Gov’t hikes tariff rates on 627 goods

The government is expecting to raise P1.5 billion from the latest decision of the Cabinet-level Tariff and Related Matters (TRM) Committee to raise the tariff rates on 627 locally produced products.

The TRM had been tasked to conduct review of the country’s Most Favored Nation (MFN) tariff rates.

The review involved 4,574 tariff lines of which 1,371 are locally produced and 3,190 lines are not locally produced.

Of the 1,371 locally produced goods, the TRM Committee decided to increase the tariff rate on 627 lines while maintaining the tariff levels on 740 lines.

Of the 3,190 not locally produced goods, the tariff rate on 2,933 lines was maintained, while the rate on 258 lines was reduced.

Protected by the tariff adjustment are locally produced vegetables from Benguet province which include cauliflower, lettuce, broccoli and carrots.

The TRM decided to raise the tariff on locally produced vegetables to 40 percent from the current level of 25 percent.

Philippine vegetables have been facing stiff competition from cheap imported vegetables coming from China such as cabbage.