The reduction tariff on rice from 35 percent to 15 percent and additional government subsidies will lessen the cost of rice to P29 per kilo for the poor, National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan said.
Balisacan said on Tuesday, June 4, that adjusting the tariff cuts on rice to 15 percent until 2028 will work hand in hand with government subsidies to ease the burden of poor households.
“We are, the Department of Agriculture, is aiming for the reduction to P29 per kilo at least for the poor because we will complement this tariff reduction with direct subsidies to the poor and the vulnerable so they could access the food at P29 per kilo,” Balisacan said in a briefing
“But overall with the tariff reduction from 35 to 15 percent, everybody would benefit from that,” he added.
The NEDA chief said this subsidy will be in the form of cash and will be channeled into government programs such as the Pantawid Pamilyang Pilipino Program to avoid “leakage.”
“We are also ramping up the implementation of the implementation of food stamp program,” he added.
Balisacan noted that the impact of the rice tariff cuts would not be as large as world prices are still rising, but it could “substantially ease the upward pressure on domestic prices.”
President Ferdinand Marcos Jr., who chairs the NEDA Board, approved the new Comprehensive Tariff Program for 2024-2028, which extended tariff rates until 2028.
Besides rice, the NEDA board has also decided to reduce the tariff on certain chemicals and coal briquettes to improve energy security and reduce input costs.
Meanwhile, the tariff rates on corn, pork, mechanically deboned meats, sugar, vegetables such as onions, shallots, garlic, broccoli, carrots, cabbage, lettuce, sweet potatoes, cassava, coffee substitutes, complete feeds, and feed preparations will remain the same.
No loss from tariff reduction
Balisacan said that the collection from rice tariff would not have a great impact as it would enhance economic activities and improve the welfare of vulnerable households.
“The remaining tariff is quite substantial, 15 percent pa rin yun,” he said.
The law mandates that the Rice Competitiveness Enhancement Fund, implemented in 2018, should be allocated P10 billion each year for the next six years to support Filipino farmers.
The P10 billion budget for RCEF comes from the tariff collection from imported rice.