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Phinma Energy sues PSALM, Ledesma

PHINMA ENERGY Corp. on Wednesday sued state-owned Power Sector Assets and Liabilities Management Corp. (PSALM) and its former president for damages relating to the termination of an administration agreement over geothermal power plants in Leyte.

In a disclosure to the stock exchange on Wednesday, Phinma Energy said it had filed before the Regional Trial Court of Makati City a complaint for damages with prayer for a writ of preliminary injunction or a writ of preliminary mandatory industry against PSALM and its former president Emmanuel R. Ledesma, Jr.

It has also sought a temporary restraining order (TRO) against the defendants.

The case seeks to stop the termination of the deal — on grounds of administrator’s default — for the selection and appointment of independent power producer administrators (IPPAs). The deal involves the “strips of energy” of the Unified Leyte Geothermal Power Plants (ULGPP) located in Tongonan town of Leyte.

“The grant of the prayer for a TRO will restrain PSALM from terminating the Agreement on the ground of Administrator’s Default and prevent PSALM from asserting any further claim to the detriment of the Corporation. In the event that the Court rules in favor of PHINMA Energy, the Agreement may be invalidated and an award for damages may be made to the Corporation. An adverse decision may open the Company to possible financial claims by PSALM,” the company said.

To recall on Nov. 7, 2013, Phinma Energy, then known as Trans-Asia Oil and Energy Development Corp., was declared one of the winning bidders with the right to administer 40 megawatts (MW) “strips of energy” from ULGP.

On Nov. 8, 2013, Typhoon Yolanda hit the Eastern Visayas, resulting in extensive damage to the ULGPP. It was only a year later that PSALM awarded the “strips” to the winning bidders.

Phinma Energy said it had formally sought the renegotiation of the agreement with PSALM, even proposing several measures for relief. The company had written PSALM to express the difficulties the administrators suffered under the agreement.

Through its counsel, Phinma Energy said it had written a letter exercising its right to withdraw from the agreement.

“Discussions on the termination were initiated,” it said.

The company, however, received a notice from PSALM of the administrator default, it said. The government agency also resolved to terminate the agreement and forfeit the performance bond.

Shares in Phinma Energy were unchanged at P1.81 each on Wednesday. — Victor V. Saulon

Playoff-contending teams JRU, Letran go at it in NCAA return

FOLLOWING the cancellation of scheduled games on Tuesday because of rough weather brought by Typhoon Maring, National Collegiate Athletic Association (NCAA) Season 93 action resumes today with playoff-contending teams Jose Rizal University (JRU) Heavy Bombers and Letran Knights featured in one of the matches.

Currently at third and fourth place, respectively, JRU (6-4) and Letran (5-5) mix it up in the 2 p.m. game set at the FilOil Flying V Centre in San Juan City with the end view of padding their ascent in the standings and enhance their positions toward a top four finish in the ongoing season of the country’s longest-standing collegiate league.

The Heavy Bombers head into the match coming off a heartbreaking 115-109 double overtime loss to the Arellano Chiefs last week, a game that the Kalentong-based team fought hard in only to fall short in the end.

Despite the tough defeat that halted for it a four-game winning streak, JRU is determined to bounce back and resume its march forward.

“There were some breaks late in the game [against Arellano] that didn’t go our way,” But we should move on because this is a long tournament and we can’t afford to dwell too much on the past,” said JRU coach Vergel Meneses as they gear up for their game against Letran.

On the other end, the Knights are also out to rebound after losing to the Perpetual Help Altas in their last game, 88-82, in overtime.

JP Calvo showed the way for Letran with 21 points while Bong Quinto and Rey Nambatac each had 15 points.

Their efforts though were rendered not enough as the balanced attack of the Altas, led by leading tournament most valuable player candidate Prince Eze, was just a handful for Letran in said game.

Meanwhile, in the second game at 4 p.m., the Emilio Aguinaldo College Generals (4-6) take on tailending Mapua Cardinals (1-10). — Michael Angelo S. Murillo

Telco says bill vs expiration of prepaid load may lead to ‘death’ of service

A PROPOSED Senate bill prohibiting the expiration of prepaid load cards may prompt vigorous debates by way of resistance, going by a position paper submitted by Smart Communications, Inc. (SMART) and Digitel Mobile Philippines, Inc. (DMPI) on Wednesday, Sept. 13.

The Senate committee on public services, led by Senator Grace Poe, is set to do further consultations on Senate Bill No. 848 introduced by Senate President Pro-Tempore Ralph G. Recto, entitled “An Act Prohibiting Telecommunication Companies from Imposing an Expiration Period of the Validity of Prepaid Call and Text Cards and the Forfeiture of Load Credits Thereof.” Meanwhile, the committee is awaiting the position papers of other stakeholders, of which Smart was represented by legal head Roy Ibay and Globe Telecommunications by general counsel Froilan Castelo at a hearing scheduled on Wednesday.

The said position paper by Smart and Digitel argued, among other things, that “the immediate termination of the prepaid service of the cellular industry as cellular companies cannot sell the prepaid load and cards in their present state anymore, nor can cellular companies afford building the infrastructure needed to sustain the present level of service.”

