TRINKLED

Nograles mulls E-VAT removal on farm inputs

Despite a proposed increase in governments agricultural spending for 2009, the House of Representatives may consider adjusting the executive departments projections on funding sources of the proposed P1.415 trillion national budget for 2009 to give way to proposals that would remove the expanded value added tax on farm inputs, the Speaker said on Friday.

Speaker Prospero Nograles said, in a statement, that while the proposed national spending budget showed a huge increase in funding for the agriculture sector, particularly on its FIELDS program , the removal of the EVAT on certain farm inputs might still be necessary to increase the country's food production.

Based on the initial findings of the House Committee on Agriculture chaired by Palawan congressman Baham Mitra which is conducting regional consultations nationwide, one of the biggest problems confronting our farmers is the high cost of fertilizers and other farm inputs, aside from the severe shortage in post-harvest facilities, he explained.

Nograles said that he assigned Mitras committee to find out if the P70.3 billion proposed appropriation for the agriculture and agrarian sectors, is really enough to support the Agriculture and Fisheries Modernization Act which is besieged with funding problems.

The P70.3 billion proposed appropriation for the agriculture and agrarian sectors represent a 63.5% increase in funding, from its 2008 level of P27.3 billion.

Indeed this is a huge increase in funding for our agriculture sector but the lifting of the EVAT on farm inputs might be a more direct approach to help our farmers. Since we have already given up any prospect of having a balanced budget for 2009, we might as well absorb some damage in terms of EVAT revenues and go all-out to help our farmers, Nograles said.

Nograles said that Mitra's concern should prompt Congress to continue its comprehensive review of the country's fiscal policies to find ways to bring down food production cost and increase the viability of the agriculture sector.

Apart from education, we have to invest on our agriculture sector to achieve food security. Agriculture is one sector that the Philippines have so much potential. We may not be able to produce our own fuel but as long as we have enough food to feed our people, we can survive the economic challenges that confront even the world's leading economies, Nograles said.