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THE Department of Finance is likely to recommend a
cut in duties on imported flour amid the high price of the commodity
in the world market.
The government however has yet to
set up trigger prices for the tariff cuts, which are aimed at
averting the possible increase in pastry products, including the
popular pan-de-sal. The finance department also has to determine
whether such a cut is revenue neutral, which means a reduction would
result in no foregone revenues for the government.
Trade Secretary Peter B. Favilla
suggested coming up with thresholds for imported flour, like what
the finance department implemented for petroleum products since
January this year.
Ric Pinca, Flour Millers
Association of the Philippines president, said the trigger prices
should not only favor flour, but also include imported wheat, which
is the main source of flour.
Pinca said local flour millers
are likewise in need of government aid on the back of high rates of
imported wheat.
At present, the Bureau of Customs
collects a 5-percent tariff on all imported flour.
Since last year, local bakers
have complained of flour price spikes amid tight supply for the
commodity in the world market due to droughts in wheat producing
countries and food diversion to inputs for alternative fuels.
The current prevailing
price of hard flour stood at P670 to P880, while soft flour costs
P670 to P780.
The local market for flour
stands at 1.5 million metric tons.
--Chino S. Leyco
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