THE Philippine government expects to collect an extra P1.5 billion each year with the implementation of new duties on almost 500 imported products.
The increase would, however, not exceed the estimated P120 billion revenue loss which started in the 90s when tariffs were drastically cut.
Among products whose tariff will increase are industrial goods such petroleum oils, pharmaceuticals and consumer products such as makeup, clothing accessories, sanitary napkins and diapers, shoes, pencils and wooden furniture.
Such products will have a 5-15% increase in duties from 3-7% from next year until 2007.The increase in tariffs follows the government’s review of the country’s 5,700 tariff lines in response to various domestic industries’ call for higher duties on imported commodities.
The tariff increase implementation will take effect on November 16. The government stressed the rise in import duties is needed to ensure competitiveness of local manufacturers.
The review, which started last August, identified 1,292 product lines which are directly competing with imported goods. It suggested tariff increases in 464 product lines, including 146 product lines, to 15% from 10%; 184 tariff lines, to 10% from 5-7%; 95 tariff lines, to 7% from 3-5%; and three tariff lines, to 5% from 3%.
However, some products did not get the tariff raise requested by local manufacturers.
Trade and Industry Secretary Manuel Roxas II has disclosed the government, in certain instances, did not raise the tariffs as requested.
Some, which requested a 100% increase, were only allowed 50%.
