Republic of the Philippines

House of Representatives
Batasan Hills, Quezon City

Eighteenth Congress
First Regular Session

HOUSE BILL NO. 5283

Introduced by: Representative Florencio Gabriel G. Noel

Section 2 of Republic Act No. 7607, otherwise known as “Magna Carta for Small
Farmers” provides that:

“It is the declared policy of the State to give the highest priority to the
development of agriculture such that equitable distribution of benefits
and opportunities is realized through the empowerment of small farmers.
While the State recognizes the fact that the welfare and development of
the small farmers is their primordial responsibility, the State shall
provide the necessary support mechanism towards the attainment of their
socioeconomic endeavors.”

The Philippine Rice Research Institute in its report entitled “Competitiveness of
Philippine Rice in Asia” states that the annual rice yield per hectare in Philippines
is at 9.52 tons, which is the second lowest in Asia. During the second quarter of
2019, the Philippine Statistics Authority (PSA) recorded a 5.82% decrease in
palay production, while in terms of crop production, a 5.70% drop was recorded.'
At current prices, the value of crops production amounted to P215.5 billion or
11.09 % lower this period compared to the first three months of 2019. From the
first quarter of the year until June, a 3.16% reduction in crops production was
recorded.”

' Performance of Philippine Agriculture, April-June 2019 accessed at: https://psa.gov. ph/ppa-main.


The unceasing decrease in the price of rice in the country has also been a
continuous problem for small scale Filipino farmers and farm owners. Currently,
the price of palay is at an all-time low. Due to this, small-scale Filipino farmers
are having difficulties in providing for their families. The plummeting price of
rice in the country continues to aggravate the miserable plight of Filipino farmers.
By exempting such farm owners from payment of property tax, their financial
burden resulting from the plummeting price of rice in the country will be
alleviated.

In view of the foregoing, the approval of this bill is earnestly sought.

D2

FLORENCIO GABRIEL G. NOEL
An Waray Party-list Representative


Republic of the Philippines

House of Representatives
Batasan Hills, Quezon City

Eighteenth Congress
First Regular Session

HOUSE BILL NO. cues

Introduced by: Representative Florencio Gabriel G. Noel

AN ACT AMENDING PRESIDENTIAL DECREE NO. 464 OTHERWISE
KNOWN AS “THE REAL PROPERTY TAX CODE” BY GRANTING
PROPERTY TAX EXEMPTION TO QUALIFIED AGRICULTURAL
LANDS FOR A PERIOD OF FIVE (5) YEARS

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

SECTION 1. — Section 40 of Presidential Decree No, 464, otherwise known as
the “The Real Property Tax Code” is hereby amended to ready as follows:

Section 40. Exemptions from Real Property Tax. The exemption shall be as
follows:

XXXX

(G) AGRICULTURAL LANDS THAT ARE NOT MORE THAN TWO.
(2) HECTARES IN SIZE AND HAVE BEEN IN CONTINOUS
OPERATION FOR AT LEAST FIVE (5) YEARS: PROVIDED THAT,
THIS EXEMPTION SHALL CEASE TO EXIST AFTER THE LAPSE
OF FIVE (5) YEARS FROM THE EFFECTIVITY OF THIS ACT.

XXXX


SECTION 2. Repealing Clause. — All laws, decrees, issuances, rules and
regulations inconsistent with the provisions of this Act are hereby repealed or
modified accordingly.

SECTION 3. Effectivity Clause. — This Act shall take effect fifteen (15) days
after its complete publication in at least two (2) newspapers of general circulation.

Approved,