What to see this week

October 5, 2018 | 12:01 am

6 films to see on the week of October 5 – October 11, 2018

Destination Wedding

FRANK and Lindsay meet on their way to a destination wedding and discover that they hate everything about it, especially each other. Sparring with someone long enough can make anything happen as they cope with other during the entire weekend. Directed by Victor Levin, the film stars Winona Ryder, Keanu Reeves, Dj Dallenbach, and Greg Lucey. Hollywood Reporter’s Justin Lowe writes, “Whatever the intent, forcing a couple of middle-aged misanthropes to reluctantly attend the nuptials of their rather reviled friends sets a hopelessly high bar for delivering satisfying entertainment.” Rotten Tomatoes gives it a 42% rating.
MTRCB Rating: R-13

Tres

THE action-thriller focuses on the socially relevant issue on drug users, traffickers, and anti-drug law enforcers. The movie is divided in to three episodes — “Virgo,” “72 Hours,” and “Amats.” Directed by Dondon Santos, it stars Jolo, Luigi, and Bryan Revilla.
MTRCB Rating: R-16

Venom

EDDIE BROCK becomes the host of an alien symbiote just when he planned to attempt a comeback as an investigative journalist. He then begins to protect the world from an organization seeking their own symbiote. Directed by Ruben Fleischer, Venom — based on the Marvel Comics character — stars Tom Hardy, Michelle Williams, Scott Haze, Reid Scott, Riz Ahmed, and Jenny Slate. “It’s a mess, but wow, is it ever a fun, fascinating mess,” writes Tribune News Service’s Katie Walsh.
MTRCB Rating: PG

Para sa Broken Hearted

BASED on Marcelo Santos III novel, the story follows several relationships and shows how to deal with a breakup. Directed by Digo Ricio, the film stars Yassi Pressman, Shy Carlos, Louise Delos Reyes, Marco Gumabao, and Sam Concepcion.
MTRCB Rating: PG

The Witch Files

AFTER inadvertently harnessing the ambient energy of persecuted witches when they go through a forest, a group of teenagers attain the ability to make their desires a reality. However, they soon realize that they are not in control of everything. Directed by Kyle Rankin, the film stars Britt Flatmo, Holly Taylor, Paget Brewster, Greg Finley, and Valerie Mahaffey.
MTRCB Rating: PG

Little Italy

CHILDHOOD friends Leo and Nikki develop a relationship despite both of their families feuding over their respective pizzerias. Directed by Daniel Petrie, the film stars Hayden Christensen, Emma Roberts, and Alyssa Milano. “My favorite groaner moment takes place during a backyard barbecue, where everyone drinks Peroni beer and makes sure the labels face the camera,” writes Richard Roeper of the Chicago Sun-Times.
MTRCB Rating; PG

How does the Philippines compare in terms of social progress?

October 5, 2018 | 12:00 am

How PSEi member stocks performed — October 4, 2018

October 5, 2018 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Thursday, October 4, 2018.

Philippine Stock Exchange’s most active stocks by value turnover — October 4, 2018

Liability a sticking point in liberalizing construction

October 4, 2018 | 10:00 pm

By Camille A. Aguinaldo
Reporter
FOREIGN contractors can bring much-needed expertise and investment, though stakeholders warned about the difficulty of enforcing liability rulings on foreign entities and the possible displacement of smaller Filipino-owned rivals.
Trade Undersecretary for Consumer Protection Group Ruth B. Castelo said if any problems arise with the project, enforcing a ruling against a foreign company may be difficult. Citing the Civil Code, she said foreign contractors are liable for the entire project.
“Allowing them to completely and 100% participate in construction projects in the Philippines would be detrimental to Filipino consumers. In case anything happens to the project and the foreigner is nowhere to be found, it is going to be very difficult for the Filipinos to go after them… it will be very costly for Filipino parties to go after them in international arbitration courts,” she said during a Senate hearing on proposed amendments to the Contractors’ License Law.
Philippine Constructors Association, Inc. (PCA) Executive Director Ibarra G. Paulino noted that he favors the entry of foreign contractors, provided that they bring investment and transfer of technology. However, he warned about the possible impact of their unrestricted participation on smaller contractors.
“It is too dangerous to allow the entry of foreign contractors without restrictions simply because they will compete with the small-time contractors and that will not be good for the industry,” he said.
Senate Bill No. 1909 proposes amendments to Republic Act No. 4566 or the Contractors’ License Law. The amendments include the removal of nationality requirements in granting licenses to new contractors.
“This proposal is meant to put foreign contractors on equal footing with the local contractors. And the end goal here really is to drive down price, bring in new technology,” Senator Sherwin T. Gatchalian, author of the bill, said during the hearing.
Under the current system, foreign contractors are allowed to operate wholly-owned units in the Philippines only under the Quadruple A Category license of the Philippine Contractors Accreditation Board (PCAB), which requires them bring in P1 billion worth of capital.
Foreign chambers have expressed support for the passage of the law.
“We strongly support this amendment… We feel that this sector has been neglected in a big way because the procedure of the accreditation is so tedious and difficult. It makes very difficult for international and domestic contractors to enter this field and participate and create an competitive environment,” Federation of Indian Chambers of Commerce Philippines Inc. (FICCI) Board Member Minoo Jamaji said.
“This bill will simply make very clear the practice since the 1965 law and it’s possible, regardless of nationality, for construction companies to participate in the Build, Build, Build and the growth of the Philippine economy. There are ways of regulating them other than discriminating against them. So we welcome the development,” American Chamber of Commerce (AmCham) Senior Advisor John D. Forbes said.

