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Orica loses bid for P25.78-M VAT refund

CTA.JUDICIARY.GOV.PH

THE Court of Tax Appeals (CTA) en banc has affirmed the denial of Orica Philippines, Inc.’s bid to recover P25.78 million in alleged excess or unutilized input value-added tax (VAT) for the fourth quarter of 2016, ruling that the chemical firm’s judicial claim was filed beyond the prescribed period.

A decision, promulgated last Oct. 1 by Associate Justice Corazon G. Ferrer-Flores, upheld the December 2023 ruling and the May 2024 resolution of the CTA Special First Division, which dismissed Orica’s claim for lack of jurisdiction.

Orica, a domestic corporation with principal offices at Rockwell Business Center in Pasig City, filed the petition for review before the tax court on June 14, 2024, challenging the denial of its VAT refund application by the Commissioner of Internal Revenue (CIR).

The initial refund request was submitted to the Bureau of Internal Revenue (BIR) on Sept. 25, 2018, covering the period from July 1 to Sept. 30, 2016.

The company argued that its judicial claim for refund was filed within the prescriptive period under Section 112(C) of the National Internal Revenue Code (NIRC) of 1997, as amended by the Tax Reform for Acceleration and Inclusion (TRAIN) Law. Orica contended that the CIR’s partial denial on Jan. 16, 2019, came after the 90 days mandated by law for the BIR to act on refund applications.

However, the tax court ruled that the appeal was filed out of time, citing provisions under Republic Act (RA) No. 1125, as amended by RA No. 9282, which give the CTA jurisdiction over tax refund cases only if appeals are filed within the prescribed period following the BIR’s action or inaction.

“The petition for review filed on Feb. 15, 2019, was beyond the 30-day period allowed for judicial claims,” the Court said. “There being no reversible error committed by the Court in Division, the CTA en banc finds no cogent reason to reverse and set aside the assailed resolution.”

In a dissenting opinion, Presiding Justice Roman G. Del Rosario argued that the judicial claim for refund was filed within the 30-day period following the CIR’s decision denying the administrative claim, which was received by Orica on Jan. 16, 2019.

As the en banc majority denied the petition, Orica will not recover the total of P25.7 million in excess input VAT, leaving the case closed unless new legal measures are taken. — Erika Mae P. Sinaking

Largest hospital in BARMM opens

COTABATO CITY — Officials on Wednesday launched the Bangsamoro Regional Hospital and Medical Center (BRHMC) in Datu Hoffer town in Maguindanao del Sur, the largest and first-ever well-equipped hospital in the autonomous region.

The BRHMC was established through the Bangsamoro Autonomy Act (BAA) No. 74, authored by lawmakers Kadil M. Sinolinding, Jr., the lawyer Sittie Fahanie U. Oyod and the civil engineer Baintan A. Ampatuan.

The BAA Act 74 was approved by the 80-member Bangsamoro parliament on May 26.

BARMM’s deputy health minister, Zul Qarneyn M. Abas, Ms. Ampatuan, Ms. Uy-Oyod, representatives of the region’s chief minister, Abdulrauf A. Macacua, the chief of the Integrated Provincial Health Office-Maguindanao (IPHO-Maguindano), Mohammad Ariff A. Baguindali, and other members of the parliament together led Wednesday’s launching of the BRHMC.

The event, also attended by provincial officials from Maguindanao del Sur and Maguindanao del Norte provinces, was held at the compound of the IPHO-Maguindanao, where the 52-year-old Maguindanao Provincial Hospital is located.

“The setting up of Bangsamoro Regional Hospital and Medical Center is a big help for residents of the Bangsamoro region. We are grateful to the Bangsamoro parliament for having established this,” said the physician Mr. Baguindali, who, as IPHO-Maguindanao chief, shall also oversee the BRHMC.

“We are also thankful to the chief minister of the Bangsamoro region, who leads the regional parliament, for having signed into law, without hesitation, the approved bill that enabled the creation of this hospital,” Mr. Baguindali said.

Mr. Sinolinding said the Ministry of Health-BARMM, which he is managing as health minister, shall support the operation of the BRHMC extensively.

Ms. Ampatuan told reporters on the sidelines of the inauguration of the BRHMC that the facility will have an initial P50-million budget from the region’s coffer for this year.

“The succeeding allocations for its operation shall be included, by phases, in the annual appropriations for the expenditures of the regional government,” Ms. Ampatuan said.

