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Mababaw ang kaligayahan

Mababaw ang kaligayahan loosely means easy to please. The recent Pulse Asia performance and trust ratings of President Rodrigo Duterte, which remain impressively high, are an example of this. But rather than cast doubt on the intelligence of the survey respondents or the integrity of the public opinion polls (which poor losers usually do when ratings are not to their liking), I think credit should be given to Duterte for his uncanny ability to titillate and please his constituents.

In this regard, Duterte is certainly superior to US President Donald Trump who has had to constantly pat himself on the back to satisfy his starvation for praise. Trump’s latest self-praise was his description of himself as a political genius. Said one sarcastic CNN commentator: “Trump has to call himself a genius, since nobody else will.”

But to go back to Duterte’s high performance and trust ratings, it certainly would have given us a better appreciation of the value of the Pulse Asia survey if the questionnaire used had also been published along with the results. That would have given us an idea of how in-depth the study was and how incisive have been the conclusions.

At any rate, let’s assume that Pulse Asia did try to get a better-than-superficial reading of the perceptions and attitudes of the Filipino populace.

The results also do say something about our people’s remarkable ability to make do with what they are served, to see the positive in it, and, in the words of a wise man, “to make lemonade when life gives them lemons.”

Of course, this doesn’t say much about our people’s NACH or “need for achievement,” a term that human resource specialists use to describe a person’s aspirations and upward strivings.

At any rate, if one were to appraise Duterte’s first year in office, based on the survey ratings, one would be inclined to say that he is arguably the best president that this country has ever had and that the Philippines has never had it so good.

In fact, a friend of mine who is a Duterte supporter, to drive home this point, e-mailed me the comparative ratings of Duterte and our immediate past chief executive, Benigno S. C. Aquino III. Needless to say, the latter suffered by comparison.

But then, that comparison with Aquino inevitably begged for a further comparison of our country with our neighbors in Asia, to get a better view of how well the Philippines has fared under Duterte.

Along with the news about the Pulse Asia ratings, Duterte’s Communications Secretary, Martin Andanar, declared in a media interview that out of five presidential campaign promises that Duterte had made, the president has already fulfilled four, leaving only his promise to effect a change to federalism unfulfilled.

The four “fulfilled” promises, according to Andanar, were solving the problems of crime and illegal drugs, government corruption, poverty and peace and order.

In the context of “mababaw ang kaligayahan,” Andanar’s claim would be reason for rejoicing for the Filipino people.

Unfortunately for Andanar, unlike the responses in the Pulse Asia survey, the facts do not confirm his claim. For one thing, most of the thousands of extrajudicial and vigilante killings committed during Duterte’s first year in office remain unsolved and the drug problem continues to plague the country, including Duterte’s bailiwick of Davao.

Secondly, Andanar’s claim of lowered poverty incidence was based on 2015 data, before Duterte’s incumbency (the 2017 figures are still being tallied). Furthermore, recent surveys, specifically one conducted by SWS, also indicate increased poverty among our people.

Thirdly, only someone who is deaf, dumb and blind will believe that the problem of government corruption has been solved. And, with respect to peace and order, the threat posed by the NPA, the Muslim secessionists and ISIS, not to mention China’s encroachment on Philippine territory, still hang over our collective heads.

But what is even more revealing is how the Philippines compares with our neighbors in Asia in terms of economic development, foreign direct investments, unemployment, per capita income and poverty, infrastructure, bureaucratic competence, and corruption. And, oh yes, that other claim that “It’s more fun in the Philippines.”

It’s pretty much like comparing our year-long basketball tournaments in the Philippines with those of the NBA in the US. With due respect to our Filipino players, they are pretty good. But to say that they are a match for the stratospheric ball handlers in the US would be a stretch.

It would be rubbing it in if we were to quote the numbers put out by international and regional bodies tracking the indices of good governance and national progress.

Ironically, even with such indicators as corruption, where Thailand beats the Philippines hands down, our country also bites Thai dust in terms of tourist revenues, economic development and foreign investments.

A further irony is the fact that for a country as rich in tourist attractions, history and culture, coupled with some of the most beautiful people in the world, we are absolutely no match to Singapore, an island nation whose tourist offerings are mostly man-made (such as gigantic musical trees).

