Tariff cuts result in nearly P9B in foregone revenues

TARIFF CUTS on imported rice and electric vehicles (EVs) resulted in nearly P9 billion in foregone revenues, the Bureau of Customs (BoC) said on Sunday.

“Recent policy changes, particularly the implementation of Executive Order (EO) No. 62, which reduced rice tariffs from 35% to 15%, resulted in a revenue loss of P6.09 billion from rice imports,” the BoC said in a statement.

EO 62, which took effect on July 5, cut import tariffs on rice to 15% 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.

“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,” Customs said.

For the first nine months of the year, Customs collected P690.84 billion, missing its target for the period by 0.44%.

However, this was 4.61% higher than P660.39 billion collected in the same period last year.

The end-September collection also made up 72% of the bureau’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. — B.M.D. Cruz