Philippines Calling For End To Tariffs On Electronic Goods

by Mary Swire, Tax-News.com, Hong Kong

23 April 2004

The government of the Philippines is pushing for the removal of tariffs on electronic and semiconductor products traded within the Asean region (Association of South East Asian Nations), as a first step towards the abolition of trade taxes on further goods.

“We are pushing the electronics industry to take the lead in boosting trade and the integration of the region into a one market environment,” revealed Trade Secretary Cesar Purisima, according to regional press reports.

He argued that this course of action would have the effect of reducing production costs and prices to local consumers, as well as making the sector and region more attractive to investors.

“The proposal is a bold step because if approved we will be the first among the 11 sectors to have zero tariff by next year,” Purisima explained.

In addition to electronics, the Asean members are currently finalising plans to eliminate tariffs in the rubber and textiles industry, agriculture and fishing, healthcare, tourism and airlines.

It is hoped that the final plans will be presented to Asean leaders at the 10th Summit in Laos in November, and will be signed by the following year.

In addition to the Philippines, the membership of Asean consists of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand and Vietnam.

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