Vape collections to prop up excise tax take

April 16, 2025 | 7:45 pm

Revenue Commissioner Romeo D. Lumagui said vape collections can help the bureau hit its excise tax goals this year.

In 2025, the Bureau of Internal Revenue (BIR) has an P343.10 billion excise tax target, 12.76% higher than the recorded collection in 2024.

“That’s what we are expecting because I was more counting on vape. Though cigarette consumption has really decreased, but the efforts continue, especially for vapes,” he told reporters on the sidelines of a briefing on Income Tax Return filing day.

Excise tax collections last year fell short of the P325 billion target by 6.5%, though they were 3.86% higher from 2023.

In 2023, excise taxes amounted to P293 billion, 12.83% short of the goal and lower than the P312 billion collected in 2022.

“We’re hoping that with the increase in compliance of the vape industry, it will improve. But with the consumer preference shift from tobacco to vape…we can capture that… we need that.”

in 2024, tobacco was the only excise tax segment that declined, retreating 0.35%. 

Other products such as alcohol (7.29%), petroleum (1,334%), miscellaneous products (8.56%) and mineral (3.55%) posted increases. 

Minimal Government Thinkers, Inc. President Bienvenido S. Oplas, Jr. said the BIR won’t be able to arrest the continued decline in revenue from tobacco taxes. 

“While the shift by smokers to vapes is one of the reasons, it is not the main reason. The bigger reason is high incidence of illicit trade, smokers shifting from legal and taxed tobacco to illegal and untaxed tobacco,” he told BusinessWorld via Viber Wednesday. 

Mr. Oplas also noted that the price disparity between illicit tobacco and legitimate products is widening due to the annual increase in the tobacco tax rate.

“As the price of legal products gets higher each year, the attractiveness of untaxed illegal tobacco rises. And BIR tobacco tax revenue continues to decline,” he said.  — Aubrey Rose A. Inosante

German medtech delegation visiting PHL

April 16, 2025 | 7:44 pm

medtech filefoto — PHOTO FROM UNSPLASH/IRWAN

The German-Philippine Chamber of Commerce and Industry (GPCCI) said it is bringing a German delegation of medical technology (medtech) firms to the Philippines next month.

“Building on the momentum of 2024, the chamber will launch several high-impact initiatives in 2025,” GPCCI said in a statement Wednesday.

“In the healthcare sector, the delegation on medtech and digital health was announced as a key undertaking that will bring German medical technology leaders to the Philippines for a week-long exchange, aimed at fostering innovation and collaboration,” it added.

According to the GPCCI, the eight-member delegation will be in the country between May 5 and 9.

The delegation consists of 3di GmbH, the Bavarian Institute of Architecture for the Elderly and Cognitively Impaired, Clinaris GmbH, fracto Gerdes GbR, INOSOLVE Consulting Service & Engineering GesmbH, Kimetec GmbH, Oehm und Rehbein GmbH, and VISUS Health IT GmbH.

German Ambassador to the Philippines Andreas Pfaffernoschke said 2025 will be a pivotal year for the Philippines and Germany.

“GPCCI has been remarkably successful in fostering bilateral exchanges, strengthening the economic partnership between our two nations,“ he said.

“I am confident that Germany will remain a trusted partner to the Philippines, continuing our high-level dialogues and bilateral exchanges in Berlin and Manila in various formats,” he added.

The ambassador recognized the Philippine government’s efforts in deepening cooperation in areas of trade, investment, and the protection of a rules-based international order.

He also acknowledged the progress made in the European Union-Philippines Free Trade Agreement, noting that “both sides have set ambitious goals for a more integrated and sustainable  trade relationship.”

However, he said that there is a need to modernize key indusries such as energy, infrastructure, logistics, and manufacturing, a process in which German companies can participate. — Justine Irish DP Tabile

Shipping company ordered to respond to overbooking claim

April 16, 2025 | 7:38 pm

Montenegro lines — MONTENEGROLINES.COM.PH

Transport regulators ordered Montenegro Shipping Lines, Inc. to respond to allegations that it overbooked a ship bound for Romblon. 

In a statement Wednesday, the Department of Transportation (DoTr) through the Maritime Industry Authority (Marina) said it ordered the company to reply within 10 days from the receipt of the show-cause order, which may put the company at risk of administrative penalties.

BusinessWorld contacted Montenegro Shipping for comment, but it had yet to reply at the deadline. 

The Philippine Ports Authority (PPA) said commercial sailings during the week of Easter are in high demand, with passenger volume at seaports projected at 1.73 million for the April 14-20 period, up 3.5%.

On Wednesday, the PPA said it tallied throughput of 646,579 passengers at the country’s major seaports. 

The PPA said the DoTr is deploying additional personnel for the Easter travel season.

For 2025, the PPA projects passenger volume of 85.41 million, exceeding the 2024 target by 9.5%. — Ashley Erika O. Jose

Marcos ratings plunge after Duterte arrest

April 16, 2025 | 7:25 pm

By Chloe Mari A. Hufana, Reporter

President Ferdinand R. Marcos, Jr.’s public approval rating fell to a record in March, according to the latest Pulse Asia Research, Inc. poll, days after his government enforced the arrest of former President Rodrigo R. Duterte and sent him on a plane so he could be tried in The Hague for alleged crimes against humanity.

On the other hand, Vice-President Sara Duterte-Carpio’s rating hit an all-time high, the only high-ranking government official whose ratings improved, according to e-mailed results of the poll on Wednesday.

The President’s approval rating plummeted to 25% from 42% in February, while 54% of Filipinos expressed distrust toward him, up from 32%.

Ms. Duterte’s approval rating improved 7 points to 59%, while her trust score improved 8 points to 61%, Pulse Asia said.

Mr. Duterte, father of the Vice-President and a maverick ex-mayor and former prosecutor who led the Philippines from 2016 to 2022, was flown to The Hague on March 11, hours after his arrest in Manila, marking the biggest step yet in the International Criminal Court’s probe into alleged crimes against humanity during an anti-drug crackdown that killed thousands and drew condemnation around the world.

Mr. Duterte, 80, could become the first Asian former head of state to go on trial at the ICC. His trial has been set for September.

Mr. Marcos has said his predecessor’s arrest was not personal, adding that his government was just doing its job.

Hansley A. Juliano, a political science lecturer at the Ateneo de Manila University, said the results are consistent with the Philippines’ political environment.

“The Duterte machinery is aggressive in advancing the narrative about the suppression or oppression of their camp,” he told BusinessWorld in a Facebook Messenger chat. “It’s netting the Vice-President sympathy.”

Meanwhile, the trust and performance ratings of Senate President Francis “Chiz” G. Escudero and presidential cousin House Speaker Ferdinand Martin G. Romualdez also plummeted.

Mr. Escudero’s approval rating fell 8 points to 39%, while his trust score fell 9 points to 38%.

Speaker Ferdinand Martin G. Romualdez’s approval rating fell 3 points to 14%, while his trust score fell 4 points to 14%.

“From this lens, the perspective on the mixed bag for Marcos and the broadly contentious view on Chiz and Martin makes perfect sense,” Mr. Juliano said.

He the survey results should be a warning for Mr. Escudero to be more forceful and less amorphous on his views, unless doing so will net him the same negatives.

The survey said he was distrusted by 57% of Filipinos, a 15 points higher than a month earlier.

Mr. Duterte’s arrest marked a stunning change of fortunes for the influential Duterte family, which forged a formidable alliance with Mr. Marcos to help him win a 2022 election by a huge margin.

But Marcos and his vice-president have since had a bitter fallout, culminating in Ms. Duterte’s impeachment last month by the House of Representatives led by the President’s allies.

Pulse Asia interviewed 2,400 Filipinos on March 23 to 29 for poll, which had an error margin of ±2 points.

US OKs $120-M helicopter deal with Philippines

April 16, 2025 | 7:24 pm

The US State Department on Tuesday approved the possible sale of training helicopters worth $120 million to the Philippines, in a deal that seeks to boost the air capabilities of Washington’s “strategic partner” in Southeast Asia.

The US government gave the go-signal for the Philippines’ request for TH-73A training helicopters from AgustaWestland Philadelphia Corp., the Defense Security Cooperation Agency (DSCA), an office attached to the US Defense department, said on its website.

The potential deal includes an unspecified number of helicopter units, hoists, lifts, aircraft simulator, personnel training and spare parts and engines for its repairs, the agency said. It has informed the US Congress about the deal.

The Philippine Defense department did not immediately reply to a Viber message seeking comment.

Foreign military sales by US defense manufacturers need Washington’s approval to ensure that weapon acquisitions of other nations align with US foreign policy and security interests.

“The proposed sale will improve the Philippines’ capability to meet current and future threats by providing an aircraft platform that will serve as the primary method of improving pilot training and skills, thus helping to ensure the development of a proficient rotary wing aviator corps,” the DSCA said.

The statement came weeks after the DSCA greenlit the Philippines’ request for 20 units of F-16 fighters worth $5.6 billion from Lockheed Martin Corp. and days before the Philippine and US militaries begin their annual Balikatan (Shoulder-to-Shoulder) war games.

The Philippines is the US’ oldest treaty ally in Asia, and Washington has signified its support to arm Manila with deterrence capabilities amid lingering tensions with China over the South China Sea.

The South China Sea has become a flashpoint for Southeast Asia as China continues to claim and assert sovereignty over almost the entire sea, seen as a vital trade route that is also believed to be rich in undersea gas and oil deposits.

Philippine and Chinese forces have repeatedly sparred in the sea over competing claims on Spratly Islands and Scarborough Shoal, among other sea features.

The Philippine military is seeking to counter China’s military might in the region by undertaking a modernization program called Horizons and has earmarked at least $35 billion (P2 trillion) for its military build-up in the next decade. — Kenneth Christiane L. Basilio

Philippines urged to act after sea drones linked to China

April 16, 2025 | 7:21 pm

Chinese underwater drone — PHOTO SHOWS an underwater drone with Chinese markings from the Philippine National Police in Bicol, Dec. 30, 2024. — PHILIPPINE NATIONAL POLICE REGIONAL OFFICE 5

The Philippines should step up its efforts and reinforce its claim over parts of the South China Sea through legal and diplomatic means, a Senate leader said on Wednesday after authorities reported that the sea drones found in Philippine waters may be of Chinese origin.

The Philippine Navy on Tuesday said that three of the five sea drones recovered within the country’s waters in the last two years had a “50% to 80%” likelihood of being deployed by China and might have been intended for preparations for underwater warfare.

Equipped with advanced technology, the suspected Chinese sea drones could measure water depth, temperature, salinity, detect underwater sounds, and transmit the data via satellite communication.

“What is apparent is that China has been deploying these drones to study our seabed and map out our underwater terrain to gather critical data for scientific, commercial, or military use,” Senate Majority Leader Francis N. Tolentino said in a statement.

“This development should further bolster our efforts to protect the West Philippine Sea, and to continue to assert through legal and diplomatic means our sovereign rights over our exclusive economic zones and resources,” he added, referring to areas of the waterbody within the Philippines’ exclusive economic zone.

The Chinese Embassy in Manila did not immediately respond to a Viber message seeking comment.

In January, Mr. Tolentino also filed Senate Resolution No. 1267, which called on the chamber to conduct an inquiry into the six-foot submersible drone, discovered by three fishermen in Masbate on Dec. 30, 2024.

China and the Philippines have been at loggerheads over disputed features in the South China Sea as Beijing claims the waterway almost in its entirety.

Mr. Tolentino urged Filipinos who discover sea drones to hand them over to the proper authorities. “If you find a drone, don’t tinker with it, don’t sell it, or keep it as a souvenir.” — Kenneth Christiane L. Basilio

CAAP, BCDA ink deal on air traffic systems for Clark airport

April 16, 2025 | 7:19 pm

Clark-Airport-CIA — CLARK INTERNATIONAL AIRPORT

The Civil Aviation Authority of the Philippines (CAAP) and Bases Conversion and Development Authority (BCDA) have signed a deal for the operation and maintenance of air traffic systems for Clark International Airport.

“This agreement ensures that our air traffic services, navigation systems and equipment are maintained and operated to the highest standards of excellence and efficiency,” CAAP Director General Raul L. Del Rosario said in statement on Wednesday.

The agreement, which was signed on Tuesday, will allow CAAP to continue overseeing the operations and maintenance of communications, navigation and surveillance and air traffic service facilities at Clark International Airport north of Manila.

Under the partnership, BCDA will fund the procurement of parts and the maintenance of ancillary equipment, CAAP said.

The agency said its tie-up with BCDA is part of its commitment to improve overall passenger experience at the airport.

With the enhanced system, travelers can expect more efficient flight operations, reduced delays and a more seamless travel experience, CAAP said.

In January, CAAP said it would focus on hardware upgrades on its communication and navigation systems this year after completing software upgrades last year.

It said it was planning to tap a P2.1-billion loan extended by the Japan International Cooperation Agency (JICA). — Ashley Erika O. Jose

DENR seizes P3.6-M counterfeit chainsaws

April 16, 2025 | 7:18 pm

The Department of Environment and Natural Resources (DENR) on Tuesday seized 241 pieces of illegally imported counterfeit chainsaws worth P3.6 million in a buy-bust operation in Valenzuela City.

The industrial firm, which sells construction materials, violated a 2002 law prohibiting the sale, distribution, or possession of chainsaws without the necessary permits, the DENR said in a statement on Wednesday.

“The operation took place at a Valenzuela warehouse where the chainsaws were being unloaded in preparation for sale,” the agency said.

The haul included 154 large chainsaws priced at P 16,000 each and 87 medium chainsaws priced at P 13,000 each.

“This operation sends a strong signal that this administration is serious about enforcement of environmental laws.” — Kyle Aristophere T. Atienza

SC pushes performance-based judicial evaluation

April 16, 2025 | 7:15 pm

The Supreme Court (SC) continued the pilot implementation of its Performance Development Framework (PDF) for High-Performance Courts with a kick-off event in San Juan, La Union, underscoring ongoing reforms to institutionalize performance-based judicial evaluation.

Justice Alfredo Benjamin S. Caguioa, chair of the High Court’s Committee on First- and Second-Level Courts’ Performance Evaluation, led the April 4 event at the Awesome Hotel in San Juan, La Union.

The courts, along with those in San Fernando, Sudipen, and Caba in La Union, were among those selected for the pilot phase. The courts were chosen based on high disposition and clearance rates.

In a statement on Wednesday, the top court said the implementation of the PDF will help courts measure their performance, establish standards, and adopt best practices compiled in a “Playbook for High-Performance Courts.”

It will evaluate four dimensions of a trial court, the SC noted: the court’s internal processes, decision-making quality, external stakeholder satisfaction, and internal stakeholder engagement.

The high court, it said, is also working in collaboration with the European Union-supported Justice Sector Reform Programme: Governance in Justice.

Mr. Caguioa also visited other pilot courts on April 3 to assess implementation progress and engage with frontline judicial personnel. — Chloe Mari A. Hufana

Seaborne cops seize P2.8-M imported cigarettes

April 16, 2025 | 7:12 pm

COTABATO CITY — Seaborne policemen seized P2.8 million worth of cigarettes from Indonesia that seafarers were to deliver to a seaside village Zamboanga City on Sunday.

Radio reports in Cotabato City on Wednesday stated that a police team intercepted the small boat carrying 53 large cases of imported cigarettes before it could sail close to a beachfront in Barangay Santa Barbara in Zamboanga City.

Officials of the Police Regional Office-9 (PRO-9) and the Zamboanga City Police Office had separately said that the three men who were to deliver the cigarettes have been detained.

Brig. Gen. Roel C. Rodolfo, director of PRO-9, said he is thankful to the tipsters who provided information about the illegal shipment, enabling the Zamboanga police force to intercept it promptly.

Zamboanga City police officials said the confiscated imported cigarettes will be turned over to the Bureau of Customs for its disposition. — John Felix M. Unson

PSEi snaps five-day climb on profit taking before Lenten break

April 16, 2025 | 7:06 pm

THE MAIN INDEX snapped its five-day rally on Wednesday due to profit taking before the Holy Week break.

The Philippine Stock Exchange index (PSEi) fell by 0.83% or 51.48 points to close at 6,134.62, while the broader all shares index went up by 0.28% or 10.34 points to end at 3,656.99.

Philippine financial markets are closed on April 17 (Maundy Thursday) and 18 (Good Friday).

“The local bourse pulled back this Wednesday as investors took a cautious stance, booking gains ahead of the long weekend,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“The local market also took cues from Wall Street’s overnight decline,” he added.

Wall Street closed lower on Tuesday amid tariff uncertainties. The Dow Jones Industrial Average fell by 0.38% or 155.83 points to 40,368.96; the S&P 500 dropped by 0.17% or 9.34 points to 5,396.63; and the Nasdaq Composite declined by 0.05% or 8.31 points to 16,823.17.

“Local shares ended the Holy Week-shortened trading week in the red as investors booked profits amid low volumes,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said in a Viber message. “On the economic front, markets absorbed the latest overseas Filipino worker remittance data.”

Cash remittances coursed through banks rose by 2.7% to $2.72 billion in February from $2.65 billion in the same month last year, the Bangko Sentral ng Pilipinas reported on Tuesday.

Most sectoral indices ended lower on Wednesday. Services declined by 1.85% or 36.48 points to 1,928.17; holding firms dropped by 1.4% or 72.28 points to 5,067.27; property went down by 0.25% or 5.71 points to 2,213.28; and financials retreated by 0.11% or 2.74 points to 2,391.55.

Meanwhile, mining and oil rose by 0.71% or 68.11 points to 9,640.09 and industrials climbed by 0.16% or 14.49 points to 8,758.83.

“Converge ICT Solutions, Inc. was the index’s leader for the day, climbing 3.95% to P19.48. ACEN Corp. was at the tail end, falling 4.08% to P2.82,” Mr. Tantiangco said.

Value turnover declined to P4.21 billion on Wednesday with 951.74 million shares traded from the P4.46 billion with 1.40 billion issues exchanged on Tuesday.

Advancers outnumbered decliners, 110 versus 79, while 51 names were unchanged.

Net foreign selling stood at P11.66 million on Wednesday, a reversal from the P205.99 million in net buying recorded on Tuesday. — Revin Mikhael D. Ochave

Yields on term deposits fall amid hopes for further BSP easing

April 16, 2025 | 7:03 pm

YIELDS on the Bangko Sentral ng Pilipinas’ (BSP) term deposits dropped sharply on Wednesday, even as the two-week paper was undersubscribed, on expectations of further monetary easing this year.

Demand for the central bank’s term deposit facility (TDF) amounted to P198.961 billion, above the P160-billion offer but below the P207.389 billion in bids for the same volume auctioned off a week prior. The BSP awarded only P155.928 billion in papers as the two-week deposits were undersubscribed.

Broken down, tenders for the seven-day papers reached P123.033 billion, higher than the P80 billion placed on the auction block and the P107.514 billion in bids the same volume offered the previous week. The central bank awarded P80 billion in one-week papers as planned.

Accepted yields were from 5.5% to 5.6%, a lower and wider band compared to the 5.7% to 5.7625% seen a week prior. With this, the average rate of the one-week term deposits fell by 14.21 basis points (bp) to 5.5759% from 5.7518% previously.

Meanwhile, the 14-day papers fetched bids amounting to P75.928 billion, below the P80-billion offer and the P99.875 billion in tenders for the same amount auctioned off a week ago. The BSP accepted all submitted bids.

Banks asked for rates ranging from 5.5% to 5.76%, declining and widening from the 5.7% to 5.78% margin seen last week. This caused the average rate of the two-week papers to drop by 10.15 bps to 5.6495% from 5.751% in the prior auction.

The BSP has not auctioned off 28-day term deposits for more than four years to give way to its weekly offerings of securities with the same tenor.

The TDF and BSP bills are used by the central bank to mop up excess liquidity in the financial system and to better guide market rates.

Term deposit auction yields dropped for a second straight week on Wednesday following the BSP’s widely expected rate cut last week and signals of further policy easing, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The Monetary Board last week cut benchmark interest rates by 25 bps to bring the policy rate to 5.5%, as expected by all 17 analysts in a BusinessWorld poll, putting its easing cycle back on track after an unexpected pause in February.

BSP Governor Eli M. Remolona, Jr. said they are considering further rate cuts this year in “baby steps” of 25 bps at a time.

The central bank has now reduced borrowing costs by a cumulative 100 bps since it kicked off its rate-cut cycle in August last year.

“US President Donald J. Trump’s latest 90-day tariff pause also supported market sentiment recently,” Mr. Ricafort said.

“The BSP TDF auction yields also slightly eased after global crude oil prices declined recently to four-year lows and the peso exchange rate appreciated versus the US dollar, … both of which help support benign inflation and future policy rate cuts.” — A.M.C. Sy