Facebook Instagram Linkedin X Youtube
Home Blog Page 11487

Collections under first tax reform ‘pretty good’ so far — DoF chief

THE TAX REFORM for Acceleration and Inclusion (TRAIN) law’s collection performance has been “pretty good” so far, the Department of Finance (DoF) said, citing data in last year’s first three quarters.
Data distributed to reporters showed the TRAIN law, or Republic Act No. 10963, yielded P41.9-billion net revenues in the nine months to September, equivalent to 94.7% of the P44.3-billion program for that period. It is also equivalent to 70% of the downward-adjusted P63.3-billion target for the whole of 2018.
“In collections, we succeeded for the first nine months at 94.7%. In any grading, it’s not so bad. It should’ve been a hundred or over a hundred, it’s not so bad. It’s pretty good,” Finance Secretary Carlos G. Dominguez III told reporters late Friday at the DoF headquarters in Manila.
Mr. Dominguez noted that the same months saw P102.9 billion in foregone revenues due to lower personal income tax rates under the law. The actual foregone revenues were smaller than the initial projection of P108.7 billion.
TRAIN’s revenue contributors were led by tobacco excise and documentary stamp taxes (DST) which topped their targets by P2.6 billion and P28.1 billion, respectively. TRAIN generated an additional P5.9-billion revenues from tobacco products due to “better compliance and advance production,” and P49.1 billion from DST attributed to “higher transactions value and better collection efficiency,” according to Mr. Dominguez.
Collections of higher fuel excise taxes totaled P43.4 billion against a P43.3-billion target, while higher tax rates on cars generated P12.2 billion against a P11.6-billion goal.
At the same time, TRAIN raised P31.2 billion from the new tax on sugar-sweetened drinks, 72.1% of a P43.3-billion target, and collected P3.6 billion in value added tax after smaller exemptions, just 14.4% of a P24.8-billion goal.
The DoF is currently auditing beverage manufacturers to check whether they have been paying the correct taxes.
As for VAT, Finance Undersecretary Karl Kendrick T. Chua said that some businesses may have stopped importing while the surge in capital goods imports has also increased input VAT claims which temporarily lowers VAT revenues until output VAT is reported. “Because of the repeal removing VAT exemption of importation… maybe they avoid the VAT by not importing,” Mr. Chua said in the same chat with reporters. “The second, we are looking at so much capital equipment importation — it’s a minus. It may suggest that in the coming years VAT will increase as you build your infrastructure and use your machines to produce more products. That may be a sign that were just delaying the collections because we’re investing now.”
But he said that bigger disposable incomes from lower personal income tax rates should indirectly lead to higher VAT collections.
Other TRAIN excise taxes on coal, minerals, and cosmetic procedures generated P2.3 billion, equivalent to 75.5% of a P3.1-billion goal; while higher financial taxes raised P2.4 billion, 45.6% of the P5.2 billion target.
Lower estate and donors tax also led to forgone revenue of P3.7 billion and P2.3 billion, respectively, which was more than the P1.7 billion and P1.3 billion programmed shortfalls, respectively.
The DoF is also optimistic to hit TRAIN’s 2019 collection target. “The economy is doing pretty good. We expect that to reflect in better collections as collection agencies are doing better,” Mr. Dominguez said. — Elijah Joseph C. Tubayan

Hunger levels in PHL still “serious” (despite improving conditions)

