Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 10195

RBI easing is more than India’s rate cuts suggest

INDIA’S CENTRAL BANK Governor Shaktikanta Das said policy makers have effectively delivered more easing than the three interest-rate cuts this year suggest, signaling a more cautious stance on future action.

In one of his first interviews with media since taking office seven months ago, Das said he sees signs of a recovery in economic growth and further monetary policy steps will depend on incoming data. The central bank’s switch to an accommodative stance in June in itself amounts to a 25 basis-point cut, he said, on top of the 75 basis points of cuts since February.

“Effectively, the rate cut has been 100 basis points if you take into account the change in stance,” Das said ahead of the next Monetary Policy Committee meeting that begins Aug. 5. “The accommodative stance will depend on incoming data. How inflation numbers look, how the growth numbers look. Primarily how inflation looks.”

Sovereign bonds fell Monday after Das’s comments. The yield on the benchmark 10-year bond snapped a three-week rally to jump eight basis points to 6.44% as of 10:32 a.m. in Mumbai.

“These go on to suggest that the RBI (Reserve Bank of India) easing cycle is nearing its end,” said Prakash Sakpal, an economist at ING Bank NV in Singapore. “I believe 75 basis-point rate cut is enough of a stimulus for the economy and the RBI should allow this to filter down the real economy before easing anymore.”

Consumer prices are on a rebound, but below the RBI’s 4% medium-term goal

The RBI has been the most aggressive central bank in Asia this year to ease policy to support growth amid low inflation. A gloomy global outlook fanned by trade tensions has since prompted policy makers from Australia to South Korea to join the dovish camp.

“Parallel to that we have also ensured surplus liquidity in the system,” Das noted.

The need now is to ensure a revival in domestic demand, Das said, adding that an improving monsoon, lower oil prices and an easing of a domestic credit crunch are positive.

“The signs are looking good,” he said.

Waning consumption dragged gross domestic product (GDP) growth to a five-year low of 5.8% in the first three months of 2019, meaning India lost its title as the world’s fastest-growing major economy. That data was followed by the RBI in June lowering its growth forecast for the current fiscal year to 7% from April’s projection of 7.2%.

‘LOOKING GOOD’
“I would not like to specify how long it will last,” Das said, referring to the current slowdown. “India is today in a far better place than most of the major economies and India has certain inherent resilience and the signs are looking good.”

As for prices, Das said a decline in core inflation can be seen as a positive development on the one hand, but also as reflective of a slowdown in demand. “Therefore I don’t want to make a qualitative judgement on good or bad. Based on hard numbers, we will have to take a call,” he said.

The governor said the central bank alone cannot boost the economy and there’s a need for more reforms with various stakeholders having a role to play in addressing the slowdown.

MORE REFORMS
“You cannot have a fiscal solution to long-term growth,” Das said. The country needs structural reforms, an enabling business environment and measures to improve supply chains in the farm sector to make the economy more competitive, he said.

On her part, Finance Minister Nirmala Sitharaman used her debut budget this month to propose steps to boost investment, including a plan to ease foreign direct investment rules for sectors ranging from aviation to media. She lowered the budget deficit target for the current fiscal year to 3.3% of GDP from 3.4% previously, quelling expectations for a fiscal stimulus, and leaving the RBI to do the heavy lifting to support growth.

Economists at Capital Economics Ltd. and Edelweiss Securities Pvt. said Das’s comments aren’t enough to rule out another rate cut in August, given that inflation remains below the 4% midpoint of the central bank’s target range and GDP numbers have disappointed.

“There isn’t an effective fiscal stimulus happening,” said Madhavi Arora, an economist at Edelweiss in Mumbai. “There’s more of an onus on monetary policy to tackle the growth slowdown.”

TRADE WARS
A broad-based global slowdown with implications for the nation’s currency could also hurt India’s growth prospects.

Das said India won’t be as badly affected from the US-China trade war in the short term as other economies that are more plugged into global value chains. But if those tensions are prolonged, they will have an adverse impact on India, especially on its exports, which contracted in June for the first time in nine months.

