BIR files P8.5-B tax evasion case

February 17, 2025 | 9:12 pm

THE Bureau of Internal Revenue (BIR) has filed a tax evasion case against operators nabbed in a large-scale raid against illicit cigarettes with a total of P8.54-billion tax liability.

“The BIR has filed an 8.5-B[illion] Tax Evasion case against the criminals behind an illicit cigarette factory and 3 warehouses in Bulacan and Valenzuela. It was the largest operation of the BIR against illicit cigarettes last 2024,” Commissioner Romeo D. Lumagui, Jr. said in a statement.

The criminal cases were filed last Nov. 14, 2024, and Feb. 7, 2025, it said.

All four locations were suspected to be part of one criminal enterprise, where the BIR seized raw materials, cigarette-making machines, and cigarette-packing machines, the agency said. The BIR also reported that six Chinese nationals were also arrested by law enforcement officers.

“The BIR will not stop filing criminal cases against large-scale illicit cigarette manufacturers and distributors. Big or small, all operations of illicit cigarettes in the Philippines are criminal in nature,” Mr. Lumagui said.

In January, the BIR said the country’s revenue from tobacco is projected to reach $7.3 billion in 2024. — Aubrey Rose A. Inosante

PAL gets P3.47-M in tax refund

February 17, 2025 | 9:10 pm

THE Court of Tax Appeals (CTA) has partially granted Philippine Airlines, Inc.’s (PAL) refund claim ordering the internal revenue commission pay the flag-carrier P3.47 million for its wrongly paid excise taxes on imported liquor and wine from July 2018 to April 2019.

In a 17-page decision dated Feb. 11, the tribunal said PAL proved that most of the alcohol products it imported during the period were not locally available in reasonable number, quality, or price. The company had sought a total refund claim of P4.33 million for the imported liquor products.

“Carving out those liquor and alcohol whose importation costs are lower than purchasing them locally, the excise taxes paid by petitioner thereon, to the extent of P3,472,366.86, should be refunded or credited in favor of the latter,” according to the ruling penned by Associate Justice Marian Ivy F. Reyes-Fajardo.

Under the Tax Code, an entity is entitled to a refund or a tax credit certificate on excise taxes if the cost of the imported alcohol products is lower than buying them locally.

“This requires us to determine the cost of importation thereof, followed by comparison of said cost, with the cost of such alcohol products’ local purchase,” the CTA said in the ruling.

Presidential Decree No. 1590 exempts PAL from the payment of excise tax on its tobacco and alcohol if they are not locally available in a reasonable quantity, quality, or price, and if the supplies are important for the use of the franchisee in its transport and other incidental operations.

The case stemmed from the Bureau of Customs in 2020 billing the flag-carrier P4.33 million in excise taxes, which the company protested two years later. — John Victor D. Ordoñez

Avail estate tax amnesty — Gatchalian

February 17, 2025 | 9:10 pm

A Senator urged taxpayers to avail the government’s estate tax amnesty program, which has been extended until June 14.

“Now is the perfect opportunity for heirs and beneficiaries to prepare for their payment, which should be made on or before the extended deadline, while they are already budgeting for their expenses in the first half of the year,” Senator Sherwin T. Gatchalian said in a statement on Monday.

Republic Act 11956, which lapsed into law in August 2023, extended the period for availing estate tax amnesty for another two years or until June 14, 2025 from the previous deadline of June 15, 2023.

Availing the amnesty program would enable taxpayers to formalize ownership of their inherited assets.

“Taxpayers will now be given the opportunity to formalize their ownership of any property and they will be able to secure their rights as legitimate owners,” he added.

The extension aims to give beneficiaries, transferees, or legal heirs enough time to pay the excise taxes owed on assets inherited from dead relatives.

Under the law, heirs will not be subject to fines or interest for late payments, as amnesty allows for payment at lower rates.

