HOUSE OF RPC SENTATIVES

RECESS
10 AUG 2016

DATE:

Republic of the Philippines
HOUSE OF REPRESENTATIVE:
Quezon City

SEVENTEENTH CONGRESS ~~
First Regular Session

2837

HOUSE BILL NO.

Introduced by REP. TEDDY BRAWNER BAGUILAT

AN ACT TO PROMOTE FARMER AND FISHERFOLK ENTERPRENEURSHIP AND
DEVELOPMENT TO BE KNOWN AS “SAGIP SAKA ACT OF 2016”

EXPLANATORY NOTE

Agriculture is the backbone of the Philippine economy. The agriculture sector
accounts for 11.3% of the country’s gross domestic product in 2014 and 32% of total
employment in 2012. About 67% of the population is directly or indirectly involved in the
sector. According to the National Statistical Coordination Board, farmers and fishermen,
however, are among the least paid workers in the Philippine economy with an average
daily wage and salary of P 184.53 and P. 199.32, respectively in 2014

This landmark legislation mandates national and local government agencies to
directly purchase agricultural and fishery products from accredited farmers’ and
fisherfolks’ cooperatives, which purchases shall be exempt from public bidding required
under Republic Act No. 9184 or “The Government Procurement Reform Act”. It grants
tax incentives and deductions to private entities or corporations that give donations or
gifts to and directly purchase agricultural and fishery products from accredited farmers’
and fisherfolks’ enterprises and/or cooperatives. It aims to improve the income of
farmers and fisherfolks through entrepreneurship and development.

Hence, the passage of this bill is earnestly sought.

TEDDY BRAWNER BAGUILAT
Jao Lone District


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILLNO.__2837

Introduced by REP. TEDDY BRAWNER BAGUILAT

AN ACT TO PROMOTE FARMER AND FISHERFOLK ENTERPRENEURSHIP AND
DEVELOPMENT TO BE KNOWN AS “SAGIP SAKA ACT OF 2016”

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

SECTION 1. Short Title. - This Act shall be known as the “Sagip Saka Act of
2016.”

SEC. 2. Declaration of Policy; Creation of Farmer and Fisherfolk
Entrepreneurship and Development Fund. - It is hereby declared to be the policy of
the government to contribute to the financial support for farmer and fisherfolk
entrepreneurship and development. For this purpose, there is hereby created a Farmer
and Fisherfolk Entrepreneurship Development Fund, to be derived from the General
Appropriations Act and the Internal Development Fund, to be derived from the General
Appropriations Act and Internal Revenue Allotment for barangays, municipalities or
cities, and provinces which shall be expended for farmer and fisherfolk entrepreneurship
and development by the Department of Agriculture in consultation with the Department
of Trade and Industry.

SEC. 3. Establishment of Local Councils for Agriculture and Fisheries
Enterprise Development.- Local councils for Agriculture and Fisheries Enterprise
Development shall be established in all levels of local government as well as the
regional level. Membership in the local councils shall be chosen from among the
responsible members of the community, including a representative from the agriculture
and fisheries sector, women sector, as well as representatives from government and
private agencies concerned with agriculture and fisheries. Membership in the regional
councils include a representative from the agriculture and fisheries sector, women

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sector, government such as the Department of Agriculture and Department of Trade
and Industry, and private agencies concerned with the agriculture and fisheries

SEC. 4. Function of Provincial, City or Municipal, Barangay Councils for
Agriculture and Fisheries Enterprise Development. — Provincial, city or municipal,
barangay councils shall apply with the Department of Agriculture through the Council for
Agriculture and Fisheries Enterprise Development at the regional level, for a share in
the fund.

SEC. 5. Financing and Sources of the Farmer and Fisherfolk Entrepreneurship
and Development Fund. - The Department of Agriculture will allocate the same
amount equivalent to one percent (1%) of the total budget in their General
Appropriations Act. Local government units (barangays, cities, municipalities, cities and
provinces), will also allocate one percent (1%) of their Internal Revenue Allotment for
the strengthening and implementation of the programs of the local councils.

SEC. 6. Expenditure of the Farmer and Fisherfolk Entrepreneurship and
Development Fund. - Expenditure of the share of the Department of Agriculture in the
Farmer and Fisherfolk Entrepreneurship and Development Fund shall follow a schedule
of priorities prepared by the Department of Agriculture in consultation with the
Department of Trade and Industry.

SEC. 7. Direct Purchase by National and Local Government Agencies;
Exemption from Public Bidding. - The national and local government agencies are
hereby mandated to directly purchase agricultural and fishery products from accredited
farmers and fisherfolks cooperatives and enterprises. Said purchases shall be exempt
from public bidding required under Republic Act No. 9184 or “The Government
Procurement Reform Act.”

SEC. 8. - Tax Incentives. - To encourage corporations to directly purchase
agricultural and fishery products from accredited farmers’ and fisherfolks’ cooperatives
and/or enterprises, the Department of Finance (DOF), Department of Agriculture (DA)
and the Department of Trade and Industry (DTI) shall provide tax incentives to the
purchasing corporations for said purchases including, but not limited to, exemption from
Value Added Tax (VAT) or a tax credit equivalent to one hundred percent (100%) of the
VAT that would have been paid by said corporation.


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SEC. 9. - Tax deduction for donations made by private entities to farmers and
fisherfolks enterprises/organizations.- Donations and gifts made by private entities in
favor of accredited farmers and fisherfolks enterprises/organizations may be claimed as

tax deductions from the gross taxable income of said entities.

SEC. 10. — Creation of an Inter-Agency Task Force. — In order to oversee the
proper implementation of this Act, an Inter-Agency Task Force in both national and
regional levels shall be created which shall be composed of representatives from the
following agencies and sectors: (1) Department of Agriculture (DA); (2) Department of
Trade and Industry (DTI); (3) Department of Trade and Industry (DTI); (4) Department of
Finance (DOF); (5) Cooperatives Development Authority (CDA) and (5) two (2)
representatives from the agriculture, food, restaurant and business sectors.

SEC. 11. - Implementing Rules and Regulations. — Within ninety (90) days from
the date of effectivity of this Act, the Department of Agriculture in consultation with the
Department of Trade and Industry, shall formulate the rules and regulations for the
proper implementation of this Act

SEC. 12. Separability Clause. — |f any provision of this Act is declared invalid or
unconstitutional, the other provisions not affected by such declaration shall remain in full

force and effect.

SEC. 13. Repealing Clause. ~ All laws, executive and administrative orders, rules
and regulations inconsistent with the foregoing provisions are hereby repealed or

modified accordingly

SEC. 14. Effectivity Clause. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in two (2) newspapers of general circulation.

Approved,