MANILA, Philippines — Senate lawmakers on Monday approved a measure that would condone the debt of agrarian reform beneficiaries if enacted into law.
The Senate approved on third and final reading Senate Bill 1850. The piece of legislation would condone loans — including interest, penalties and surcharges incurred — from agricultural lands distributed under the country’s Comprehensive Agrarian Reform Program (CARP).
Sen. Cynthia Villar earlier said the total loan amount that would be condoned by the measure is at P14.62 billion.
The measure would forego two types of loans taken on by CARP beneficiaries.
The first type would comprise those who have account with Land Bank of the Philippines and have not fully paid their amortization, covering 409,206.91 hectares of agricultural land.
The second would cover those under the voluntary land transfer and direct payment scheme under CARP.
Under this measure, beneficiaries who have defaulted or have failed to pay loans that have cases with the Department of Agrarian Reform will be dismissed motu proprio.
CARP beneficiaries will likewise be exempt from paying estate taxes.
The debt forgiveness would cover loans incurred as of Dec. 15, 2022.
CARP was passed post-Martial Law, signed into law by the late President Corazon Aquino. The law redistributed land to farmers.
Parts of the ill-gotten wealth recovered from the Marcoses plundering the Philippines was used to fund this agrarian reform program.
Agriculture historically accounts for 10% of the country’s gross domestic product. Despite this, most workers in the sector remained in poverty. — Ramon Royandoyan