MANILA, Philippines — The tariff reduction on rice imports to 15 percent will not immediately translate to lower rice prices in the market, according to National Economic and Development Authority (Neda) Secretary Arsenio Balisacan.
President Ferdinand Marcos Jr., who chairs the Neda board, on Tuesday approved the new Comprehensive Tariff Program for 2024-2028 which, among others, lowered the tariff rates on several key products, including rice and coal. The tariff on rice was slashed to 15 percent from 35 percent.
READ: Marcos approves cut in rice tariff to 15%
However, Balisacan said it will take time for consumers to feel the impact of the tariff reduction.
“It will take a little bit more time because an executive order will have to be issued, and once it comes out, that will then influence the decision of the private sector to import,” said Balisacan in a Palace briefing.
“World prices are rising, so the actual decline in the domestic prices will not be as large as implied by the tariff reduction. But this tariff reduction will substantially ease the upward pressure on domestic prices,” he added.
Balisacan also said the reduced tariff on coal briquettes will not greatly impact the cost of energy, explaining that the reduced tariff for coal is not significant.
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According to the Neda Secretary, the reduced tariffs will not significantly impact government income but are expected to increase economic activities.
“The numbers, we believe, are not exactly lost because the lower tariff would enhance economic activities and also improve the welfare of households, particularly the most vulnerable groups,” said Balisacan.
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Balisacan said the reduced rice tariffs will still provide funds to the Rice Competitiveness Enhancement Fund (RCEF).
“If those imports are coming in at still elevated high prices, it would still be quite a substantial tariff revenue for the RCEF,” said Balisacan.