NEDA Board lowers rice tariffs to 15%

NEDA Board lowers rice tariffs to 15% | Daily Tribune

The National Economic and Development Authority (NEDA) board led by President Ferdinand Marcos Jr. has agreed to lower rice tariffs to fight inflation and make sure there are enough supplies, Secretary Arsenio Balisacan said on Tuesday.

In a Palace briefing, Balisacan said the rice tariffs will drop from 35 percent to 15 percent for both in-quota and out-quota rates until 2028.

The latest inflation report from the Philippine Statistics Authority shows that rice has added about two percentage points, or more than 50 percent, to the overall headline inflation rate in the country over the last three months.

Making it more affordable

“This decision aims to lower the price of rice further and make it more affordable,” Balisacan said.

“Reducing rice tariffs is expected to bring down rice prices for consumers while supporting domestic production through tariff cover and increased budgetary support to improve agricultural productivity, especially as global rice prices remain elevated,” he added.

The NEDA chief said the government is targeting P29 per kilo for rice. The government will complement this tariff reduction with direct subsidies to the poor and vulnerable.

Won’t happen immediately

While Balisacan said “everybody” would benefit from the tariff reduction, he said lowering the price of rice would take some time as an official order needs to be made, which will then affect the private sector’s choice to buy.

He also said that the board agreed with the Committee on Tax and Related Matters’ (CTRM) suggestion that the tax on some chemicals and coal briquettes should be lowered. This would make energy security better and lower the cost of inputs.

Balisacan also said that lowering tariffs on coal will help make sure that it is available at fair prices, which will help keep prices and energy supplies in the country more stable.

Trade Secretary Alfredo Pascual serves as the CTRM under the NEDA Board.

Tariffs on corn, pork, food that has been mechanically deboned, sugar, vegetables like broccoli, carrots, cabbage, lettuce, sweet potatoes, cassava, coffee substitutes, complete feeds, and feed preparations will remain the same.