August 13, 2018

Philippines mulls reduction of tariffs on meat, fish imports

In the face of rising food prices, Philippine economic managers have recommended reducing the tariffs on fish, corn, meat (particularly chicken) and wheat imports to a uniform 5%.

Fish imports in the country are levied a duty of 3% to 10%, while corn imports are slapped with a 35% tariff within the minimum access volume; those outside the quota are levied with 50% duty, BusinessMirror reports.

Feed-wheat imports are subject to a 7% duty, although they are exempted from the 12% value-added tax, as per report of the Global Agricultural Information Network.

Meat imports are levied a tariff of 10% to 40%.

Budget Secretary Benjamin E. Diokno said the economic managers were still determining the specific food items that will be included in the proposed tariff reduction, adding the proposal had been formally recommended to President Rodrigo Duterte.

Diokno told BusinessMirror that the imposition of the reduced tariffs may just be temporary or while the country is suffering from a high inflation rate. In July inflation was recorded at a new five-year high of 5.7%. 

"We're leaning toward a uniform reduction to 5%. It's not zero but 5", Diokno was quoted as saying.

"We want to make it 5[%] because it is simpler and uniform and if you have a standard rate like 5, it's neutral in a sense that it doesn't affect consumption of goods", he explained.