The reimposition of the 40 percent tariff on mechanically deboned meat (MDM) will bring in additional P5.5 billion revenues to the country, but will only mean minimal increase in prices for consumers, according to Samahang Industriya ng Agrikultura (SINAG).

SINAG made this case as it formally sought Malacanang's intervention regarding the re-imposition of a 40 percent tariff on mechanically deboned meat (MDM).

In a letter to Duterte, which was received by the Office of the President on Monday, SINAG Chairperson Rosendo So informed the president that “the agriculture sector and allied industries are worried on the attempts of some quarters to move for the retention of the 5 percent tariff on MDM.”

With the lapse of the Quantitative Restriction (QR) privileges and the eventual enactment of the Rice Tariffication Law (RA 11203), tariff for MDM, a primary ingredient in processed and canned meat products, reverts to 40 percent.

Because of this, the Bureau of Customs (BOC) has already notified parties of the re-imposition of the 40 percent tariff starting this year.

However, Trade and Industry Secretary Ramon M. Lopez is now pushing to keep the 5 percent tariff rate on MDM since this may increase the price of canned and processed meat products in the country.

But So argued in a letter to Malacanang that, “MDM importation last year was 274 million kilos. At an average of P50 kilo of imported MDM, the government will only be able to collect P685 million, at 5 percent tariff.”

“At the re-imposed rate of 40 percent tariff, however, government revenue will be at P5.48 billion,” he pointed out.

"The amount of P5.48 billion can greatly help government procure anti-COVID-19 vaccines and be able to vaccinate 11 million of our agricultural workers.”

Based on SINAG’s estimates, consumers will only pay an additional P1.20 for 350-gram luncheon meat, a mere 1.55 percent increase, if the MDM tariff is reverted to 40 percent. For a 150-gram meatloaf, the price increase is even lower at P0.525.

“Consumers shelling out an additional P0.525 is a good start for this year in our continuing fight against the global pandemic,” So said.

Last week, Lopez said there is no need to increase the tariff to 40 percent because there is no local producer to protect.

At present, about 90 percent to 95 percent of raw materials of the local meat processing industry are imported abroad amid the lack of MDM production.