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Afternoon Delight

GETTING INVITED to media wine events is fairly common for a writer like myself, but an invite for an afternoon tasting, and on a very busy working Monday, is normally an automatic “Hell No!” from me. But this invitation came from my good friend Damien Planchenault of the Okada Manila, and the winery being featured in the tasting just happened to be Vega Sicilia. This was more than enough incentive for me to ditch my afternoon office routine last Monday and to drive some 20 kilometers to make the 3 p.m. call time.

RIBERA DEL DUERO AND VEGA SICILIA
Ribera del Duero literally means “Duero riverbank” in English. It is a modest 21,000+ hectare vine-haven located in Spain’s autonomous region of Castile-Leon, in the north. The Duero river, as it is called in Spain, crosses from north central Spain to Porto in Portugal where it is called the “Douro.” This river, stretching almost 900 kilometers in length, provides the riverine influence that is so valuable to the overall terroir of the Ribera del Duero wine region.

The most legendary Spanish winery, Vega Sicilia, paved the way for the rise to fame of the Ribera del Duero region. Established in 1864, Vega Sicilia was not only one of the oldest recorded wineries in all of Spain, but it was also the pioneer in planting French Bordeaux varietals, from Cabernet Sauvignon and Merlot to Malbec. These varietals blended with majority Tempranillo (known as either Tinto Fino or Tinta del Pais in Spain) resulted in luscious wines with fantastic longevity. Since 1982 — the same year Ribera del Duero got granted its Denominación de Origen (DO) status — the winery has been under the very progressive ownership of the Álvarez family. Among hardcore Vega Sicilia fans are Prince Charles (the next King) of the British Royal Family and Hollywood star couple Kurt Russell and Goldie Hawn.

The Álvarez family, with Pablo Álvarez at the helm, further expanded the company with the establishment of new wineries: Bodegas Alion (1992) from same Ribera del Duero, Tokaj-Oremus (1993) from Tokaji Hungary and the only non-Spanish estate of the company, Bodegas Pintia (2001) in nearby Toro region, west of Ribera del Duero, and Macan (2004) from Rioja, a partnership with no less than Bordeaux royalty, Benjamin de Rothschild.

AMAZING TASTING SESSION AT THE LA PIAZZA
While there was no amazing water fountain show to entertain us during the wine tasting session at Okada’s flagship fine-dining restaurant La Piazza, the wine line-up presented for us at the Vega Sicilia afternoon tasting session, done in collaboration with Terry’s Selection and Happy Living Corp., was as good as it gets. Below are my customary tasting notes in the correct sequence of tasting.

• Macan 2013 Rioja — This is the joint project between Vega Sicilia owner Pablo Alvarez and Benjamin de Rothschild entering the highly competitive Rioja region — arguably Spain’s preeminent wine region and the first region to get a DO status in 1925, and first DO to be promoted to DOC (“C” meaning Calificada) in 1991. Rioja is where Marques de Murrieta, Marques de Riscal, Bodegas Muga and even more upstarts like Roda and Altanza are all thriving in. Putting the two biggest names from Ribera del Duero and Bordeaux together will surely get attraction, and the Macan wines have done well since its inception. I am trying my Macan wine for the first time, and it was surely a very pleasant experience.

“This 100% Tempranillo wine is quite racy on the nose, very fresh with cut-grass notes, black currant, minerals, and peppercorn, it is quite dry, with very nice acidity, the body is supple, and the finish has charred wood with dried berries.”

• Alion 2014 Ribera del Duero — Bodegas Alion is Vega Sicilia’s second winery, and located just over 10 kilometers from Vega Sicilia. Alion has always been known as the kid brother of Vega Sicilia. For years, Alion has been the “go to” Ribera wine for those who can not afford Vega Sicilia. I am shamelessly and admittedly one of them. Unlike Vega Sicilia, Alion is made from 100% Tempranillo (or Tinto Fino).

“Inky, dark, herbaceous, cinnamon bark, very clean on the flavor, with crisp acid, bitter-charred peppery finish.”

