Top News

MANILA, Philippines — The government collected almost 60 percent less tariffs from imported rice in the first half compared to a year ago due to the lower prevailing tariff rate, Bureau of Customs data showed.

Based on preliminary BOC figures, the agency collected nearly P9.7 billion in rice tariffs from January to June, about 58 percent lower than the P23.2 billion collected last year.

Rice imports reached almost 2.4 million metric tons, up four percent from last year’s nearly 2.3 million MT.

The drop in tariffs was caused by the continued implementation of the 15 percent tariff on rice import that has been in effect for a whole year now, industry stakeholders said.

The government slashed the tariff on imported rice to tame inflation and ensure stable or even lower prices of the staple in the market.

Rice prices deflated in June by 14.3 percent compared to the 22.5 percent inflation posted in the same month last year, based on Philippine Statistics Authority data.

Full-year rice tariff collections may settle between P18 billion and P20 billion based on the current rate of collection, industry sources said.

At that amount, the government will have to shell out about P10 billion next year to plug the shortfall in the guaranteed P30 billion allocation for the annual Rice Competitiveness Enhancement Fund (RCEF).

Rice tariffs collected have been earmarked for the RCEF, which aims to modernize and improve the competitiveness of the domestic rice sector, since the passage of the rice tariffication law in 2019.

The annual guaranteed RCEF has been raised to P30 billion following the amendment of RTL.

In the event that rice tariffs collected fall below P30 billion, the deficiency would be sourced from the regular budget of the Department of Agriculture (DA), under Republic Act 12078.

This, experts noted, could pose a problem to the overall budget of the DA since it would mean that some programs of the department might face an allocation cut to fill in the deficiency in the guaranteed RCEF.

Industry players earlier noted that rice imports must increase by at least half or even double this year for the government to collect P30 billion in tariffs if the rate would be kept at 15 percent throughout the year.

The DA earlier disclosed that it is in the view that the rice tariffs must revert to the higher 35 percent rate but on a gradual basis to prevent rice market shocks.

Source : msn