National Dairy Authority to get tax exemption

The National Dairy Authority may soon be exempted from paying the real estate taxes that may be imposed by the province.

This as the proposed ordinance exempting the NDA from the provincial real estate taxes authored by Provincial Board member Victor Maambong is set for approval on second reading in today's regular session.

Section 192 of the Local Government Code provides that "local government units may, through ordinances duly approved, grant tax exemptions, incentives or relief under such terms conditions as they may seem necessary."

Maambong said the provision is designed to enable local governments to attract business activities to their areas as well as create more economic activities in the countryside.

"The law forgot to exempt it and its real properties from local taxes when actually it used to benefit local government units," Maambong said.

NDA is a national government agency created under Republic Act 7884, and attached to the Department of Agriculture. Its primary role is to strengthen the country's dairy industry by providing alternative livelihood to farmers to generate employment in the rural areas.

Maambong said Cebu has benefited by the NDA programs, which allowed agricultural towns and cities, specifically Consolacion, Liloan, Compostela and Danao City, to be sufficient in milk production.

The NDA programs have also significantly aided the schools since the milk produced by the dairy farmers is also sold to the day care centers and elementary schools in Metro Cebu.

Maambong said the proposed tax exemption on real estate for NDA is in recognition of the gains that it attained.

Once approved, the ordinance mandates that the NDA's tax exemption will have retroactive effect starting 2006. - Gregg M. Rubio