But then, perhaps, surveys conducted by Pulse Asia and SWS don’t dare to touch on these issues in an incisive manner for fear of opening a Pandora’s box of unflattering insights.

After all, what’s the point in comparing the Philippines with Thailand, Singapore, Malaysia, Indonesia, and Hong Kong when most Filipinos are happy enough with their blissful ignorance. Mababaw ang kaligayahan.

It’s so much safer to ask them what they think of the quality of governance of Philippine officials — mostly in a vacuum, with no comparisons or points of reference — and passing off the responses as proof of high performance and trust.

There’s a saying that comes to mind: In the land of the blind, the one-eyed is king.

 

Greg B. Macabenta is an advertising and communications man shuttling between San Francisco and Manila and providing unique insights on issues from both perspectives.

gregmacabenta@hotmail.com

Duterte orders suspension of logging concessions

PRESIDENT Rodrigo R. Duterte has “ordered the suspension of several logging concessions in Zamboanga Peninsula,” Presidential Spokesperson Herminio Harry L. Roque, Jr. announced in a press briefing on Tuesday, Jan. 9. “This after he was apprised of concerns of indigenous populations that they have been displaced by logging operations of some companies. And he also observed that it is widespread logging that is responsible for the flash floods that Mindanao experienced only this month of December with two typhoons,” Mr. Roque said. The President issued the order at the Cabinet meeting in the Palace on Monday. — A.L. Balinbin

Art & Culture (01/10/18)

A winner’s first showcase

FRESH from winning in the annual Metrobank Foundation’s MADE (Metrobank Art and Design Excellence) grand prize for oil/acrylic category, Paul John Cabanalan showcases his talent in his first solo exhibition, Dorog, which is currently on view. A licensed architect, the Ilonggo artist also joined other art competitions including Shell National Student Art Competition, Vision Petron, Philippine Art Awards, GSIS Art Competition, among other art contests. Art Verité Gallery is at 2nd floor Serendra, Fort Bonifacio Global City, Taguig City. The exhibit runs until Jan. 18

Gayborhood cabaret

FILIPINO-BRITISH Sam Reynolds, Pineapple Lab’s artist-in-residence — a live artist and alternative cabaret performer in London — will be hosting a series of workshops entitled, Gayborhood Cabaret (T)werkshop and Showcase on queer performance, bringing together a group of artists to devise their own individual cabaret pieces which can be playful, provocative, political, or just downright fun, culminating in a charged variety-style showcase. Everyone — drag artist, burlesque artist, circus artist, or art enthusiast — is welcome to attend the four-day workshops on Jan. 28, Feb. 4, 10, and 11. The workshops are for 18-year olds and above, and all genders and sexualities are welcome. Mr. Reynolds is Pineapple Lab’s first Artist-in-Residence of 2018. Pineapple Lab is at 6071 Palma Street, Brgy. Poblacion, Makati City.

Group show at Picasso

ON VIEW until Jan. 21, artists Karl Sandoval, Karl Tan, Ku Romillo, Maria Margarita Aurora Chavez, Ralph Layaon, Sara Concepcion, and Trisha Silo show us their different points of view of what Primal Instinction means. Altro Mondo Picasso is at the The Picasso Boutique Serviced Residences, 119 L.P. Leviste St., Salcedo Village, Makati City.

Questioning perfection

ARTINFORMAL GALLERY

WHAT is the best art? Should it rejoice in its simplicity or it must be complex? Is there a perfect art or every artwork is a product of chance? These are the questions the curator Tony Godfrey asks of the eight artist in Chance, Perfection, Simple, or Complex on view until Jan. 27. The artists on exhibition are Pablo Capati III, Nona Garcia, Kawayan de Guia, Nilo Ilarde, Geraldine Javier, Donna Ong, Christina Quisumbing Ramilo, and Zhao Renhui, show us the meaning of art while exploring their imagination and senses on what, how, and why art is more than meets the eye. Curator Mr. Godfrey came from Britain to Asia in 2009 and now lives and works in the Philippines as teacher, writer, and curator. For many years he ran the MA (Contemporary Art) at Sotheby’s Institute London. Artinformal Gallery is at 277 Connecticut St., Mandaluyong City.

