The government will lose about P11 billion in revenue should the pork tariffs be reduced from 30 percent to 5 percent, Senator Francis “Kiko” Pangilinan said Sunday.
“Our estimate is about P11 billion,” Pangilinan said when asked how much the government may lose on its plan to cut tariffs in response to the African swine fever (ASF) that has reduced pork supply and raised pork prices in the country.
“The purpose of the tariff is to support the affected industry with funding, to use the funds,” he added.
Pangilinan said this means the source of financial support for the domestic hog-raisers will also be reduced.
“Mawawala din ‘yung suporta sa magbababoy kung ibababa ang taripa. Eh talagang mayroong malaki, tiba-tiba, ang kumikita rito. Binaba na ang taripa, tinaas pa ‘yung volume nung pwedeng i-import,” he said.
Based on Pangilinan’s computations, at the current 30 percent in-quota tariff, the collections for imported pork would be 13.8 billion pesos, assuming the Minimum Access Volume for pork is increased to 404,210 metric tons. If the tariff is reduced to 5 percent, the collection would be 2.3 billion pesos, a difference of 11.5 billion pesos.
Former Congressman Nicanor Briones, who is president of the Agriculture Sector Alliance of the Philippines and vice president for Luzon of the Pork Producers Federation of the Philippines, gave the same estimate on the projected government revenue loss during the February 22 hearing of the Senate Committee of Agriculture, Food, and Agrarian Reform on rising food prices.
Pangilinan earlier delivered a privilege speech and filed a resolution urging the President to declare a state of calamity due to the severe impact of ASF on the swine industry. The resolution was later adopted by the Senate.