That drop in shipments couldn’t have come at a worse time. Expectations that the Federal Reserve will soon cut rates has pushed the US dollar lower and bolstered the rupee. If US authorities take measures to weaken the dollar, it would have a ripple effect, Das said.

“If they depreciate, it means greater inflows,” he said when asked about Treasury Secretary Steven Mnuchin’s comments that a shift in the currency policy in future could not be ruled out. “When the reversal happens we have to manage spillover. If excess inflows come in, it becomes a problem to absorb excess liquidity. It’s an evolving challenge.”

Das, a former economic affairs secretary at the Finance Ministry, took charge at the Reserve Bank of India for a three-year term in December, days after Urjit Patel quit amid worries that the government was encroaching on the central bank’s turf. — Bloomberg

Best in the series

Atelier Lulua: The Scion of Arland
Nintendo Switch

THE Atelier series has churned out a game just about every single year since 1997, and with reason. Atelier Marie: The Alchemist of Salburg, its first offering, wound up being a critical and commercial hit, in the process serving as a solid foundation. And, creditably, developer Gust has taken nothing for granted since then; improvements that serve to strengthen the brand have come with every succeeding release. And, in this regard, Atelier Lulua: The Scion of Arland lives up to billing; it’s an excellent Japanese role-playing game that meets fans’ expectations in delivering a healthy blend of combat, exploration, and creativity, with a light-hearted story weaving all the elements together.

Atelier Lulua: The Scion of Arland is a direct sequel to the Arland subset of the Atelier series, and, as such, picks up a few years from where Atelier Meruru: The Apprentice of Arland left off. It sees Elmerulia Frixell (Lulua to friends and daughter of Atelier Rorona: The Alchemist of Arland titular character Rorolina) embarking on an adventure that take her and her friends (and mentor) far beyond the boundaries of her native Arklys. Her quest to fully comprehend the “Alchemyriddle,” a book-cum-artifact only she can read, opens her eyes to the history of, and mysteries behind, the Arland Republic and ultimately gets her closer to fulfilling her dream of becoming a better alchemist than her famous mother.

Needless to say, the Alchamyriddle is at the heart of Atelier Lulua: The Scion of Arland. It drives the narrative forward by essentially providing a roadmap to the completion of chapters; through riddles that have to be deciphered, tasks are handed out. Only main objectives are required to be met, but optional goals can also be set and prove to be no less fulfilling; gamers have complete discretion on how they want to progress, especially with time-based components, previously intrinsic to the Arland subset, eliminated altogether. And, make no mistake, the rewards in grinding by way of the elective assignments are myriad; more items and recipes for crafting and potion making are gathered, not to mention more locations unearthed to rinse and repeat the process.

Parenthetically, Atelier Lulua: The Scion of Arland affords gamers the freedom of choice even for combat. Enemies can be confronted or avoided depending on disposition. Deciding on the former will get three members of the party taking turns within clearly defined action frames, with two others on standby and ready to assist with special attacks or take over in the frontline depending on circumstance. Apart from the healthy variety of antagonists and ample spoils of victory, engaging in battles becomes worthwhile in and of itself because of the system’s fair difficulty measures and finely tuned mechanics.

That said, Atelier Lulua: The Scion of Arland’s biggest draw is the same as that of the three previous installments in the Arland subset: alchemy. Materials are processed for use in exploration, with said materials acquired — by purchase or by defeating certain adversaries — and combined with reagents to produce powerful items. While synthesis may seem intimidating at first glance, it’s actually easy to understand, even for newcomers to the series. Moreover, its complexity, or lack thereof, is entirely dependent on the gamers themselves; those so inclined can go for max stats by micromanaging the exercise and even delving into a novel Awakening feature that produces heightened effects.

