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MANILA -- President Ferdinand Marcos Jr. has signed into law the Amendments to Agricultural Tariffication Act.

In a statement, the Presidential Communications Office said the law extends the implementation of the Rice Competitiveness Enhancement Fund (RCEF) to 2031, and expands its funding to P30 billion yearly.

It will give financial assistance to rice farmers tilling up to two hectares of land and provide expanded rice credit assistance.

The measures will fund programs for pest and disease management, soil health improvement, and farming support programs on contract farming.

The law will also help build composting facilities for biodegradable wastes and solar-powered irrigation systems, and boost programs that give more farmers access to high-quality seeds, increasing their yield.

It also places significant emphasis on reducing post-harvest losses, Marcos noted.

"By preventing up to 375,000 tons of milled rice from being wasted annually, we can help feed an additional 3.4 million Filipinos each year for the next six years," he said.

Marcos said the law empowers the Department of Agriculture to maintain stricter oversight of the rice industry, ensuring that the rice reaching our markets complied with quality standards and regulations. 

“In cases of sudden rice shortages or price hikes, the DA will now be empowered to take the necessary actions to stabilize the market. This will help ensure that the price of rice remains affordable and accessible to every Filipino,” he said.

In an interview, Agriculture Secretary Francisco Laurel Tiu said the new measure could increase local rice production and help bring down the market price of rice in the long run by as much as 10 percent.

“In the long run, it should be mas mapapababa ang presyo ng bigas dahil if we can produce more through iyong budgets na makukuha na dagdag at mas tumagal pa then it would be more efficient and we will be producing more per hectare. Sa ating bagong RTL or expanded RTL, makakasama na iyong soil rehabilitation, iyong additional irrigation na budget na yearly nakukuha. Ang main issue talaga is irrigation at mechanization,” he said.

But the agriculture chief admitted that the expected decrease in the price of rice due to the government’s additional investments in the rice sector would not happen immediately.

“It wil take time, because the additional investments will take years e para magkaroon ng effect. Siguro mga one or two years bago mag-effect. But definitely it should be kung ano iyong international price, medyo a bit lower. Depende iyan e, hindi ko mapangako nang basta-basta. But more or less, we can be assured na mas mababa in the future,” he said.

“At least 10 percent less kung ano man iyong prevailing ngayon. Definitely as long as we can produce more per hectare, it should lower the price a bit without affecting farmers income,” he continued.

VAT REFUND FOR FOREIGN TOURISTS

The President also signed into law the Value-Added Tax Refund for Non-Resident Tourists, which establishes VAT Refund System to stimulate more spending and promote the Philippines as a premier global shopping destination.

“Under this program, tourists can claim a refund on the VAT for goods personally purchased at accredited retail outlets, provided these goods are taken out of the country within 60 days and meet a minimum transaction requirement of P3,000,” Marcos Jr said.

The President expects the measure to contribute to an almost 30 percent increase in tourist spending, which will benefit both large-scale industries and micro, small, and medium enterprises.

“This initiative opens a new chapter in our tourism landscape, allowing the country to compete with other tourism markets that attract tourists who are eager to take home authentic, high-quality Filipino products,” he continued.

The President said he hoped that the new law would help put a spotlight on unique, handcrafted items from various parts of the country.

Tourism Secretary Cristina Frasco welcomed the signing of the law, which she said would benefit small and medium enterprises due to the increased spending of tourists.

“Inaasahan natin na mas dadami pa ang revenues ng bansa dahil sa VAT Refund Mechanism para sa ating mga turista. And what that means, is lalaki pa ang income ng small and medium enterprises at mas dadami ang trabaho para sa ating mga kababayan,” she said.

“We of course anticipate an increase in the number of tourists coming into the country, but most importantly, we anticipate an increase in tourist spending. Considering that this will elevate the value proposition of Philippine tourism, as we can now add an attractive shopping component to tourism in the country.”

She noted that the expected increase international tourism receipts would more than make up for whatever foregone revenues that the new measure would cause.

“Also it should be taken in the light of tourism employment, in that more tourist spending will mean more people employed in the tourism industry with businesses thriving because it becomes a very attractive tourism destination,” she said. 

“The pros far outweigh the cons.”

Source : msn