“We need to promote and enhance tax education so that we can properly equip taxpayers in fulfilling their obligations in the hope of increasing tax compliance and generating much-needed revenues that would finance government programs and much-needed infrastructure,” he added. — Adrian H. Halili

Senator calls for signing of barangay health care law

February 17, 2025 | 9:10 pm

vaccine-health-worker-3 — PHILIPPINE STAR/ MICHAEL VARCAS

A PHILIPPINE senator on Monday called on President Ferdinand R. Marcos, Jr. to sign the Magna Carta for Barangay Health Workers, which would enable better benefits for health volunteers.

“There should be no obstacles to signing it because it has undergone thorough study, especially in terms of funding,” Senate Minority Leader Aquilino L. Pimentel III said in a statement in Filipino.

Senate Bill No. 2838, the Magna Carta for Barangay Health Workers, which Senate approved on third reading on Feb. 3, seeks to provide more training and benefits for village healthcare workers nationwide.

Other benefits include monthly honoraria, transportation allowance, hazard allowance, insurance coverage, health emergency allowance during public health emergencies, and opportunities for further education and career advancement.

“Our Barangay Health Workers have been waiting for this law for a long time. We hope that the President will sign it without any obstacles,” he added.

The Philippines has more than 400,000 village health workers, according to Mr. Pimentel.

“Our (Barangay Health Workers) have been serving our communities for a long time, especially during the pandemic. It is time to give them the benefits and support they deserve, he added.

Registered Barangay Health Workers will be given a month honorarium of not less than P3,000, while certified health workers may get up to P5,000 per month. — Adrian H. Halili

Gov’t disaster responses in Cordillera distanced from politics, DSWD asserts

February 17, 2025 | 9:08 pm

BAGUIO CITY — The social welfare department here is reiterating its services are not tied with politics, but part of its mandate to serve the Filipinos especially those in dire need.

In a public advisory on Monday, the Department of Social Welfare and Development (DSWD) in Cordillera said Family Food Packs (FFPs) and Non-Food Items (NFIs) are intended solely for disaster-affected families and individuals. “These relief items are part of the agency’s disaster response efforts to ensure the immediate needs of affected communities are met,” it stressed.

It reiterated to the public that distribution of disaster response efforts is not part of any electoral activity.

It added that FFPs and kits should not be affiliated with or distributed on behalf of any candidate, political party, or Party-List participating in the May 12, 2025 National and Local Elections (NLE).

“The DSWD encourages the public to promptly report any misuse or improper distribution of these relief items for political purposes,” DSWD-Cordillera urged.

The DSWD also warns staff and other public servants that they are strictly barred from participating in electioneering or utilizing these resources for partisan activities.

According to the latest update of the DSWD-Cordillera, there are available FFPs and NFIs, as of February, ready to be distributed to the different local government units as augmentation support in case the need arises due to unexpected incidents and disasters.

The DSWD reported that there are 69,191 FFPs and 24,558 NFIs in stockpiles in the highland region. — Artemio A. Dumlao

4 dead, 13 hurt in General Santos road mishap

February 17, 2025 | 9:08 pm

COTABATO CITY — Four individuals died while 13 others, including 3 children, were injured in an accident involving a van and a pick-up truck in Barangay Apopong, General Santos City on Sunday.

Senior officials of the General Santos Police Office told reporters on Monday that van driver Rasol Angkob Adam, 56, his passengers Mambai Adam Dimaraw, 66, Mona Butuan Salilaguia, 62, and the 30-year-old Bai Intan Abdullah were all declared dead on arrival at a hospital were emergency responders brought them for treatment.

Brig. Gen. Arnold P. Ardiente, director of the Police Regional Office-12, said the van, bearing license plates NDC 5940, en route to Cotabato City, was hit head-on by a pick-up truck after it veered towards the left lane of the highway in Barangay Apopong.

Witnesses told investigators and barangay officials that they saw the speeding pick-up truck, with license plates LAM 1506, cut through the left lane of the route, hitting the van full of passengers.

The collision of the two vehicles left the 36-year-old driver of the pick-up truck, Harvey Ngalon Collado, and his four companions, three of whom were children, badly injured.

