Farmers Reject Proposed Rice Tax Cut

The Federation of Free Farmers (FFF) strongly rejected proposals by the National Economic and Development Authority (NEDA) and some big business groups to reduce tariffs on imported rice in response to escalating prices of the commodity, as this could result in an annual foregone revenue of P12 billion for the government.

The price is not right: Farmers’ income losses could reach P120 billion in one year.

In a statement Wednesday, the FFF cited one recently floated recommendation that would decrease the current 35% tariff to 10%, supposedly to allow cheaper imported rice to augment local stocks.

It warned that the suggested cut could cause palay prices to drop by P6 per kilo, and the farmers’ income losses could reach P120 billion in one year.

The FFF also debunked a claim that these losses would be offset by the P10-billion allotment for the Rice Competitiveness Enhancement Fund (RCEF) under Republic Act No. 11203 or the Rice Tariffication Law.

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