Senate’s rice tariffication bill reported out to plenary
SENATOR Cynthia A. Villar reported out to the plenary on Monday the rice tariffication bill, which seeks to liberalize rice imports while imposing a tariff system on the commodity.
In her sponsorship speech, Ms. Villar, who chairs the Senate committee on agriculture, said the bill will help reduce rice prices and provide support for local farmers who will be affected by the influx of cheaper imported rice.
“It’s really timely that we implement rice tariffication, not only because of our commitment to the World Trade Organization (WTO) but also to address the country’s present problems with the price and supply of rice,” she said.
Senate Bill No. 1998 seeks to amend Republic Act No 8178 or the Agricultural Tariffication Act to implement a system of rice tariffs. A 35% duty will be imposed on imports coming from the Association of Southeast Asian Nations (ASEAN), while a 50% rate will apply to imports from non-ASEAN countries.
Ms. Villar said the bill will also remove the authority of the National Food Authority (NFA) to regulate the importation of rice and to issue import licenses or permits for the private sector.
“In effect, it will remove unnecessary government intervention in the rice market... and the government can focus on regulating to ensure food safety and fair market competition,” she said.
Another feature of the bill is the creation of the Rice Competitiveness Enhancement Fund consisting of an initial appropriation of P10 billion sourced from the national budget until such time that there are sufficient collections from tariffs. —