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The Department of Agriculture and the Department of the Interior and Local Government issued uniform guidelines exempting qualified farm warehouses and storage facilities from real property taxes
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The circular implements Section 12(b) of the Sagip Saka Act, exempting qualified farm structures from annual property taxes if the assessed value is P3 million or less
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The signing advances Executive Order No. 101 (s. 2025), which directs full implementation of the Sagip Saka Act
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Beneficiaries include small farmers, fisherfolk, cooperatives, associations, and agricultural enterprises
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Local government units will work with the DA to ensure beneficiaries access the exemption
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The DA expects the measure to spur storage infrastructure investment, reduce post-harvest losses, and improve food sector competitiveness
The Department of Agriculture (DA) and the Department of the Interior and Local Government have issued uniform guidelines exempting qualified farm warehouses and storage facilities from real property taxes (RPT), operationalizing a key incentive under the Sagip Saka Act aimed at cutting post-harvest costs and drawing investment into agricultural infrastructure.
The circular gives effect to Section 12(b) of the Sagip Saka Act, which exempts qualified structures, buildings, and warehouses used for storing farm inputs and outputs from real property tax, subject to a ceiling assessed value of P3 million.
It also advances Executive Order No. 101, series of 2025, which directs the full rollout of the Sagip Saka Act and strengthens inter-agency coordination to deliver its benefits to farmers, fisherfolk, cooperatives, associations, and agricultural enterprises.
Agriculture secretary Francisco Tiu Laurel Jr. and Interior secretary Juanito Victor Remulla Jr. signed the Joint Memorandum Circular at a ceremony on July 1, 2026.
Tiu Laurel, in a statement, described the issuance as “an important step” as it finally establishes a clear and uniform framework for one of the law’s central incentives.
Annual taxes for all types of real estate properties are collected by local government units (LGUs).
The joint memo details the requirements, procedures, and responsibilities of national agencies and LGUs, providing eligible beneficiaries with clearer assurance when accessing the tax break.
Tiu Laurel said the benefit extends beyond tax relief as it is also intended as an incentive to attract more investments in storage infrastructure that strengthens the country’s agricultural supply chain.
READ: DA pushes cold storage expansion, agri logistics upgrades for food security
“Storage facilities are critical components of agricultural development. They help reduce post-harvest losses, preserve product quality, improve inventory management, and support more efficient marketing and distribution of agricultural products,” he said.
He added that tax savings for the farm sector could be redirected toward better inputs, modern storage systems, post-harvest equipment, technology adoption, and enterprise expansion — particularly for small farmers, fisherfolk, cooperatives, and agricultural enterprises.
This measure is introduced as producers face rising logistics and transportation costs, highlighting the importance of efficient storage to minimize waste and boost farm profitability.
Tiu Laurel said the policy’s success would ultimately hinge on effective implementation at the local level, urging LGUs to work closely with the DA to ensure qualified beneficiaries can readily access the incentive.
READ: DA orders registration of all logistics facilities handling agri goods
