NEDA lowers rice tariffs to 15% to combat inflation

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.

''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,'' Balisacan added. 

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

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

Trade Secretary Alfredo Pascual serves as the co-chair of CTRM under the NEDA Board.

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