Mr. Baguindali said the BRHMC will operate on a “zero billing policy” for all of its patients. — John Felix M. Unson

BPOs reject work-safety claims after Cebu quake

PHILSTAR FILE PHOTO/THE FREEMAN/ALDO BANAYNAL

By Justine Irish D. Tabile, Reporter

THE information technology and business process management (IT-BPM) industry association said companies accused of forcing their employers to work in the days after the Cebu earthquake should not have been named without prior investigation.

The IT and Business Process Association of the Philippines (IBPAP) said allegations about their treatment of workers have the potential to deter foreign investment in the industry.

In a statement on Thursday, IBPAP said it “denounces this irresponsible declaration by the Department of Labor and Employment (DoLE) Region VII, which prematurely named companies without the benefit of impartial investigation or validation,” it said.

Asked to comment, Labor Secretary Bienvenido E. Laguesma said via Viber that according to his conversations with DoLE Region VII, the regional director “never mentioned any company names in the Senate hearing but only mentioned the number of companies.”

“In any case, let me stress that it is not and will never be a DoLE policy to put on the spot (or) embarrass any company complained of whatever the sector it belongs without the benefit of an impartial investigation.”

He said DoLE will conduct further verification of these IBPAP concerns.

IBPAP said “the reckless naming of companies before the Senate and in the media damages reputations, caused confusion among employees, and created undue alarm among global clients whose confidence directly impacts investment, business continuity, retention, and creation of jobs in the Philippines,” it added.

IBPAP said that international clients may end up perceiving  the Philippines as unreliable, inconsistent, and non-compliant in its labor practices.

“Such perceptions erode confidence, drive business to competing destinations, and jeopardize the very jobs and revenue the Philippine IT-BPM industry has worked hard to secure,” it said.

“Equally concerning, clients may become hesitant to expand outside Metro Manila, undermining countryside development opportunities where these jobs are most needed and where DoLE itself aims to create and safeguard livelihoods,” it added.

The group said it has not received documentation from DoLE regarding allegations made by the BPO Industry Employee Network (BIEN), whose members had alleged that workers in business process outsourcing (BPO) jobs in Cebu were not allowed to leave work despite safety concerns, and were not provided leeway to attend to families that may have been affected by the quake in the north of Cebu island.

The quake hit on the evening of Sept. 30, during the BPO night shift, a time when the industry typically services clients in Europe and the US.

Four of the six companies allegedly named were IBPAP members, with the association saying it failed to confirm reports that employees were prevented from leaving their offices.

“The findings from our inquiry disprove BIEN’s claims of widespread employee safety violations among IT-BPM employers during the Cebu earthquake,” IBPAP said.

It accused the regional DoLE office of bias after its inspectors were accompanied by BIEN members, who it described as “highly biased… against IT-BPM employers.

Meanwhile, BIEN cited “evacuation failures” in the wake of the 6.9-magnitude earthquake, claiming that “workers (were) forced to return to their stations while aftershocks continued. These are not rumors. They are documented incidents, supported by workers’ testimonies, photos, videos, and reports from multiple Cebu BPO sites.”

“IBPAP’s assertion that there were no confirmed incidents ignores a long history of OSH (occupational safety and health) violations in the BPO sector, including tragic cases like the 2017 Davao fire, where 38 BPO employees lost their lives because of several safety failures,” it added. — with Chloe Mari A. Hufana

Mindanao airports being readied to handle planes as large as regional jets

BW FILE PHOTO

THE Department of Transportation (DoTr) said it is undertaking the modernization and expansion of airports in Mindanao to prepare them to receive larger aircraft, including regional jets.

It singled out the modernization of Central Mindanao or M’lang Airport, which is a priority project, Transportation Undersecretary for aviation and airports Jim C. Sydiongco said during an aviation forum.

“Efforts are underway to develop existing facilities and upgrade infrastructure to meet aerodrome category standards for initial operations,” Mr. Sydiongco said, noting that it hopes to achieve category 4C compliance for the airport by 2035.

Category 4C covers airports that are able to support safe operations for large aircraft.

Work is ongoing to rehabilitate the terminal, build an administration facility and control tower, and get utility systems ready for initial operations.

“A consultancy service is updating the development plan and terminal design, with future works covering the runway extension,” he said, noting that the airport is targeted to begin turboprop operations by December 2026 after the approval of the terminal building concept.

Bukidnon Airport is targeted for general aviation operations by December, while turbo-prop commercial flights will commence by December 2026 and jet operations by 2027, Mr. Sydiongco said.

“For Bukidnon Airport, construction is ongoing for a new airport designed to accommodate jet aircraft such as the Airbus A320 and A321,” he said, referring to single-aisle narrowbody jets made by Airbus that are in wide use on regional international routes.

