NEDA: Reduced rice tariffs failed to lower prices

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NEDA: Reduced rice tariffs failed to lower prices
National Economic And Development AuthorityRice PricesFood Prices
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The National Economic and Development Authority disclosed that President Ferdinand "Bongbong" Marcos Jr.'s Executive Order 62, which lowered the tariff on imported rice from 35% to 15%, did not lead to a reduction in rice prices as anticipated.“This is a puzzle also for us... perhaps this deserves a more nuanced analysis," said NEDA Director Nieva Natural during a House Murang Pagkain Supercommittee hearing.

The lower tariffs spurred a 62% increase in imported rice demand but also led to lower government revenue, which fell to P2.952 billion due to reduced tariff rates.Audit tax paymentsGiven the situation, House Ways and Means Chairperson Joey Salceda urged the Bureau of Internal Revenue to audit tax payments by major rice importers, suspecting that these companies profited significantly from the tariff reduction.Salceda also criticized profiteering practices, highlighting a substantial price gap.

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