THE GOVERNMENT will forego P9.2 billion worth of revenue in the second half after lowering the tariff on imported rice, the Department of Finance (DoF) said.
“If we did not reduce the rice tariff, the collection for the July to December would be P17.3 billion, with the reduction equivalent to P9.2 billion,” Finance Secretary Ralph G. Recto told the House Committee on Appropriations on Monday.
In June, President Ferdinand R. Marcos, Jr. cut the tariff on imported rice to 15% from 35% previously, with the new rate in force until 2028.
For 2025, the government stands to forego P19.8 billion in revenue due to the reduced tariffs and will end up collecting P20.3 billion. The DoF projected rice tariff collections of P25.5 billion in 2026, foregoing P20.9 billion.
Republic Act No. 11203 or the Rice Tariffication Law deregulated rice imports, and allowed private entities to import rice, though they initially had to pay a 35% tariff on Southeast Asian grain before the tariff cut to 15%, which was imposed as an inflation-containment measure.
The law also established the Rice Competitiveness Enhancement Fund (RCEF), which provides P10 billion a year to modernize the rice industry, with RCEF supported by tariff revenue.
Last week, the National Economic and Development Authority said it is working with the Department of Agriculture on a new tariff adjustment system for rice.
Meanwhile, Budget Secretary Amenah F. Pangandaman said P12.7 billion in leftover cash assistance from the RCEF in 2022 has been fully distributed to farmers.
Source: BWorld Online
