By Kim Tae-gyu
The government is facing criticism that it is attempting to pressure private firms to help tackle soaring inflation, the rate of which has been over 4 percent for the past year.
The Ministry for Food, Agriculture, Forestry and Fisheries (MIFFAF) said Friday that it plans to scrap discounts for tariffs on domestic importers of farm produce who don’t help the government’s efforts to tame inflation.
``We have maintained lower duties on a host of agricultural importers. If they do not cooperate in our initiatives to hold back price rises, they will not be able to enjoy the benefit in the future,’’ a MIFAFF official said.
``Those who do not forward imported merchandise for specific periods so as to rake in profits on inflation will be deprived of the special measures. The step is expected to start next month at the earliest.’’
A total of 35 items are eligible for discounted import duties including pork, garlic, dried peppers, frozen mackerel, butter, cheese, corn, sugar, wheat and powdered milk.
The total discounts are estimated at more than 500 billion won every year.
In order to increase the effectiveness of the maneuver, MIFAFF is mulling over strengthening its alliance with related organizations such as the Fair Trade Commission and the Korea Customs Service.
Over the long-haul, the ministry is thinking of revising the relevant regulations so that importers can enjoy favorable tariffs only after they complete the circulation of imported farm produce.
The measure has raised the ire of importers, who contend that the incumbent administration has crossed the line in how to deal with inflation.
``I understand one of the most significant missions of the government is to secure price stability for the country. But it is putting too much of a burden on us via import duty controls,’’ said an importer, who asked not to be named.
``It urged refiners to cut prices of gasoline early last year under the name of achieving price stability. The government is not supposed to employ such coercive policies.’’
The Ministry of Knowledge Economy persuaded the nation’s four major refiners to reduce gasoline prices by 100 won per liter last year for three months.