The House Committee on Ways and Means has approved measures aimed at institutionalizing the Philippine Cacao Development Program and establishing a comprehensive national initiative for the advancement of the coffee industry.
House Committee on Agriculture and Food member Keith Micah Tan of Quezon, sponsor of the bill, announced the approval of the measures last Tuesday.
Tan underscored the untapped potential of cacao and coffee in creating livelihood opportunities and enhancing global competitiveness. He said there is a need for legislation to elevate cacao’s status within Philippine agriculture.
The assistant Majority leader noted the importance of institutionalizing and strengthening current programs, integrating efforts between the government and the private sector to further propel the cacao industry’s development and promotion.
Key components of the bill include the adoption of the Philippine Cacao Industry Roadmap, which offers guidance for the optimal realization of targets to ensure a sustainable and globally competitive Philippine Cacao Industry. The bill also introduces the creation of the Philippine Cacao Industry Council, administratively attached to the Department of Agriculture, to lead in the promotion and development of a robust cacao industry.
Moreover, the bill establishes the Cacao Program Management Office, headed by an Executive Director, tasked with overseeing the implementation of the Philippine Cacao Industry Roadmap and recommending strategic programs, projects, and interventions for prioritized implementation. To support these efforts, the Department of Agriculture (DA) is directed to establish and maintain Cacao Centers of Excellence in major cacao-producing regions and areas suitable for cacao production.
It encourages local establishments, including chocolate shops, franchises, restaurants, and hotels, to serve and include in their menus locally grown, produced, sourced, and manufactured cacao or chocolate.
The bill also mandates local government units (LGUs) in areas suitable for cacao production to align their projects with the roadmap and provide counterpart funding and services to boost cacao production in their jurisdiction.
House Committee on Ways and Means Chair Joey Salceda has announced that the committee has recommended and endorsed an amendment to the tax provision of the bill.
The revised language now stipulates that “all grants, bequests, endowments, donations, and contributions made to the Philippine Cacao Industry Council for its actual, direct, and exclusive use in the development and promotion of the Philippine Cacao Industry shall be exempt from donor’s tax.
Additionally, such contributions shall be considered as allowable deductions from gross income for the purpose of computing the taxable income of the donor, following the provisions of the National Internal Revenue Code of 1997, as amended.”
Coffee program
In tandem with cacao, the committee also aims to empower the Philippine coffee industry through the establishment of a national program.
According to Tan, the bill adopts the Philippine Coffee Industry Roadmap, crafted in consultation with the coffee industry stakeholders and approved by the Secretaries of the DA and the Department of Trade and Industry.
He said the roadmap will serve as a guide for the coffee industry stakeholders for the optimal realization of the targets towards a sustainable and globally competitive Philippine coffee industry.
The bill establishes “coffee centers of excellence” in major coffee-producing regions and in areas suitable for coffee production.
“The establishment of centers in existing facilities of the Department of Agriculture and of state universities and colleges shall be prioritized,” said Tan.
To oversee the industry’s development, the bill creates the Philippine Coffee Council, administratively attached to the DA, with regional coffee councils established in coffee-producing regions.
The bill encourages LGUs to serve locally grown and locally produced coffee at public activities and events. It also urges local coffee shops, including franchises, restaurants, and hotels, to feature locally-grown, produced, and sourced Philippine coffee varieties.
Similar to the cacao initiative, the committee on ways and means proposed an amendment to the tax provision for the Philippine coffee industry.
The proposal states that “all grants, bequest, endowments, donations and contributions made to the Philippine Coffee Council for its actual, direct and exclusive use in developing and promoting the Philippine Coffee Industry shall be exempt from donor’s tax, and the same shall be considered as allowable deduction from gross income for the purposes of computing the taxable income of the donor in accordance with the provisions of the National Internal Revenue of 1997, as amended.”
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