The DoTr has said that it is ramping up efforts to upgrade and expand regional airports to support the operation of larger aircraft amid the increase domestic and international passenger capacity. — Ashley Erika O. Jose

FPI calls on Philippines to be ready to act vs likely dumping of goods

PORTCALLS ASIA-UNSPLASH

THE Federation of Philippine Industries (FPI) said that anti-dumping measures must be rolled out as exporters thwarted by US tariffs seek to sell their goods in the Philippines.

On the sidelines of the FPI Business Summit 2025, FPI Chair Elizabeth H. Lee said dumping will be a natural consequence of tariffs.

“Dumping… (is) going to put pressure on local manufacturer,” she said.

“There are some measures that are being done now with the Department of Trade and Industry to help mitigate that because what we do not want is to harm our manufacturers,” she added.

She said that competing with dumped imports will cut into the manufacturers’ margins.

“So that’s why there are these mitigating measures to help with anti-dumping. Dapat naman balanse lang (the playing field must be even),” she said.

Meanwhile, she said manufacturing is not receiving enough investment.

“We would always want to have more investment here in the manufacturing sector. Now all our secretaries are actually doing their very best, but you know we can’t really do anything about the 19% (US tariff),” she said.

She said the Philippines should use the public-works scandal as an opportunity to demonstrate to investors that it is cracking down on corruption.

Kailangan natin gamitin (we need to use) that opportunity to actually shine a light and say that the government recognizes there is corruption and it is doing something about it,” she said. — Justine Irish D. Tabile

Gold ore and nickel top industry revenue in 2023

STOCK PHOTO | Image by David Hellmann from Unsplash

THE Philippine Statistics Authority said gold ore generated P79 billion in revenue in 2023, accounting for 27.6% of the mining industry.

Nickel ore generated P74.43 billion or 9.1% of the industry, it said. Coal generated P61.28 billion.

Employment in the mining industry rose 4.5% to 38,239, with contract workers accounting for 43.9% of the industry.

Caraga, the leading gold region, accounted for 5,945 workers, or 15.5% of the total, while the Davao Region had a workforce of 5,009 and the Central Visayas 4,771. — Andre Christopher H. Alampay

PHL stocks fall on surprise BSP cut, profit taking

REUTERS

PHILIPPINE STOCKS dropped anew on Thursday on profit taking after the market’s two-day climb and as the central bank delivered a surprise rate cut, noting that the economic outlook has softened as the ongoing corruption scandal has affected business sentiment.

The benchmark Philippine Stock Exchange index (PSEi) fell 0.67% or 41.34 points to close at 6,057.40, while the broader all shares index dropped 0.47% or 17.64 points to 3,667.01.

“The local market declined as investors took profits following a two-day rally. The peso’s depreciation also weighed on the local bourse. For the most part of the day, investors traded cautiously while waiting for the BSP’s (Bangko Sentral ng Pilipinas) policy decision,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

“The market tracked lower after the peso breached P58 following the BSP’s surprise move to cut rates by another 25 bps (basis points) to support the domestic economy,” AP Securities, Inc. said in a market note.

On Thursday, the local unit fell by 28.5 centavos to close at P58.235 versus the greenback from its P57.95 finish on Wednesday, Bankers Association of the Philippines data showed.

The BSP delivered a fourth straight 25-bp cut to bring the target repurchase rate to 4.75%, the lowest since September 2022. Only six of the 16 analysts polled by BusinessWorld expected a reduction at this week’s meeting.

The central bank has now lowered borrowing costs by a total of 175 bps since it began its easing cycle in August 2024.

BSP Governor Eli M. Remolona, Jr. said that they cut rates as the outlook for the economy has softened due to the widening corruption scandal involving state flood-control and infrastructure projects, which has affected business sentiment. “All in all, we see more scope for a more accommodative monetary policy.”

He said another reduction is possible at their last meeting for the year on Dec. 11, with more cuts beyond that also on the table.

Sectoral indices were mixed on Thursday. Financials dropped by 1.65% or 34.23 points to 2,030.52; services sank by 1.04% or 24.14 points to 2,285.36; and holding firms decreased by 0.58% or 28.90 points to 4,889.08.

Meanwhile, mining and oil rose by 2.79% or 401.03 points to 14,742.44; industrials climbed by 0.11% or 10 points to 9,013.39; and property increased by 0.11% or 2.72 points to 2,285.15.

“There were only four index gainers for the day, led by AREIT, Inc., jumping 7.49% to P45.20. Puregold Price Club, Inc., was the main index laggard, falling 6.11% to P39.95,” Mr. Tantiangco said.

