An Act Modernizing Agriculture, Providing Funds From the Annual Value-Added Tax Collections, Amending for the Purpose the National Internal Revenue Code of 1997, as Amended
- Proposes to add a new Section in the NIRC entitled, “Disposition of Proceeds of Value-Added Tax”, setting aside 5% of total annual VAT collection as a fund for agriculture.
- The fund shall be managed by the Department of Agriculture in consultation with the Local Government Units. The expenditures and corresponding percentages are as follows:
- Twenty percent (20%) for construction, rehabilitation and restoration of communal irrigation systems;
- Ten percent (10%) for post-harvest facilities including mechanical and solar dryers and warehouses;
- Ten percent (10%) for seed and organic fertilizer subsidies;
- Twenty percent (20%) for farm-to-market roads in municipalities with significant agricultural activities;
- Ten percent (10%) for livestock dispersal program;
- Ten percent (10%) for training/capability building programs for agricultural extension workers and their clientele;
- Ten percent (10%) for microfinance lending programs to finance smallholder agriculture; and
- Ten percent (10%) for the establishment and maintenance of mariculture and aquaculture parks.
COMMENT : Off