‘Containing inflation an imperative’

Duterte’s economic managers are leaning towards a uniform five percent tariff on meat, fish, and corn imports not zero to address inflation

Albay Representative Joey Salceda had called on the government to consider containing inflation as a “national imperative” to ensure that the public will be spared from the skyrocketing price of key commodities.

Salceda, in a television interview, said that aside from meat, fish was also removed from commodities that would be tariff-free while flour, corn and rice that are used as farm inputs will stay on the proposed zero tariff lists.

The Albay solon – who was tasked by House Speaker Gloria Macapagal-Arroyo to draft measures in response to rising consumer prices – earlier proposed the slashing of tariff on meat and fish, but in the middle of a press briefing on Wednesday, he received a call from Arroyo telling him that meat was removed from the list.

“It’s my job to propose and the boss disposes,” Salceda said.

Asked if “big poultry” could have lobbied against zero tariffs on meat, he said: “It stands to reason yes.”

“It’s already a national imperative, not to cushion inflation, but to essentially contain it,” Salceda said of headline inflation averaging well above the target ceiling of only 4 percent to 5.2 percent in June.

The lawmaker also said he proposed the deferment of feed-in electricity tariffs and more interest rate hikes from the Bangko Sentral ng Pilipinas (BSP).

Consumer prices rose 5.7 percent in July, exceeding the Bangko Sentral’s goal for the fifth straight month and quickening for the seventh straight month. It was also the highest in data since January 2013.

Increased competition in the market due to cheaper imports “shifts the burden” on the Bangko Sentral for “strong policy action.”

In the same interview, Salceda explained that meat and fish contributed 0.4 percent and 0.7 percent to the total inflation rate last month.

“We are no longer pushing tariff cuts on meat and fish,” Salceda said, noting that zero tariff was already imposed on some varieties of fish.

Budget Secretary Benjamin Diokno earlier said Duterte’s economic managers are leaning towards a uniform five percent tariff on meat, fish and corn imports not zero to address inflation.