DTI eyes zero duty for raw materials

He said there is a consensus among the members of the Cabinet committee on Tariff and Related Matters (TRM) to bring down the existing tariff on raw materials. The TRM is headed by Roxas.

"However, there was no final decision yet as the other members of the TRM want to get a better estimate on the possible revenue implication," Roxas explained.

Government sources said a soft estimate on the possible revenue loss once the proposal is implemented amounts to about P3 billion.

Roxas said he is strongly recommending the tariff reduction to President Arroyo.

The sources said Roxas is determined to push for the reduction even if the other members of the TRM, specifically the Department of Finance and Department of Budget and Management, oppose the reduction because of its possible negative impact on revenues.

The DOF and DBM are facing a burgeoning budget deficit and may oppose any further erosion on their revenue collection.

Roxas said he would also push for a reduction of tariff rates on capital equipment.

As soon as TRM approves the reduction, Roxas said, President Arroyo would issue an EO to implement the new ruling.

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