The House Committee on Ways and Means will conduct a motu proprio investigation on the basis of the 6-centavo fee being collected by the Philippine Coconut Authority on coconut products and by-products.
In a recent hearing presided by Rep. Reynaldo Umali (2nd dist.) Oriental Mindoro), a committee vice chairman, panel members batted for the inquiry to determine the legality of the 6-centavo fee.
The issue on the 6-centavo collection cropped up during discussions on the tax provisions of bills seeking to revitalize the coconut industry. Rep. Rufus Rodriguez (2nd dist.) Cagayan de Oro City) asked PCA administrator Euclides Forbes if the agency is still collecting coconut levy.
Forbes said the PCA no longer collects coconut levy but the agency collects 6 centavos per kilo of processed copra from millers. He said the collection is used by PCA to augment its annual budget from the government.
According to PCA deputy administrator Arturo Liquete, the 6-centavo PCA fee is assessed and collected on purchases and deliveries of copra or husk nuts, or fresh coconut, matured nuts which are being bought by oil millers, exporters and other end-users. “The fee is not collected from farmers. It is collected from the processors and manufacturers of coconut products.”