Again, Atelier Lulua: The Scion of Arland provides gamers with the power of choice. Nonetheless, there’s something cathartic about the very act of fabrication and the fulfillment of its purpose, about properly blending materials and then using them when needed. Moreover, the sight of Lulua in front of a cauldron constructively concocting crucial components presents a nice counterbalance to exploration and combat. Neither pressuring nor particularly difficult, creation becomes a worthwhile recreation.

On the technical side, Atelier Lulua: The Scion of Arland represents a not insignificant breakthrough for Gust. While previous releases of the Atelier series on the Nintendo Switch suffered from graphical compromises and performance issues, the latest does not. In fact, it’s a decided plus, running at a smooth 30 frames per second with nary a hiccup and exhibiting a vivid anime art style with little to no softness and shadow. Gameplay is crisp, even during bursts of action, and the music and sound effects give off the proper vibe. If there’s any negative, it’s that the localized subtitle track show the occasional grammatical error — made all the more apparent by the lack of English voiceovers.

All told, Atelier Lulua: The Scion of Arland winds up being the best in the series to date. It’s certainly without equal on the Switch, boasting of an intuitive interface, a pleasing audio-visual experience, an engaging storyline, and, above all else, a compelling gameplay that keeps gamers engaged while dictating their own pace. As an outstanding offering that holds its own even with the hybrid console undocked, it proves well worth its $60 price tag. Highly recommended.

THE GOOD:

• Engaging storyline as a sequel to the Arland subset of the Atelier series

• Compelling gameplay that allows gamers to pace themselves

• Technically outstanding

• Colorful visuals and vibrant soundtrack

THE BAD:

• Slow start can be off-putting to newcomers to the series

• Subtitles have occasional grammatical errors

• Completionists will need to retrace steps to complete optional quests

RATING: 9/10

POSTSCRIPT: Gamers who want to experience the first three releases in the Arland subset of the Atelier series can do much worse than purchase them on Steam, where they’re currently being offered at a 25% discount. Their personal computer versions are decidedly superior to those available on consoles, and offer precise controls and sharp feedback even on entry-level rigs. Note, though, that playing these titles after Atelier Lulua: The Scion of Arland could show their age, and not simply because they seem personal and less pressing by comparison.

The flipside, of course, is that every title in the Arland subset is as much self-contained as integral to the appreciation of the overarching narrative. Atelier Rorona: The Alchemist of Arland has the main character scrambling to save her Atelier from being shuttered by the Kingdom by fulfilling the latter’s quarterly requests and ultimately gaining recognition. Atelier Totori: The Adventurer of Arland begins eight years after the first game and finds Totooria Helmond, Rorona’s student, venturing beyond Alanya in search of her mother Gisela. Atelier Meruru: The Apprentice of Arland follows Princess Merurulince Rede Arls as she aims to make her kingdom part of the Arland Republic by increasing its wealth and influence and ultimately claiming support for the development.

Significantly, each game in the Arland subset becomes progressively better than its predecessor. That said, all releases share elements that underscore their standing as parts of a whole: exploration and combat are crucial features, but the emphasis on crafting and alchemy is obvious. How studiously and steadfastly gamers tackle the latter may well determine the endings in store for them. As an aside, the imposition of time limits to tasks does make proceedings artificially difficult, especially when juxtaposed with the strides Atelier Lulua: The Scion of Arland has made in eschewing them altogether.

Still and all, the Arland Trilogy is a can’t-miss affair. If nothing else, going through them provides gamers with a much better perspective of the Republic and characters in the subset, not to mention the entire Atelier series.

How PSEi member stocks performed — July 22, 2019

Here’s a quick glance at how PSEi stocks fared on Monday, July 22, 2019.

 

Charter flights to Boracay gateway airports allowed again

THE GOVERNMENT is again allowing airlines to offer charter flights to Boracay gateway airports Kalibo and Caticlan after lifting the suspension on new flights that it issued last month, subject to limits on aircraft size.

The Civil Aeronautics Board (CAB) said in an advisory dated July 18 that it lifted the moratorium on new and additional charter flights going to the resort island a day earlier, under certain conditions that take into consideration the limits imposed on Boracay’s carrying capacity.