Ranking personnel of the General Santos City Disaster Risk Reduction and Management Office had confirmed to reporters that eight passengers of the van were also seriously hurt in the accident. — John Felix M. Unson

Peso back at P58 level

February 17, 2025 | 9:00 pm

THE PESO sank back to the P58-per-dollar level on Monday as remittance growth slowed in December, adding to uncertainties over the Trump administration’s policies.

The local unit closed at P58.03 per dollar on Monday, weakening by 20 centavos from its P57.83 finish on Friday, Bankers Association of the Philippines data showed.

The peso opened Monday’s trading session stronger at P57.777 per dollar, which was its intraday best. It was trading at the P57 level early in the session, but it eventually succumbed to weakness, ending closer to its intraday low of P58.05 versus the greenback.

Dollars exchanged went down to $1.16 billion on Monday from $1.66 billion on Friday.

The peso declined against the dollar on Monday as the market reacted to overseas Filipino worker (OFW) remittances data, a trader said by phone interview.

The slower growth in cash remittances in December weighed on the peso, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Money sent home by OFWs through banks rose by 3% to a record $3.38 billion in December from $3.28 billion in the same month a year ago, the Bangko Sentral ng Pilipinas (BSP) reported on Monday.

This was slower than the 3.3% year-on-year increase posted the month prior.

For 2024, cash remittances climbed 3% to an all-time high of $34.49 billion from $33.49 billion in 2023. This was in line with the BSP’s forecast of a 3% annual growth in remittances.

The peso also dropped after US President Donald J. Trump’s fresh tariff pronouncements, Mr. Ricafort added.

For Tuesday, the trader expects the peso to move between P57.80 and P58.20 per dollar, while Mr. Ricafort said the local unit could range from P57.90 to P58.10.

The dollar hovered near its lowest in two months on Monday after investors dialed down their bets on US tariffs, Reuters reported.

The dollar was struggling to recoup its losses after a selloff on the back of Friday’s weak US retail sales data and as investors cheered a delay in the implementation of Mr. Trump’s reciprocal tariffs.

The dollar index last stood at 106.85, up 0.1%, after tumbling 1.2% last week. — Aaron Michael C. Sy with Reuters

PSEi drops to 5,900 level on tariff, BSP worries

February 17, 2025 | 9:00 pm

PSE Trading Floor 090920 5 — BW FILE PHOTO

PHILIPPINE SHARES declined further on Monday, with the main index falling below the 6,000 line anew, as uncertainty over the Trump administration’s planned tariffs and the Bangko Sentral ng Pilipinas’ (BSP) policy easing path weighed on sentiment.

The Philippine Stock Exchange index (PSEi) dropped by 1.11% or 67.85 points to end at 5,993.48, while the broader all shares index went down by 0.49% or 18.12 points to close at 3,611.16.

“The local bourse extended its decline as investors continue to deal with the uncertainties on the global economy caused by the US’ recent tariff moves,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. “Investors are also concerned with the pace of the Bangko Sentral ng Pilipinas’ policy easing following its pause in their latest meeting.”

“The PSEi declined for the second straight trading day on continued market disappointment after the pause in local policy rates versus expectations of a 25-basis-point (bp) cut priced in by the markets beforehand,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

US President Donald J. Trump on Friday kept alive his drumbeat of tariff threats, saying levies on automobiles would be coming as soon as April 2, the day after members of his cabinet are due to deliver reports to him outlining options for a range of import duties as he seeks to reshape global trade, Reuters reported.

Since his inauguration, he has imposed a 10% tariff on all imports from China, on top of existing levies; announced and then delayed for a month 25% tariffs on goods from Mexico and non-energy imports from Canada; set a March 12 start date for 25% tariffs on all imported steel and aluminum; and on Thursday directed his economics team to devise plans for reciprocal tariffs on every country that taxes US imports.

Meanwhile, the BSP on Thursday unexpectedly held benchmark interest rates steady as global uncertainties threaten the inflation and growth outlook.

The Monetary Board left the target reverse repurchase rate unchanged at 5.75%, marking its first pause following three consecutive 25-bp cuts since it began its easing cycle in August 2024.