• Pintia 2013 Toro — Bodegas Pintia is Vega Sicilia’s entry in the nearby Toro region. This is one region that Vega Sicilia has helped expand because of the immense popularity of Pintia. Pintia is made from 100% Tempranilla (in this region it is called Tinta de Toro). I have always loved Toro wine for its rawness, rustic-ness and power, and it can really age too as I drank some very nice Farina Campus Toro 2000 and 2003 vintages just a week ago.

“Earthy, mushroom, quite complex on the nose, but on the palate, the wine is amazingly soft, tannins still rigid but already approachable, rich in dark fruit flavors, long and lingering at the end.”

• Vega Sicilia Valbuena 5° 2011 Ribera del Duero — The 5° refers to the five years the wine spent in both oak and bottle aging prior to its commercial release. Valbuena 5° is made from majority Tempranillo, with Cabernet Sauvignon and Merlot.

“Charming nose with so much happening as wine is being swirled, licorice, black currant, red cherries, violets, the texture is super silky, with ripe juicy round finish.”

I have tasted at the very least six different vintages of the Valbuena 5° and this 2011 is my favorite to date.

• Vega Sicilia Unico 2005 Ribera del Duero — This flagship wine also happens to be Spain’s most iconic wine. Unico is made from majority Tempranillo with a dose of Cabernet Sauvignon — this is the original blend that helped Vega Sicilia catapult Ribera del Duero wines into fame. Unico is released after 10 years, and is one of the few wineries in the world to have this discipline for still wines.

“The wine is still quite heady, with cedar, fresh forest nose, the plums and fruits started to beautifully surface after more aeration, licorice, orange peel, peppercorn, texture is grainy with lots of punch, still continues to evolve on the glass, full-bodied, rich and very long at the end.”

• Oremus Aszu 3 Puttonyos 2013 Tokaj — Tokaj, Tokaji, or Tokay is Hungary’s most popular region and home of the furmint grape. Oremus represents Vega Sicilia’s only foray into white wines. Puttonyos is a measurement of residual sugar, and 3 Puttonyos means 60 gms per liter.

“Plastic resin nose, white flower, marmalade, honeyed, very good acid backbone to make it very refreshing, sweet apricot taste, long and succulent finish.”

With these kinds of wines, I am now reconsidering my stance on afternoon wine tastings.

All of the above tasted wines are available for purchase at the Terry’s Selection gourmet shops.

The author is a member of the UK-based Circle of Wine Writers (CWW). For comments, inquiries, wine event coverage, and other wine-related concerns, e-mail the author at protegeinc@yahoo.com. He is also on Twitter at twitter.com/sherwinlao.

How PSEi member stocks performed — July 31, 2019

Here’s a quick glance at how PSEi stocks fared on Wednesday, July 31, 2019.

 

Philippine tax effort improves in 2017, second-highest among Southeast Asian economies

Philippine tax effort improves in 2017, second-highest among Southeast Asian economies

SolGen appeals Supreme Court ruling on power deal competitive selection

THE Office of the Solicitor-General (OSG) has appealed a Supreme Court (SC) decision ordering a competitive selection process (CSP) on all power supply agreements (PSA) submitted by distribution utilities (DUs) to the Energy Regulatory Commission (ERC) on or after June 30, 2015.

In 74-page motion for reconsideration, the OSG, representing ERC, asked the court to deny for lack of merit the November 2016 petition of consumer group Alyansa Para sa Bagong Pilipinas, Inc. which sought to nullify ERC resolutions which effectively postponed CSP requirements for PSAs.

It also asked to remand the case to the Court of Appeals to determine PSA compliance with CSP.

The OSG said the court mistakenly found ERC to have committed grave abuse of discretion in issuing its 2016 Clarificatory Resolution restating the effectivity of 2015 ERC CSP Guidelines, saying it did not postpone the conduct of CSP or allow DUs to avoid the requirement.

“The 2016 Clarificatory Resolution merely postponed the applicability of the ERC’s prescribed guidelines for the conduct of said CSP, particularly the minimum provisions that should be contained in the Terms of Reference, the conditions which allowed for a direct negotiation, and other parameters which are contained in the 2015 CSP Guidelines,” according to the motion.

