Marcos extends lower food tariffs
The President said the current economic situation justifies extending the lower tariff rates to maintain competitive market prices
Daily TribuneThe President said the current economic situation justifies extending the lower tariff rates to maintain competitive market prices
President Ferdinand Marcos Jr. has approved extending the lower tariffs on rice and other food commodities until the end of 2024 to maintain price stability in the face of a dry spell in the coming months, Malacañang said on Tuesday.
The lower rates that were first approved in 2021 were extended this year due to the high rate of inflation and, according to the President, another extension is required until the end of the next year.
In signing Executive Order 50, the President said the current economic situation in the country justified extending the lower tariff rates on rice, corn, and swine meat to maintain competitive market prices.
"The present economic condition warrants the continued application of the reduced tariff rates on rice, corn, and (pork) to maintain affordable prices for the purpose of ensuring food security," Marcos was quoted in a statement.
Given the impending consequences of the El Niño dry weather phenomena early next year and the ongoing threat of the African swine fever, Marcos said that maintaining the modified tariffs is intended to ensure affordable prices for rice, corn, and meat products.
The new EO states that import taxes on corn would remain at 5 to 15 percent and on meat products at 15 to 25 percent, while the tariff rate on rice will remain at 35 percent.
The six-page EO was signed by Executive Secretary Lucas Bersamin on 22 December, the Presidential Communication Office said.
Earlier, the National Economic and Development Authority approved the extension of the lower Most Favored Nation tariff rates for staple goods like rice, corn, and meat until 31 December 2024.
The President may raise, lower, or eliminate current import duty rates in the interest of national security and the general welfare in accordance with Section 1608 of Republic Act 10863, also known as the Customs Modernization and Tariff Act, and on the recommendation of NEDA.
Marcos had given the NEDA Committee on Tariff and Related Matters the mandate to come up with conclusions and suggestions for the annual and semi-annual tariff rate review, which includes an examination and tracking of the relevant commodities.