Revenue impact of rice import suspension seen at P4.3 billion – BusinessWorld Online
THE Bureau of Customs (BoC) estimated that the suspension of rice imports will result in foregone revenue of more than P4.3 billion.
Customs Commissioner Ariel F. Nepomuceno told BusinessWorld that the estimate is based on the BoC’s year-earlier collections of P1.64 billion in September and P2.68 billion in October.
“The total is around P4.3 billion. But if we factor in growth in volume for this period, foregone revenue could be higher,” Mr. Nepomuceno said via Viber.
The temporary ban is set to begin on Sept. 1, after President Ferdinand R. Marcos, Jr. ordered the halt to rice imports to provide relief for farmers during the harvest.
Some farmers are being offered prices for their grain below the cost of production.
Rice tariffs remain among the BoC’s top revenue sources.
After Executive Order 62 slashed rice import tariffs to 15% from 35% in June 2024, the Department of Agriculture called for a “gradual hike” to return to the original rate.
Assistant Commissioner Vincent Philip C. Maronilla has said that the rice tariff reduction led to about P20 billion in foregone revenue last year.
Finance Secretary Ralph G. Recto said he expects a “slight drop” in Customs revenue due to the two-month ban but still expects the collection target to be met.
In July, Customs collections rose 6.4% year on year to P80.36 billion, bringing the seven-month total to P544.23 billion.
This year, the BoC has been set a target to collect P958.7 billion. — Aubrey Rose A. Inosante