“In short, what the ERC suspended is not the mandatory requirement for the conduct of the CSP itself but the rules or guidelines on how said CSP should be undertaken,” it added.

The high court on May 3 ruled the ERC committed “grave abuse of discretion amounting to lack or excess of jurisdiction” when it postponed the effectivity of the CSP requirement in the Department of Energy (DoE) in Circular No. DC 2015-06-0008.

The SC said ERC resolutions in October 2015 and March 2016 postponed the effectivity of the auction requirement for 305 days from June 30, 2015 to April 29, 2016, and noted that 90 PSAs were submitted for the Commission’s approval from April 16 to 29, 2016 with some having terms spanning more than 20 years.

The OSG also said ERC did not commit grave abuse of discretion with the two resolutions as the Electric Power Industry Reform Act has “granted the ERC quasi-legislative powers” to issue rules and regulations on various matters including guidelines, standards, and procedures for CSP.

It also maintained that the 2015 ERC CSP guidelines did not exempt PSAs from being procured through CSP as Section 4 of the guidelines it issued refers only to the minimum terms of reference or conditions and it only took effect on Nov. 7, 2015.

“(P)SAs entered into prior to this date could not be expected to comply with the 2015 ERC CSP Guidelines, as they were inexistent at that time. Moreover, this is consistent with the general rule requiring prospective application of rules and regulations issued by administrative agencies such as ERC-a regulatory body,” the OSG said.

It noted that while the 2015 DoE Circular took effect on June 30, 2015 and prescribed standards in the conduct of CSP such as the conduct of bidding through a third party, it could not be enforced at that time as there were no concrete implementing guidelines, among other reasons.

The OSG also said the PSAs filed during the period of the implementation of the ERC’s resolutions complied with the 2015 ERC CSP Guidelines. PSAs filed on June 30, 2015 until Nov. 6, 2015 has also complied with the selection process.

The DoE last month urged the power distribution utilities to comply with the Supreme Court’s decision requiring CSP for their PSAs. — Vann Marlo M. Villegas

Filinvest wins PEZA incentives for Clark locators

THE developers of New Clark City signed an agreement with the Philippine Economic Zone Authority (PEZA) outlining the incentives available to locators.

In a statement, the joint venture of Filinvest Land, Inc. (FLI) and Bases Conversion Development Authority (BCDA) said it signed a registration agreement with PEZA that covering fiscal and non-fiscal incentives for locators in Filinvest at New Clark City.

Filinvest at New Clark City is the group’s township within the 288-hectare estate.

“We thank BCDA and PEZA for formalizing the Registration Agreement for New Clark City. This will greatly encourage businesses and investors to locate in Filinvest at New Clark City,” Filinvest BCDA Clark, Inc. Vice President Francis B. Ceballos said in a statement.

Filinvest at New Clark City will house a residential zone, commercial, mixed-use offices, institutional zone, and a 62-hectare Innovation and Logistic Park as part of the first phase. This industrial zone is set to serve as the economic base of the city, and is scheduled to be operational by the first quarter of 2020.

The company said the industrial zone will target businesses involved in light manufacturing, logistics, storage and warehousing, cold storage, and food processing.

“With the majority of the project’s area dedicated to the industrial zone, it is envisioned to support global businesses with superb accessibility via major infrastructures… It will be a fully integrated development bringing together top international locators and investors with sustainable business and industrial community,” Mr. Ceballos said.

FLI will develop another 60 hectares in the second phase of the development.

Filinvest at New Clark City is part of the 9,450-hectare New Clark City in Capas, Tarlac. It is next to the New Government Administrative Center, as well as the New Clark City Sports Complex.

The company signed an agreement to develop the property with BCDA in 2016 for 50 years.

FLI’s net profit attributable to the parent rose 24% to P1.79 billion in the first quarter, following a 17% surge in gross revenue to P6.83 billion.

Incorporated in 1989, FLI is the real estate arm of conglomerate Filinvest Development Corp., which also has investments in banking, power, sugar, and the hospitality sector.

