Philippines extends zero tariff on food wheat, cement
- Source: Xinhua
- [10:46 July 08 2009]
- Comments
Philippine President Arroyo on Tuesday approved the six-month extension of the zero tariff on food wheat, cement and cement clinker, Trade Secretary Peter Favila said.
Favila said in an interview after a conference on social welfare and protection at the presidential palace that government lawyers are checking whether the extension could apply right after Executive Order 765 imposing a zero tariff for wheat products, and Executive Order 766 for cement, expired on June 21, 2009 or would have to take effect only that day.
Favila said the zero tariff extension applies only to food wheat and not feed wheat, since the Department of Agriculture expects higher corn yields.
"The expectation of the Department of Agriculture is that the corn harvest would be higher so that would take care of the needs of the food processors," he said.
Favila said the zero tariff extension on the concerned items is "subject to review by the Secretary of Trade at any given time."
National Economic Development Authority (NEDA) Deputy Director General Rolando Tungpalan said the zero tariff on food wheat is estimated to cost the government 240 million pesos in foregone revenues.
"Hopefully the stimulated growth would compensate for the revenue reduction," Tungpalan said in an interview after a Palace news briefing.
The Philippine Association of Flour Millers (Pafmil) had sought a six-month extension of the zero tariff on imported milling wheat to deter an increase in the price of bread and bread products.
Pafmil had argued that its consumers "should be allowed continued access to high quality, reasonably priced flour milled from wheat grains imported at zero duty."
Mrs. Arroyo issued Executive Order 765 on November 7, 2008, lifting the 3 percent import duty on wheat until June 21, 2009 to help stabilize prices of bread and other baked food products; and on feed wheat to "help lower the cost of feed ingredients and keep the prices of poultry and livestock products stable."
The tariff on wheat is 3 percent; the tariff on imported cement from Asean nations is 3 percent, while the tariff on cement from non-Asean countries is 5 percent.