Agri stakeholders unite vs. smuggling, Thai firm
ROSALES–Major stakeholders in the agricultural industry have come together to voice their common opposition against rampant smuggling of agricultural products into the country and the alleged unlawful grant of tax exemptions to a Thai food company.
Rosendo So, chairman of the Abono party-list representing agricultural concerns, said various groups signed and submitted a resolution to Agriculture Secretary Proceso Alcala.
“This is the first time in 20 years that a big group came together to denounce the unabated smuggling of meat and other agricultural products, as well as the tax perks extended to Thai firm Charoen Pokphand (CP),” said So, who is also director of the Swine Development Council (SDC).
The sector is hopeful that President Aquino will immediately act on the twin problems, which So said threatens to kill the businesses of local agricultural players, especially the small backyard growers.
The resolution said the tax breaks extended by the Board of Investments to CP will “kill the swine, livestock, aquaculture, and other allied industries in the Philippines.”
The BOI gave the Thai firm a pioneering status, which allows the foreign company to enjoy a six-year tax holiday along with incentives for the importation of corn and other raw feed materials.
“The BOI move favoring Charoen Pokphand undermines our national sovereignty and food security. It will also result in the loss of employment for millions of Filipinos as the agricultural sector employs 33 percent of the entire Philippine labor force,” the resolution stated.
NO CONSULTATION
Alcala himself earlier admitted he was not consulted by the BOI on the decision to grant tax breaks to CP.
He said that even without the entry of a foreign firm “food self-sufficiency program is still attainable.”
Alcala added that any incentive granted to the foreign firm should be offset by similar incentives to local growers.
The House committees on agriculture and on food security earlier called on the BOI to suspend the implementation of the tax perks granted to CP while the matter is being investigated by Congress.
The resolution was adopted during the 6th Multi-Sectoral Agriculture Summit held at Club Filipino in Greenhils, San Juan last January 11. – Eva Visperas
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