Marcos admin reduces to 15% rice, commodity tariffs

The Marcos Administration has officially reduced tariffs on imported rice and other commodities from 35 percent to 15 percent, Malacañang said.

President Ferdinand Marcos Jr. issued Executive Order No. 62, which Executive Secretary Lucas Bersamin signed and was made public late Thursday evening.

“The implementation of an updated comprehensive tariff schedule aims to augment supply, manage prices, and temper inflationary pressure of various commodities, consistent with the Philippine national interest and the objective of safeguarding the purchasing power of Filipinos,” Marcos said in EO 62.

National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan, made public this plan earlier this month, stating that it "aims to lower the price of rice further and make it more affordable."

“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 said in a statement issued 10 June.

Malacañang pointed out that EO No. 20, which establishes the tariff schedule for 2017 through 2020, is the present basis for the Most Favored Nation (MFN) tariffs — or the promised taxes imposed on members of the World Trade Organization.

However, under EO 62, the government continued to impose taxes on a number of goods, including corn, pork, meats that had been mechanically deboned, sugar, and vegetables like broccoli, carrots, cabbage, onions, and garlic.

Farmer groups have opposed the plan, claiming that historically, lower tariffs have increased imports of rice and raised rice prices, hurting local growers and denying the government cash.

In order to finance farmers' equipment, provide them with credit support, and aid in the creation of rice seeds, among other things, the fund is released to rice-producing regions. Agriculture Secretary Francisco Tiu Laurel has stated that his agency is prepared to replace any potential gap in the fund.