DoF estimates P40B in lost revenue if fuel excise suspended

October 4, 2018 | 9:59 pm

THE DEPARTMENT of Finance (DoF) said that the government will lose some P40 billion in revenue if it suspends the second tranche of the fuel tax hike next year, adding that it has yet to draft the implementing rules on how the tax will be suspended and reinstated.
“For sure the excise is minus P40 billion. It will have an effect on the fiscal deficit,” Undersecretary Karl Kendrick T. Chua told reporters on the sidelines of a House hearing late Wednesday.
According to the Tax Reform for Acceleration and Inclusion (TRAIN) law, the subsequent increases in fuel taxes will be halted if the Dubai crude benchmark hits or exceeds $80 per barrel over three months, a level which it has already breached.
The law increased fuel excise taxes by P2.5 per liter this year, which is scheduled to rise by a further P2 and P1.5 per liter in 2019, and 2020, respectively, for a total excise of P6 per liter.
However he said that the increase in fuel prices will also increase the value-added tax (VAT) payable, which could help offset the revenue loss. He added that the losses can also be minimized if the tax hike can be restored.
“I cannot say now if it will be enough to offset, it might offset part of it. But I don’t know at this point when it will be resumed — that’s being discussed, I also don’t know the timing, the VAT effect,” said Mr. Chua.
He said an inter-agency body is expected to produce in the coming weeks the implementing rules and regulations (IRR) for the possible suspension of the excise tax increase on fuel, especially the mechanism for reinstating it.
“A suspension… is not forever. When things get better it resumes. So we have to determine in the IRR when it will resume. We are discussing the IRR how to properly reinstate or resume it,” he said.
“Some people think a suspension is forever but that’s not what it means. We’ll make it clear in the IRR which will be approved I suppose it will be approved in the coming weeks so that its clear,” he added.
Senator Paolo Benigno A. Aquino IV on Wednesday queried the DoF on the absence of implementing guidelines for the possible suspension of the fuel excise tax.
Earlier he sought a blanket suspension of the law, amid high inflation — which was at a nine-year high of 6.4% in August, to average 4.8% in the first eight months of the year, exceeding the central bank’s 2-4% target.
Mr. Chua has argued that a blanket suspension will benefit high-income families more, as they consume more fuel.
He said that the government will fast-track the release of its social mitigating measures such as the monthly P200 unconditional cash transfer for the poorest 50% of Filipino households this year, as well as P5,000 worth of fuel vouchers for public utility vehicle (PUV) franchise holders.
The cash transfers will rise to P300 in 2019, and will be rolled out until 2020, while PUVs will receive at most P20,000 in 2019.
Budget and Management Secretary Benjamin E. Diokno told reporters yesterday that the crude oil is unlikely to stay above $80 until the end of the year.
“I don’t think it will stay at that level,” he said, pointing to the possible decline in demand as car manufacturers move away from gasoline or diesel-powered vehicles.
“We will follow the law. We will suspend it if necessary. We will not deprive the people (of this) social safety net,” he added.
The Development Budget Coordinating Committee is expecting Dubai crude to move between $55-70 per barrel this year, and $50-65 in 2019 until 2022.
According to Mr. Chua, fuel prices are too volatile to predict whether the $80 threshold will be breached long enough to warrant a suspension.
“We are not sure, because the projections are all off. So I don’t know if they are projecting correctly, if we have factored in all the geopolitical issues, I don’t know. But we have to observe it on a daily basis,” he said. — Elijah Joseph C. Tubayan