Majority of sectoral indices dropped on Monday. Property retreated by 3.06% or 67.78 points to 2,145.45; holding firms went down by 2.53% or 130.29 points to 5,008.44; industrials declined by 0.21% or 18.74 points to 8,637.4; and financials fell by 0.14% or 3.28 points to 2,249.54. Meanwhile, mining and oil increased by 2.7% or 209.13 points to 7,953.83 and services rose by 0.51% or 10.10 points to 1,985.59.

Value turnover went up to P5.32 billion on Monday with 1.23 billion shares traded from the P5.25 billion with 541.30 million issues exchanged on Friday.

Decliners outnumbered advancers, 114 versus 74, while 61 names were unchanged.

Net foreign selling went up to P991.98 million on Monday from P578.62 million on Friday. — Revin Mikhael D. Ochave with Reuters

New microgrid auction round to kick off in Q2

February 17, 2025 | 8:17 pm

By Sheldeen Joy Talavera, Reporter

THE Department of Energy (DoE) said it will initiate the auction process for microgrid systems providers (MGSP) in the second quarter, following the failure of the previous round.

Energy Undersecretary Rowena Cristina L. Guevara told BusinessWorld that the preparatory activities associated with the third round of the MGSP competitive selection process (CSP) are expected to start in May.

Awarding is targeted by the end of 2025.

Last year, the second round of the MGSP auction failed amid limited interest.

That auction round offered the electrification of 41 lots consisting of 85 unserved and underserved areas covering 12,394 households.

Ms. Guevara said that only one proponent expressed interest and was deemed qualified by the MGSP-Special Bids and Awards Committee.

“Failure of bidding was declared since the only pre-qualified bidder was unable to submit a complete bid proposal by the deadline,” she said.

Republic Act No. 11646, or the Microgrid Systems Act of 2022, requires the DoE to conduct a CSP for potential concessionaires seeking to serve off-grid areas.

During the first MGSP auction in 2023, the DoE pre-qualified nine bidders, with only the Maharlika Consortium submitting a complete bid proposal.

The Maharlika Consortium is composed of Maharlika Clean Power Holdings Corp., Singapore-based CleanGrid Partners Pte. Ltd., and WEnergy Global Pte. Ltd.

As the winning bidder, the consortium was to supply 24/7 electricity services to eight lots in the provinces of Cebu, Quezon, and Palawan through a hybrid microgrid system consisting of solar photovoltaic facilities, energy storage systems, and diesel generators.

Last month, Ms. Guevara told a forum that the potential market for MGSPs is over 200 sites with potential for economic growth if given access to electricity.

The 2023-2032 National Total Electrification Roadmap sets the 100% electrification deadline for 2028, or the end of the term of the Marcos administration.

However, the government is reviewing the target to make it “more realistic” in the face of limited funding, according to Energy Secretary Raphael P.M. Lotilla.

Mr. Lotilla said earlier this month that the Philippines will need between P85 billion and P100 billion to achieve the electrification of all households.

The estimated amount is intended not only to finance household electrification, but also to improve backbone lines, especially in off-grid areas.

“As of the midpoint of the administration, the average budget has only been between P2 billion to P3 billion a year, and therefore we have a long way to go before we can achieve that goal. So we are looking at ways to achieve the total electrification goal,” Mr. Lotilla said.

2025 rice demand forecast set at 15 MMT

February 17, 2025 | 8:17 pm

THE Department of Agriculture (DA) said on Monday that it estimates rice demand for 2025 at over 15 million metric tons (MMT).

The rice harvest is expected to improve this year due to favorable growing conditions, Assistant Secretary Arnel V. de Mesa said on the sidelines of a briefing.

He said the El Niño and La Niña weather patterns significantly affected domestic rice output last year.

The DA said in November that the palay (unmilled rice) harvest for 2024 is estimated to come in at a four-year low of 19.41 MMT. The record was 20.06 MMT in 2023.

The positive outlook for rice in 2025 was also due to increased government intervention in irrigation and seed supply, Mr. De Mesa said.

The food industry is expected to account for 13.4 MMT of rice demand, Mr. De Mesa said.

