THE Department of Finance (DOF) will increase import tariff across the board by one percentage point starting this month to cushion losses from delays in enforcement of the new value-added tax (VAT) law.The tariff hike is expected to earn the government some P14.6 billion annually.
Officials said the Philippines may increase tariffs as long as it is within the range committed under the World Trade Organization.The finance department said the plan to raise tariff was similar to the levy on imported products ordered by the DOF during the Aquino Administration.
Tariff ceiling for the Philippines is at 25.6%, and applied tariff lower by about 5%.The DOF added that the across-the-board increase will continue even if the new VAT law is allowed to be implemented soon.
