Govt studying how to reduce 40% rice tariff

Malacañang on Tuesday said government is studying how to reduce the 40 percent tariff on rice to encourage the private sector to import the commodity. Deputy presidential spokesman Edwin Lacierda said an inter-agency technical working group is now studying the matter to level the playing field, because the National Food Authority (NFA) imports rice without any tariff. The tariff rate reduction is being studied by both the Department of Agriculture and the NFA, he said. Budget Secretary Florencio Abad earlier said allowing the private sector to import more rice is part of government’s strategy in restructuring NFA. What the President wants to turn NFA into a “buyer of last resort," the budget chief said. A bill is also being fine tuned for the national government to absorb NFA’s P177-billion debt, he said. It is “logical" for the national government to absorb the NFA’s debt for the agency to have a fresh start, according to the budget secretary. The Aquino Cabinet has agreed to let the Department of Social Welfare and Development handle NFA’s function that provides subsidized rice to the poor, and the Agriculture Department the regulation of staples trading. — VS, GMANews.TV