The Management Association of the Philippines (MAP) is calling for the reduction in the tariff of agriculture commodities like sugar, meat, fish, rice as well as inputs to the manufacture of food to keep prices low.
MAP in a position paper on the comprehensive review of the most-favored nation (MFN) tariff structure said these commodities are crucial in family food consumption, food security, and general inflation.
“Removal of existing peaks and achieving low uniform rates in a tariff structure that provides equal incentives across domestic industries will encourage more and wider agricultural processing and value-adding, help control inflation, and enhance the country’s food security,” said Benedicta Du-Baladad, MAP president in the position paper addressed to the National Economic and Development Authority (NEDA) and the Tariff Commission (TC) which are spearheading the review.
MAP asked NEDA and TC to consider among others coming up with a structure that is neutral across industries; one that avoids distortions and unwarranted protection arising from tariff peaks, currently seen primarily in agricultural products.
The group said NEDA and TC should also consider reducing incentives and opportunities for corruption and smuggling by unifying minimum access volume (MAV) and non-MAV tariff rates, and keeping tariffs relatively low and uniform across all goods.
A maximum range of 10 to 15 percent will keep food prices affordable, especially to the poor, MAP said.
“Agricultural tariffs have remained high because these have been generally excluded from tariff adjustments over the past decades, with agricultural products deemed ‘sensitive’ levied the highest statutory rates of up to 65 percent,” the MAP said.
