Reviewing and tweaking the Rice Tariffication Law is on the table under the Marcos administration, depending on the dynamics of the economic environment, said National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan.
"It's already in the EO signed by the President that there is a periodic review. Anytime there are circumstances or special changes in the economic environment, our policies should have flexibility," Balisacan told reporters on the sidelines of the World Bank's Philippine Human Capital Review report launch at the Ascott Hotel in Bonifacio Global City.
Balisacan was referring to Executive Order No. 62, previously issued by President Ferdinand R. Marcos Jr. The order modified tariff rates on various products to ensure a continuous supply of goods and protect the purchasing power of the Filipino people.
Under EO 62, the rice tariff was reduced from 35% to 15% until 2028.
The lower rice tariff is expected to reduce rice prices by PHP6 to PHP7 in the coming months.
Officials of the Department of Agriculture, however, earlier called for a quarterly review of the rice tariff.
Balisacan said tariffs need to be reviewed, mainly if drastic changes occur in the economic environment.
"If they are no longer, as I said if the situations have changed, economic situations, they should be reviewed," he said.
"As I said, if [the] situation changes, we must have the government have that flexibility to re-examine its tools. If the tools have become already quite dull for a particular event, then you have to be able to change those tools," he said.
"That's what a dynamic economy is all about. If you cannot adjust or navigate major changes around us because you are so constrained from all your policy tools, you will not be able to survive a major shock."
Balisacan said the country also has a system under the comprehensive tariff reform program that calls for a review of the tariff structure every five years.
"Our tariff structure should be consistent with the rest of ASEAN. We are a member of the economic community," he said.
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