Because of the limited capacity of Boracay, the CAB said schedules for the new flights must be spread out on certain days of the season, which will be determined by the Air Operating Rights Division.

Tourism Secretary Bernadette Romulo-Puyat said in a text message Monday the carrying capacity of Boracay remains at 6,405 visitor arrivals per day.

The CAB also said the aircraft that may be used for the charter flights to Kalibo and Caticlan must have a maximum capacity of 200 passengers.

Airlines that wish to apply for new charter flights must provide a 30-day notice for before the intended start of operations. But the CAB noted it will act on an application within three days from an airline’s filing.

On June 11, the CAB issued an advisory suspending carriers from mounting new and additional flights to and from Kalibo and Caticlan during the dry season.

The CAB said in an April 17 advisory that carriers must ensure that Boracay-bound passengers have confirmed bookings with accredited hotels.

The government shut down the island for a six-month rehabilitation to facilitate an environmental cleanup after establishments were found to have been dumping sewage into the sea, among other polluting practices.

Budget carriers Cebu Pacific and Philippines AirAsia have said they were forced to reduce flights to the island to match its carrying capacity. — Denise A. Valdez

Two road projects could be awarded this year

DPWH logo
OFFICIAL GAZETTE

THE Department of Public Works and Highways (DPWH) hopes to award before the end of the year to private proponents two unsolicited highway proposals after they hurdle Swiss challenges.

Mark A. Villar, secretary for public works and highways, told reporters over the weekend DPWH is expecting to get the ball rolling on the Cavite-Tagaytay-Batangas Expressway (CTBEx) and Tarlac-Pangasinan-La Union Expressway (TPLEx) extension projects by year’s end.

“We’re hoping that by the end of the year (we could finish the Swiss challenge for CTBEx). I’m pretty confident,” he said, noting the project is only awaiting approval by the National Economic and Development Authority (NEDA), which is expected by the third quarter.

Regarding the extension of TPLEx to San Juan, La Union, Mr. Villar said: “We’re targeting to start that by this year. Because we’re planning on opening the Rosario exit by September. So ang target namin, sana tuloy-tuloy [Our target is to continue with the extension].”

Metro Pacific Tollways Corp. (MPTC)’s MPCALA Holdings, Inc. is proposing a P22.43-billion, 50.42-kilometer toll road that will link the Cavite-Laguna Expressway at Silang East Interchange to Tagaytay City and Nasugbu, Batangas.

MPTC President Rodrigo E. Franco earlier said the company is expecting the 60-day Swiss challenge for CTBEx to start sometime in the second half of the year.

Under the Swiss challenge, companies are invited to submit competing proposals to a project, which the original proponent has the right to match.

Meanwhile, San Miguel Corp. (SMC)’s P23.948-billion proposal for a TPLEx extension seeks to build a 59.4-kilometer toll road that will stretch the expressway from Rosario, La Union to San Juan, La Union.

Both MPCALA Holdings and SMC were given original proponent status by the DPWH for their CTBEx and TPLEx extension proposals last year.

The toll road projects are viewed by the DPWH as opportunities to support President Rodrigo R. Duterte’s push for infrastructure projects under the Build, Build, Build program.

MPTC is the tollways unit of Metro Pacific Investments Corp., one of three key Philippine units of Hong Kong based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

Axe to fall on corrupt officials after SONA

MORE OFFICIALS from various agencies are expected to be summoned by President Rodrigo R. Duterte after the State of the Nation Address (SONA) for their alleged involvement in corruption, the Presidential Anti-Corruption Commission (PACC) said Monday.

PACC Commissioner and Spokesperson Greco Antonious Beda B. Belgica told BusinessWorld in a phone interview on Monday: “Iniimbestigahan na po ngayon ‘yan. After SONA, marami sa kanila ipapatawag. Tapos ay pinaghahandaan na ‘yong mga rekomendasyon sa Pangulo (They are being investigated right now. After SONA, many of them will be summoned. The recommendations to the President on the disposal of their cases are being prepared.)”

