TO help boost the competitiveness of the local salt industry, President Ferdinand R. Marcos Jr. signed Republic Act (RA) 11985 or the Philippine Salt Development Act, which slaps a 9-percent tariff on imported salt.
Prior to the new law, the tariff on imported commodities was only at 1 percent.
The new ad valorem rate will be applied on all imported salt, including table salt, denatured salt, pure sodium chloride, whether or not aqueous solution of containing added anti-caking or free-flowing agent, as well as sea water.
After 90 days from the implementation of RA 11985, the collected salt tariff will be credited to the Salt Industry Development and Competitiveness Enhancement Fund (Sidcef) to be created in the special accounts of the National Treasury.
The law mandates fund will be managed by the Agriculture Secretary and the Bureau of Fisheries and Aquatic Resources (BFAR) Director and its beneficiaries will include salt cooperatives/associations of subsistence and small farmers and fisherfolks.
The fund will exist for ten years and will be used to: provide the machinery and equipment for salt production; establish a salt farm warehouse; provide extension services; and, develop modern salt production and processing technology in line with the Philippine Salt Industry Development Roadmap.
The law also mandates the creation of the Philippine Salt Industry Development Council, headed by the Department of Agriculture, to ensure the unified implementation of the Salt Roadmap. The latter aims to “accelerate the modernization and industrialization” of the Philippine salt Industry.
In the fifth year of the implementation of the RA 11985, the Congressional Oversight Committee on Agriculture and Fisheries Modernization, which will determine if the Sidcef will be continued, amended or terminated.
Despite the country being a salt-producer, it imports 93 percent of its salt supply due to poor quality control from local manufacturers.
Citing industry estimates, the Department of Labor and Employment earlier said the “revival” of the local salt industry will generate 100,000 jobs.
Aside from RA 11985, Marcos also signed RA 11984 (No Permit, No Exam Prohibition Act) and RA 11983 (New Philippine Passport Act) on March 11, 2024.