At the briefing, Mr. De Mesa said 101,115.90 MT of imported rice arrived in February, with 61.54% released to the market. The total volume of rice to be landed this month is estimated at 154,692.04 MT.

In January, the Philippines imported 273,317.69 MT of rice.

Rice imports hit a record 4.68 MMT in 2024, against 3.6 MMT a year earlier.

Citing high rice costs, the DA has imposed a maximum suggested retail price (MSRP) scheme for the grain and declared a food security emergency, which allows the government to release reserve stock to local government units (LGUs).

The DA, in an order dated Feb. 14, lowered the MSRP for imported rice with 5% broken-grain content to P52 per kilo.

Mr. De Mesa said the DA hopes to further bring down the MSRP to P49 per kilo in March.

He said the decline in rice prices is purely attributable to the MSRP since the NFA has yet to dispose of its stock.

The food security emergency authorizes the NFA to release 150,000 MT of its rice buffer stock to government agencies, LGUs, and government-subsidized Kadiwa outlets.

Mr. De Mesa said LGUs that have committed to buying NFA stock are mostly from Metro Manila.

The DA also reported that the price of well-milled rice fell to P35 per kilo on Monday from the prevailing price of P38 last week.

Of the imported varieties, the price of special white rice decreased to P55 per kilo from P58 last week.

The price of domestically grown premium (5% broken) rice declined to P50 per kilo from P55 per kilo last week. — Kyle Aristophere T. Atienza

DPWH to brief DA on farm infra progress

February 17, 2025 | 8:15 pm

THE Department of Agriculture (DA) said on Monday that it will meet with the Department of Public Works and Highways (DPWH) to be briefed on the progress of farm infrastructure projects.

“The planned discussions between DA and DPWH aim to pinpoint key areas for road and bridge upgrades, especially in major agricultural regions,” it said in a statement.

The DA noted that DPWH rules call for inspections and load rating updates, “but enforcement remains weak.”

“Without addressing inadequate road networks and overloading, the problem (of getting farm goods to consumers) will persist.”

“The importance of a strong road and bridge network in agriculture, especially in an archipelago like the Philippines, cannot be overstated,” Agriculture Secretary Francisco Tiu Laurel, Jr. said.

“Agriculture relies heavily on logistics, and transport infrastructure directly affects the cost and efficiency of moving farm inputs and produce,” he added. — Kyle Aristophere T. Atienza

PHL solar manufacturing seen hindered by power, import costs

February 17, 2025 | 8:15 pm

THE GOVERNMENT will need to address the high cost of electricity and imported materials before the manufacturing of solar photovoltaic modules can become competitive, an industry association said.

“The main challenges here are the cost of electricity and the cost of importing materials,” Philippine Solar and Storage Energy Alliance Chairman Ma. Theresa Cruz-Capellan said via Viber.

She said that the Department of Energy has taken some policy action to make electricity for manufacturers more competitive but noted the need for incentives to develop the sector.

“Insofar as imported materials are concerned, this is a customs and tariff policy issue. But if we seek to be a key producer of panels, we have to offer incentives to realize this dream,” she added.

According to the International Trade Centre (ITC), the Philippines has the potential to export $788.4 million worth of solar photovoltaic (PV) modules, to markets like the US ($189.4 million), China ($171.6 million), the Netherlands ($64.7 million), Vietnam ($46.4 million), and Germany ($43 million).

Ms. Cruz-Capellan said: “I suggest that the Philippines start with a simple assembly of panels,” she said. “The second stage is to consolidate the supply chain. The Philippines does not have access to key materials needed.”

“There has to be a clear-cut plan on how to make our panels compete with Vietnam and Malaysia,” she added.

According to the ITC, Vietnamese solar PV modules accounted for nearly 2% of the country’s exports in 2022, surging to $6.9 billion in 2022 from $135 million in 2013.

It is the world’s second-largest supplier after China, accounting for nearly 10% of global exports, ITC said.

Meanwhile, Malaysia has a 6% market share. — Justine Irish D. Tabile