Rice tariff reduction loss may hit P22 B - DOF

The Department of Finance (DOF) has estimated that revenue losses from rice tariff reduction may reach up to P22 billion this year as the government moves to bring down inflation and eventually cut interest rates to make room for economic growth.

-  LOUISE MAUREEN SIMEON

Finance Secretary Ralph Recto said the latest projection showed that losses could range from P20 billion to P22 billion after President Marcos approved the reduction of rice tariff to 15 percent from the current 35 percent.

This was higher than the DOF's initial estimate of P10 billion a few weeks ago. At the time, the exact tariff rate had yet to be determined.

Despite the losses, Recto remains unfazed with the potential hit on one of the government's revenue generating measures.

"Once we are able to reduce inflation, hopefully, we can reduce interest rates. And that will create more growth so we can recover those losses," Recto said.