Suspended Imposition on Small Farmers of 1% Percentage Tax on Sales of Agricultural Products
Letter of Instructions No. 753, issued on October 14, 1978, mandates the temporary suspension of a 1% tax on gross sales imposed on small farmers, as well as a minimum tax of P100, pending the definition of "marginal farmers." This decision follows reports that the tax was being enforced without a clear definition of who qualifies as a marginal farmer. The Ministry of Agriculture is tasked with developing this definition in consultation with the Ministries of Finance and the Bureau of Internal Revenue, with a deadline of 30 days for submission to the President. The goal is to exempt marginal farmers from the tax once the definition is approved.
Law Information
- Reference Number
- Letter of Instructions No. 753
- Date Enacted
- Category
- Presidential Issuances
- Subcategory
- Letters of Instructions
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
October 14, 1978
LETTER OF INSTRUCTIONS NO. 753
| TO | : | The Minister, Ministry of Finance |
| The Minister, Ministry of Agriculture | ||
| The Commissioner, Bureau of Internal Revenue |
Earlier, I had directed that marginal farmers be exempted from the 1% tax on gross sales, with a minimum of P100, which was levied under Presidential Decree No. 1358. I also directed the Ministry of Agriculture to give me recommendations on the definition of marginal farmers. cd i
It has been reported to me by the Batasang Pambansa Committee on Agriculture, however, that the 1% tax is already being enforced on all farmers even before the definition of marginal farmers has been arrived at so that this group may be exempted. cdt
Until the definition of a marginal farmer is drawn up and approved by me, I hereby direct the Minister of Finance and the Commissioner of the Bureau of Internal Revenue to temporarily suspend the imposition on small farmers of the 1% percentage tax under Section 198, on sales of agricultural products under Presidential Decree No. 1358, entitled "Further Amending Certain Sections of Title V of the National Internal Revenue Code, as Amended." Furthermore, the minimum tax of P100 also being implemented under this Section is also hereby temporarily suspended.
The Minister of Agriculture, in consultation with the Minister of Finance and the Commissioner of the Bureau of Internal Revenue, is hereby directed to submit within 30 days for Presidential approval the definition of a small marginal farmer for exemption from the said percentage tax.
October 14, 1978
Cite This Law
Suspended Imposition on Small Farmers of 1% Percentage Tax on Sales of Agricultural Products, Letter of Instructions No. 753, Oct 14, 1978 (Philippines)
Suspended Imposition on Small Farmers of 1% Percentage Tax on Sales of Agricultural Products, Letter of Instructions No. 753 (Phil. 1978)
Browse More Presidential Issuances
Explore other laws in the Presidential Issuances category.
View All Presidential IssuancesNeed Help Understanding This Law?
Ask our AI assistant to explain provisions, implications, or related laws.
Ask AI About This Law