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Local hog groups urge Aquino: Strip Thai firm of tax perks



DAGUPAN CITY–With the government’s endorsement of the Charoen Pokphand Foods’ (CP Foods) plan to establish a P2.32-billion integrated production project in the country, complete with tax holidays and incentives, local players expressed fear that the Thai company would soon control the agricultural sector in the Philippines.

Rosendo So, director of the Swine Development Council, said CP Foods is already operating P7.14 billion worth of agribusiness projects in the country, such as animal and fish feed mills, and swine parent stock production farms in Central Luzon.

“Aside from the newly approved P2.32-billion project, there is a document indicating that it is requesting for inspection for importation of dressed chicken. With these projects, it is not farfetched that the agricultural sector, including vegetable production, would soon be controlled by a foreign company,” said So, also chair of the party-list group Abono.

He sought President Aquino’s help, saying since CP Foods is not bringing a “pioneering industry” in the country, the President should rescind the tax incentives given to the Thai agricultural giant.

The Board of Investments (BOI) granted a six-year tax holiday to CP Foods and a 30-percent tax incentive on importation of corn and other raw materials.

“Granting of tax holiday and tax incentives to a foreign company, which has been operating in the country for years, is not only detrimental to the local commercial players but will serve as a knockout punch to the livelihood of backyard and small and medium commercial raisers,” So said.

He lamented how CP Foods’ integrated production project was granted tax incentives by the BOI without consultation with the Department of Agriculture (DA) and local industry players.

“During the past administration, the DA was never bypassed when it comes to projects. In turn, agriculture officials consult local industry stakeholders. But now, the BOI allowed a foreign company to establish a project without any consultation,” he said.

So said local players were surprised when the BOI approved the CP Foods project because the DA rejected its application three years ago.

“Former Agriculture Secretary Arthur Yap denied the application of CP Foods. Now, Agriculture Secretary Proceso Alcala said he was not even informed by the BOI about the project, which was granted enormous tax incentives. Local industry players were not also consulted in this decision that would make backyard hog producers and local feed producers [its] first casualties,” So said.

He appealed to Aquino to protect the interests of local hog and poultry growers, farmers and feed manufacturers.

“We are hoping that President Aquino will take to heart the interest of local farmers and growers, in particular, and the country’s food security, in general, and immediately rescind the decision of the BOI to grant tax perks to CP Foods,” he said.

Earlier, lawmakers led by Batangas Rep. Mark Llandro Mendoza, chair of the House committee on agriculture and food, and Butil Rep. Agapito Guanlao, chair of the House committee on food security, asked the BOI to suspend the grant of tax incentives to CP Foods. Yolanda Sotelo, Inquirer Northern Luzon


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Tags: hog industry , News , Regions


  • go88

    So, director of the Swine  Council … look at who’s talking  … an intsik complaining of a foreign company taking control taking control of the agricultural sector of the Philippines :). How ironical. Of course foreign players are bad for the intsiks because they are more efficient and don’t rely on bribing and price manipulation to conduct business.

  • Garo Ungaro

    tax incentives is one way to encourage foreign business to do business in the country to augment the much needed  products at the same help the local market of product supply if the local producers can’t meet the needed products then this group will help…stabilizing the market needs..tax incentives is one way for them to recover on their investment…

  • joboni96

    ang pinaka mabuti

    protect and promote small pilipino hog raisers against

    1. intsik switik businessmen like so who control the hog industry
    2. the big intsik switik from thailand

    by
    1. equipping them to sell their products as pork
    2. government source of good hog genetics
    3. equipping pilipino corn farmers selling their product
    as feedstuff direct to pilipino hog raisers
    4. commercially viable government established hog health system
    5. accessible land bank loans

    etc

  • http://pulse.yahoo.com/_3TWVIBNBHJIBKXLUC5IT2JYM5E Harry

    The granting of tax incentives is based on the status of the projects and not on the history of the company. 

    The pioneering status probably is based on the advanced technology in hog-raising and processing of meat products compared to the obsolete and inefficient back-yard system of hog-raising that will never be able to cope with the growing demands of the domestic market.

  • Albert Einstien

    FOOD security & its allied industry ( feeds, vits, medicine ) should be handled by FILIPINOs…otherwise we are very  VULNERABLE… with the advent of technology & bioscience..our people can get very SICK anytime a virus or bacteria or lead or other harmful chemicals will be introduced in our food cycle….the HOG GROUPS should question & pray for revocation of license to operate of the THAI firm on the grounds of national interest, public health, public safety & public order. to the SC……PNOY will not listen to you…it SEEMS a KKK is INVOLVED….so dont waste your effort in vain…. go to SC now!

    you may use these constitutional provision to ANCHOR your position;

    1987 constitution state principles & policies..

    Section 4. The prime duty of the Government is to serve and protect the people. .

    Section 5. The maintenance of peace and order, the protection of life, liberty, and property, and promotion of the general welfare are essential for the enjoyment by all the people of the blessings of democracy.

    Section 18. The State affirms labor as a primary social economic force. It shall protect the rights of workers and promote their welfare.

    Section 19. The State shall develop a self-reliant and independent national economy effectively controlled by Filipinos.

    ARTICLE XII
    NATIONAL ECONOMY AND PATRIMONY

    Section 1. The goals of the national economy are a more equitable distribution of opportunities, income, and wealth; a sustained increase in the amount of goods and services produced by the nation for the benefit of the people; and an expanding productivity as the key to raising the quality of life for all, especially the underprivileged.

    Section 10. The Congress shall, upon recommendation of the economic and planning agency, when the national interest dictates, reserve to citizens of the Philippines or to corporations or associations at least sixty per centum of whose capital is owned by such citizens, or such higher percentage as Congress may prescribe, certain areas of investments. The Congress shall enact measures that will encourage the formation and operation of enterprises whose capital is wholly owned by Filipinos.

    In the grant of rights, privileges, and concessions covering the national economy and patrimony, the State shall give preference to qualified Filipinos.

    The State shall regulate and exercise authority over foreign investments within its national jurisdiction and in accordance with its national goals and priorities

    Section 17. In times of national emergency, when the public interest so requires, the State may, during the emergency and under reasonable terms prescribed by it, temporarily take over or direct the operation of any privately-owned public utility or business affected with public interest

    Section 19. The State shall regulate or prohibit monopolies when the public interest so requires. No combinations in restraint of trade or unfair competition shall be allowed.

    Section 22. Acts which circumvent or negate any of the provisions of this Article shall be considered inimical to the national interest and subject to criminal and civil sanctions, as may be provided by law.

    ARTICLE XIII
    SOCIAL JUSTICE AND HUMAN RIGHTS

    Section 1. The Congress shall give highest priority to the enactment of measures that protect and enhance the right of all the people to human dignity, reduce social, economic, and political inequalities, and remove cultural inequities by equitably diffusing wealth and political power for the common good.

    To this end, the State shall regulate the acquisition, ownership, use, and disposition of property and its increments.

    Section 2. The promotion of social justice shall include the commitment to create economic opportunities based on freedom of initiative and self-reliance.

    LABOR

    Section 3. The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment opportunities for all.

    Section 5. The State shall recognize the right of farmers, farmworkers, and landowners, as well as cooperatives, and other independent farmers’ organizations to participate in the planning, organization, and management of the program, and shall provide support to agriculture through appropriate technology and research, and adequate financial, production, marketing, and other support services.

    Section 16. The right of the people and their organizations to effective and reasonable participation at all levels of social, political, and economic decision-making shall not be abridged. The State shall, by law, facilitate the establishment of adequate consultation mechanisms



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