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Extension of lower tariffs on agricultural products (pork, corn, rice) and coal being mulled by the government
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Department of Finance says a meeting in September will determine if the extension will cover all commodities
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The Inter-Agency Committee on Inflation and Market Outlook has started the comprehensive tariff review of the commodities
The government is eyeing the extension of reduced tariffs on agricultural products such as pork, corn, rice and coal, the Department of Finance (DOF) said.
“We will have a meeting next month; we’ll wait in September [to see] if we have to extend across all commodities,” Finance Secretary Diokno said in his weekly press briefing.
Finance Undersecretary Zeno Ronald Abenoja said the Inter-Agency Committee on Inflation and Market Outlook (IAC-IMO) has already started a comprehensive review of these commodities.
“The IAC-IMO has started reviewing all these items, but given the recent developments, typhoons and also external developments, the review not only covers the four agricultural commodities under the EO (Executive Order), but also the other drivers of inflation we’ve seen in the past few months,” Abenoja said.
President Ferdinand Marcos Jr. signed Executive Order No. 10 on Dec. 29, 2022, extending the temporary modification of rates of import duty on various products, including meat, corn and rice, in a bid to sustain affordable prices and augment the supply of agricultural commodities in the country.
RELATED READ: Duty cuts on imported pork, rice, coal extended
EO No. 10 extended the reduced Most Favored Nation (MFN) tariff rates on the meat of swine (fresh, chilled or frozen pork) at 15% (in-quota) and 25% (out-quota); corn at 5% (in-quota) and 15% (out-quota); rice at 35% (in-quota and out-quota); and coal at zero duty until the end of this year.
Abenoja said that while the IAC-IMO comprehensive review covers both food and non-food sources of inflation, the extension will cover only rice, corn, pork, and coal.
He said the DOF is also taking part in the comprehensive review of MFN tariff being conducted by the Tariff Commission.
“We are participating in that review. If you look at the tariff structure, a lot of tariff rates have gone down quite dramatically,” he said. “We don’t want to pre-empt the result of that review. It involves both the industry and other private-sector participation.”
