NEDA: Draft EO extending reduced rice, pork, corn, coal tariffs up for Marcos approval

The draft executive order (EO) extending the reduced tariff rates on imported pork, rice, corn, and coal for the entirety of 2023 is now up for President Ferdinand Marcos Jr.’s approval, Socioeconomic Planning Secretary Arsenio Balisacan said Saturday.

During the weekly Saturday News Forum at Dapo Restobar in Quezon City, Balisacan said the EO “on the extension of reduced tariffs on the subject commodities of meat of swine, corn, rice, and coal,” was endorsed by National Economic and Development Authority (NEDA) Board to the President on Friday, December 16.

“The extension of the tariff reduction for pork, corn, and rice is up to 31 December 2023, while that for coal goes beyond this date and will be subject to review every semester,” the NEDA chief said.

The proposed EO will extend the validity of EO 171, which will expire on December 31, 2022.

Under EO 171, issued by then President Rodrigo Duterte in May, the tariff rate for both in-quota and out-quota pork shipments were kept at reduced rates of 15% (from 30%) and 25% (from 40%), respectively.

The EO also kept the lower tariff rates for rice at 35% for both in-quota and out-quota imports as well as the reduced duty for corn shipments at 5% (from 35%) for in-quota and 15% (from 50%) for out-quota.

The order, likewise, temporarily removed the 7% tariff on coal imports.

“The extension will provide relief to poor and vulnerable segments of the Filipino population whose welfare is reduced because of high inflation,” Balisacan said.

“Through this policy, we shall augment our domestic food supplies, diversify our sources of food staples, and temper inflationary pressures arising from supply constraints and rising international prices of production inputs due to external conflict,” he added.

In a chance interview at the sidelines of the forum, Balisacan told reporters that the EO is “up to the President to sign.”

“It must be signed before the end of December. Otherwise, we will revert to the old regime…  We don’t want higher tariffs at this time when prices are very high,” he said.

For this year, the country’s year-to-date inflation averaged 5.8% - surpassing the government’s target range of 2% to 4% - after hitting its highest print in 14 years at 8.0% in November.

Still, the government maintained the 2% to 4% inflation rate ceiling for the next two years and set the same goal for another two years thereafter. — DVM, GMA Integrated News