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Biz group asks PBBM to review tax-free importation of palm oil

By Kris Crismundo

April 18, 2023, 4:43 pm

<p>Federation of Philippine Industries chairman Jesus Lim Arranza <em>(file photo)</em></p>

Federation of Philippine Industries chairman Jesus Lim Arranza (file photo)

MANILA – The Federation of Philippine Industries (FPI) has urged President Ferdinand R. Marcos Jr., who is also the Department of Agriculture (DA) Secretary, to revisit the agency’s policy on tax- and duty-free importation of palm olein to be used as ingredient for animal feeds.

FPI chair Jesus Arranza told reporters Tuesday that some of the imported palm olein that are tax- and duty-free were allegedly used for other purposes other than compounding of animal feeds.

“The DA should also revisit this policy of allowing zero VAT (value-added tax) and duty-free importations of palm olein as this is clearly hurting the local coconut and palm oil farmers and producers,” he said.

Arranza said the DA should have effective monitoring on where these palm olein imports were actually utilized.

“We need a reportorial requirement and checking to see if the volume that they import were actually used for animal feeds," he added.

Arranza said that even with the past incidents of African swine fever, imports of palm olein for compounding of animal feeds still increased.

He said the Bureau of Animal Industry, which issues the certification for tax- and duty-free palm olein for animal feeds, should also be responsible for monitoring where these imported products were utilized.

Arranza said that since FPI brought up this issue, imports of palm olein have slowed down which caused local prices to increase and even higher than the price of coconut oil.

"There is no closure yet on this issue. We opened it and we have to close it fairly, expeditiously, and ferret out all illicit acts attendant to this issue otherwise, there'll be room for other interpretations, and I thank the President for giving importance to my plea," he added. (PNA)

 

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