He said these officials are from agencies that received the most corruption complaints. “Yung 64 Customs [officials and employees] marami pang kasunod ‘yan (more will follow the 64 Customs officials and employees).”

He said other agencies include the Bureau of Internal Revenue (BIR), Department of Public Works and Highways (DPWH), and Department of Environment and Natural Resources (DENR), whose personnel will be affected by the President’s “more drastic and massive” anti-corruption drive in the second half of his six-year term.

Mr. Belgica added that the administration will be “meaner” towards corrupt government officials.

“The mandate of the President for the next three years is to be more serious with corruption and to pursue systemic changes. We will be meaner to the corrupt,” he said.

He said the public should expect the government to be “merciless, walang padrino, at pasensya (the government will not respect powerful patrons and will have no patience for corruption)” in the remaining three years.

“Mas madiin lang kami ngayon. Walang consideration if you are into corruption. When we catch you, sibakin ka talaga namin, ipahiya ka namin, iwanan ka pa namin ng kaso (We will be firmer this time, and offer no consideration. We won’t just fire people, we will embarrass them and charge them in court),” he added.

Mr. Duterte announced on July 11 that he will be firing 64 officials and employees of the BoC due to their involvement in corruption.

On Thursday last week, he met with the officials and employees at the Palace, telling them that they will be given their day in court, consistent with due process.

“Administrative charges over allegations of corrupt practices in office will be filed against them before the Office of the Ombudsman, unless they opt to resign, and the prosecutors will ask for their immediate suspension,” the President’s Spokesperson Salvador S. Panelo said in a statement.

Mr. Panelo also said the President “would not begrudge them if they avail of legal remedies to question their removal from office.”

“Let this serve as a reminder to all those officials or employees in the government that they cannot escape liability or accountability for their acts of corruption under the Duterte administration,” Mr. Panelo said. — Arjay L. Balinbin

Palay farmgate price rises 0.2% in late June

THE Philippine Statistics Authority (PSA) said the average farmgate price of palay, or unmilled rice, rose 0.2% week-on-week in the fifth week of June to P17.88 per kilogram (kg).

According to the PSA’s weekly price update for palay, rice and corn, the average wholesale price of well-milled rice fell 0.1% week-on-week to P39.28 per kg. At retail, it also fell 0.02% to P42.91.

The wholesale price of regular-milled rice rose 0.2% week-on-week to P35.45 during the period. At retail, the price rose 0.1% to P38.60.

The farmgate price of yellow corn grain rose 0.1% week-on-week to P13.99 per kg. The average wholesale price was stable at P18.30, but the retail price increased 0.3% to P23.75.

The average farmgate price of white corn grain declined 0.7% week-on-week to P16.13. The average wholesale price fell 2.7% to P21.80, and the average retail price declined 0.2%% to P28.76.

The price of rice had been on a downward trend in the past few months. Palay prices have been under pressure from the threat of competition from cheaper foreign grain that is now being imported more freely with the implementation of the Rice Tariffication Law.

The Department of Agriculture (DA) said it is looking to impose a suggested retail price (SRP) for rice. Agriculture Secretary Emmanuel F. Pinol said that the DA is drafting a memorandum of agreement (MoA) with the Department of Trade and Industry (DTI) for the implementation of the system. He said that the MoA is expected to be signed within the month.

The Federation of Free Farmers’ (FFF) national manager Raul Q. Montemayor said the SRP can be used as a pretext for traders to buy rice at even lower prices from farmers. — Vincent Mariel P. Galang

DoE panel to draft rules for accrediting energy efficiency service companies

THE Department of Energy (DoE) said it will further encourage energy efficiency and conservation by creating a committee that will formulate the guidelines for the accreditation of energy service companies, or ESCOs.

In a department order, Energy Secretary Alfonso G. Cusi created a panel to be led by the assistant director of the Energy Utilization Management Bureau (EUMB) as the chair of accreditation committee.

