P29 PER KILO OF RICE, PBBM APRROVES RICE TARIFF CUT

Rice tariff cut has been approved until 2028 (Photo courtesy of Miguel de Guzman/Philippine Star)

President Bongbong Marcos has approved the lowering of the tariff on imported rice for the target of making the price of rice more affordable. The government's target is to lower the price of rice to P29 per kilo this year according to Socioeconomic Planning Secretary Arsenio Balisacan.

The country's Comprehensive Tariff Program has been approved in which the tariff charged on imported rice will be lowered. From 35%, it will be lowered to 15% until the year 2028. But Balisacan clarified that only selected rice can be lowered to P29 per kilo.

"Let me clarify, the P29 is the target cost of rice for the poor, those who are targeted for the 4Ps. So, it's not a general price. The Department of Agriculture is aiming for a reduction to P29 per kilo, at least for the poor, because we will complement this tariff reduction with direct subsidies to the poor and the vulnerable, so they can access the food rice,” Balisacan said.

However, the adjustment made to the tariff is still important because it will have a big impact on the inflation of the country or the speed of the increase in the price of goods. More than half of the country's total accelerated inflation is due to rice.

While reducing the rice tariff, it is expected to bring down rice prices for consumers while also supporting domestic production through tariff cover as well as increased budgetary support to improve agricultural productivity. Especially as global prices remain elevated.

Balisacan also stated that the government will not suffer from the loss of revenue from the reduced tariff. This is said to be recovered to economic growth.

Source: Philippine Star

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