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Manila Bulletin devider Business devider Gov't likely to keep 5% tariff on MDM

Gov't likely to keep 5% tariff on MDM

Published Jan 4, 2021 04:30 pm

Trade and Industry Secretary Ramon M. Lopez said that keeping the 5 percent tariff rate on imported mechanically deboned meat (MDM) has gained support from all department heads concerned.

“We are in the process of completing by today (Jan. 4) the official endorsement from each member of the Committee on Trade and Related Matters (CTRM)- Cabinet committee on Tariff and Related Matters, but all member- Secretaries have given their support (thru an informal consultation last week) to keep the tariff rates at 5 percent so that we can keep cost down and avert any huge price increase in processed meat products,” said Lopez.

Trade and Industry Secretary Ramon Lopez. (ALFRED FRIAS/PRESIDENTIAL PHOTO FILE PHOTO)

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

Since MDM is a main cost component in low priced canned and processed meat products, Lopez said it will only increase cost and prices of most canned meat products that are also part of basic goods in the Suggested Retail Price system of the DTI.

“These products are what majority of the Filipino consumers buy and it will lead to inflation of basic goods, if MDM cost increases,” he added stressing MDM is cheaper meat additive used in low priced canned goods.

CTRM will issue the recommendation for the President to issue an EO on this matter, he said. It could be recalled that MDM tariff was supposed to be go back to 40-percent tariff starting January 1 this year after President Duterte’s Executive Order 82 expired last Dec. 30, 2020.

Related Tags

DTI Ramon Lopez MDM CTRM
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