Marcos to sign EO lowering tariffs for imported rice to 15% from 35%
President Ferdinand Marcos, Jr. will release a new Executive Order (EO), which will cut tariff for rice to 15 percent from 35 percent to help stabilize the price for rice in the next four years .
The tariff reduction for rice is part of the Comprehensive Target Program (CTP) for 2024-2028, which was approved by the National Economic and Development Board (NEDA) Board led by the President, during its 17th board meeting last Monday.
"For rice, one of the most critical components of Filipino households consumption basket, the NEDA Board agrees to reduce the duty rate to 15 percent for both in-quota and out-quota rates from 35 percent until 2028. This decision aims to lower the price of rice further and make it more affordable," NEDA Secretary Arsenio Balisacan said in a press briefing in Malacanang last Tuesday.
"The president will issue an executive order to implement this new tariff program." he added,
The Department of Agriculture (DA) said imported well-milled rice costs P52 to P55 per kilogram (kg) and regular-milled between P49 to P51 per kg as May 31.
Local commercial well-milled rice costs between P48 to P55 per kg and regular-milled is at P45 to P52 per kg.
The Philippine Statistics Authority (PSA) reported rice prices accounted to over 50 percent in headline inflation in the last three months.
"The Department of Agriculture is aiming for a reduction of 29 pesos per kilo, at least for the poor, because we will complement this tariff reduction with the direct subsidies to the poor and vulnerable so that at least they could access the food at 29 pesos per kilo," Balisacan explained.
High global rice prices are expected to persist until September, said Balisacan.
Asked how the impact of the lower tariff for rice will affect the Rice Competitiveness Enhancement Fund (RCEF), Balisacan said the effects will depend on the amount of rice to be imported in the coming months.
The approved CTP also reduces the tariff on certain chemicals used to manufacture antiseptics and detergents as well as coal briquettes to improve energy security/
"Tariff reduction on coal will help ensure its availability at reasonable prices, thus supporting more stable electricity prices and supply in the country," Balisacan said.
Also extended, he said, were reduced tariff rates on corn, pork and mechanically-deboned meat under Executive Order No. 50 until 2028.
The CTP will also merge the tariff lines on certain chemical and chemical products, textiles, machinery and transport equipment
It, however, maintained the current rates on more than half of the tariff lines covering various products like sugar, vegetables such as onion shallots, garlic, broccoli, carrots, cabbage, lettuce, sweet potatoes, cassava, coffee substitutes, complete feeds and feed preparations. DMS
