplift the lives of our farmers, enhance the 
competitiveness of the agricultural sector in the domestic and foreign markets and 
maximize productivity.
Thus, the passage of this bill is earnestly sought.
EE R. MARCOS


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NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
23 JAN 23 R2:00
RtCEIVED «Y.
S.B. No. 1720
Introduced by SENATOR IMEE R. MARCOS
AN ACT
PROVIDING IMMUNITY FROM ALL TAXES THE SALE OF FERTILIZERS AND 
PESTICIDES TO ALL FARMERS, WHETHER CORPORATE OR OTHERWISE,
AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:
SECTION 1. Short Title. - This Act shall be known as the "Fertilizer and Pesticide 
Tax Immunity Act".
SEC. 2. Declaration of Policy. — It is the declared policy of the State to recognize 
the indispensable role of the agricultural sector for national growth and development. 
As such, the State shall continue to provide enabling mechanisms to lower the cost of 
production in the agricultural sector, thereby increasing the income of farmers, 
enhancing the competitiveness of the sector in both domestic and foreign markets and 
maximizing productivity.
SEC. 3. Immunity from Taxes. - The sale of fertilizers and pesticides shall be 
exempt from the payment of local taxes and the importation thereof shall be exempt 
from the imposition of value-added tax and customs duties. The sale of fertilizers and 
pesticides to farmers, which includes crop producers, poultry and hog raisers and all 
other entities engaged in farming, whether corporate or otherwise, shall likewise enjoy 
zero-rating for value-added tax purposes.
SEC. 4. Exemption from Donor's Tax. - Donations made in favor of local 
manufacturers of fertilizers and pesticides that are actually, directly and exclusively used 
for the production of said products shall be exempt from donor's tax. In the case of 
foreign donations, the importation of the property donated shall likewise be exempt 
from value-added taxes and customs duties.


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SEC. 5. Implementing Rules and Regulations. - Within six (6) months from the 
effectivity of this Act, the Department of Agriculture, the Bureau of Internal Revenue 
and the Bureau of Customs shall jointly formulate the necessary rules and regulations 
for the effective implementation of this Act.
SEC. 6. Repealing Clause. - All laws, presidential decrees, letters of instructions, 
executive orders, rules and regulations insofar as they are inconsistent with this Act, 
are hereby repeated or amended as the case maybe.
SEC. 7. Effectivity Clause. - This Act shall take effect after its complete 
publication in at least three (3) newspapers of general circulation.
Approved,