Lower tariffs on food items, coal to cool inflation–balisacan

TO temper inflation, the National Economic and Development Authority (Neda) Board chaired by President Ferdinand R. Marcos Jr. has approved the extension of the validity of an executive order (EO) which reduced the tariffs on some food items and coal.

Socioeconomic Planning Secretary Arsenio M. Balisacan said the EO will cover meat of swine, corn, rice and coal.

Balisacan said the measure aims to “provide relief to poor and vulnerable segments of the Filipino population whose welfare is reduced because of high inflation.”

“Through this policy, we shall augment our domestic food supplies, diversify our sources of food staples, and temper inflationary pressures arising from supply constraints and rising international prices of production inputs due to external conflict,” Balisacan said.

The lowered tariffs for pork, corn, and rice will be in effect until December 31, 2023, while that for coal will be in place “indefinitely,” but it will be reviewed every 6 months.

Last May, former President Rodrigo R. Duterte issued EO 171 series of 2022, which extended the validity of EO 134 series of 2021.

EO 171 also lowered the tariff for corn, rice, and coal. The issuance is scheduled to lapse on December 31.

Balisacan said the government expects the global economy to recover next year due to the expected reopening of China’s economy, moderating global oil prices, easing of aggressive monetary policy tightening, and sustained remittance inflow.

With the said factors together with the implementation of the approved Philippine Development Plan (PDP) 2023 to 2028, the Neda said the Philippines will hit its economic growth target of 6 percent to 7 percent next year.

Among the highlights of the new PDP are the digitalization of government processes and public services; improving the local and global connectivity of our markets and the integration of leading and lagging regions; and servicification or building ICT (information and communication technology), creatives, tourism, and logistics ecosystems around manufacturing clusters.

The new government policy road map also focuses on building a dynamic innovation ecosystem; harnessing the private sector’s resources, technologies, and potential for scale economies through public-private partnerships (PPPS); and ensuring the effective devolution of critical social services to local governments.

“Our economy remains robust, supported by strong domestic demand and an upbeat labor market,” Balisacan said.

He said the proposed Maharlika Investment Fund (MIF), which is patterned after the sovereign wealth fund of other countries, will help the government achieve its economic targets.

“We commit to working with our Legislature to put in place the necessary features of, and conditions for, a successful investment fund that will best serve the interest of the Filipino people,” Balisacan said.