DA wants say in grant of agri perks

MANILA, Philippines - Agriculture Secretary Proceso Alcala has asked the Board of Investments (BOI) to defer to the department before granting tax incentives to businesses engaged in agriculture. 

This, he said, will prevent another incident similar to the controversy stirred by the granting of tax incentives to Charoen Pokphand (CP) Foods Philippines Corp., a unit of Thailand-based Charoen Pokphand Group.

Local agribusiness groups, hog raisers in particular, raised a ruckus on the incentives granted to the company, saying its operations will strongly compete with  their operations.

CP Foods, which is engaged in agro-industrial and aquaculture business, have defended its position, saying it conformed to the requirements set by the Philippine government for the granting of tax incentives.

The BOI intends to complete the guidelines for the 2013 investment priorities plan. 

The draft guidelines stated that applications for registration of agribusiness projects must be accompanied by comment or opinion from the DA.

In an interview on the sidelines of a recently-held  agribusiness forum in Ateneo de Manila University, Alcala said he asked the BOI in writing to consult the DA before granting tax incentives to such projects. 

This  will prevent conflict in the department’s commitment to farmers and the BOI’s need to meet investment targets for the year.

“This should be done so that there will be no misunderstanding. There must be a consultation with the department if there will be new investments in the agriculture sector so we will not be placed in a difficult position,” said Alcala.

Alcala said he recently learned that the BOI is processing the application of an agribusiness firm engaged in chick production which was not properly consulted with the central office of the DA.

“A regional director gave a recommendation for the project but my office was not consulted,” said Alcala. “So I wrote to the DTI about this.”

“I’m very particular with the review of agriculture investments so that there will be no conflict. So I issued a memorandum to all regional offices that they cannot give a recommendation,” said Alcala.

The agriculture chief earlier said that he was not properly consulted by the BOI when it grated tax incentives to CP Foods.

He recognized, however, that it would reflect badly on the government if it were to revoke the incentives given to the firm.