Print

Doubts cast on Agri dept’s 1% farm growth estimate

THE agriculture sector’s growth for 2018 could have been flat — or worse than the 1% estimate given by Secretary Emmanuel F. Piñol, an economist said.
“Likely flat,” University of Asia and the Pacific (UA&P) Center for Food and Agribusiness Executive Director Rolando T. Dy said in a mobile message when asked for his estimate for agricultural growth in 2018.
Mr. Piñol said in a Facebook post that the agriculture sector grew by 1% in 2018, citing data viewed by the DA’s management committee (MANCOM).
The Philippine Statistics Authority (PSA) has yet to release the official result, which typically comes out days prior to publishing the gross domestic product (GDP) performance for 2018.
“Almost flat [in the] first three quarters. Fourth quarter won’t have a significant recovery,” Mr. Dy added.
The PSA reported last year that agriculture sector which include crops, poultry, livestock and fisheries, grew by only 0.15% in the nine months to September.
Mr. Piñol said that DA intends to end the year with 2.5% growth, a rate which Mr. Dy said, is likely unachievable. Last week, Mr. Piñol said that the failure to achieve the target growth was due to typhoons and weather disturbances that plagued the country in 2018.
Mr. Piñol said rice production in 2018 amounted to 19.1 million metric tons (MT), or 1.54% short of the 19.4 million MT target. It also failed to match the 2017 total of 19.28 million MT by 170,000 MT.
“Philippine agriculture and fisheries hobbled with a mere 1% growth in 2018 as a super typhoon and 12 more tropical storms battered the country almost every month of the year destroying 1.8 million metric tons of crops with an estimated value of P36 billion,” Mr. Piñol said in his post. — Reicelene Joy N. Ignacio

All in the family

THE GO family’s living room and dining room also serve as a showroom for their own craft in an aptly named enterprise called Pako Ph — “pako” is Filipino for “nail” — which focuses on custom furniture, restoration, and reproduction.
A look through the living room shows pieces topped with coral (made back when it was still legal), tables covered in shagreen, a massive table with a top of etched glass, and a comfortable chair with its legs carved to look like rope.
Cherry Go, one of Pako’s founders, traces her own experience in furniture back to the 1980s, but the family’s association with it goes back further to her grandfather who exported raw materials for rattan furniture. It was Ms. Go’s father who expanded the business into actually making rattan furniture, culminating in his daughter moving into the creation of wood furniture. When she learned the craft, she expanded into restoring antiques.
Her son, Pierre Go, was drawn into the family business. He studied architecture in the University of the Philippines before joining a prestigious firm — but he found himself working in his mother’s shop so often that he finally decided to join the family business full-time.
“I’m still learning a lot, especially from my mom,” he told BusinessWorld last week.
The work of the mother-son duo is interesting: while she focuses on more classic pieces, he experiments with unusual materials such as dyed elastic garter more often used in garments, resulting in something more contemporary, or, dare we say, avant-garde.
“On my end, it’s very encouraging,” said Mr. Go of the family’s long history with furniture, “because a lot of the backbone is there. The structure is there. When we start putting in new ideas, a lot of the headaches solve themselves, or you kind of make solutions from that.
“It’s very enriching to come from that sort of background.”

Pako PH 2
A refurbished Chinese buffet table in a stained blackened finish, using modern brushed metal handles.

Ms. Go walked over to a console with French Empire details displayed in her dining room, along with wall sconces in brass that she has managed to restore. “We can do it for you — anything.”
As in the case of the coral table, whose restoration can be difficult because their materials have now been made illegal or difficult to trade, they find a way to work around it. Ms. Go says that for materials in antiques that are now hard to procure, she can have them customized or come up with a substitute in order to make a piece breathe again.
She does say that not all furniture was meant to be restored. “When it’s old furniture, it has to be solid,” she said, citing that it must be made of hardwood like narra or mahogany. Otherwise, “If it’s in plywood, it’s not ‘sulit’ (worth it) to restore that.”
“It does really start with quality of material that’s being sent,” said Mr. Go. “If it was previously well-made, that can be restored. You want to preserve maybe the craft of it, or preserve some sort of material, or preserve whatever memory you have of it. You just kind of bring in something fresh.”
In a world of fast fashion, and now, even fast furniture, people can just throw away any old thing and just buy something new.
“That depends on the client’s mentality, I guess. If you buy something off the rack, there’s really nothing wrong with it. But there’s always value in customized design pieces. There’s always something to be said when something is made for you,” he said. “When something’s made for you, it always just feels right for you.” — Joseph L. Garcia
To contact Pako PH, call 0917-501-7778, e-mail pakoph.info@gmail.com, or visit https://www.instagram.com/pako__ph or www.facebook.com/pg/Pako-PH.