FLI fell 2.56% or five centavos to close at P1.90 on Wednesday. — Arra B. Francia

US to assist in upgrading school system in Bicol, Western Visayas

THE US government announced a partnership with the Department of Education (DepEd) for a P2-billion project aimed to improve the reading, math, and socio-emotional skills of more than two million students.

In a statement on Wednesday, the US Embassy announced the Advancing Basic Education in the Philippines (ABC+) program in partnership with the DepEd. The project costs $38.5 million or around P2 billion and will provide assistance to two million students in Regions 5 (Bicol Region) and 6 (the Western Visayas). The project is also to be implemented with RTI International, The Asia Foundation, SIL LEAD, and Florida State University.

US Chargé d’Affaires John Law said that ABC+ is part of US efforts to upgrade the education system in the Philippines, in which this will help alleviate poverty by allowing open doors to education for those in need.

“As a friend, partner, and ally, the United States remains committed to the quality of basic education for the benefit of all Filipinos,” he said.

Education Secretary Leonor M. Briones said that the program is crucial to the goals of DepEd to improve the education system nationwide, “especially now that we are intent to pivot our focus from improving access to enhancing the quality of basic education.”

ABC+ also aims to improve teacher training and management. The project hopes to improve teachers’ and administrators’ capacity to address the needs of schools in Bicol and Western Visayas. ABC+ will work with local government units (LGUs) and the private sector to ensure the program is backed by adequate resources.

The Philippine Chamber of Commerce and Industry (PCCI) board member Alberto P. Fenix, Jr. said that the PCCI, a partner organization for the program, “fully support(s) this project, which will better prepare our children for the world of work.” — Gillian M. Cortez

PCSO suppliers seeking clarity on equipment leases

COMPANIES leasing lottery equipment to the Philippine Charity Sweepstakes Office (PCSO) are taking steps to renew their agreements with the agency, after the administration’s order allowing the resumption of lotto operations.

In a disclosure to the stock exchange Wednesday, Pacific Online Systems Corp. (LOTO) said it has an “in principle” deal with the PCSO to renew equipment leases.

LOTO supplies lottery systems equipment to the PCSO in the Visayas and Mindanao regions, as well as the agency’s Keno operations across the country.

The company’s ELA with the PCSO expired yesterday, July 31.

“Please be advised that we have had an agreement in principle on the terms of a further renewal thereof pending the completion of PCSO’s process to procure, by public bidding, a new online lottery system,” the company said.

“Until a formal agreement has been entered into, however, we will be unable to make further announcements thereon.”

Philippine Gaming Management Corp. (PGMC) said it has also filed a claim with the PCSO that it did not fail the bidding for its equipment leases. PGMC leases lottery equipment for the PCSO’s Luzon operations.

PGMC is an affiliate of listed firm Berjaya Philippines, Inc., which holds a 39.99% stake.

Berjaya previously had a 99.99% equity stake in PGMC, but has decided to gradually trim its ownership in the firm to 79.99%, then to 39.99% earlier this month.

Shares in LOTO and Berjaya recovered after President Rodrigo R. Duterte lifted the ban on lotto operations Tuesday night, four days after he ordered the shutdown of all PCSO’s gaming operations.

LOTO shares soared 11.15% or 29 centavos to close at P2.89 each, while shares in Berjaya jumped 4.20% or 10 centavos to finish at P2.48 apiece.

While lotto operations may resume, the president retained the ban on other PCSO games and franchises such as Small Town Lottery, Keno and Peryahan ng Bayan pending the conclusion of an investigation into allegations of illegal and corrupt practices. — Arra B. Francia

High delivery fees seen likely to cause Asia-Pacific online shoppers to cancel order

ONLINE SHOPPERS in Asia Pacific are likely to be discouraged by high delivery fees, to the extent that they will readily consider slower, cheaper alternatives, sometimes if offered the proper incentives, United Parcel Service, Inc. (UPS) said, citing the results of a study.

Citing the “UPS Pulse of the Online Shopper” report, which surveyed 18,000 consumers around the world between December 2018 to January 2019, UPS said 39% of online shoppers in the Asia Pacific abandon their shopping carts when they find that the cost of delivery is higher than expected.