“The Committee shall formulate the guidelines on the accreditation of ESCOs which shall be subject to approval of the Secretary,” he said.

“The Committee shall conduct the accreditation process based on the approved accreditation guidelines and shall endorse to the Secretary, through the Director of EUMB, the application, as evaluated, for approval and issuance of Certificates,” he added.

The members of the panel are the division chiefs of the DoE’s general legal services, power compliance, and energy efficiency and conservation division, along with the section chief of the energy management advisory service sector.

Sought for details on DO2019-07-0013, the DoE communications department said the order was “modified and enhanced” by Section 13 of Republic Act No. 11285 or “An Act Institutionalizing Energy Efficiency and Conservation, Enhancing the Efficient Use of Energy, and Granting Incentives to Energy Efficiency and Conservation Projects.”

Among others, the law authorizes the DoE to strengthen the existing ESCO certification system.

“There are currently consultations with stakeholders on the draft EE&C [energy efficiency and conservation] IRR [implementing rules and regulations], particularly of those DoE-accredited ESCOs,” the DoE said. “To date, IRR development is still on-going.”

The DoE also clarified that there is no need for existing ESCOs to apply for the renewal of their accreditation unless it expires on or before the date of issuance of the guidelines.

Alexander Ablaza, president of the Philippine Energy Efficiency Alliance, Inc. (PE2), said his group was preparing an industry position on the accreditation guidelines and other “thematic areas” relating to the IRR.

“And we hope to have an industry position on the entire IRR by month-end, at the earliest,” he said.

PE2 has recently re-organized its policy committee, the composition of which was relayed to the DoE. The alliance is a non-stock, non-profit organization of energy efficiency market stake-holders. — Victor V. Saulon

SC upholds UP’s tax-exempt status in Techno Hub dispute with QC

THE Supreme Court (SC) voided a Quezon City plan to auction a site owned by the University of the Philippines (UP) and occupied by the UP-Ayala Land Techno Hub, ruling that UP is exempt from paying real estate tax, undermining the city’s argument that the university owes it P117.18 million.

In an 18-page decision dated June 19 and written by Associate Justice Antonio T. Carpio, the court’s second division said UP is exempt from real property tax on land currently leased to Ayala Land, Inc. (ALI).

Under Section 25 (a) of Republic Act No. 9500 or the UP Charter of 2008, the university’s revenue and assets used for educational purposes are tax-exempt.

“Thus, when the City Treasurer addressed to UP the Statement of Delinquency dated 27 May 2014 and the Final Notice of Delinquency dated 11 July 2014 and required UP to pay real property tax on the subject land, UP was already authorized by the legislature to validly claim exemption from real property taxes on the land leased to ALI,” the court said.

“Considering that the subject land and the revenue derived from the lease thereof are used by UP for educational purposes and in support of its educational purposes, UP should not be assessed, and should not be made liable for real property tax on the land subject of this case,” the court added.

The SC, on the other hand, said under the contract of lease between UP and ALI, all improvements in the property shall be owned by ALI during the lease. It also said that the improvements are not “assets” owned by UP and the tax exemption does not apply to the improvements.

The City Treasurer of Quezon City asked the university to pay P117.18 million in real property tax covering the years 2009 to 2013 and the first three quarters of 2014.

The decision was concurred in by Associate Justices Estela M. Perlas-Bernabe, Alfredo Benjamin S. Caguioa, Jose C. Reyes, Jr. and Amy C. Lazaro-Javier. — Vann Marlo M. Villegas

Involuntary hunger measure little changed in three months to June according to SWS

INVOLUNTARY HUNGER among Filipino families in June was little-changed at 10.0% from 9.5% in March to 10.0%, according to the Social Weather Stations (SWS), stalling a downtrend in recent quarters in a result that fell within the SWS study’s margin of error.

