SC asked to stop perks granted to Thai food firm

MANILA, Philippines - The Supreme Court (SC) has been asked to stop the government from granting tax incentive to a Thai food company.

Last year, the Board of Investments (BOI) issued resolutions granting Charoen Pokphand a pioneer status qualified for a six-year income tax holiday.

The petitioners are National Federation of Hog Farmers Inc. (NFHFI), Pork Producers Federation of the Philippines (ProPork), Sorosoro Ibaba Development Cooperative (SIDC), Association of Philippine Aqua Feeds Millers Inc. (APAFMI), and Abono, Agham and Agap party-list groups.

They invoked the government’s constitutional duty to protect the agricultural industry and local enterprises from foreign monopolies and unfair competition.

“The grant of incentives will cripple the domestic agriculture industry,” read the petition.

“Respondent Charoen’s investment is expected to annihilate the domestic backyard, small and medium growers.

“Furthermore, it is estimated that around seven million jobs will be lost or affected in the agriculture industry.”

Petitioners said the BOI decision violated Executive Order 226, the Omnibus Investments Act for failure to comply with the requirement of consultation with concerned agencies.

The Constitution provides for the promotion of industrialization and full employment based on sound agricultural development, they added.

The petitioners said the BOI did not accord them their constitutional right to due process in their bid to oppose Charoen’s application.

The BOI refused to furnish them copies of the resolutions, preventing them from filing appeal with the Office of the President, they added.