Philippines Government Considers Extending Zero Tariff for Flour

To control bread prices from increasing, the government is considering extending the zero tariff duties on flour as its way of helping low income consumers continue buying bread and other bakery products.

Executive Secretary Eduardo Ermita told Malacanang reporters that he is awaiting the recommendations of Trade and Industry Secretary Peter Favila and Agriculture Secretary Arthur Yap regarding flour prices.

"If that is the best way to keep the prices of bread and bakery products at their current levels and to ensure that consumers can continue buying these products, then we will extend the zero duties on flour," Ermita said.

Some companies are asking the government to extend the zero tariff on flour to keep the prices of bread and bakery products within the reach of consumers as global economic recession continues to intensify.

Ermita said he is awaiting the recommendations of the DTI and the DA but he is also in contact with the bakers association. "As I said, we can do this as long as extending zero tariff can be good for the greater number of people," Ermita said.