Decliners outnumbered advancers, 135 to 72, while 55 names closed unchanged.

Value turnover increased to P6.51 billion on Thursday with 5.35 billion shares traded from P6.38 billion with 4.54 billion shares that changed hands on Wednesday.

Net foreign buying declined to P112.15 million on Thursday from P540.06 million on Wednesday. — A.G.C. Magno

Waste-to-energy auction planned for next year 

REUTERS

THE Department of Energy (DoE) said it will  launch a green energy auction (GEA) next year dedicated for waste-to-energy (WTE) projects sourcing feedstock from urban areas.

In a statement on Thursday, the DoE said it will issue the notice of auction and terms of reference within the month. The auction proper is expected to take place in January.

WTE projects resulting from the auction are targeted for completion by the fourth quarter of 2027.

Citing the 2024 Solid Waste Generation data of the National Solid Waste Management Commission, the DoE said Metro Manila and highly urbanized cities (HUCs) generate an estimated 6.12 million metric tons of municipal solid waste, which could be converted into 335 megawatts of baseload power.

A new auction round for biomass and WTE projects will be conducted by the second quarter of 2026, it said.

WTE is the process of converting non-recyclable waste materials into usable heat, electricity, or fuel using various technologies.

“As an emerging renewable energy technology, WTE project development is one of the country’s strategies to address solid waste management, serve as flood control mitigation, and provide additional clean energy,” the DoE said.

The GEA program aims to promote renewable energy as one of the country’s primary sources of energy through competitive selection.

The DoE said that the latest auction is aligned with the Philippines renewable energy targets of 35% in the power mix by 2030 and 50% by 2040.

“The integration of WTE projects into the GEA framework underscores the DoE’s commitment to ensuring energy security, environmental protection, and private sector participation in the country’s transitioning to clean and sustainable energy,” it said.

So far, the government has launched five auctions covering various renewable energy technologies, promising 20 GW of additional capacity. — Sheldeen Joy Talavera

Negative list overhaul urged to expand foreign role in infra projects

Portions of the revetment wall along the Tullahan River collapsed in North Fairview, Quezon City, Aug. 29, 2025. — PHILIPPINE STAR/MIGUEL DE GUZMAN

THE PHILIPPINES should consider relaxing its restrictions on foreign participation in infrastructure procurement to attract more private sector financing, the Organisation for Economic Co-operation and Development (OECD) said.

In a report, “Addressing Legal and Regulatory Barriers to Quality Infrastructure Investment in India, Indonesia and the Philippines,” the OECD recommended that the Philippine government revisit its Foreign Investment Negative List (FINL), which outlines the industries where foreign investment is restricted due to national security, public safety, and public health concerns.

“The government may wish to reconsider the limitations included in the Foreign Investment Negative List relating to infrastructure procurement projects,” it said on Oct. 7.

“This could encourage more foreign private sector involvement in infrastructure financing in the Philippines, in line with (Quality Infrastructure Investment) QII Principle 2 on raising economic efficiency to ensure value for money over the project life cycle,” it said.

The OECD noted that in List A of the FINL, foreign investors are restricted to 40% ownership in infrastructure projects, private land, or public utilities, in compliance with its constitution.

It also noted the restrictions on joint ventures formed by two or more foreign entities, which require that at least 75% of the ownership be held by a Filipino person or entity.

Republic Act No. 12252, signed in September, now allows foreigners to lease land in the Philippines for up to 99 years.

“Leased land, especially for agricultural purposes, faces additional restrictions under the comprehensive agrarian reform law. Local government regulations, such as permits for agricultural land reclassification, further influence land use,” the OECD said.

“These constraints apply across all sectors, so even industries open to 100% foreign ownership under the Public Service Act must consider land-related limitations in infrastructure projects.”

The OECD said that although some reforms are in progress, the Philippines still faces challenges in land acquisition for infrastructure projects, including right-of-way acquisition, fair market value appraisals involving multiple entities, and time-consuming land conversion procedures. 

The organization also recommended that feasibility studies should assess risks related to Indigenous Peoples’ land rights, highlighting the need for inclusiveness and respect for human rights. — Aubrey Rose A. Inosante

Cement makers seek P600 safeguard duty on imports

PHILSTAR FILE PHOTO

THE Cement Manufacturers’ Association of the Philippines (CeMAP) said it is seeking an increase in the safeguard duty for cement imports to P600 per ton.

“We are happy that the Tariff Commission recognized the injury to the domestic industry. But we will be more than happy if they can grant our prayer,” Renato A. Baja, executive director of CeMAP, told reporters on Thursday.

