Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH (19th) CONGRESS 
First Regular Session 
House Bill No. __________ 
Introduced by: Rep Olga “Ara” T. Kho and Rep. Ricardo T. Kho 
EXPLANATORY NOTE 
The production of rice, corn and sugar in the Philippines has been a constant mainstay 
in the agricultural configuration of our country. However, the increasing cost of fertilizers to 
sustain it has become a cause of alarm to our farmers. Data from the Fertilizer and Pesticide 
Authority (FPA) that fertilizer prices as June 10, 2022, the average price is Php 2,943.63. This 
persistent rise of fertilizer prices is an added cost of the production, which is the problem of our 
farmers now. 
. 
While the country’s agriculture sector posted a flat growth during the first quarter of the year (Q1 
2022), the volume of production of palay and corn has slightly increased. 
Based on standing crop as of February 1, 2022, the Philippine Statistics Authority (PSA) 
said palay production for Q1 2022 may increase to 4.64 million metric tons (MMT), 0.2 percent 
(%) more than the harvest in Q1 2021. 
Likewise, PSA said the estimated corn production may increase to 2.46 MMT, 0.7% 
higher than the yield in Q1 2021. 
With this information, in order to maintain the local supply of our crops and to encourage 
our home grown farmers to continue their production, it is essential that we introduce a 
beneficial approach to address this particular concern, such as exempting from taxes collection 
the fertilizers and pesticides commonly used by our famers. 
The passage of this bill will not only alleviate the plight of our farmers but will surely 
contribute to their increased income and added subsidies.  
In view of the foregoing, the approval of this bill is earnestly sought. 
 REP. OLGA “Ara” T. KHO 
REP. RICARDO T. KHO 
      2nd District, Masbate 
 
 1st District, Masbate 
July 7, 2022
1:44 pm
1572


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH (19th) CONGRESS 
First Regular Session 
House Bill No. __________ 
Introduced by: Rep Olga “Ara” T. Kho and Rep. Ricardo T. Kho 
AN ACT  
EXEMPTING FROM TAXES THE FERTILIZERS AND PESTICIDES USED IN 
RICE, CORN AND SUGAR PRODUCTION 
Be it enacted by the Senate and the House of Representatives of the Philippines in the Congress 
assembled:  
SECTION 1. Short Title. - This Act shall be known as the “Farm Fertilizer & Pesticide 
Tax Exemption Act” of the Philippines.  
SECTION 2. Declaration of Policy. - It is hereby declared as the policy and 
principles of the State to recognize the indispensible role of the agricultural sector for 
national growth and development. As such, the State shall foster an enabling 
environment for rice farms, corn fields and sugar plantations, and provide effective 
assistance to enable them to a reasonable profit and increase and encourage local 
rice production.  
SECTION 3. Tax Exemption. - All fertilizers and pesticides used in rice, corn and sugar 
production are hereby exempt from all taxes.  
SECTION  4.   Separability  Clause.  
-  If  any  of  this  Act  is  held  invalid  or 
unconstitutional,  the  same  shall  not  affect  the  validity  and  effectivity  of  other provisions 
thereof.  
SECTION 5. Repealing Clause. - All laws, decrees, executive order, and rules and regulations 
contrary to or inconsistent with the provisions of this Act are hereby repealed or modified 
accordingly.  
SECTION 6. Effectivity. - This act shall take effect fifteen (15) days from the date of 
its publication in the Official Gazette or in at least two (2) newspapers of general 
circulation.  
Approved, 
1572