2019 appropriations bill hurdles 2nd reading

October 4, 2018 | 9:58 pm

THE House of Representatives on Wednesday night passed on second reading the proposed P3.757-trillion national budget for 2019.
House Bill 8169, or the General Appropriations Bill (GAB), was approved, via voice voting, after 11 session days of deliberation amid a target to have it passed on third reading before the legislature adjourns on Oct. 12.
The House on Wednesday also constituted the “Small Committee” to receive and resolve amendments to the GAB. Members have until Oct. 9 to submit their proposed amendments.
“Consistent with parliamentary precedence, we propose the creation of a Small Committee to receive and resolve amendments to House Bill 8169, or the Fiscal Year 2019 General Appropriations Bill,” Majority Leader Rolando G. Andaya, Jr. of the first district of Camarines Sur moved on Wednesday. The motion was carried.
The panel includes Mr. Andaya, Minority Leader Danilo E. Suarez of the third district of Quezon, Maria Carmen S. Zamora of the first district of Compostela Valley, Federico S. Sandoval II of Malabon, Corazon N. Nuñez-Malanyaon of the first district of Davao Oriental, Edcel C. Lagman of the first district of Albay and COOP NATCCO Rep. Anthony M. Bravo.
The P3.757 trillion budget is slightly less than the obligation-based 2018 budget of P3.767 billion, but comparing both budgets like-for-like under the new cash-based system it is 13% higher than 2018’s P3.324 billion.
The biggest portion of the proposed 2019 budget goes to education with P659.3 billion, up 12.3% from 2018.
Some P528.8 billion will go to the Department of Education; P65.2 billion to State Universities and Colleges; P50.5 billion for the Commission on Higher Education; and P14.8 billion to the Technical Education and Skills Development Authority.
The Departments of Public Works and Highways (DPWH) and Interior and Local Government (DILG) have been allocated P555.7 billion and P225.6-billion, respectively.
The DPWH’s budget for 2019 is up 25.8% while DILG’s allocation rises 30.9%.
Rounding out the agencies with the most appropriations are the Department of National Defense (DND) at P183.4 billion, the Department of Social Welfare and Development (DSWD) at P173.3 billion, the Department of Transportation (DoTr) at P141.4 billion, the Department of Health (DoH) at P141.2 billion and the Department of Agriculture (DA) at P76.1 billion.
The Senate is currently holding committee-level budget hearings for the various departments and attached agencies. — Charmaine A. Tadalan

DBM: 2018 budget release rate at 94% after 9 months

October 4, 2018 | 9:56 pm

THE DEPARTMENT of Budget and Management (DBM) said it released 94% of the 2018 budget as of the first nine months of the year.
In a statement yesterday, the DBM said that it released P3.528 trillion of the P3.767 trillion worth of funding authorized for 2018.
“The quick yet prudent release of funds will enable agencies to promptly implement their programs and projects,” Budget and Management Secretary Benjamin E. Diokno said.
“Take note also that as early as end-January 2018, we have released 79% of the budget in line with the General Appropriations Act-as-Allotment-Order Policy,” he added.
Some P2.177 trillion of the released funds went to departments in the Executive branch, Congress, the Judiciary, and other constitutional offices.
The DBM added that special purpose funds worth P370.9 billion have been released, for a release rate of 75% against the total P494 billion authorized.
“These largely owe to releases from the Budgetary Support to Government Corporations (BSGC), Pension and Gratuity Fund (PGF), Miscellaneous Personnel Benefits Fund (MPBF), and the National Disaster Risk Reduction and Management Fund (NDRRMF),” the DBM said.
Of the automatic appropriations, P964.5 billion or 98% have been released, against the authorized total of P980.8-billion.
These include the Internal Revenue Allotment (IRA) representing local governments’ share of national government revenue, interest payments, and retirement and life insurance premiums.
In September, the DBM said it released P1.1 billion for the Public Utility Vehicle (PUV) Modernization Program; P2.6 billion for the National Housing Authority (NHA) projects benefiting uniformed personnel; P5.7 billion for pension differential arrears owed by the Armed Forces of the Philippines (AFP); and P1.9 billion for the NDRRMF for repair and rehabilitation projects in various regions.
“It is our job to ensure that funds are available to government agencies. We will continue to be efficient and transparent in our efforts to do so,” Mr. Diokno said. — Elijah Joseph C. Tubayan

