DOF wants to cut rice tariffs below 35%

TO BRING DOWN PRICES

- JASPER EMMANUEL ARCALAS

The Department of Finance (DOF) wants to slash tariffs on rice imports further below 35 percent to pull down retail prices of the staple, which have been putting pressure on the country's inflation print.

Finance Secretary Ralph Recto said further tariff reduction is part of government measures to bring down rice prices by 20 percent in September.

The DOF chief is looking at 17.5 percent or 20 percent from the current 35 percent.

President Marcos, through Executive Order (EO) 50, extended the lower tariff rates of 35 percent on rice until the end of the year.

Without any tariff reduction, the Philippines imposes a tariff rate of 40 percent and 50 percent on rice imports inside the import quota and outside the quota, respectively.

All rice imports from Southeast Asian countries are levied a 35 percent tariff pursuant to the ASEAN Trade in Goods Agreement.

According to Recto, world rice prices have been on a downward trend, which bodes well for an importing country like the Philippines.