“The research reveals that 95% of consumers in Asia Pacific can be incentivised in some way to look for alternatives to the fastest shipping option, which can help to bring down shipping costs,” it said.

“For example, 47% of shoppers are willing to go for a cheaper but slower alternative, 39% are open to receiving incentives for slower shipping, such as credit in their account with the retailer, and 37% are willing to delay shipping to consolidate multiple items into one delivery,” it added.

The report noted that much of the motivation for Asian shoppers in patronizing e-commerce platforms is the expectation that prices are cheaper online.

“In terms of why buyers choose to make purchases online as opposed to in-store, the key differentiator for respondents in Asia Pacific across all categories researched was also the perception of a better price online,” it said.

Convenience was another consideration, and the “ease of the e-commerce experience” was likewise seen as attracting demand.

“The ability to offer incentives not just in the form of a unique product offering but also in the shipping and delivery experience will be crucial to success in the evolving e-commerce landscape,” UPS Vice-President of Marketing in the Asia Pacific Sylvie Van den Kerkhof said in a statement.

The report showed shoppers from Asia are growing more particular about the ability to customize delivery times, dates and locations as some platforms start to offer this option.

It found that for online shoppers from Australia, China, Hong Kong and South Korea, almost all put high importance in seeing shipping prices, select alternative delivery options, determine delivery dates and time frames and have a guaranteed delivery date.

Shoppers are also more engaged in platforms that make as much information readily available and visible.

Next to information about the price, product details and delivery costs, Asian shoppers value knowing a seller’s place of origin and the details of its returns policy.

“The retailer’s returns policy is more important than some might think, with 69% of Asia Pacific shoppers agreeing that the returns experience impacts their overall perception of the business,” it said.

“The study reveals that 42% of consumers in Asia Pacific look up a retailer’s returns policy before even making a purchase, indicating that it’s an opportunity for the business to win over customers and ease the doubts of any potential buyers,” it added.

In the Philippines, UPS Managing Director Chris Buono said online shopping is expected to grow with improved Internet connectivity and increased smartphone use, as these will enable the industry to tap a new market of tech-savvy consumers.

“(These factors mean) the e-commerce landscape in the Philippines is becoming increasingly competitive, and this is unlocking new opportunities for online retailers in the Philippines to grow both their domestic and international customer base,” he was quoted in a statement as saying. — Denise A. Valdez

DAR targets land distribution by 2022

THE Department of Agrarian Reform (DAR) said it is upgrading its processes in order to accelerate land distribution, and set a 2022 target for completing its land acquisition and distribution (LAD) program.

“Right now we are trying to initiate moves. We are innovating our system so that we will be able to comply with the President’s order of completing the land acquisition and distribution by 2022… We are going to approach it scientifically by using technology,” DAR Secretary John R. Castriciones told BusinessWorld by phone.

Specifically, he said DAR will seek to identify bottlenecks in processing land acquisition and use of special software to help survey and map land.

“That is one of the hurdles, the conduct of the survey, as we are talking about land located in rural areas,” he added, noting that quicker surveys will allow for faster transactions with the Department of Environment and Natural Resources (DENR) “because the survey plan must be approved by the DENR,” he said.

He said other technology will help determine what further aid Agrarian Reform Beneficiaries (ARBs) need after being granted the land.

“We will have a picture of the land where they are located… so that we will be able to immediately pinpoint what sort of help we can extend to them,” he said.

During a recent conference held in Clark, Mr. Castriciones told DAR offices to come up with a catch-up plan for the remaining months of 2019.

“This is particularly for those provinces, which have… a lot of lands to be covered under the CARP (Comprehensive Agrarian Reform Program), so I am directing them to submit an inventory and the clearing of the universal goal that we have so that we would be properly informed as to the extent of those which we need to cover,” he said.

In total, inventory of land covered under CARP exceeds 500,000 hectares for privately acquired land; about 187,000 hectares for government-owned land; and 1.4 million hectares of land with collective Certificates of Land Ownership Award (CCLOA), which require parcelization.

