The Department of Finance (DOF) said the government can now better manage the skyrocketing consumer prices following President Marcos’ order extending the reduced import duties on key commodities.
In a statement, Finance Secretary Benjamin E. Diokno welcomed the extension of the low Most Favoured Nation (MFN) tariff rates on meat of swine (fresh, chilled, or frozen), maize, rice, and coal under Executive Order (EO) 171 for another year.
Last Dec. 29, President Marcos signed Executive Order (EO) 10 extending the reduced MFN tariff rates until Dec. 31, 2023, and coal beyond 2023, provided that there will be a semestral review of the reduced tariff rates after the aforementioned period.
“The Department of Finance welcomes the extension of EO 171 to help us control inflation and ensure food security in the country,” Diokno said.
To recall, surging consumer prices dominated business headlines in 2022 amid domestic food supply woes that were exacerbated by the Russia-Ukraine conflict.
Inflation was “running rampant and out of control,” President Marcos was quoted as saying last Dec. 6 after the Philippine Statistics Authority reported that consumer prices quickened to eight percent in November, highest since the global financial crisis in 2008.
Diokno said the decision to extend the validity of the reduced MFN tariff rates aims to protect consumers by keeping consumer prices affordable.
He said this would ensure food security as it augments the local supply of basic agricultural commodities as well as reduces the cost of electricity, and diversifies the country’s market sources.
EO 10 was endorsed by the National Economic and Development Authority (NEDA) Board, chaired by President Marcos. It is one of the measures being undertaken by the government to help curb high inflation and protect the purchasing power of consumers.
The primary strategies of the government are to help improve production and productivity of the agriculture sector and ensure an adequate power supply, in addition to the monetary measures of the Bangko Sentral ng Pilipinas.
In the medium term, the government will pursue modernization and innovation programs, the development of new farming and fishing technologies, and the enhancement of the agricultural value chain system.
Socioeconomic Planning Secretary Arsenio Balisacan said that food security and protecting the people’s purchasing power are vital components of the Philippine Development Plan (PDP) 2023-2028.