Agriculture Secretary Francisco Tiu Lauel Jr. said on Tuesday that slashing the duty rate of imported rice from 35 percent to 15 percent is a reasonable move for the moment, as this will relieve the pressure on the Filipinos as the staple grain prices on the world market are very high.
“I agree that tariffs should be reduced because world prices are really off the roof. It's a 15-year high. I said the 15-year high last November. Until now, it's still there. It's not going down,” said the agri chief in a media forum organized by the Philippine Chamber of Commerce and Industry in Taguig City.
Besides the grain’s high prices in the international market, Laurel also cited the growth of the dollar exchange rate to P58.77.
“There's really pressure on the consumer. Everything is going to the consumer. So the tariff reduction at this time, I think, is reasonable. But then, hopefully, it won't last long,” Laurel added.
Laurel, citing predictions from the Department of Finance and the National Economic and Development Authority, said that rice prices in the world market are seen to decrease by September or October this year.
President Ferdinand Marcos Jr. issued Executive Order (EO) 62 on 20 June of this year, directing the modification of nomenclature and tariff rates on various products to ensure the continuous supply of goods and to protect the purchasing power of the Filipino people.
Duty rates under the order for imported rice are expected to decrease by P6 to P7. This reduction in rice tariffs for both in- and out-quota rates will take effect until 2028.
Laurel, however, said that this policy will be reviewed every four months.
“So it's just in time for the review. So it doesn't mean that the way it's written, it's going to continue until 2028. But the review will suffice to make sure that in case it really goes down [prices] and the consumer is happy and content, then maybe the tariff can be raised again,” he added.
DA earlier said that in the validity of EO 62, the tariff reduction for rice would be implemented earlier on 6 July, or 15 days after its publication, while the tariff reduction for commodities will take effect 30 days after its publication.