He said the industry group is seeking a safeguard duty of P600 per ton, against the P349 duty recommended by the Tariff Commission.

“Well… it is not enough,” he said, adding that the P600 request more closely reflects the actual injury done to the industry.

According to CeMAP, the basis for the P349 duty is the difference between the factory gate price for cement, which was adjusted to compete with imported cement prices, and the landed price for imported cement.

“We can live with our prayers of our P600 per ton. We can survive with that,” he added.

The Tariff Commission had imposed the P349 duty on imports of ordinary Portland cement type 1 and blended cement.

Mr. Baja said the volume of imported cement must be reduced to preserve the market share of domestic manufacturers.

He said manufacturers have surplus capacity of about 30%, indicating that Philippine cement makers can service domestic demand.

He said that since the provisional safeguard duties were put in place, imports have declined 19%.

In February, the Department of Trade and Industry ordered provisional safeguard duties of P400 per metric ton or P16 per 40-kilogram bag in the form of a cash bond on imports of ordinary Portland cement and blended cement. — Justine Irish D.  Tabile

DA lifts ban on imports of live poultry from six countries

ARTEM BELIAIKIN-UNSPLASH

THE Department of Agriculture (DA) said it lifted a poultry import ban imposed on Azerbaijan, Kazakhstan, Saudi Arabia, Slovenia, Sweden, and the Malaysian states of Kelantan and Sabah.

It said the Bureau of Animal Industry declared it safe to allow imports again after all six countries reported no new cases of bird flu.

The ban had covered live domestic birds and wild birds.

The World Organisation for Animal Health estimates the bird flu incubation period at 2-5 days on average, and monitors outbreak sites for new cases before clearing that country’s poultry industry. — Andre Christopher H. Alampay

Flood control mess shakes investor confidence, says SEC chief

STOCK PHOTO | Image by Jcomp from Freepik

Editor’s note: Securities and Exchange Commission (SEC) Chairperson Francisco Ed. Lim on Oct. 9 retracted his earlier claim that P1.7 trillion in market value was wiped from listed companies in just three weeks due to the corruption scandal.

(UPDATE) A widening corruption scandal involving flood control projects has shaken investor confidence, according to Securities and Exchange Commission (SEC) Chairperson Francisco Ed. Lim.

“The flood control project scandal has shaken public confidence,” Mr. Lim said in a speech at the 57th annual conference of the Financial Executives Institute of the Philippines (FINEX).

He said investors are fleeing the market because of “weak integrity,” not weak fundamentals.

“It’s a stark reminder that corruption is a weapon of mass wealth destruction,” he said.

“When trust breaks down, capital dries up, and everyone — government, business, and the public — pays the price.”

In recent weeks, markets have been rattled by the widening probe into corruption in government projects, particularly flood control. 

Mr. Lim said the stock market is a laggard, reflecting a crisis of confidence.

“Too many firms still hesitate to go public, while others who have chosen to go public are leaving the stock market. This is not just a market issue. It’s a trust issue,” he said.

“Rebuilding the trust is one of the SEC’s most urgent missions.”

Top Line Business Development Corp., a Cebu-based fuel distributor and retailer, remains the sole company to have conducted an initial public offering (IPO) and listed on the PSE this year. Meanwhile, Maynilad Water Services, Inc. is set to make its market debut on Nov. 7.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said some of the biggest PSEi members experienced sell-offs.

“Sell-offs occurred due to market sentiment being weighed down by political noise, especially since last month, despite solid economic and corporate fundamentals and valuations,” he said in a Viber message.

AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said there is increasing negative sentiment towards companies and sectors that could be potentially affected by the widening corruption probe such as banks, casinos, luxury property developers, automotives and car dealerships.

“In particular, there are growing calls to demand accountability from banks as they serve as conduits for misappropriated funds. Casinos were also mentioned as establishments frequented by personalities connected to the scandal and there’s speculation that demand for luxury property and cars were propped up by money from corruption,” Mr. Garcia said in a Viber message.

He said there could be an overcorrection in the infrastructure sector as increased oversight could slow the implementation of projects.

“This would have a negative impact on GDP and more broadly speaking, on economic development,” Mr. Garcia said.

On Thursday, Mr. Lim retracted his earlier claim that P1.7 trillion in market value was wiped from listed companies in just three weeks due to the corruption scandal.

He apologized for the confusion caused by his statement.

“My sole intent was to underscore the vital importance of integrity in our markets and the devastating impact corruption can have on investor confidence,” Mr. Lim said. — Alexandria Grace C. Magno