Tax collection from rice importers reach P6.5-B in mid-July

The Bureau of Customs (BOC) collected nearly P6.5 billion in duties from rice imports made by private traders under the Rice Liberalization Act, the agency announced on Monday.

In a report to Finance Secretary Carlos Dominguez III, the BOC said it had collected a total of P6.479 billion from importer-traders as of July 15, with most of the revenue from rice import duties collected from the Port of Subic (P1.598 billion), followed by the Manila International Container Port (P1.033 billion), and the Port of Manila (P998.77 million).

An average of P1.4 billion a month had been collected since the Rice Liberalization Act, or Republic Act (RA) No. 11203, took effect last March.

The duties collected made up over half the P10-billion needed for the Rice Competitiveness Enhancement Fund (RCEF).

Ten percent of the fund would be used for loans, with minimal interest rates and with minimum collateral requirements, to rice farmers and cooperatives.

The rest of the RCEF would be set aside for farm machinery and equipment; rice seed development, propagation and promotion; and rice extension services, all of which was part of the effort to modernize the agriculture sector.

Meanwhile, the BOC pointed out that due to the liberalized rice trade, the average retail cost of the staple had fallen by at least P7 per kilo.

Additionally, the BOC added that from a high of 6.7 percent in September and October 2018, the Rice Liberalization law had contributed to last June's deceleration of the inflation rate to 2.7 percent, or the low-end of the state economic team’s target band of 2-4 percent for the year.

Another P3.103 billion was also earned in duties from import permits issued by the National Food Authority (NFA) since January this year. — Joviland Rita/DVM, GMA News