DoF: Agri tariff rates revamp up
We are reviewing Executive Order 10 for rice, corn and pork on whether there is a need for discontinuation of current tariff rates because of their impact on inflation
Daily TribuneWe are reviewing Executive Order 10 for rice, corn and pork on whether there is a need for discontinuation of current tariff rates because of their impact on inflation
The Department of Finance, or DoF, will review tariff rates for imported rice, corn and pork as part of the government's goal to control inflation.
"We are reviewing Executive Order 10 for rice, corn and pork on whether there is a need for discontinuation of current tariff rates because of their impact on inflation," Finance Secretary Benjamin Diokno said.
Inflation last month climbed to 6.1 percent from 5.3 in August, mostly due to higher food prices.
Rice was the biggest contributor, with 17.9 percent growth from 8.7 percent despite the price caps President Ferdinand "Bongbong" Marcos Jr., who is also Agriculture Secretary, ordered last month. to reduce prices of regular milled rice to P41 per kilo and well-milled rice to P45 per kilo from a peak of P60 per kilo.
The second inflation driver was meat and other slaughtered products with 1.3 percent growth from negative 0.1 percent.
The government aims to slow back inflation within the range of 2 percent to 4 percent this year and 3 percent in 2024.
Diokno said rice prices could fall in the next few months as local farmers have started collecting fresh harvests. "The rice price ceilings were implemented when we didn't have sufficient supply yet," he said.
Under Executive Order 10, the government allows more imports of sensitive agricultural products but imposes higher tariff rates for import volumes above the required minimum (out-quota) to help secure enough food supply and stabilize consumer prices.
Rice tariff is set at 35 percent (in-quota and out-quota), pork at 15 percent (in-quota) and 25 (out-quota), and corn at 5 percent (in-quota) and 15 percent (out-quota). These are valid until December this year.
Adjustment likely
Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. said the policy-making Monetary Board may increase its rate this year to control inflation by restraining consumer demand for goods.
"It's difficult to say because the decision will depend on the most recent information. Let's not decide on one or two observations. You should look for a pattern," Diokno said.
For now, however, he said it seems the existing policy rate of 6.25 percent or rate hikes of 425 basis points is already enough as consumption has been tamed to some extent. "There was really a global slowdown. I think we've done enough," Diokno said.
In terms of higher government revenue to support various social programs, Diokno said the DoF will also study the livestock competitiveness enhancement fund bill for livestock, poultry and dairy industries.
Senators propose at least P6.3 billion for this fund which will be sourced from import taxes, similar to the Rice Tariffication Law to provide farmers equipment and training for higher agricultural production.
Diokno said DoF will also discuss the corn competitiveness enhancement fund which senators pegged at P2.8 billion minimum.
"We'll look into those bills. Definitely, every measure counts," Diokno said.