Dennis Uy not interested in Hanjin’s Subic shipyard

By Denise A. Valdez
Reporter
DAVAO-BASED businessman Dennis A. Uy is not interested in rescuing debt-ridden Hanjin Heavy Industries and Construction Philippines, Inc. (HHIC-Philippines).
When asked if he has plans to invest in the South Korean shipbuilder’s Subic Bay shipyard, Mr. Uy told BusinessWorld in a text message on Friday there are “none.”
The shipping and logistics subsidiary of Mr. Uy’s holding company Udenna Corp. also showed no signs of interest in acquiring HHIC-Philippines’ operations.
“No plans for now,” Chelsea Logistics Holdings Corp. (CLC) President Chryss Alfonsus V. Damuy said in a mobile message on Thursday, when asked about HHIC-Philippines.
Udenna was among the shortlisted companies eyeing to buy HHIC-Philippines, according to a June 2018 report by United Kingdom-based online shipping magazine IHS Fairplay.
The Department of Trade and Industry (DTI) earlier said HHIC-Philippines has been “open” to investors since last year, with two to three companies having visited the shipyard in Subic Bay.
The company ultimately filed for corporate rehabilitation at the Regional Trial Court of Olongapo City last week, as it debts from Philippine banks reached around $400 million and from South Korean lenders around $900 million.
The DTI said two Chinese shipbuilders have shown interest in investing in the $1.6 billion company, whose enterprise value shrunk from around $2.6 billion last year.
Mr. Uy has been on an acquisition spree the past years, with investments across education through Enderun Colleges; food industry through Conti’s Holdings Corp.; information technology and communications through ISM Communications Corp.; resorts and gaming through PH Resorts Group Holdings, Inc.; energy through PXP Energy Corp.; and telecommunications through Mislatel Consortium.
Mr. Uy’s main businesses include oil and petroleum through Phoenix Petroleum Holdings, Inc.; shipping and logistics through CLC; real estate industry through Udenna Development Corp.; environmental, trading and distribution through Udenna Management and Resources Corp.; and energy, water and environmental services through Udenna Water and Integrated Services.
DTI Undersecretary Ceferino S. Rodolfo told reporters in a press conference on Friday the agency will keep looking for a company that may save HHIC-Philippines which was the biggest investor in Subic Bay.
“They are a valued investor, and we are looking at linking them with other investors who have already expressed interest in shipbuilding in general in the Philippines,” he said.
Meanwhile, Land Bank of the Philippines (LANDBANK) President and Chief Executive Officer Alex V. Buenaventura said the Philippine unit of the South Korean shipbuilder has $1.2 billion worth of assets which could be more than enough to cover the exposure of the Philippine banks.
“We’ll have to address the problem. But the good news is we can recover the assets. The shipyard is worth $1.2 billion and the total exposure of the creditors is less than $400 million. Down the road, we hope to recover our exposure,” Mr. Buenaventura said last Friday.
LANDBANK’s exposure to HHIC-Philippines is at $85 million, the DoF said.
Other banks that have extended loans to HHIC-Philippines include Rizal Commercial Banking Corp., Metropolitan Bank & Trust Co., Bank of the Philippine Islands, and BDO Unibank, Inc. — with Elijah Joseph C. Tubayan

NFA to pay cash, ease rules to further entice rice sellers

THE National Food Authority, which is in the middle of a restructuring to focus on domestic rice purchasing and storage, will move to ease the requirements on farmers seeking to sell their output to the agency.
“Farmers who sell their rice produce to the National Food Authority (NFA) will no longer be required to present passbooks and will be paid in cash on the spot,” Agriculture Secretary Emmanuel F. Piñol said in a Facebook post Sunday.
“The NFA buying stations will also buy from ‘walk-in’ farmers who would like to sell 5 to 10 bags of rice while “fresh” palay will be bought subject to adjustments on the P17 per kilo buying price based on the moisture content,” Mr. Piñol said.
According to Mr. Piñol, a P3.70 buffer stocking incentive will be given in addition to the cost of the rice per kilo regardless of the moisture content.
For every 4,000 kilos of rice, a farmer will also receive a bag of inbred seed from PhilRice suited to his planting area, Mr. Piñol said, noting that hauling of produce will be assisted by the NFA using trucks provided by DA.
“With the NFA buying farmers’ produce at a higher price than most private buyers, traders in connivance with some NFA workers are expected to take advantage by buying from the farmers in the remote areas at a very low price and reselling this to the government,” Mr. Piñol said.
“The NFA officials, however, were warned that those who will be involved in this racket will face administrative and criminal charges,” Mr. Piñol added.
When rice tariffication comes into force, the NFA is required to buy rice from farmers to maintain a buffer stock, while the private sector will be in charge of importing rice. — Reicelene Joy N. Ignacio

Want to look like Federer?

