The government is conducting a comprehensive review on the possibility of further extending the validity of reduced tariff rates on specific agricultural products.
Finance Secretary Benjamin Diokno said in a press briefing at the Department of Finance (DOF) office in Manila last Friday that the government is reviewing the possible extension.
“We have a meeting next month, we’ll wait in September… if we have to extend, across all commodities (covered),” Diokno said.
Zeno Ronald Abenoja, DOF undersecretary, said the Inter-agency Committee on Inflation and Market Outlook (IAC-IMO) has begun reviewing all these items.
“Given the recent developments, typhoon and also external developments, the review is ongoing. That really covers not only the four agricultural commodities under Executive Order (EO) 10, but also the other drivers of inflation that we’ve been seeing in the past few months,” Abenoja said.
“The extension will cover just four, but the IAC-IMO as you know reviews both food and non-food sources of inflation, so a comprehensive review is actually ongoing including those that are included in the EO 10,” he added.
The President previously approved the extension of EO 171 on reduced import duty rates through EO 10, which was issued on December 29, 2022.
EO 171 reduced the most favored nation (MFN) tariff rates for key commodities such as meat of swine (fresh, chilled or frozen), maize (corn), rice and coal until December 31, 2022.
The enactment of EO 10 extends the reduced MFN tariff rates of meat of swine (fresh, chilled or frozen), maize (corn) and rice until December 31, 2023, and coal beyond 2023, provided that there will be a semestral review of the reduced tariff rates after the aforementioned period.
The decision to extend the validity of the reduced MFN tariff rates aims to protect consumers by keeping prices affordable to ensure food security, augmenting the local supply of basic agricultural commodities, reducing the cost of electricity and diversifying the country’s market sources.
Under EO 10, duty on pork are at 15 percent for in quota and 25 percent for out quota shipments until the end of the year.
EO 10 also maintained tariffs of in quota and out quota rice to 35 percent and placed corn tariff to 5 percent for in quota and to 15 percent for out quota until Dec. 31, 2023.
The policy also maintained the zero tariff on coal beyond the end of the year but will be subject to a semestral review after the said period.
Under EO 10, duty on pork are at 15 percent for in quota and 25 percent for out quota shipments until the end of the year.
EO 10 also maintained tariffs of in quota and out quota rice to 35 percent and placed corn tariff to 5 percent for in quota and to 15 percent for out quota until Dec. 31, 2023.
The policy also maintained the zero tariff on coal beyond the end of the year but will be subject to a semestral review after the said period.