“What is doable right now is we are looking at around 600,000 plus hectares,” he added.

DAR has been working to acquire all government-owned land suitable for agricultural use but no longer used for this purpose as authorized by Executive Order 75. — Vincent Mariel P. Galang

IRRI signs marketing deal for 3 varieties of hybrid rice seed

THE International Rice Research Institute (IRRI) said it signed a seven-year limited exclusive distribution license for its hybrid rice seed with Philippine company Tao Commodity Trader, Inc. (TCTI).

In a statement, IRRI said that under the agreement signed on July 30, TCTI will invest in the development, production and distribution of seed, commit to certain sales targets, and partner with microfinance firm Alalay Sa Kaunlaran, Inc. (ASKI), in providing farmers with training, technology, and financial assistance. ASKI currently has a client base of 18,000 Filipino farmers.

“Today is a significant day for IRRI as we enter into this new partnership with TCTI, an industry-respected and established group, that can help bring some of our innovations to our main clients — the countless farmers and consumers who depend on the rice sector for their food, nutrition, and livelihoods,” Dr. Peter Brothers, chief of staff of IRRI, was quoted saying.

TCTI is a subsidiary of Tao Corp., the largest trader of molasses in the Philippines. This arm specifically focuses on the rice seed market, and is a member of the IRRI-led Hybrid Rice Development Consortium (HRDC). HRDC takes on the development of hybrid seed suited to various agro-climatic conditions. Member companies are allowed limited exclusive access to the consortium’s germplasm.

The agreement covers three seed variants, Mestiso 71, Mestiso 77, and Mestiso 89. These varieties promise higher yields, better quality, improved resistance to pests and diseases, resilience to climate stresses, and higher seed production. The varieties promise yield gains of up to 20%.

“As IRRI strives to achieve food and nutrition security, we always emphasize the importance of building strong partnerships with different organizations to achieve our mission,” Mr. Brothers said.

“This historic partnership between Tao Corp. and IRRI could not have come at a more opportune time, when our rice farmers are facing very tough times due to challenges on several fronts — from climate change to unfavorable market conditions. Through this joint undertaking with IRRI, we can extend much needed help to our rice farmers,” Julio D. Sy, Jr. chief executive officer of TCTI, said in a statement. — Vincent Mariel P. Galang

Salary differential under the new maternity leave law

Republic Act (RA) No. 11210, or the Expanded Maternity Leave Law, was signed by President Rodrigo R. Duterte on Feb. 20. Female workers in the private and public sectors can now enjoy a total of 105 days’ paid maternity benefit for live childbirth, regardless of the mode of delivery, with an option to extend for another 30 days without pay. Qualified solo parents are entitled to an additional 15 days’ paid leave. The law also provides 60 days’ paid leave for miscarriage and emergency termination of pregnancy.

Apart from the expanded 105 leave days, another significant improvement in the law is payment of salary differential. Female workers in the private sector shall now receive full pay which consists of the SSS maternity benefit based on their average daily salary credit plus salary differential to be paid for by the employer, if any.

The salary differential represents the difference between the SSS benefits and the employee’s basic pay; an amount to be shouldered by the employer. This ensures that the employee still receives the equivalent of her full pay while on maternity leave.

EXEMPTIONS TO PAYMENT OF SALARY DIFFERENTIAL
Nonetheless, certain enterprises may be exempt from the payment of salary differential upon submission of proof and other necessary documents to the Department of Labor and Employment (DoLE). These include: 1. Retail/service establishments and other enterprises employing not more than 10 workers; 2. Micro-business enterprises and those engaged in the production, processing, or manufacturing of products or commodities including agro-processing, trading, and services under the Barangay Micro Business Enterprises Act of 2002, whose total assets do not exceed P3,000,000; 3. Enterprises already providing similar or higher benefits under an existing Collective Bargaining Agreement (CBA), company practice or policy; and 4. Operating distressed establishments.

