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DESPITE worries about the reduced rice tariff collections for the year, the Bureau of Customs (BOC) remains optimistic about hitting its revenue targets through proper assessment of duties and taxes, according to its top official.

Customs Commissioner Bienvenido Y. Rubio told reporters on the sidelines of the 2025 national budget Senate deliberations that the BOC has already collected P29 billion in rice tariffs this year.

However, Rubio said the lowered rice tariffs would “definitely impact” its revenue collections from rice importations.

To recall, the National Economic and Development Authority (Neda) Board led by President Ferdinand R. Marcos Jr., approved the tariff reduction for rice to 15 percent from 35 percent as part of the Comprehensive Target Program (CTP) for 2024 until 2028.

“Of course, I should be worried because our collection is already lessened,” Rubio said.

“Reducing the tariff from 35 to 15 percent, even if the same volume would arrive, we are basically reducing 20 percent of what we should have collected,” the BOC chief added.

In the meantime, Rubio said the BOC will try to maximize everything that they have as well as conduct proper assessment of duties and taxes of imported rice to achieve its targets.

The lowered rice tariffs will be beneficial to the people, although the Bureau will suffer some consequences. Rubio said it will reduce the prices of rice and benefit the rice-eating public.

“Let me worry about our collection and let the President worry about addressing the conditions of the people,” Rubio added. The BOC’s revenue collection target for 2024 is pegged at P939.7 billion.  

Finance Secretary Ralph G. Recto said the Department of Finance (DOF) estimates P8.1 billion will collected from rice tariffs in the second half of 2024.

Amid the lowered rice tariffs which will take effect until 2028, the government still stands to gain P53.9 billion from 2024 to 2026 but lose P49.9 billion in foregone revenues.

If the EO were not implemented, a total of P103.7 billion could have been collected from rice tariffs until 2026.

“It makes perfect sense to reduce the tariffs at this point. If we do the computation, we can expect rice prices to go down by at least 5 pesos in August to September,” Recto said.

Source : businessmirror