From actor to artist

FROM MODELING, fencing, acting, and trying local politics, Richard Gomez has also gotten himself in visual art. In his first solo exhibition, Surface, on view until Jan. 18, he showcases his abstract paintings that use freehand, and paint splatters and drippings, among his techniques. The exhibit is about more than what you see on the surface, or on screen as Mr. Gomez lends his artistry to the audience. The proceeds of his show will go to the children of Ormoc City. Pintô Art Museum is in 1 Sierra Madre St., Grand Heights, Antipolo, Rizal.

Water-based abstractions

THE EXHIBITION of three female artists Monica Delgado, Michelle Perez, and Atsuko Yamagata titled Form out of Material, Material out of Form,is extended until Jan. 15. Curated by Nilo Ilarde, the new breed of artists take their canvases up a notch to make engaging abstractions that thread new grounds. They are different, but the artists share the same preference for water-based mediums like ink and acrylic. Galleria Duemila is at 210 Loring, Pasay City. For more information, visit www.galleriaduemila.com/beta, call 831-9990 or 833-9815 or e-mail art@galleriaduemila.com.

Multiplicity of meanings

A GROUP exhibition that aims to subvert the ideas of “counterfeit” and “monochromes” with a conscious poker face that leads to multiplicity of meanings is what Counterfeit Monochromes is all about. The disciplines and techniques of the 19 artists challenge how a medium should be treated, celebrated, and looked at. Curated by Carina Evangelista, the group show is on view until Jan. 14 at MO_Space. The participating artists are Poklong Anading, Martha Atienza, Ringo Bunoan, Felix Bacolor, Bea Camacho, Roberto Chabet, Lena Cobangbang, Pardo De Leon, Carina Evangelista, Marc Gaba, Nilo Ilarde, Sol Lewitt, Paul Mondok, Mawen Ong, Gary-Ross Pastrana, Yola Johnson, Gerardo Tan, MM Yu, and Alvin Zafra. MO_Space is at MOs Design Bldg., B2 9th Avenue, Bonifacio Global City, Taguig City.

DoTr wants you to arrive for work within 35 minutes

The Department of Transportation (DoTr) is on a roll, kicking off 2018 like a possessed government agency that’s racing against time. Well, time is indeed running out after the President himself proclaimed that Metro Manila would be dead in 25 years. A prognosis that is down mostly to traffic congestion and overpopulation.

And so, DoTr Secretary Arthur P. Tugade and his team wasted no time in getting the ball rolling for the New Year.

On January 5th, a ceremony was held in Marilao, Bulacan, to commence pre-construction activities for Phase 1 of the DoTr’s Philippine National Railways (PNR) Clark project. The segment will connect Tutuban in Manila to Malolos in Bulacan via a 38-kilometer railway system consisting of 10 stations. Our transport officials are claiming that some 340,000 passengers will be served daily by this PNR train network.

The grand plan is to extend this railway system all the way to Tuguegarao in Cagayan. For now, Phase 2, a 70-kilometer stretch from Malolos to Clark in Pampanga, is also in the works, its budget already approved by the National Economic and Development Authority.

And then, on January 8th, the DoTr formally broke ground for the construction of the Southeast Metro Manila Expressway (SEMME), otherwise known as the C6 Expressway Project. The real work will begin in April.

SEMME is a 34-kilometer, six-lane highway from FTI in Taguig City to the Batasan Complex in Quezon City. Once finished, the thoroughfare will subsequently be connected to the North Luzon Expressway by way of Balagtas. The first phase of the project is set for completion by 2020, although knowing how our government operates, we had all better manage our expectations.

Anyway, one thing struck me about these projects. In its press statement, the DoTr says that the PNR Clark project will enable commuters to travel from Tutuban to Malolos in 35 minutes. In another press document, this time for the SEMME project, it is asserted that travel time from Bicutan to Quezon City will be reduced to just, um, 35 minutes.

What’s with 35 minutes? Is there psychology behind this figure? Did the DoTr engineers conduct an actual study or field survey that yielded the specific time period? Or are our transport officials just throwing around baseless numbers to make themselves sound credible? Perhaps if they can dangle a desirable public-transport scenario before our traffic-weary eyes, nobody will question the budget they now have at their disposal.

