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Supreme Court says NFA properties exempt from real property tax

Article (news)

Adrian Ayalin

ABS-CBN News

MANILA — The Supreme Court has declared that the National Food Authority (NFA) is a government instrumentality whose properties are exempt from real property tax.In a decision of the en banc dated May 21, 2024, the high court nullified the notices of delinquency issued by the City Treasurer of Tagum City, Davao del Norte against the NFA worth P2 million in real property taxes.The court noted its decision in MIAA vs. Court of Appeals which also declared that the NFA, as a government instrumentality, is exempt from real property tax.“As in MIAA, we see no compelling reason or sound policy to allow the Tagum City Government to tax the NFA, a government instrumentality which oversees the acquisition, maintenance, and distribution of rice buffer stock, maintaining an optimal level of national rice inventory to be sourced solely from local farmers and to distribute rice during emergency/calamity situations and sustain the disaster relief program of the government during natural or man-made calamities, an essential public service,” the court said in the decision penned by Associate Justice Amy Lazaro-Javier.The Supreme Court also stressed that while under the supervision and control of the Department of Agriculture, the NFA is not integrated within the department framework, and is thus operationally autonomous.The SC noted that the NFA oversees the acquisition, maintenance, and distribution of rice buffer stock, maintaining an optimal level of national rice inventory to be sourced solely from local farmers for emergency situations and to sustain the government’s disaster relief programs.“More, given the mandate and purpose of NFA, its status as a government instrumentality, its properties are thus properties of public dominion intended for public use or service,” the court said.

The Supreme Court has declared that the National Food Authority (NFA) is a government instrumentality whose properties are exempt from real property tax.

The Supreme Court has declared that the National Food Authority (NFA) is a government instrumentality whose properties are exempt from real property tax.