PEZA-registered investment pledges down 55% in 9 months

October 4, 2018 | 9:56 pm

THE Philippine Economic Zone Authority (PEZA) said investment pledges in the first nine months of 2018 declined over 55% with potential investors taking a wait-and-see attitude pending the passage of the Tax Reform for Attracting Better and High Quality Opportunities or TRABAHO bill.
Investment pledges totaled P87.85 billion in the first nine months, well below the year-earlier P196.46 billion.
The number of proposed projects registered for incentives fell nearly 18% to 362.
“Existing investors are not expanding. New investment pledges are not coming because everybody is waiting for what will be the result of the TRAIN (Tax Reform for Acceleration and Inclusion) 2,” PEZA Director-General Charito B. Plaza said in a phone interview on Thursday.
The TRABAHO bill is the second tranche of the tax reform program, initially called TRAIN.
“Manufacturing, etc., dropped,” Mr. Plaza added.
Meanwhile, the information technology sector, consisting mostly of business process outsourcing (BPO) firms and contact centers, accounted for the bulk of investments generated during the period, rising 8.82% year-on-year to P12.39 billion.
PEZA had not provided a breakdown of investment pledges by sector or by quarter at deadline time.
Exports by PEZA-registered enterprises, covering the eight months to August, rose 6.43% year-on-year to $35.79 billion.
Workers directly employed by PEZA-registered firms in the first eight months were estimated at 1.46 million, up 6.79%.
Information Technology and Business Process Association of the Philippines (ITBPAP) President and CEO Rey E. Untal said the wait-and-see attitude towards the TRABAHO bill, which seeks to rationalize investment incentives, has been dampening new activity in the sector, and forcing a rethink of expansion plans.
“A number of companies had a wait-and-see attitude [starting] last year, and I would like to think until now… the uncertainty had created that reaction,” Mr. Untal said Thursday in an interview at the group’s headquarters in Taguig City.
PEZA currently grants incentives including income tax holidays of up to eight years, and a perpetual 5% tax on gross income earned, and a zero value-added tax on local purchases, among others.
The TRABAHO bill is targeting revenue leakage via the grant of incentives deemed unwarranted and proposes to make incentives time-bound and performance-based.
The TRABAHO Bill will gradually reduce the corporate income tax (CIT) rate to 20% from the current 30% over a 10-year period. — Janina C. Lim

NEDA may introduce new poverty indicator

October 4, 2018 | 9:55 pm

THE NATIONAL Economic and Development Authority (NEDA) is considering a new indicator to more accurately measure poverty, known as the multidimensional poverty index (MPI).
In her speech during the 73^rd United Nations General Assembly at the UN headquarters in New York, NEDA Undersecretary for Policy and Planning Rosemarie G. Edillon said that despite government statistics showing real increases in income and declines in the poverty rate, there are challenges to the integrity of poverty data.
“My own take in all these protestations is that perhaps we are reporting the wrong metric,” Ms. Edillon said in her speech, a copy of which was distributed to reporters yesterday.
Ms. Edillon said that the MPI will be presented to the board of the Philippine Statistics Authority (PSA) for approval this quarter.
“Hopefully, the PSA can report periodically on this measure beginning next year,” she said.
According to NEDA, MPI captures the “multiple deprivations that each person is experiencing, with respect to education, health and living standards. It complements the income-based poverty indicators.”
It also allows cross-comparison across countries, ethnic groups, urban or rural locations, as well as other factors.
“MPI is more relevant in depicting poverty as it is closer to the concept of a comfortable lifestyle. It also provides an objective method for identifying beneficiaries of targeted assistance programs,” said Ms. Edillon.
Currently, NEDA and the PSA measure poverty by gathering data on family income and living expenditures. The data show sources of income and income distribution, spending patterns, and the degree of inequality among families.
The government aims to cut the poverty rate to 14% in 2022 from 21.6% in 2015. The Ambisyon Natin 2040 road map hopes to make the Philippines an upper middle-income country with zero poverty.
NEDA said that it has also started the pilot survey on the quality of life of Filipinos.
“This will complete the picture of incomes, outcomes, and perception of well-being of individuals and families. This can be analyzed alongside the different contexts of markets, the macroeconomy, the physical environment, and so on. We can perhaps gain a better understanding of what works and what does not,” Ms. Edillon said. — Elijah Joseph C. Tubayan

