Amendment on Tax Exemption for Agricultural Sales

Section 1 of Republic Act No. 969 amends Section 188 (first paragraph, Subparagraph (b)) of Commonwealth Act No. 466 (as amended).
Section 1 updates the rule on transactions and persons not subject to percentage tax.
The amended wording covers specific categories of goods and who must sell them.

Section 1 provides that agricultural products sold, bartered, or exchanged in the Philippines are not subject to percentage tax when sold by the producer or owner of the land where produced.
Section 1 provides that the ordinary salt is included when sold, bartered, or exchanged in the Philippines under the same producer/owner-of-the-land condition.
Section 1 provides that fish and its by-products are included when sold, bartered, or exchanged in the Philippines by the fisherman or fishing operator.
Section 1 expressly allows fish and by-products whether in their original state or not.

The tax exemption applies to sales, barter, or exchange in this country (within the Philippines).
The tax exemption for agricultural products and ordinary salt is tied to the seller’s status as the producer or owner of the land where produced.
The tax exemption for fish and by-products is tied to the seller’s status as the fisherman or fishing operator.
The exemption for fish and by-products applies whether in their original state or not, covering transformed or processed forms.