Government to extend zero tariff for cement, wheat

MANILA, Philippines - The government is looking at extending the zero tariff on cement and wheat for another six months in order to maintain the stable price.

A source from the Tariff and Related Matters (TRM) Committee said that the direction of the government is to extend the zero tariff on cement and wheat. The Executive Order which remover the tariff is set to expire in August.

The source said the elimination of tariff on wheat will aid in the case of the Department of Trade and Industry against millers. DTI has filed a profiteering complaint against flour millers because local prices remained high despite the decreasing cost in the world market.

“The millers will have no reason to increase their price because the tariff for wheat is zero,” the source said.

For cement, the source said that although there is no reduction in the price of cement, the zero tariff will keep the price increases at a minimum.

Holcim Philippines Inc. has announced a price increase of two percent to four percent in Metro Manila and Southern Luzon as power costs in Mindanao continue to rise.

Holcim Vice President Ed Sahagun said the price of cement will go up by P5 to P8 per bag on June 21. This will bring cement prices in Metro Manila to P217 per bag. Early this year, Holcim increased the price by P5 to P8 per bag in Mindanao and Northern Luzon.

Sahagun said the Mindanao power crisis has raised the cost of power by 42 percent in the region. Since January, Sahagun said fuel cost went up by 20 percent. Holcim has two plants in Mindanao, one in Davao and the other in Misamis Oriental.

Republic Cement likewise increased their price as a result of the power crisis.