In a bid to maintain price stability amidst the looming threat of dry weather and rising inflation, Philippine President Ferdinand Marcos Jr. has given his approval for the extension of reduced tariffs on rice and other food items until the end of 2024. This decision comes as a response to the current economic conditions and is aimed at ensuring food security and affordable prices for the Filipino population.
Background
The modified tariff rates were first introduced in 2021 and were extended earlier this year due to high inflation. However, with inflation averaging at 6.2% during the first 11 months of 2023, well above the Philippine central bank’s target of 2%-4%, President Marcos Jr. deemed it necessary to further extend the reduced tariffs until the end of next year.
President Marcos Jr. emphasized the importance of the continued application of reduced tariff rates on essential food items such as rice, corn, and pork to ensure food security and affordability for the Filipino population. By keeping the tariff rate for rice at 35%, import levies on corn at 5%-15%, and pork products at 15%-25%, the government aims to stabilize prices and mitigate the potential effects of the El Nino dry weather phenomenon and the ongoing threat of African Swine Fever.
Despite inflation easing for a second consecutive month in November, President Marcos Jr. acknowledged the persistent challenges posed by rising prices. By extending the reduced tariffs, the government aims to curb inflationary pressures and alleviate the burden on consumers, particularly in light of the upcoming dry weather conditions. This move is a proactive step towards addressing the negative impact of inflation on the Philippine economy.
The extension of reduced tariffs aligns with President Marcos Jr.’s commitment to ensuring food security in the Philippines. With the looming threat of El Nino and African Swine Fever, it is crucial to maintain affordable prices for staple food items. By providing support through reduced tariffs, the government aims to protect farmers, traders, and consumers from the adverse effects of these environmental and economic challenges.
The extension of reduced tariffs on rice, corn, and pork products until the end of 2024 marks an important step towards price stability and ensuring food security in the Philippines. President Marcos Jr.’s decision reflects the government’s commitment to addressing rising inflation, mitigating the impact of adverse weather conditions, and protecting the welfare of Filipino consumers. By implementing these measures, the government aims to alleviate the burden on households, support agricultural resilience, and sustain economic growth in the face of challenges.
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