Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
18th Congress 
Third Regular Session 
HOUSE BILL NO. __________ 
Introduced by Hon. Michael B. Gorriceta 
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. It was 
revealed by Fertilizer and Pesticide Authority (FPA) monitoring that fertilizer prices 
breached the Php 2,000.00 mark for a 50-kilo bag in November 2021. This persistent 
rise of fertilizer prices amounts to an added cost of Php 7,378.00 per hectare of the 
production which needs three to seven bags of fertilizer. 1 
Furthermore, the updated estimate of corn production in 2021 has declined to 
-2.1%2, and although we see a steady increase in the prices of sugar from the years
2021 to 20223, it is foreseen that the rice, corn and sugar farmers will be greatly
affected by the fertilizer inflation.
In order to maintain the local supply of our staple 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. 
The passage of this bill will not only alleviate the plight of our farmers but will 
also contribute to their increased income and added subsidies. 
In view of the foregoing, the approval of this bill is earnestly sought. 
HON. MICHAEL B. GORRICETA 
Representative, 2nd District, Iloilo 
1Miraflor, M.B. (2021). Palay prices dip below production cost, many farmers no longer make money. 
 https://www.da.gov.ph/wp-content/uploads/2021/11/CLIPPINGS-FOR-NOVEMBER-23-2021.pdf 
2 Philippine Statistics Authority.  (2021). Updates on July- September 2021 Palay and Corn Estimates. 
https://psa.gov.ph/sites/default/files/Updates%20on%20July-
September%202021%20Palay%20and%20Corn%20Estimates.pdf 
3 Sugar Regulatory Administration (2022). Sugar supply and demand situation. 
http://www.sra.gov.ph/wp-content/uploads/2022/01/Sugar-Supply-Demand-January-2-2022.pdf 
January 17, 2022
1:22 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
18th Congress 
Third Regular Session 
HOUSE BILL NO. __________ 
Introduced by Hon. Michael B. Gorriceta 
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, 
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