In its Second Quarter 2019 Social Weather Survey, SWS reported that “10.0% or an estimated 2.5 million families experienced involuntary hunger at least once in the past three months.” This 10.0% consists of 8.7% or 2.1 million families who experienced ‘Moderate Hunger’ and 1.3% or 320,000 families who experienced ‘Severe Hunger.’“

The SWS added that this is higher than the 2.3 million families or 9.5% who reported Hunger in the March quarter.

“The rise in the nationwide Hunger rate comes after a decrease of 3.8 percentage points within the previous three quarters. From 13.3% (est. 3.1 million families) in September 2018, it subsided to 10.5% (est. 2.4 million families) in December, and then to 9.5% (est. 2.3 million) in March 2019,” SWS reported.

SWS reported the sampling error margin was plus or minus 3% on national results and plus or minus 6% for regional findings.

The non-commissioned survey was conducted on 1,200 adults across the country. SWS classifies people in the “moderate hunger” category if they experienced involuntary hunger once or a few times in the past three months and defined “severe hunger” as involuntary hunger experienced often or always during the same period.

“The moderate hunger rate increased by 0.6 points, from 8.1% (est. 2 million families) in March 2019, to 8.7% in June. Severe Hunger, meanwhile, remained at 1.3% in June as in March (est. 320,000 families),” SWS reported.

The hunger rate for families who self-rate as poor rose by 4.3 points to 16.2% or 1.8 million families, from 11.9% or 1.1 million families in the quarter ending March.

The hunger rate of those who self-rated as food-poor was 17.3% or 1.5 million families in the June quarter, against 14.2% or 959,000 families a quarter earlier. — Gillian M. Cortez

More gov’t agencies drafted into anti-hunger effort

CABINET Secretary Karlo Alexei B. Nograles said Monday that the government will further expand its anti-hunger program by involving more government agencies addressing the problem.

“To improve government anti-hunger efforts…, the EPAHP (Expanded Partnership Against Hunger and Poverty) will be adding more members to its original agencies, which currently include the Department of Agriculture, the Department of Agrarian Reform, and the Department of Social Welfare and Development,” Mr. Nograles said in a statement on Monday.

He said the other agencies that will be involved in the program are “the Department of Education, the Department of Health, the Department of Interior and Local Government, the Department of Science and Technology, the National Nutrition Council, the National Youth Commission, and LANDBANK.”

Mr. Nograles noted that recent data compels the government “to build on and step up current efforts to address hunger in the second half of the President’s administration.”

Mr. Nograles was referring to the June SWS survey that found 35% of Filipino families rating their food as “poor,” referred to by the SWS as “food-poor.” This figure is eight percentage points higher than the record-low 27% of families self-reporting as belonging to this category in March.

Mr. Nograles said that even before the SWS poll came out, Mr. Duterte had directed his Cabinet officials “to align the different anti-hunger and poverty-reduction initiatives of the various agencies so that our programs can be more effective and will have an impact on more Filipinos, especially children.”

He said the priority programs under the EPAHP are: “(1) provisions for the institutional feeding programs; (2) credit support to community-based organizations; (3) capacity-building and productivity improvement for community-based organizations; (4) nutrition education; (5) establishment of agricultural facilities and technologies, food hubs, and other infrastructure facilities; (6) mobilization of funding, technical and research assistance from development and local partners; and advocacy and education.”

Mr. Nograles also noted that “the same whole-of-government approach that has proven effective in other government initiatives will be adopted and applied to address hunger.”

“Millions of kids benefit from government feeding programs, but there are many more we still have to reach. We still have a lot of work to do,” Mr. Nograles said. — Arjay L. Balinbin

Notice for Informal Conference: after over a year of reinstatement

In less than two months, I will tie the knot with my girlfriend of eleven years.

Looking back, I went through failure, heartache, and disappointment but, at the same time experienced milestones and achievements that made me who I am today. Being with someone I cherish made me a better version of myself. As American author Helen Keller put it, “the best and most beautiful things in the world cannot be seen or even touched — they must be felt with the heart.” It is better to have someone to rely on.