Very curious about the significance of “35 minutes” within the context of transportation, I searched online for potentially related articles or theses. I did find something.

In May 2015, the Université de Montréal in Canada published a study about how commuting time can contribute to burnout among employees traveling to and from work. “The risk of burnout increases significantly when a commute lasts more than 20 minutes,” the article postulates. “Above 35 minutes, all employees are at increased risk of cynicism toward their job.”

Thirty-five minutes. That’s the general mental threshold for humans, apparently, before we start getting restless sitting in traffic — after which we begin wondering about the meaning of life, the inadequacy of our salary, the vileness of our boss, and the idiocy of our transportation officials.

“The effects of the duration of a commute on a person’s mental health vary according to the type of transport used and the profile of the area where the person works,” the article points out. That’s the troubling part. It looks like 35 minutes is the psychological brink in developed countries, where buses and trains are clean and orderly, where roads are excellent, and where traffic management is first-class. With the poor motoring conditions that we have in the Philippines, I imagine it takes just five minutes on the road before we snap. Which explains the daily road rage-related incidents we read about in the news.

Is the DoTr aware of such findings? Is this the reason they keep mouthing off “35 minutes?” I don’t know. I doubt it. I’m almost sure they just rolled dice every time they needed to cite estimates for the travel times. Of course, I’d love to be proven wrong. I would love for any DoTr official to tell me that their “35 minutes” has solid foundation — that they arrived at those digits after careful research work.

Because if I can be convinced that the Department of Transportation is meticulous enough to validate even something as seemingly harmless as a travel time estimate, I will be more inclined to believe that the above-mentioned projects will turn out okay. Until then, everything else sounds PR to me. Nothing more, nothing less.

T-Wolves humming

For a while there, it looked as if the Timberwolves would be wallowing in mediocrity. After having a busy offseason that saw them acquire All-Star Jimmy Butler, would-be starters Jeff Teague and Taj Gibson, and supersub Jamal Crawford, they boasted of promise. Finally, the already-formidable combine of Karl-Anthony Towns and Andrew Wiggins had support that looked to get them crowding the top of the stacked West. Far from hit the ground running, however, they sputtered at the start of their 2017-2018 campaign, performing well enough to stay above .500 but nowhere close to projections.

From the outside looking in, the Timberwolves’ up-and-down beginning stemmed as much from requisite adjustments as from systemic infirmities. They knew it wouldn’t be easy dealing with a heavy roster turnover; three members of the First Five were newcomers, never mind the familiarity of Butler and Gibson with head coach Tom Thibodeau’s taskmaster-like approach to pregame preparations. More importantly, they found difficulty employing the defensive intensity that became the hallmark of the latter’s stint with the Bulls.

Fast forward a month, and it looks like the Timberwolves will be meeting lofty goals, after all. Yesterday, they presided over a thorough whipping of the highly touted Cavaliers; led by the usual suspects, they all but wrapped up the match by the middle of the first quarter. And they did it on both ends of the floor; no doubt, Thibodeau was pleased that they prevented their opponents from reaching the century mark for the seventh consecutive time.

So, yes, the Timberwolves are humming. They’re firmly in contention, just three and a half games removed from the second seed, and, their so-so January aside, improving by leaps. And once they latch on to consistency, watch out; they shouldn’t be losing to the likes of the Nets and the Suns, and, in time, they’ll learn not to play down to the level of the competition. Meanwhile, they deserve to acknowledge their advances; yesterday, they compelled All-World LeBron James to absorb the worst plus-minus mark of his career. It’s no mean feat, and, hopefully, motivation to do much, much more.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is the Senior Vice-President and General Manager of Basic Energy Corp.

Investors poured $235 billion into emerging stocks, bonds in 2017

FOREIGN INVESTORS poured $235 billion into emerging markets as they rallied strongly last year, allowing developing countries to add more than $130 billion to their hard-currency reserves, the Institute of International Finance (IIF) said on Monday.

The $235 billion “portfolio flow” figure was the best in three years and roughly a third higher than the $152 billion seen in 2016, the IIF data showed.

