Thursday, September 01, 2005
Agri, fishery products exempted from VAT
AGRICULTURE Assistant Secretary Salvador S. Salacup said agricultural and fishery products remains to be exempted from Value Added Tax (VAT).
Salacup, together with Finance Secretary Margarito Teves, Trade and Industry Peter Favila, and senior officials of the energy department, bureau of internal revenue and other concerned government agencies made their on presentations on the Reformed Value-Added Tax (RVAT) during the nationwide launching of RVAT Law Domestic Roadshow on August 29 at the Davao City Convention Center.
In his presentation, Salacup said agricultural and marine products include; vegetables, meat, fish, fruits, egg and rice, these are exempted from VAT. Even if they have undergone simple processes of preparation and preservation like freezing, drying, salting, boiling, roasting, smoking, or stripping, they continue to be tax exempt.
Inputs such as fertilizer and pesticides are exempted under Republic Act 7716 Planting materials are also VAT exempt.
VAT on fuel and oil will affect transport and logistics of agricultural and fishery inputs (inbound logistics) and products (outbound logistics). VAT will affect products, which will undergo major processing such as corn for feeds.
Even if transport and trucking service providers will pass on to the users the effect of 10% VAT, this will yield to: almost negligible impact to cost of production approximately 0.15 to 9.30%; and on the average less than 1% impact to retail cost of basic commodities.
Salacup also bared that the agriculture department is vigorously implementing various projects and programs that includes the May Gulay project; Huwarang Palengke; Tipid Abono program; and Agri-Kalikasan (composting) project.
Under the "May Gulay project," DA provides a direct link for vegetable-farmer to a processor who will buy the produce at a competitive price, thus minimizing involvement of traders, which tend to buy vegetables at low prices.
"Huwarang Palengke" recognize market which practice supply chain integration resulting in affordable prices for basic commodities.
"Tipid Abono" program provides discount coupons of P500 per hectare per season to hybrid rice farmers.
On the other hand a Task Force on Price and Volume Watch will closely monitor prices and supplies of livestock, poultry, meat and meat products together with stakeholders. (PIA/RPalacio)
For Bisaya stories from Davao. Click here. (September 1, 2005 issue)
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