The Department of Finance (DOF) has proposed to temporarily remove the tariff on imported rice in a bid to curb rising grain prices.
Finance Secretary Ben Diokno said the DOF is proposing to reduce the 35% rice import tariff rates, both ASEAN and MFN (most-favored nations) rates, to zero or a maximum of 10%. This would allow more imported rice to enter the Philippines at a lower cost, which could help to bring down prices.
The proposal comes after inflation in the Philippines accelerated to 5.3% in August, the highest in more than three years. Food inflation, which accounts for more than half of overall inflation, rose to 8.2%. Rice is a major staple food in the Philippines, and its price has been rising in recent months.
Diokno said the DOF’s proposal is a “drastic” measure, but he believes it is necessary to address the surge in rice prices. He said the DOF could reconsider the policy and lift the tariff on imported rice once harvest season begins and the Philippines takes delivery of rice imports.
The DOF’s proposal would need to be approved by President Ferdinand Marcos Jr., who is expected to issue an executive order to implement it. The proposal is likely to face opposition from some rice farmers, who argue that it would hurt their businesses.
However, Diokno said the DOF believes the benefits of the proposal outweigh the costs. He said the proposal would help to lower prices for consumers, which would boost economic growth.
The DOF’s proposal is the latest in a series of measures taken by the government to address rising inflation. In July, the government imposed a price cap on rice sold in wet markets and retail stores. The government has also increased the supply of rice by importing more rice from other countries.
Source: PhilNews24 | September 11, 2023