The law provides the criteria for distressed establishments. In the case of a sole proprietorship or partnership or non-stock, non-profit organizations, this is when the accumulated net losses for the last two full accounting periods immediately preceding the application for exemption amounts to 20% or more of the total invested capital, fund balance or member’s contribution at the beginning of the period under review or when the enterprise registers capital deficiency. For a corporation or cooperative, it’s when the actual net loss amounts to 25% of total assets or when the corporation/cooperative registers capital deficiency. In the case of banks and quasi-banks, it’s when there is a certification from the Bangko Sentral ng Pilipinas that it is under receivership or liquidation as provided in Section 30 of RA 7653, otherwise known as the New Central Bank Act.

To continue enjoying the exemption, employers must annually submit their justifications for the approval of DoLE.

GUIDELINES FOR COMPUTING SALARY DIFFERENTIALS
For easy reference, below are the step-by-step guidelines for calculating the salary differential:

1. Compute the amount of full pay based on the following formula:

Full pay = [(daily rate x factor rate)/12 months] x maternity period in months

Assuming the company adopts a working period of six days with one rest day in a week, the employer’s factor rate is 313. The calculation, however, will differ for companies using other factor days.

For our example, assuming a daily rate of P1,500; Factor rate of 313 days; and Maternity Leave of 105 days = 3.5 months, the full pay would thus be P136,937.50 = [(P1,500 x 313 days)/12 months] x 3.5 months.

2. Ascertain the employee’s premium contribution share for SSS, Philippine Health Insurance Corp.(PhilHealth), and Home Development Mutual Fund or Pag-IBIG covering the maternity period.

Based on the compensation in our example, the total employee share in the contributions would be P5,075. This consists of P2,800 for SSS, P1,925 for PhilHealth, and P350 for Pag-IBIG.

3. Determine the amount of SSS maternity leave benefit based on the prescribed formula and computation of the SSS:

SSS maternity benefit = [(monthly salary credit x 6)/180] x 105 days

Following our example, the monthly salary credit would be P20,000. Thus, the total SSS Maternity Benefit would be P70,000 = [(P20,000 x 6)/180] x 105.

4. Deduct the amount of SSS maternity leave benefit from the amount of full pay, net of social contributions.

In our example, the salary differential would be P61,862.50, computed as follows:

The Bureau of Internal Revenue (BIR) has yet to issue the rules and regulations on the tax treatment of the maternity benefits under the new maternity law. Nonetheless, based on the laws, I believe the salary differential will be treated as taxable income of the female worker and will be included in the basic pay for purposes of computing the 13th month pay. The income tax exemption under Section 32 of the Tax Code only covers the SSS maternity benefits, i.e., the amount reimbursed by SSS to the employer. Unfortunately, there is nothing in the Expanded Maternity Leave Law or the Tax Code that provides for tax exemption of the salary differential.

It is worth mentioning also that with the new maternity benefits computation, the female employee can continue to pay her social contributions with SSS, PhilHealth, and HDMF without interruption.

With the enactment of RA 11210, mothers can fully enjoy their right to health and decent work. By protecting and promoting the welfare of women, the law accords ample transition time for mothers to regain good health and overall wellness before returning to work. The additional maternity leave of 27 to 60 days grants an opportunity for mothers to nurture and bond with their newborn, fundamental in creating a caring environment within the Filipino family.

When we stop to reflect how far mothers go to sacrifice their lives in protecting their children, we then realize that extended maternity leave is long overdue. It’s the least benefit society can provide for the most selfless person in the family.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

 

Renz Anthony K. Boaloy is a manager with the Client Accounting Services group of Isla Lipana & Co., the Philippine member firm of the PwC network.

+63 (2) 845-2728

renz.anthony.k.boaloy@pwc.com

The present and (hopefully) the future of Animal Agriculture in the Philippines

What would a meal look like in 31 years? That is the big question scientists are now urging governments and private institutions to answer. By 2050, the global population is expected to rise to 10 billion with no assurance that all those mouths will be fed.

