Rice tariffication, pol ad discount laws signed

President Duterte has signed into law a measure lifting quantitative restrictions on rice importation.

In a text message last night to Palace reporters, presidential spokesperson Salvador Panelo confirmed the signing of the rice tariffication law.

Duterte also signed a measure granting discounts to candidates for political advertisements, according to Senate President Vicente Sotto III.

The Palace has yet to release copies of the new laws.

In October 2018, Duterte certified the rice tariffication bill as urgent “to address the urgent need to improve availability of rice in the country, to prevent artificial rice shortage, reduce the prices of rice in the market, and curtail the prevalence of corruption and cartel domination in the rice industry.”

A month after Duterte certified the measure as urgent, a report on the bill was ratified by the bicameral conference

committee.

Local rice producer have oppose the measure, saying it would kill Filipino rice farmers.

Under the rice tariffication law, quantitative restrictions on rice importation are lifted and private traders are allowed to import the commodity from countries of their choice

The law imposes a 25-percent duty on rice imports from the Association of Southeast Asian Nations member states and a 50-percent rate on imports from non-members of the regional bloc.

The measure will also create the Rice Competitiveness Enhancement Fund (RCEF) or a special rice buffer fund, with an initial P10-billion annual fund, to ensure rice production competitiveness.

Concerns have been raised that the fund may be misused by corrupt officials.

The country’s economic team has been pushing for rice tariffication, saying this should bring down the prices of the country’s staple and weaken inflation.

The rice tariffication law replaces the government’s quantitative restrictions on importation of the staple with a 35 percent tariff.

Duterte’s economic managers have identified rice tariffication as one of a means to meet the country’s commitments to the World Trade Organization (WTO).

Under the law, the tariff of rice imported from Asean member states will be 35 percent. For non-Asean member states, the tariff will be 50 percent or the tariff equivalent calculated in accordance with the WTO agreement on agriculture.

“One of the key features of the bill is also the creation of the RCEF, which shall consist of initial appropriation of P10 billion a year until all duties collected from the importation of rice can replace it,” Sen. Cynthia Villar, sponsor and principal author of the bill, earlier said.

The fund will be used to provide different forms of assistance to the country’s rice farmers such as the development of inbred rice seeds for our farmers, the development of rice farm equipment and skills enhancement.

Villar noted the staple is the only agricultural commodity in the country that has a quantitative restriction, limiting the inflow of imported rice in the country.

The law would in effect remove all unnecessary intervention of the government in the rice market, as recently announced by Duterte.

Duterte also signed the bill pushed by Senators Aquilino Pimentel III and Richard Gordon mandating radio and television stations as well as newspapers to give candidates high discounts for their political advertisements.

“Free expression of our people’s will is better ventilated during an election period if all those who vie for the votes of our people are undeterred in delivering their messages to their voters, especially if the deterrence is the prohibitive cost,” Pimentel said last year in sponsoring the bill.

SSS contribution hike also signed

Also signed was the law amending the charter of the Social Security System (SSS) to raise member contributions.

SSS president and chief executive officer Emmanuel Dooc earlier said the bill is expected to generate P16 billion in premium collections in a year and the adjustments would be able to help extend the fund life of the SSS.

The bill would repeal the 21-year-old Social Security Law or Republic Act 1161 as amended by Republic Act 8282, and expand the powers of the SSS to ensure the longterm viability of the system.

In particular, the amendment aims to empower the Social Security System Commission to increase benefits, condone penalties and rationalize investments, among others.

The bill would ensure mandatory SSS coverage for overseas Filipino workers.

The President also signed the New Central Bank Act increasing the Bangko Sentral ng Pilipinas’ capitalization from P50 billion to P200 billion and strengthening its regulatory powers.–