RP mulls tariff cut for pharma products

The Philippines plans to cut some of its existing tariffs for pharmaceutical products, while lowering tariffs on raw material inputs as part of the soon to be completed comprehensive review of the country’s tariff program.

This was disclosed by Tariff Commissioner Edgardo Abon who said that the review is now in the final stage with only a few minor issues to be resolved including cleaning up some typographical errors.

Abon was hopeful that a new tariff program would be ready for signing by the President during the next congressional break.

"We just want to make sure that everything is okay when the President signs it," Abon said.

However, Abon admitted that there is still no decision yet on how long the new tariff program would be effective.

Most likely, Abon said, it would be for a three to four-year period although Abon’s own recommendation is for an effectivity of five years to give businesses a longer planning period.

Local Industries have been urging the Tariff and Related Matters (TRM) Committee to hurry up and finish their comprehensive review of the 2006 tariff program as the delay is causing havoc with industry business plans.

The Tariff Commission has been pushing for an early publication of the tariff schedule covering the period 2006 to 2010 to allow industry and business better planning tools.

However, the TRM technical committee wants to leave up to the CTRM the crucial decision to publish the country’s tariff schedule for 2006-2010.

The Tariff Commission which had completed its review of the country’s tariff program middle of last year had recommended that about 30 percent of the rates to be reduced, 50 percent would be maintained and about 20 percent would be raised.

The TRM technical committee, however, may or may not follow the Tariff Commission’s recommendations.