The Philippine Department of Agriculture (DA) is looking into lowering taxes on imported pork as a way to tackle the increasing prices at stores. This plan includes sharing part of the meat import quota, called the Minimum Access Volume (MAV), between government organizations and private traders.
Agriculture Secretary Francisco Tiu Laurel Jr. stated that the DA aims to finalize the MAV allocations by the end of February. The suggested distribution includes 30,000 metric tons (MT) for processors, 15,000 MT for the DA’s agencies—Food Terminal Inc. (FTI) and Planters Products Inc. (PPI)—and 10,000 MT for traders.
The MAV system allows a set amount of agricultural products to be imported at lower tax rates, which can help increase supply and stabilize prices in the market. By using this system, the DA hopes to bring in pork, whether from local or international sources, and sell it directly to consumers. This strategy aims to cut down on middlemen in the supply chain, which can help lower costs and retail prices.
Secretary Tiu Laurel highlighted that the DA can import pork at the reduced tax rates under the MAV to help control price hikes when needed. He also mentioned that FTI and PPI, both government-run organizations, will work on bringing in frozen pork. They plan to partner with retailers and Kadiwa stores to ensure affordable pork is available to the public.
The Meat Importers and Traders Association (MITA) supports this initiative. In a letter to Secretary Tiu Laurel, MITA requested that MAV import certificates be released quickly and the allocations be distributed. MITA President Emeritus Jesus Cham noted that delays in distributing the MAV quotas could disrupt trading and possibly lead to shortages.
MITA also suggested creating an additional MAV, called MAV Plus, for at least 500,000 MT of pork. This would allow more imports at lower taxes, encouraging competition in the market and addressing potential shortages. They proposed that a similar plan might be considered for chicken imports if needed.
The DA’s consideration of these measures shows its dedication to ensuring a stable and affordable meat supply for Filipino consumers. By adjusting import taxes and streamlining how products are distributed, the department aims to lessen the impact of rising prices and support both local producers and consumers.
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