COCO-levy funds

For sometime, different and conflicting notions had been formed as to the nature and ownership of the coco-levy funds. The Court, however, finally put an end to the dispute when it categorically ruled that these funds are not only affected with public interest; they are, in fact, prima facie public funds. Coco-levy funds were raised pursuant to law to support a proper governmental purpose. They were raised with the use of the police and taxing powers of the State for the benefit of the coconut industry and its farmers in general. Coco funds are in the nature of taxes and can only be used for public purpose. They were imposed pursuant to law, namely, RA6260 and PD276. These laws did not raise money to boost the government's general fund, unlike ordinary revenue laws, but provide means for the rehabilitation and stabilization of a threatened coconut industry  affected with public interest as to be within the police power of the State. The funds sought to support the coconut industry, one of the main economic backbones of the country, and to secure economic benefits for the coconut farmers and farmworkers.