THE COURT of Tax Appeals (CTA) granted a petition by the National Food Authority (NFA) which questioned the real property taxes (RPT) imposed by the city assessor and city treasurer of Malolos, Bulacan.
The CTA First Division set aside the July 2020 decision of the Malolos Regional Trial Court Branch 14 and declared null and void the two notices of delinquency issued to the NFA in June 2019.
The Malolos City government notices involved PHP487,500 for the NFA's office building and warehouse in Barangay Tikay, covering fiscal years 2008 to 2019.
The CTA noted that the Local Government Code exempts the national government and its instruments from payment of RPT levied by local government units.
"Respondents were bereft of any power or authority to assess and collect RPT from petitioner (NFA). More so, there being nothing on record to show that beneficial use of the subject property has been granted to a taxable person," read the decision dated March 16 and uploaded recently.
Presidential Decree No. 1770 renamed the National Grains Authority to NFA, widening the latter's mandate to include, aside from stabilizing the supply and price of rice, other food items like raw or fresh fruits and vegetables; fish and marine; and manufactured, processed, or packaged food products. ( Benjamin Pulta)z