Emerging market (EM) debt was the clear favorite, attracting more than $170 billion of the total foreign capital inflow, versus $99 billion in 2016. Asia was the top pick regionally, accounting for roughly half of the total figure.

“EM portfolio flows have had the best year since 2014,” the finance industry group said in a new report.

“It was the first calendar year since 2012 without a single month of combined equity and debt outflows — in line with the ultra-low volatility seen throughout the year across global markets.”

Emerging markets enjoyed one of their best performances on record last year with MSCI’s 24-country EM stocks index adding a third to its value and local currency EM debt returning almost 15% in dollar terms.

The Washington DC-based IIF said net outflows from China, a figure that includes all forms of capital flows, should also be modest at around $60 billion, compared to $640 billion in 2016. But outflows of close to $25 billion in November pointed to a weaker end to the year, it added.

Broader emerging markets also experienced net capital outflows of $12 billion in November, following three months of solid inflows.

“Despite the tepid pace of inflows in the second half, 2017 was a year free of any of the major reversal events that have plagued prior years,” the IIF said.

It also estimated that emerging market central banks accumulated more than $132 billion of hard currency reserves in 2017, marking a sharp improvement from massive reserve losses in 2015 and 2016.

Aided by currency valuation effects, reserves rose by $30 billion to over $5.6 trillion in November, marking the 11th straight month of gains.

While reserves are at a more than two-year high, some countries’ may still be inadequate, the Washington-based IIF warned, naming Ukraine, Turkey, Hungary and Chile.

Calculations also suggest China’s official international reserves would be inadequate if capital controls, which currently prevent money large sums of money leaving the country, were to become “ineffective.”

“This concern may be behind the recent introduction of new capital controls to cap overseas withdrawals using domestic Chinese banks to around $15,000 per year,” the IIF said. — Reuters

How PSEi member stocks performed — January 9, 2018

Here’s a quick glance at how PSEi stocks fared on Tuesday, January 9, 2018.

Bank of Japan trims bond purchases, prompting stimulus withdrawal talks

HONG KONG — Speculation the Bank of Japan (BoJ) may slow its monetary stimulus this year gripped the currency market on Tuesday after the central bank trimmed the amount of its purchases of Japanese government bonds (JGB).

While the bond-buying operations are usually seen as a routine affair, traders appeared to latch on to the BoJ announcement that it will buy less of the long-dated bonds, sending the dollar down about 0.5% against the yen.

“This (announcement) adds to speculation that BoJ may remove monetary stimulus,” Maybank analysts said in a note after the announcement.

BoJ Governor Haruhiko Kuroda has repeatedly dismissed the chance of withdrawing stimulus any time soon, even as some policy makers have recently expressed concerns over the perceived demerits of monetary easing, especially the hit on financial institutions’ profit margins.

That has led to speculation that the central bank may have to consider raising its yield targets or slow purchases of risky assets later in 2018. A host of developed nations have started to tighten policy, partly thanks to a synchronized uptick in global growth.

The BoJ pledged in 2016 to guide short-term interest rates at minus 0.1 percent and 10-year bond yields at around zero percent. It also keeps a loose pledge to increase its bond holdings at 80 trillion yen ($710.29 billion) per year, although its buying has recently slowed.

On Tuesday, the central bank reduced its purchases of JGBs with 10 to 25 years left to maturity and those with 25 to 40 years to maturity by 10 billion yen ($88.39 million) each, from its previous operations.

It also offered to buy 190 billion yen of 10-25 year JGBs and 80 billion yen of 25-40 year JGBs.

The announcement pushed the dollar to a session low of 112.50 yen, down around 0.5% on the day.

Japanese bond prices dipped, lifting 20- to 40-year yields to one-month highs. The benchmark 10-year JGB yield ticked up 1 basis point to 0.065%.

POLICY INCONSISTENCY?
Since it adopted the yield curve control policy in 2016, the BoJ has occasionally tweaked its bond operations, with officials saying any changes are meant to keep bond yields in line with its policy goal and not to telegraph hints on its future policy.

But some analysts say the inconsistency of the two policy targets requires a change of tack from the BoJ.