As I reflect on my personal experiences, I could not help but remember a similar roller coaster ride in assisting clients on tax audits conducted by the Bureau of Internal Revenue (BIR). The ups and downs were mainly because of the exclusion then, and inclusion now, of the Notice for Informal Conference (NIC) in the BIR assessment process.

Prior to the issuance of Revenue Regulations (RR) No. 18-2013, the NIC was part of the due process requirement in the issuance of deficiency tax assessments. The NIC stage then afforded the taxpayer an opportunity to present his side of the case before the BIR issued a Preliminary Assessment Notice (PAN), if warranted.

With the issuance of RR No. 18-2013, the NIC was removed from the BIR assessment process. Thus, taxpayers received their first formal letter correspondence from the BIR about the latter’s findings at the PAN stage. When the NIC was removed, the PANs received by the taxpayers mostly contained staggeringly huge amounts of tax findings — hundreds of millions and even billions. The worst part was that the amounts per PAN would most likely be copied to FAN and there was little time to discuss and clarify the BIR’s numerous alleged findings. This made taxpayers anxious and stressed, as the huge amount of tax findings are not what they expected to see. With little time to discuss, taxpayers felt even more crushed about what was happening with the tax audits, as if they were abandoned by the Philippines’ tax policies and regulations as they were prevented an early opportunity to present their factual and legal defenses on the alleged findings of the BIR. This scenario indeed resulted in heartache and disappointment.

Five years after the issuance of RR No. 18-2013, the BIR issued RR No. 7-2018, which reinstated the NIC as part of the BIR assessment due process. The taxpayer is now given 30 days to respond at the NIC stage, giving taxpayers time to evaluate the BIR findings at an early stage and to prepare themselves for a discussion with the Bureau.

Being part of the due process, the issuance of the NIC must be strictly observed. In recent news reports, certain tax cases against a celebrity and a sports personality were decided against the BIR, because of the latter’s noncompliance with the issuance of the NIC. Thus, the taxpayers’ right to an NIC was respected.

With the return of the NIC, taxpayers are provided an early opportunity to present the factual and legal defenses on the findings of the BIR. Some findings can already be explained or easily be threshed out, such as the non-withholding of taxes on purchases of goods or services, timing differences in the recognition of sales or purchases, the differences between revenue per tax returns vs. per books, the nature of alleged suspicious transactions, etc. The related discussions and clarifications can already be provided at the NIC stage rather than at later stages of the BIR assessment process.

The revival of the NIC definitely gave more time for the BIR to further understand the accounting records and processes of the taxpayer in relation to the BIR’s initial findings. The NIC also reduces the unnecessary time and resources on the part of the taxpayer and on the part of the government, and even possibly avoids unwarranted litigation costs. On the part of the government, deficiency taxes could be collected more efficiently. Less stress on the taxpayer was also a valuable impact of the NIC, reducing the surprise from huge tax findings in the PAN stage as before. This situation, hopefully, will improve the taxpayer’s trust in the BIR assessment process.

As I look back, after one year and a half of reinstatement, the NIC, without doubt, supports the taxpayer in making sure that a tax assessment is resolved with the BIR in the shortest possible time. This would certainly allow taxpayers to concentrate on their core business rather than worry about the BIR looking over their shoulder. The removal of the NIC for some years appeared to have an adverse effect on the results of the BIR assessment process on the taxpayers’ lives. I consider this the dip in the roller coaster ride. The good thing was that the NIC did return and, based on the observation of many, more and more BIR assessment cases are now being immediately resolved at the NIC stage in the interest of both taxpayers and the government.

Just like a roller coaster ride, as well as the ups and downs of life, bringing back the NIC stage is a climb up the tax assessment experience of many taxpayers.

Let’s Talk Tax is a weekly newspaper column of P&A Grant Thornton that aims to keep the public informed of various developments in taxation. This article is not intended to be a substitute for competent professional advice.

 

Ed Warren L. Balauag is a manager of Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

pagrantthornton@ph.gt.com

1...10,19410,19510,196...13,724Page 10,195 of 13,724
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube