Government will lose P4.44 billion in revenues with the reinstatement of the 5 percent tariff on imported mechanically deboned meat (MDM) instead of the 40 percent, according to agricultural lobby group Samahang Industriya ng Agrikultura (SINAG).
The group said at 5 percent tariff, government will only be able to collect P635 million compared to P5.08 billion if a 40 percent tariff was implemented.
SINAG based the computation on MDM importation last year which reached 254 million kilograms at an average of P50 per kilo.
“Reverting to the 5 percent tariff will deprive government of much needed revenues.
Earlier, Department of Trade and Industry Secretary Ramon Lopez said the inter-agency Cabinet level committee on tariff and related matters will recommend to President Duterte to keep at 5 percent tariff on MDM.
He said that “there is no need to increase the tariff to 40 percent because there is no local producers to protect and since MDM is a main cost component in low priced canned and processed meat products.”
Lopez said a tariff increase will raise the price of most canned meat products that are also part of basic goods and in turn may result in inflation. -Jed Macapagal