“It’s better to use the upcoming Jan. 23 meeting to tweak the policy — with a fresh balance sheet target at 40 trillion yen,” Westpac analysts said in a note.

The difficulty is that inflation remains far off the BOJ’s 2 percent target. Slow wage growth is one of the challenges.

Data on Tuesday showed Japan’s real wages, which are adjusted for inflation, posted their first gain in 11 months in November, helped by a rise in year-end bonuses. But the increase was just 0.1% and economists warn that wages are unlikely to keep up with general price increases, which could hurt consumption.

“Regular pay is set to strengthen only slowly … the Bank of Japan’s 2 percent inflation target won’t be reached anytime soon,” said Marcel Thieliant, senior Japan economist at Capital Economics. — Reuters

Nation at a glance — (01/10/18)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

Where Top 1000 corporations come from


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Composing fates

On a bus ride through the Arizona desert, Merlinda Bobis sees a black bird flying across the grey sky, close to an eerie white sun—a sun unlike the yellow orb often depicted in artworks and children’s drawings, unlike the smiling (or screaming) icon in cartoons. The scene, which could have belonged to any time, ordinary but also bordering on the divine, revealed itself as a poem. “I began seeing images as if for the first time… Seeing was a beautiful accident,” Bobis writes in her afterword. It was the scene or the image’s becoming—bird, sun, sky—that prompts meditation on the progression and arrangement of life. How every decision, or deferral, composes our fates.

but which composes which

and which is accidental?

(“After the Grand Canyon”)

Apart from poetry in English, Bobis has also written works in Filipino and her native Bikol. In Accidents of Composition, Bobis explores often visceral experiences in her poetry; how global events and natural calamities have changed the course of human lives to the seemingly invisible events in a kitchen foretelling a historical event. Among the poems, knowing and knowledge are presented as afterthoughts, only coming to light after an event is finished or a deed done. Memory teaches us to anticipate and prepare, because remembering is only the first step to a journey.

An incantation

found in the hole

that used to be a house.

to the howl

of rain and wind

as he listened to

his daughter say, Ay, Papa—

before the line was cut.

(“The Lost Notebook”)

 

On the other side of the world,

Ferñao, you too will be gutted

by the namesake of a fish.

(“Auguries of a Fish”)

Traveling allows for a person to expand their horizons and, for some, a way to learn about oneself. Journeying, both in the physical and spiritual sense, are replete in Bobis’ verses, as reflected by her life. From the lush jungles at the foot of Mount Mayon to a placid river in China, life unfolds and, through recollection and documentation, reveal themselves as poems. It can be considered that Accidents of Composition, Bobis’ return to the poetry book after four novels, as a statement about her creative process or poetics.

Within the lyric lines and vivid imagery, Bobis takes the reader into an experience otherwise unfamiliar or alien. Drawing connections between images and texts, events across time and space, Bobis also expands the meaning of ecology from its physical definition. Every thing and image is an index or reference of another, image and texts are combinations of the known and unknown, our relations are mediated and determined by reasoning with elements beyond our control. One can navigate their fate through a ripple caused by the smallest fish; one can find their love in a different time or in virtual space.

So sweetheart

from the other side…

faceless yet to each other

there is hope for us.

(“Love is Planetary”)

There is a balance of cold and warmth, toughness and affection in Bobis’ language. In “After Reming”, for instance, she takes the color purple to mean a bruise, but also a flower, that from the void of loss is the possbility (or inevitability) of return and growth. Even when concrete replaces the earth and technology serves as surrogates of our affection, life will take its natural course.

In Accidents of Composition, travel moves from the mundane to the meaningful, through a tour bus across the desert in 2014 to a galleon crossing the Pacific Ocean in the 18th century, Bobis drew arcs of light—the very poems every reader and seer holds, or will hold, in their hands.

DoF lines up remaining tax reforms

By Elijah Joseph C. Tubayan
Reporter

THE EXECUTIVE BRANCH is readying the remaining three packages of its tax reform program for submission to Congress within the year, the head of the Department of Finance (DoF) said yesterday.

