REDUCING the tariffs on mechanically deboned meat (MDM) will be to the detriment of the local livestock industry and will have minimal impact on the consumer prices, farmers group Samahang Industriya ng Agrikultura (SINAG) said Thursday.
SINAG said the Bureau of Customs (BOC) should collect 40 percent tariffs on MDM instead of pushing through with endorsements to maintain the tariff at five percent as mandated by Executive Order 82 which expired on Dec. 31, 2020.
“MDM tariff (in law and intent) must revert to the 40 percent regime. Are we still a country governed by law or by the whims of a few?” the group said in an emailed statement.
According to SINAG, the importation of MDM last year was recorded at 258 million kilograms averaging P50 per kilogram. At a five percent tariff, government collections should be at P635 million, but the government could collect P4.44 billion more at 40 percent tariffs which would increase revenues to P5.08 billion.
“The overarching economic blueprint of the Duterte Administration is anchored on raising additional government funds to support its (government’s) accelerated spending for the ‘Build, build, build” and social services programs; and most certainly amid the COVID-19 global pandemic,” said SINAG.
“Reverting to the five percent tariff will deprive government of much needed revenues,” it added.
SINAG said the reduction to five percent tariffs also had minimal impact on consumer prices, with a regular 100 mg luncheon meat only having an increase of 35 centavos to P1.40 from P1.05 per 100 milligrams.
“There is no empirical data to show that the retail price of processed/canned meat was ever reduced as a result of lowering the tariff for the past 20 years,” said SINAG.
Moving forward, the five percent tariff on MDM will only be implemented should President Rodrigo Duterte approve such proposals. (GMA News)
