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Govt to reimpose tax breaks for wheat, cement


President Benigno Aquino III on Thursday said he is set to sign an executive order that will temporarily suspend tariffs on wheat and cement imports. In an interview with reporters, Aquino said the government intends to re-impose the zero tariffs for wheat and cement imports in order to cushion the impact of rising prices cause by their low availability in the world market. "I intend to sign it," he said of the upcoming EO, without specifying when he will sign the legal issuance. "We are trying to cushion the impact of increasing prices by having them have those tax breaks, yung suspension muna for both wheat and for cement," he added. In February last year, then President Gloria Macapagal-Arroyo suspended for six months the tariffs on cement and wheat through EOs 862 and 863, respectively. EO No. 862, which allowed the duty-free entry of cement was imposed to "support continued economic activity arising from the construction sector undertaking all kinds of construction projects despite the global economic slowdown." On the other hand, zero tariff was imposed on milling wheat to "support efforts to lower the cost of producing wheat flour thereby stabilizing the price of bread and other bread products." Both legal issuance expired in August 2010. - Jam L. Sisante/KBK, GMANews.TV

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