Our stomachs are stuck to primal cravings: meat, meat, and more meat. With the rise in popularity of the unlimited Korean pork fare or samgyeopsal comes the unprecedented increase in demand for this delectable fatty pork. The process of breeding and, dare I say, slaughtering these animals, is what is called Animal Agriculture. According to Cameron & Cameron (2017), Animal Agriculture is so prevalent globally that we are literally choking the Earth. How so?

In 2017, the Food and Agriculture Organization (FAO) of the United Nations forecast an increase in food demand from 59% to 98% by 2050. Therefore, both big and small scale farmers must adjust their production, causing an increase in green house gas emissions.

The Philippine Statistics Authority’s January-March 2019 brief reported a massive surge in the commercial inventory of cattle, swine or pig, and chicken. Surprisingly, their combined increase of 13.39% was still not enough to sustain the Philippines’ population of 108.12 million. Proof is that the undernutrition rate amongst children aged 0 to 5 is at its highest in 10 years at 26.2%.

GOVERNMENT SUPPORT
It is imperative that the government act upon this issue. President Ferdinand Marcos implemented Presidential Decree No. 914, or the protection and creation of powers for the Livestock Development Council under the Department of Agriculture. It is a regulatory body which oversees livestock production to ensure its efficiency and sustainability. However, it turns out that this was counterintuitive. Imports of livestock and poultry increased by 5.6%, worth a staggering $261 billion. I guess, we Filipinos really do love that unlimited Korean barbeque!

Furthermore, Senate Bill No. 1758, an effort to restructure the current industry while still supporting an already crippled food system, is still pending for approval. Senator Cynthia Villar’s bill proposes to rethink livestock development and focus efforts on Filipino farmers. Unfortunately, this bill did not provide avenues for small scale farmers to have access to capital. Instead, it focused on improving pre-existing infrastructure without addressing how to reduce the risk of investing in agriculture.

These policies are glaringly inefficient, especially since the Department of Agriculture has recently asked for an additional budget of P70.3 billion. The request is both warranted and unwarranted because of the equally unprecedented decline of farming in the Philippine heartlands. The capital intensity in agriculture is driving our farmers away from their farms and towards congested cities where they serve a lesser purpose.

buffalo carabao farmer
PEXELS_ARCHIE BINAMIRA

To think the government can have a hand in changing this. Banks and financing terms can be overhauled to be more inclusive to small and medium-scale farmers. Once the appropriate institutions have segued into a more inclusive organizations, these farmers consequently have to rethink their own practices. The two most realistic and still profitable changes are Livestock with Care and Precision Farming.

SUSTAINABLE FOOD SYSTEMS APPROACH
On top of the partnership of the public and private sector, a slightly more radical approach can be taken. The government or any crazy rich Filipino must consider a Sustainable Food Systems Approach.

This approach considers how to adjust food production according to population growth, urbanization, changing consumer patterns and climate change. All of which are not considered in the slightest in current Animal Agriculture practices. A Sustainable Food System (SFS) approach has three main components; Economic, Social, and Environmental impact. Achieving a successful integration between these three will provide a fiscally viable equal distribution of sustainably grown nutritious food.

Better policies will allow capital-poor farmers to access resources for the system to be more profitable for both the farmers and the investors. Doing so will deliver immediate benefit to consumers. Who will be the main drivers of inclusive eco-social growth? For the FAO, holistic value creation is a cycle starting from the institutions up top.

The Animal Agriculture industry is challenged by unbridled globalization. Our policymakers have forgone self-sufficiency and have reverted to dependency. First, the feed used to sustain these animals is imported. Second, land used to breed these animals are loaned. Third, these breeders are often uneducated and lack proper government/private support. Financing institutions lend or borrow capital at such ungodly rates that ultimately deplete these farmer’s profit margins. Fourth, there is no research and development in finding alternatives to address the gap between the producer and consumer. While meat alternatives is not a popular topic to consider, at our current fertility rate we need all possible solutions to address this looming crisis.

If our policymakers continue to beat around the bush, only to stuff more taxpayer money down their matte Himalaya Niloticus crocodile Birkin bags, Filipinos will probably be end up eating kangkong (swamp cabbage) three times a day.

 

Judith Marie D. Siapno is an undergraduate marketing management student in De La Salle University.

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