Proposed additional duty on imported cement may hike prices, warns group

Combined with value added tax (VAT), prices per bag of imported cement could surge by up to P10 once the new tariff is finalized, said Philippine Cement Importers Association Inc president Napoleon Co. ABS-CBN NEWS

MANILA – The Department of Trade and Industry’s proposed additional duty of P8.40 per bag on imported cement to protect local manufacturers could push retail prices upward, a stakeholder said Wednesday.

Combined with value added tax (VAT), prices per bag of imported cement could surge by up to P10 once the new tariff is finalized, said Philippine Cement Importers Association Inc president Napoleon Co.

“We believe if the local cement plants [comply with] all the [import] requirement of the industry, prices will go up,” Co told ANC’s Early Edition.

“Unfortunately we have no choice, either we stop or we have to pass on [the costs to consumers] because our margin is very thin,” he said.

Some stakeholders have deferred importing as the final rate is yet to be finalized by the Tariff Commission, he said.

Co sees demand for cement growing by 10 to 20 percent this year amid the government’s P8-trillion Build, Build, Build program.

Cement imports increased to 3 million tons in 2017 from only 3,558 metric tons in 2013, the trade department earlier said. (ABS-CBN News)

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