The National Economic and Development Authority of the Philippines has stated that it has agreed to the proposal to reduce or eliminate tariffs on crude oil, petroleum products, asphalt, and other items to rectify inconsistencies with the ASEAN Free Trade Area agreement.
Philippine Finance Secretary Margarito Teves stated at a press conference held at the Angeles University Foundation in the Philippines that tariffs on these essential products in the Philippines will be reduced to between 3% and 0%, as all ASEAN countries have accepted this proposal.
It is reported that tariffs on hot-rolled coils and cold-rolled coils will be reduced from the current 7% to 0%. The Philippines is considering reducing the tariff on alkylbenzene from 3% to 1%.
In addition, in accordance with ASEAN Free Trade Area regulations, the tariff on rice will be reduced to 40% this year and to 35% in 2015. The tariff on edible sugar will be reduced from 38% this year to 28% in 2012, continuing to decrease to 18% in 2013, 10% in 2014, and 5% in 2015.
Teves said that in addition to these products, the Philippines will reclassify coconut oil from the sensitive product list to the general product tariff list in accordance with agreements reached among ASEAN member states, and its tariff will be reduced from the current 10% to 0%.
He stated that the tariff reductions will result in an annual fiscal loss of 3.4 billion to 4 billion pesos (approximately 46 pesos to 1 US dollar) for the Philippines.