Pueblo de Oro rejects allegations of Cebu illegal land conversion

October 4, 2018 | 9:54 pm

PUEBLO DE ORO Development Corp. (PODC) said it rejects allegations that it is building a project in Lapu-Lapu City, Cebu on inalienable forest land.
In a statement released Oct. 3, the company said it has official documents proving that the site of its subdivision is “alienable and disposable land.”
“PODC will present the aforementioned documents (and other evidence) to respond to the unfounded allegations at the appropriate venue,” it stated.
It noted in the statement that Lapu-Lapu City Regional Trial Court Branch 27 allowed the registration of the property to the original owner Pedro Manayon on Dec. 19, 1997, saying “‘the land was classified as a residential lot in 1967 per Ordinance No. 829 of Lapu-Lapu City Council, and in 1990 was classified as industrial lot per zoning Ordinance No. 290 series of 1990 of Lapu-lapu City.’”
On Nov. 13, 1995, the City Environment and Natural Resources Office issued a certification which declared the site “‘within the Alienable and Disposable block.’”
PODC also noted that Tax Declaration certificates in its name and Mr. Manayon “explicitly” stated that the property is residential land and on Nov. 24, 2011, the Department of Environment and Natural Resources, through the Region VII Environmental Management Bureau, granted an Environmental Compliance Certificate which covered these projects.
On Sept. 19, the National Bureau of Investigation Environmental Crime Division (EnCD) arrested eight individuals — two engineers and six drivers — who “were caught in flagrante conducting earth-moving operations and dumping materials in the forest land.”
They were arrested for allegedly illegally converting 23 hectares of forest and wet lands covered with mangrove into Pueblo de Oro Cebu Subdivision. They were presented for inquest proceedings for violating Republic Act 10654 (The Philippine Fisheries Code of 1998).
EnCD Chief Czar Eric M. Nuqui said the division is still investigating how original and transfer certificate of title were acquired over the property.
“PODC also denies that the two engineers and six drivers arrested by the Environmental Crime Division of the National Bureau of Investigation were caught in the act of conducting earth moving operations and dumping materials in a forest land,” the company said.
PODC is a member of the Investment & Capital Corporation of the Philippines Group. — Vann Marlo M. Villegas

Bill exempting small miners from tax on BSP gold sales clears 2nd reading

October 4, 2018 | 9:53 pm

A BILL exempting small-scale miners from tax on gold sales to the Bangko Sentral ng Pilipinas (BSP) has hurdled second reading at the House of Representatives.
The chamber, via voice voting, approved House Bill 3297, which will grant an income and excise tax exemption to registered small-scale miners and accredited traders on gold sales to the central bank.
“We are encouraging our small-scale miners to sell their gold to the Bangko Sentral ng Pilipinas,” Ways and Means Committee chair Estrellita B. Suansing of the first district of Nueva Ecija said during interpellation Wednesday night.
“The objective of Bangko Sentral gold purchases is to raise international reserves, which have fallen,” Ms. Suansing added.
Representative Evelina G. Escudero of the first district of Sorsogon said in the explanatory note of the bill that imposing taxes on these transactions has led to a “drastic” drop in the volume of gold sold to BSP.
According to Ms. Escudero, the BSP has been deducting the 2% excise tax and 5% creditable withholding tax on gold purchases since 2011.
“Compared to BSP’s total gold purchases in 2010 of 918,110 troy ounces, purchases decreased by 98% to 20,354 troy ounces in 2014,” she added, citing data from the Regional Monetary Affairs office. — Charmaine A. Tadalan

USAID commits funding to extend innovation program

October 4, 2018 | 9:52 pm

THE US AGENCY for International Development (USAID), has pledged P250 million for the three-year extension of a program meant to boost the Philippines’ capacity for innovation-led inclusive economic development.
According to the US Embassy, USAID Mission Director Lawrence Hardy II announced the extension of the Science, Technology, Research, and Innovation for Development (STRIDE) project at the Department of Trade and Industry’s (DTI) Inclusive Innovation Conference in Pasay City.
“USAID is a close partner of the Philippine government in investing in human capital development and employing science, technology, and innovation to bolster growth,” said Mr. Hardy in a statement.
The STRIDE project was launched in 2013 in partnership with RTI International to provide research and technology transfer between industries and universities. It also provides grants for collaborative industry-university research projects and scholarships in American universities.
The US Embassy said that the three-year extension will facilitate more collaboration with key government agencies and will help partner universities share their knowledge and best practices with other Philippine universities.
The Embassy added that the additional assistance brings in the total USAID investment to the Philippines in the innovation sector to nearly P2 billion since 2013.
The program has forged partnerships with over 380 industry partners, 110 Philippine academic institutions, and 25 US universities. It has given scholarships to 57 Filipinos and 68 grants worth P270 million to Filipino scientists and researchers. — Camille A. Aguinaldo