LOCAL tennis fans and practitioners in search of quality replica game wear items may want to check out the latest items at UNIQLO as it launches the Roger Federer Game Wear collection.
Available starting today at UNIQLO Manila in Glorietta 5, the collection features the replica gamewear to be worn at the 2019 Australian Open by its Global Brand Ambassador Roger Federer.
The new game wear model was created by the design team at the UNIQLO Paris R&D Center, led by Artistic Director Christophe Lemaire, in consultation with the international tennis player.
The Federer model features a new open collar instead of the stand collar of the previous collection. The color is a deep blue to contrast with the blue hard courts, accented with white piping on the shirttail.

Roger Federer Game Wear 2
UNIQLO’s RF Dry EX Polo shirt

Functional elements include a fully mesh back to provide good breathability, allowing for high-performance play.
It is made with Dry EX material, jointly developed by UNIQLO and Toray Industries, making the collection’s shirts and pants dry faster than ordinary dry function material, preventing the steamy and sticky feeling due to perspiration and keeping a comfortable feel during play.
“As the defending champion, I want to play my best so that I achieve a great result again this year. Working closely with the UNIQLO product development team, we have created a highly refined match outfit that provides the functionality I need to play my best on the court while also making sure we pay careful attention to design and detail. I’m looking forward to stepping on the court in Melbourne with the new designs,” said Mr. Federer of his new UNIQLO game wear collection.
The Swiss legend incidentally begins his Australian Open title defense today.
Mr. Federer is part UNIQLO’s growing list of global brand ambassadors which includes Kei Nishikori (tennis), Shingo Kunieda and Gordon Reid MBE (wheelchair tennis), Adam Scott (golf), and Ayumu Hirano (snowboarder).
The RF Dry EX Polo shirt, with sizes from small to extra large, is sold for P1,990 while the RF Dry Short Pants are also available. — Michael Angelo S. Murillo

T-bills likely to fetch lower rates

TREASURY BILLS (T-bill) on offer today are expected to fetch lower rates as market participants continue to price in decelerating inflation, as well as the peso’s recent rally.
The Bureau of the Treasury (BTr) is offering P20-billion worth of T-bills today, broken down into P6 billion each for the three- and six-month papers and another P8 billion for the one-year instruments.
A bond trader said yields on the short-term securities up for auction will likely decline from the previous offer as price increases are expected to return to their normal pace in the coming months.
Last week, the Treasury borrowed P16.72 billion out of the P20 billion it intended to raise at its T-bills auction, rejecting some bids for the shortest tenor as market interest was skewed towards the longer tenors.
Rates of the 91-, 182- and 364-day papers stood at 5.411%, 6.424% and 6.641%, respectively.
Based on the PHP Bloomberg Valuation Service Reference Rates, the three-month, six-month and one-year papers were quoted at 5.798%, 6.436% and 6.644%, respectively, on Friday.
For today’s auction, the trader expects the 91- and 182-day IOUs to fetch rates 10-15 basis points (bp) lower from the previous offer and the 364-day T-bills ending 10 bps lower as inflation is seen to return to the 2-4% target band of the Bangko Sentral ng Pilipinas (BSP) “within first or second quarter of the year.”
Headline inflation eased to 5.1% in December from 6% the previous month as prices of food and transportation grew at a slower pace.
For 2018, inflation averaged 5.2% — faster than the central bank’s 2-4% target range and the highest since 2008’s 8.2%.
“On the interest rate increase in the US, we might see them increase their rates by one to two times this year, from the previous [expectations of] two to three,” the trader added.
Federal Reserve Chairman Jerome Powell recently said the US central bank will be “patient” with its monetary policy as it watches how the economy performs this year.
Meanwhile, another trader said the rates of the three- and six-month securities will be lower by 10-20 bps from the previous auction, while the three-month T-bill’s yield will slide by 5-10 bps from last week, as the peso remains strong.
The peso has been strengthening against the dollar in the past few trading sessions amid increased market appetite for riskier currencies.
“Aside from the strong peso, the long end of the yield curve already rallied, so the short-end should be aligned with the long end,” the second trader added.
The government plans to raise P360 billion this quarter through domestic means. Some P240 billion will be borrowed through 12 weekly T-bill auctions during the three-month period, while P120-billion worth of T-bonds will also be issued through six fortnightly auctions. — Karl Angelo N. Vidal

SGX to help PSE develop derivative products

THE Philippine Stock Exchange, Inc. (PSE) is teaming up with the Singapore Exchange Ltd. (SGX) to develop listed derivative products that could make the local market more accessible to international investors.
In a joint statement issued over the weekend, the PSE and SGX said they are looking to develop new Philippine equity index derivatives that will be listed on the local bourse.
“We are laying the groundwork for development of derivative products to enable PSE to offer a more diverse product line to investors and help us catch up with peer exchanges. Our partnership with SGX will allow us to learn from their experience in operating a derivatives market,” PSE President and Chief Executive Officer Ramon S. Monzon said in a statement.
A derivative is an investment product whose price tracks the value of underlying assets such as stocks, bonds, commodities, currencies, and market indices.
Back in 2013, the two exchanges also partnered for the listing of the SGX-PSE MSCI Philippine Index Futures in the neighboring market. SGX is the largest exchange in Southeast Asia, which also has India, China, and Japan stock market futures.
In this type of derivative product, an investor agrees to purchase an index at a specific time in the future, protecting the seller from fluctuations in the market. The investor then makes a profit if the price turns out higher, and vice versa.
“We are pleased to broaden our cooperation with PSE to advance the Philippine derivatives market,” SGX Chief Executive Officer Loh Boon Chye said in a statement.
“As domestic and international markets are complementary, this enhances our role in increasing access into ASEAN and emerging Asia, as well as providing tools for clients to manage risk and allocate capital.”
The PSE said it will also work with the Securities and Exchange Commission (SEC) and other stakeholders for the development of rules and regulations to list and trade derivative products.
It also noted the vast opportunity to invest in the ASEAN region, which if taken as a single country would generate a gross domestic product of more than $2 trillion. This makes the ASEAN among the 10 largest economies globally.
Local regulators have been working on enhancing investment opportunities within the region.
Earlier this year, the SEC released proposed guidelines to implement the ASEAN Capital Markets Forum pass, which looks to allow the free movement of investment advisers in the ASEAN region. The draft circular states that the Philippines, Malaysia, Singapore, and Thailand will facilitate cross-border movement of investment advisers, without additional licensing requirements. — Arra B. Francia

India considering raising sugar selling price

NEW DELHI — The Indian government is considering raising the minimum selling price of sugar, television news channel ET Now reported on Friday.
Prime Minister Narendra Modi’s office was directly examining the proposal, ET Now said quoting sources.
The move is likely to help farmers, who are struggling to export their surplus due to fall in global prices and a strengthening rupee.
India’s sugar exports are likely to be far lower than a 5 million-tonne target set by New Delhi despite a government push for overseas sales, industry officials said. — Reuters

