A Technical Working Group of the House Committee on Agriculture and Food headed by Kabayan Party-list Representative Ron Salo held its second TWG meeting on the draft Substitute Bill seeking to revitalize the salt industry, create a comprehensive plan for its development, provide incentives to salt farmers and exporters, as well as provide funds therefor.
The bill substitutes for HBs 1976, 5537, 5676, 7236, 7313 and 7357, authored by Representatives Salo, Ramon Guico Jr., Wilbert Lee, Midy Cua, Gus Tambunting, and LRay Villafuerte Jr., respectively.
“The salt industry is inarguably a basic agricultural commodity.”
“To revitalize the salt industry, we should change our approach from regulatory to developmental as the salt industry is inarguably a basic agricultural commodity. We recognize the seemingly diverse interests and perspectives of various agencies,” Salo explained.
The TWG discussed the administrative jurisdiction of salt farms, the ease of doing business, salt as a basic agriculture commodity, identification of priority areas for salt production, requirements for the exportation of local salt, the possible grant of tax exemptions, iodization implementation, and funding, among others.
“One of the objectives of revitalizing the salt industry is to arrest the declining production of local salt, which is 11 percent produced locally and 89 percent imported.”
Bureau of Fisheries and Aquatic Resources (BFAR) Officer-in-Charge Atty. Demosthenes Escoto, one of the resource persons, said one of the objectives of revitalizing the salt industry is to arrest the declining production of local salt, which is 11 percent produced locally and 89 percent imported.
Escoto supported the inclusion in the bill of a provision on the reclassification of salt as an agricultural commodity rather than as a mineral, and the salt industry’s jurisdiction under the Department of Agriculture, specifically under the BFAR, as well as the issuance of sanitary import clearance for all imported salt.
Environment and Natural Resources Undersecretary Ignatius Rodriguez posed no objection to placing the salt commodity/ industry under BFAR jurisdiction.
Gerard Khonghun of PHILASIN supported the placement of the salt industry under DA-BFAR jurisdiction, citing that BFAR will be able to issue tenurial instruments for existing and proposed fishponds and salt production zones.
On the other hand, Department of Finance (DOF) Director Karla Espinosa expressed the DOF’s “reservations on any exemption (for the salt industry), no matter how small, because this may also result in leakages and (make) our tax administration overly complex.” She shared that in 2021, VAT collection from the salt industry amounted to P549 million.
Salo thanked the executive department for its support for the measure.
The legislator added that the bill is part of the priority legislative agenda of the administration and that the proposal of the executive department was consolidated by the Presidential Legislative Liaison Office (PLLO).
The lawmaker said that the TWG will come up with an updated version of the draft substitute bill based on the inputs of the resource persons, for discussion in the TWG’s next meeting.
