The APMP said the UA&P study, which used internationally accepted methodology for input-output analysis, showed that there will be a minimal effect of less than one percent on end product prices if the tariff rate on polymer resins is increased from the current 15 percent to 30 percent.
The APMP said raising the tariff on polymer resins will ensure the survival of the domestic petrochemical industry.
The APMP cited the experience of Taiwan, South Korea, Japan, India, Thailand, Malaysia and Indonesia which initially imposed tariffs ranging from 25 percent to 40 percent.
"Those countries have not been able to build up their local petrochemical industry and are now exporting their excess output of resins and plastic products," the group said.
Mario Jose Sereno, executive director of APMP said "a higher tariff on polymer resins will provide adequate protection to the industry and will present government with an opportunity to revive an industry that is crucial to the country’s development."
Sereno said the petrochemical industry’s viability is threatened by several factors such as the lack of tariff protection, technical smuggling of petrochemical products through customs bonded warehouses and the high cost of power.
He pointed out that investors have poured in at least P50 billion to build the three existing petrochemical plants, and have paid millions in taxes and provided employment for thousands of Filipino workers. – Marianne Go