The Customs Office (BOC) recorded a shortfall of 3.4 billion pesos due to lower pork import tariffs, the Ministry of Finance (DOF) reported on Monday, November 22.
The tax collection losses stem from the government’s efforts to increase the supply of pork and stabilize its retail prices in the domestic market, but it cost the agency 3.4 billion pesos in mid-November.
As a reminder, President Duterte issued a series of executive decrees (OEs) that lowered pork import tariffs and increased authorized meat import volumes to help stabilize domestic supply and prices.
Executive Decree (EO) No. 128, which lowered pork import tariffs to five percent in its Minimum Access Volume (MAV) and to 15 percent outside of the MAV for the first three months, was in effect from April 7 to May 14.
EO 134, which replaced EO 128, set tariffs on pork imports under the MAV at 10 percent for the first three months and 15 percent over the next nine months.
For imports outside the MAV, tariffs are 20 percent for the first three months and 25 percent for the next nine months.
The one-year effectiveness of EO 134 began on May 15, 2021.
In a report to Finance Secretary Carlos G. Dominguez III, the BOC said that from April 7 to November 12 of this year, pork imports reached 197 million kilograms (kg).
âTo calculate the effect of the two EOs, we multiplied the assessed value of the meat by 25%, minus 5% and 15%, which were already paid for the 128 OE, and multiplied the assessed value by 20% and 15%. % for the OE. 134. The result showed a loss of income of 3.4 billion pesos, âGuerrero explained.
Guerrero said the volume of pork imports started to increase in March and increased continuously between April and May, but fell from June.
The volume of pork imports in April, the month the two EOs came into effect, increased 500 percent, from 4.07 million kg in the same month last year to 24.45 million kg.
This dramatic increase in pork import volumes continued in May, when a total of 36.5 million kg entered the country, representing a 506% increase from the 6.02 million kg imported during the same period in 2020.
In June, pork imports reached 33.62 million kg, 531.39 percent more than the 5.32 million kg brought into the country during the same period last year.
Pork imports continued to decline steadily in July, when volumes totaled 31.18 million kg, up 370.4% from the 6.63 million kg recorded in the same month of 2020.
In August, pork imports increased 271.59% year-on-year, falling to 164.55% in September and 78.47% in October.
The import volume of pork was 6.41 million kg in August 2020 and 23.82 million kg in August 2021; 9.73 million kg in September 2020 and 25.73 million kg in September 2021; and 10.85 million kg in October 2020 and 19.36 million kg in October 2021.
From November 1 to 12, pork imports of 7.47 million kg were down 11.64 percent from 8.46 million last year for the same period.
Meanwhile, the office said it had so far collected PPP 3 billion on pork imports as of mid-November 2021.
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