The Market Monitor Minding the Nation's Business
By Rose de la Cruz
Because of the reduction in import tariff on rice and electric vehicles– all aimed at taming inflation to ensure that the country reaches its growth targets– have instead led to foregone revenues of P9 billion since the imposition on July 5.
These foregone revenues would grow even more once all items covered by zero tariff– namely electric motorcycles, e-bicycles, nickel metal, hydride accumulator batteries, e-trikes and quadricycles, hybrid EVs and plug-in hybrid EV (PHEV) jeepneys or buses come in bigger numbers from now until 2028 (when Executive Order 62) expires.
The Bureau of Customs said on Sunday that “recent policy changes, particularly the implementation of Executive Order (EO) No. 62, which reduced rice tariffs from 35 percent to 15 percent, resulted in a revenue loss of P6.09 billion from rice imports.”
EO 62, which took effect on July 5, cut import tariffs on rice to 15 percent until 2028 to tame inflation.
The same order also extended the zero-tariff policy on electric vehicles and parts through 2028. It also expanded the coverage of the zero-tariff policy to e-motorcycles, e-bicycles, nickel metal hydride accumulator batteries, e-tricycles and quadricycles, hybrid EVs and plug-in hybrid EV (PHEV) jeepneys or buses, Business World addecd.
“EO 62 expanded the zero-import duties under EO 12 to include battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), plug-in HEVs, and specific parts and components, leading to an additional revenue loss of P2.9 billion,” BoC said.
For the first nine months of the year, Customs collected P690.84 billion, missing its target for the period by 0.44%.
This, however, is still 4.61 percent higher than P660.39 billion collected in the same period last year.
The end-September collection also made up 72 percent of BoC’s P959-billion collection goal for this year.
The BoC said it remains optimistic of hitting its revenue targets for this year as it boosts its collection of nontraditional revenues like post-entry audit and auction.
“Our commitment to transparency and efficiency in customs operations empowers us to build a stronger economy for all Filipinos,” Customs Commissioner Bienvenido Y. Rubio was quoted as saying.