Philippines may extend reduced import tariffs on rice, other commodities
Sign up now: Get ST's newsletters delivered to your inbox
The Philippines, one of the world’s top rice buyers, is encouraging private traders to ramp up imports.
PHOTO: AFP
Follow topic:
MANILA - The Philippines may extend reduced import tariffs on rice and other commodities beyond 2023 to ease pressure on inflation, which remained above target last month, officials said.
The lowered tariffs, also applying to corn and pork imports, are due to expire by the end of 2023.
But supply side challenges, including a potential limit on rice shipments from Vietnam – the country’s biggest supplier – and the impact of El Nino dry weather on the local harvest, may warrant keeping tariffs where they are.
“We’re reviewing the possible extension,” Finance Secretary Benjamin Diokno told reporters on Friday in comments embargoed for publication until Sunday night.
Under a modified scheme introduced in 2021, tariffs on rice imported from outside South-east Asia fell to 35 per cent – in line with the rate for suppliers from inside the region, including Vietnam – from a previous range of 40 per cent-50 per cent.
The “comprehensive” review of tariffs also covers other commodities that could potentially fuel inflation, said Mr Zeno Abenoja, undersecretary and chief economic counsellor at the Department of Finance.
Annual headline inflation eased for a sixth straight month in July to 4.7 per cent, above the official 2 per cent-4 per cent target range, while food inflation fell to 6.3 per cent.
The Philippines, one of the world’s top rice buyers,
Mr Diokno said the government will expedite measures to mitigate the impact of El Nino on agricultural production and food security.
Such measures could help lessen pressure on the central bank to resume hiking interest rates, said Bangko Sentral ng Pilipinas (BSP) governor Eli Remolona, who joined Mr Diokno’s briefing.
The BSP, which next meets on Aug 17 to review monetary policy, on Friday said it was ready to resume tightening as necessary to tackle price pressures. REUTERS
