LOCAL BAKERS are asking the government not only to further extend the existing zero-tariff regime on milling wheat, but also to adopt the same policy on imported flour.

In a July 20 petition to the Tariff Commission, the Philippine Baking Industry Group (PhilBaking), Filipino Chinese Bakery Association Inc. (FCBAI) and Philippine Federation of Bakers Association Inc. (PFBAI) said these moves would ?create real price competition among local flour millers,? and consequently lead to lower bread prices.

?At present, the 5-7-percent tariff rate on flour adds a burden to bread and other flour-based products, and delays the implementation of the country?s international trade agreements. The lifting of (the) tariff on imported flour is necessary as it will directly benefit the consuming public and the baking industry,? the petition stated.

FCBAI president Antonio Lim Kit said in an interview yesterday that the scrapping of the tariff on flour, coupled with the extension of the zero-tariff regime on milling wheat, would prevent bread prices from rising amid escalating prices of key ingredients.