MANILA -- Budget Secretary Benjamin Diokno said on Wednesday a 30 percent to 40 percent tariff rate is being eyed on sugar importation, to serve as protection for local producers while still liberalizing the industry.
At the sidelines of Breakfast with Ben, Diokno said local farmers can still compete with sugar importers within that tariff rate.
"We will open up the importation but the competition is still there. We liberalize but we still impose tariff," Diokno said in Filipino.
"If you can't survive with the 30 to 40 percent protection, you are inefficient," he added.
The local confectionary industry likewise expressed its support for the government's plan to open up the importation of sugar into the country.
Philippine Confectionery Biscuit and Snack Association (PCBSA) president Kissinger Sy told reporters on Wednesday that liberalizing sugar importation will help the industry to further grow, as it will gain more savings from the cheaper price of the commodity.
Sy said these savings can be invested instead to boost their operations.
He mentioned that the industry is a heavy user of the commodity, as sugar constitutes around 50 percent to 70 percent of confectionery item.
"Government's liberalization plan is long overdue as sugar is now practically a basic commodity that is used as an ingredient in almost all major food products that are consumed by all sectors of society," he said.
But PCBSA wants tariff rate at 25 percent, while allowing them to directly import sugar.
"For the last couple of years PCBSA has been petitioning the government to allow its members to directly import sugar to be used exclusively to produce confectionery items," Sy said.
PCBSA noted that the industry contributes PHP30 billion annually to the economy from the sales of confectionery products. (PNA)
