Replacing Philippine rice import quota with 35% tariff to slash prices by P7 per kilo.

Removing the quota on rice imports and instead slapping them with a 35-percent tariff rate will bring down domestic prices by up to P7 a kilo. In an economic bulletin, Finance Undersecretary and chief economist said a 35-percent import duty on rice would encourage private traders to bring in the staple into the country, which would, in turn, allow the influx of cheaper rice in the domestic market. Also, a reduction in rice prices would be beneficial to the majority of poor households that spend at least 20 percent of their budget for rice, such that about 730,000 Filipinos can be lifted from poverty by rice tariffication. Pulling down rice prices is crucial to poverty reduction because this staple is a major driver of inflation.