Solon wants probe on tax collection from rice importers

Senator Cynthia Villar
Senator Cynthia Villar

MANILA – Senator Cynthia Villar said that a resolution has been filed with the Senate to investigate the tax collection from rice importers which will be the source of the Rice Competitiveness Enhancement Fund (RCEF).

Villar, the principal author of the Rice Tariffication law, said there are conflicting claims between the Department of Agriculture (DA) and the Department of Budget and Management (DBM) regarding a P5 billion collection around December 2018.

“Sabi niya [DA] hindi pa passed ang rice tariffication noon, hindi naman daw for rice tariffication iyon. Kaso sabi ng DBM it’s for rice tariffication. Hindi daw para sa RCEF iyon pero sabi ng DBM para sa RCEF iyon. So, we will know who is telling the truth. Kasi in conflict iyong sinasabi nila,” Villar said in a press conference.

She added that the hearing could start in two weeks.

Under the Rice Tariffication law, P10 billion shall be allocated by the government annually for the RCEF.

This fund will be divided for procuring farm machinery, conducting training among local farmers, and providing low-interest loans to increase their competitiveness amid liberalization of rice importation.

“Under the rice tariffication, whether they collect or not, they will give the farmers P10 billion a year. That’s according to the law. So kapag sumobra ng P10 billion, susumahin iyon tapos ia-identify sa GAA (General Appropriations Act) kung saan dadalhin ‘yung beyond P10 billion,” Villar said.

“I have to exercise my oversight function to make sure they follow the law. Kasi this is very important, this is the competitiveness of our farmers. We have liberalized the importation of rice so we have to make our farmers as competitive as soon as possible,” she added.

The Rice Tariffication law was signed by President Rodrigo Duterte last February. It took effect in March.

Under this measure, all quantitative restrictions on rice importation in the country have been lifted but a 35 percent tariff shall be imposed on imports from the Southeast Asian countries.

The Bureau of Customs (BOC) said that it has collected nearly P6.5 billion in duties from rice imports made by private traders from March to mid-July this year. (GMA News)

LEAVE A REPLY

Please enter your comment!
Please enter your name here