The lowered tariff on imported rice from 35 percent to 15 percent did not lead to a reduction in rice prices, the National Economic and Development Authority disclosed yesterday.
“This is a puzzle also for us,” NEDA Director Nieva Natural told members of the House “Murang Pagkain” super committee.
“Perhaps this deserves a more nuanced analysis,” she added.
Natural said the tariff reduction, contained in President Ferdinand Marcos Jr.’s Executive Order 62, should have resulted in higher supply with increased rice imports, thus lowering retail prices.
Instead of the expected outcome, Natural said major market players were pricing goods above competitive levels.
The lower tariffs saw a 62 percent hike in imported rice demand.
Customs Commissioner Bienvenido Rubio said while the tariff cut reduced the landed cost of imported rice to P33.93 per kilo, retail prices remained high.
For his part, House Ways and Means chairperson Joey Salceda asked the Bureau of Internal Revenue to audit tax payments by major rice importers.
Salceda said these companies may have profited significantly from the tariff reduction.
“This is just short of supernatural. There is clearly pricing abuse—we just need to pinpoint at which stage,” Salceda said.