Dior switches Paris catwalk date to avoid ‘yellow vest’ protests

PARIS — Christian Dior is bringing forward its men’s fashion show in Paris to avoid “yellow vest” protesters who have fought police, torched cars and smashed up shops over recent weekends, a source familiar with the decision said.
Dior, part of the LVMH luxury goods conglomerate, wrote to guests to reschedule a menswear catwalk show initially planned for Jan. 19 — a Saturday, when protesters have tended to converge on Paris and other big cities across France.
The show will instead be held on Friday, Jan. 18.
Upmarket Dior and Chanel boutiques were among those vandalized by the protesters in early December.
The “yellow vest” revolt, driven by high living costs and frustration at President Emmanuel Macron’s leadership, shows scant sign of abating after two months of unrest, even after he made some tax and minimum wage concessions.
Retailers and hotels were hit particularly hard by the Paris demonstrations in the run-up to Christmas. Department stores and luxury boutiques shuttered their outlets when protests descended into riots in early December, and tourists canceled bookings.
The source familiar with Dior’s decision said the brand was keen to avoid the Saturday street marches.
While turnout at the protests has fallen from early weeks, they have been consistently marred by violence and transport has been disrupted.
Macron’s government has said it will crack down harder on unauthorized protests and get tougher on anyone who loots or vandalizes shops and monuments.
Retailers had by late December lost around €2 billion ($2.3 billion) in revenue since the protests began, according to the French retail federation (FCD), which regroups everything from big supermarkets like Carrefour to toymakers and luxury brands.
Department stores and other shops are hoping to make up for lost business as the January sales kick off.
Fashion weeks, which attract crowds of specialist buyers and industry fans, are also an important source of income for Paris, home to some of the world’s more prominent high-end labels.
The menswear shows follow others in London and Milan, and precede the womenswear season of presentations running through February and early March.
Other high-profile fashion brands including Dior’s LVMH stablemate Loewe are maintaining their Saturday menswear shows.
The French fashion and Haute Couture federation that organizes Fashion Week in Paris said it was working with state authorities to ensure the presentations run smoothly and take place “in the best possible conditions.” — Reuters

AboitizPower open to overseas acquisitions

ABOITIZ POWER Corp. remains open to further acquisitions, possibly going beyond the Philippines in its expansion plan, a company official said.
“We’re always on the lookout,” Emmanuel V. Rubio, AboitizPower chief operating officer, told reporters last week. “There are [target] projects that are very close to decision.”
On overseas expansion, he said the company was scouting for opportunities in Vietnam, Myanmar and Indonesia.
“Other than technology, it’s also location, what services are being provided by those facilities, not just technology… We’re technology-neutral, we’re more about the value that the plant is providing,” Mr. Rubio said.
“We’re always on the lookout in terms of renewable development, but moving forward I think we have a number of sites that can possibly be expanded,” he added.
The appetite for further expansion comes after AboitizPower in September last year agreed to acquire voting and economic stakes in the thermal power company of Ayala-led AC Energy, Inc. for $579.2 million.
The acquisition will give it a 49% voting stake and 60% economic stake in AA Thermal, Inc. The deal is awaiting approval from the Philippine Competition Commission (PCC).
AC Energy’s thermal platform initially consists of its partnership interests in GNPower Mariveles Coal Plant Ltd. Co. and GNPower Dinginin Ltd. Co.
GNPower Mariveles is the owner and operator of an operating two-unit coal plant in Mariveles, Bataan each with a capacity of 316 megawatts (MW). GNPower-Dinginin is developing a supercritical coal-fired power plant with two identical units with a net capacity of 668 MW each.
Once the transaction is completed, AboitizPower’s ownership in the Mariveles coal plant will increase to 78.325%, and in the Dinginin coal plant project to 70%. The Mariveles plant has been operating since 2013, while the first unit of the Dinginin plant is expected to go online in 2019.
“We’re still waiting for the [PCC] approval for Dinginin… Siguro mga (Maybe in) two to three months,” Mr. Rubio said.
He noted there is also room for expansion in Therma South, Inc. (TSI), its 300-MW coal-fired power plant in Davao City that started commercial run in September 2015. The power plant supplies baseload power to more than 20 electric cooperatives and distribution utilities in Mindanao.
In July last year, AboitizPower took possession of the land-based power plant in Naga City, Cebu after years of legal tussle over the ownership of the asset with SPC Power Corp.
“We believe Naga is going to be providing an important service to the grid. We’re upgrading it, making it more reliable, expanding the capacity. After the rehab we expect that to be 45 MW compared to, I think, 22 [MW] before,” he said.
Mr. Rubio said AboitizPower is on track to hit its goal of 4,000 MW in sellable capacity by 2020. Its net attributable capacity as of mid-2018 was around 3,000 MW.
Additional capacity was scheduled to be added starting last year — from the 420-MW third unit of Pagbilao Energy Corp., the 68.8-MW Manolo Fortich hydro power plant of Hedcor Bukidnon, Inc., and the 340-MW coal-fired power plant of Therma Visayas, Inc. — Victor V. Saulon

1...11,48611,48711,488...14,239Page 11,487 of 14,239
ADVERTISEMENT
ADVERTISEMENT
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin X Youtube