“We will pass the second package some time this month. Package two that will lower corporate income taxes and modernize fiscal incentives. We will also pass package four on passive income and financial taxes by the second half of 2018,” Finance Secretary Carlos G. Dominguez III told reporters in a briefing in Malacañan Palace.

“Package three will be also submitted within the year.”

In its original planned configuration, the third package will rationalize the capital gains tax on real estate as well as other property-related taxes and fees by simplifying them and increasing valuation. This tranche was initially meant to yield P43.5 billion more and will be designed to enable the national government to devolve more functions.

Mr. Dominguez said the department “will still see” if a fifth package — consisting of increased tax rates on luxury items like jewelry and yachts, as well as on lottery and gambling, among others — will be needed as some of this tranche’s original features, such as higher tobacco, coal, and mineral taxes, had been included by Congress in the first package that was enacted on Dec. 19 as Republic Act 10963.

“The other tax packages are not so much about increasing taxes — it is just making it fair,” he explained.

The entire four- to five-part tax reform program is supposed to yield about P2 trillion in additional revenues that will help finance the government’s planned P8.44-trillion infrastructure development campaign until the current administration ends its six-year term in 2022.

The Finance chief said that the second package would cut corporate income tax rates to 25% from 30% currently. It will be “revenue-neutral,” with initial DoF estimates showing some P34 billion estimated to be foregone as a result of lower corporate income tax rates to be covered by a matching amount from the withdrawal of some incentives granted by investment promotion agencies.

“We are the only country in ASEAN that has 14 agencies that give tax incentives,” Mr. Dominguez said of the Association of Southeast Asian Nations, adding that the country foregoes at least P301 billion annually from fiscal incentives given to companies that would have come in just the same without such help.

“In other countries, there is only one or two. So, we have whole menu of tax incentives and they are not coordinated… so, we’d like to simplify it.”

The fourth package, Mr. Dominguez said, will among others seek to make the tax on passive income from investment instruments more inclusive. “The government takes 20% of the interest… if it is in pesos less than five years. But in pesos more than five years, no tax,” Mr. Dominguez noted. “We think that’s anti-poor. Who can afford to put money more than five years? Right now the current tax system favors the wealthy.”

2019 ELECTIONS A FACTOR?
Asked if he sees the administration rushing the rest of the packages with an eye on next year’s mid-term legislative elections, political analyst Ramon C. Casiple said much will depend on President Rodrigo R. Duterte’s political will to push the measures, in the same way that he intervened when he was told that the first tax reform tranche had faced rough sailing in the House of Representatives in the middle of last year.

“The key question is not elections by itself. The election will become a factor if his popular support lessens,” Mr. Casiple, executive director of the Institute for Political and Electoral Reform, said in a telephone interview.

Mr. Duterte has been acing public opinion surveys, with the latest by Pulse Asia — conducted on Dec. 10-15 — showing him outdoing the four other top national officials in the line of succession with an 80% approval rating, steady from September, and an 82% trust score from 80% previously.

“…[H]e’s still highly popular, I don’t think it will be the factor. I think legislators are all over in approving the next packages of TRAIN,” Mr. Casiple said of the Tax Reform for Acceleration and Inclusion Act, as RA 10963 is better known.

“That’s why political will is very important. I think the President will stand by TRAIN. I think the whole package has been approved by the president.”

Emmanuel J. Lopez, associate professor and chairman of the University of Santo Tomas Department of Economics, shared this view, saying via e-mail that “it is not exactly a factor for the mid-year election in 2019 because it is part of the campaign promise of Duterte.”

Sought for comment, Senator Juan Edgardo “Sonny” M. Angara, chairman of the Senate Ways and Means committee, said in a mobile phone message: “The Committee on Ways and Means can tackle these new packages after completing work on the proposed comprehensive tax amnesty bill.”

“Simultaneous hearings with the [H]ouse can be done,” Mr. Angara said, even as he cautioned that “[a] factor which may affect timetables is any impeachment trial which might ensue given that there are some impeachment complaints being heard in the House of Representatives.”

RA 10963 cut personal income tax rates and makes up for the foregone revenues by removing some value-added tax breaks; raising fuel, automobile, mineral and coal excise tax rates, as well as adding levies on sugar-sweetened drinks and cosmetic surgery.