Filipino-Chinese business group backs lower rice tariffs
MANILA, Philippines — The Federation of Filipino Chinese Chambers of Commerce and Industry, Inc. (FFCCCII) supports Finance Secretary Ralph Recto’s proposal to temporarily reduce rice tariffs from 35 percent to lower inflation. The Federation of Free Farmers opposes this, citing potential P33 billion losses for farmers and P10 billion in foregone customs revenues, impacting rice productivity programs. The proposal requires a Tariff Commission hearing and Department of Agriculture consultation.
MANILA, Philippines — The Federation of Filipino Chinese Chambers of Commerce and Industry, Inc. (FFCCCII) supports the suggestion of Finance Secretary Ralph Recto to further lower the tariff on rice from the current 35 percent.
Recto earlier bared the government’s plan to temporarily reduce rice tariffs further until the end of 2024 “presumably”, citing the importance of reducing the price of the staple in the local market.
In a statement, FFCCCII president Cecilio Pedro said lowering tariffs holds the potential to address inflation worries for Filipino consumers and promotes economic stability.
“This initiative aims to alleviate the inflationary pressures caused by high rice prices,” the group said.
The group said the move aims to make rice more affordable, citing that imported rice contributes substantially to the country’s supply of this staple.
For the proposal to push through, Recto said that the Tariff Commission would have to conduct a hearing soon.
The Department of Agriculture (DA) would also need to be consulted before President Marcos Jr. can issue an executive order that will modify the rates, he added.
The group said the move aims to make rice more affordable, citing that imported rice contributes substantially to the country’s supply of this staple.
For the proposal to push through, Recto said that the Tariff Commission would have to conduct a hearing soon.
The Department of Agriculture (DA) would also need to be consulted before President Marcos Jr. can issue an executive order that will modify the rates, he added. On the other hand, the Federation of Free Farmers (FFF) said they are vehemently opposing the move, explaining that the P5 per kilo reduction seen resulting from lowering tariffs could depress palay prices by P3 per kilo — considering that “cheap” imported rice would be “dumped” into the markets.
The farmer’s group argued that rice growers could incur total losses of P33 billion, based on a harvest of 11 million tons of palay during the second half of the year.
Additionally, the FFF said the government could incur foregone customs revenues of P10 billion under the assumption that an additional 2 million tons of rice will be imported in the second semester.
The FFF said such revenues are, by law, earmarked for rice farmers’ productivity programs.
“Together with the losses from lowered palay prices, farmers stand to lose a total of P43 billion from the proposed tariff cut for 2024 alone,” the group said.
Source Link: https://www.msn.com/en-ph/news/other/filipino-chinese-business-group-backs-lower-rice-tariffs/ar-BB1nvj99
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