The paper also cited extensively the “practice among operators worldwide to impose an expiration date as a mechanism.”

“Removing or inordinately lengthening the expiration date of a prepaid load card would result in the failure of the prepaid service to contribute revenue to realize the minimum costs of maintaining prepaid service. The end result would be that post-paid subscribers who pay minimum monthly service fees would have to subsidize the prepaid service,” Smart and Digitel also said, adding:

“The expiration date, which ensures realization of the minimum monthly service fee, is thus the most equitable solution to ensure that cellular service is extended even to low-income users at prices which they can afford.”

On the so-called “nakaw load” incidents, Smart and Digitel said these were the result of automatic default data charging. Previously, when a subscriber’s mobile data package is consumed, their phone still connects to the internet and incurs charges of P5 per 15 minutes. Sometimes subscribers use mobile internet without realizing it. For example, they may not be are not aware that their phone settings enable the automatic updating of apps. They think their load was stolen when in fact, data charges were incurred because of this.”

“To address this concern, Smart has disabled auto default charging. Now, when a subscriber’s internet package expires or is consumed, his phone will no longer connect to the internet. He will get an SMS notification encouraging him to subscribe to a data package to resume internet activities. We have also changed the system for our value-added services, such as ring tones and ringback tunes. Subscribers have to send positive confirmation via SMS before they can be charged for these services. We have also made it easier for them to opt out of these services.”

“Because of these efforts, the number of subscribers who say they experienced this problem has significantly decreased. We expect that this will further decline as we implement other measures.” — MMB

PAL gets 2nd Bombardier Q400 plane

PHILIPPINE AIRLINES said it recently took delivery of its second Bombardier Q400 aircraft, bringing to 83 its total number of planes.

In a statement, the flag carrier said the bi-class next generation Bombardier Q400 arrived in Manila on Tuesday after flying approximately 11,400 nautical miles from Toronto. It had nine technical stops in Newfoundland in Canada, Le Bourget in France, Malta, Egypt, the United Arab Emirates, Pakistan, India, Bangladesh and Thailand.

PAL said it will use the 86-seater plane for select intra-domestic routes.

In June, PAL signed a deal with the Canada-based plane manufacturer for the exercise of its seven Q400 aircraft purchase rights.

The agreement brought PAL’s total firm order to 12 Q400 aircraft, valued at approximately $235 million.

PAL said the remaining 10 Q400 units will be delivered through 2019.

The flag carrier is targeting to increase its passenger volume to over 20 million by 2021, as it adds more flights.

“From 15 million passengers (projected) in 2017, we project to carry more than 20 million passengers in 2021 — from foreign visitors to our OFW [overseas Filipino workers] heroes, families, and the men and women who run businesses,” PAL President Jaime J. Bautista said in a recent forum.

Meralco Bolts get better with veteran De Ocampo, say PBA head coaches

IN the same conference last season, Meralco was able to barge its way to the championship round, proving itself that it has come along as one of the teams to reckon with in the PBA.

This time, the Bolts are making another run and solidified their chances further with the acquisition of six-time champion and two-time Finals Most Valuable Player Ranidel de Ocampo.

Coaches Alex Compton of Alaska, Caloy Garcia of Rain or Shine and Yeng Guiao of NLEX believe that the Bolts had put themselves in a better position for another championship aspirations following the acquisition of the 6-foot-7, former Gilas Pilipinas standout.

“Meralco. They’re tough and Allen Durham is a great import. They are already a scary team and even scarier now with the addition of Ranidel de Ocampo. Too bad for us we’re playing them in our next game. I think we have to be better than the last three games we played, if we want to compete against Meralco,” said Mr. Compton.

“From the looks of it, I think Coach Norman (Black) has a great plan. They’re playing as a team, they’re moving the ball, they’re defending well.”

For Mr. Garcia, whose team has been involved in trades with Meralco in the past, he believes this is the best trade ever made by the Bolts.

“I think they’re playing even better this year. What more with the inclusion of Ranidel? I think coach Norman is right in adding De Ocampo because that’s what the missing piece of the squad, a stretch four player. Ranidel will bring in a lot of championship experience, which will be crucial in making a championship run,” added Mr. Garcia.

For Mr. Guiao, the wisdom of a veteran player like Mr. De Ocampo would be essential to any team making a finals push.

“I think the combination of veteran players and up and coming stars is the right formula. We’ve proven that when we acquired veteran players like JR Quiñahan, Cyrus Baguio, Larry Fonacier and Alex Mallari. With Ranidel, I think Meralco has become a lot better. They have a solid import in (Allen) Durham, who has become the yardstick among the imports. Baser Amer has been playing consistently and the rest of the team has been good defensively. I think they’re going at the right direction,” added Mr. Guiao.

At 7-2, the Bolts are just half a game behind joint leaders, NLEX and Barangay Ginebra, in the team standings and are in comfortable position in securing one of the top four berths that bear a twice-to-beat advantage. — Rey Joble

Higher fuel prices in Bohol to be probed anew

ENERGY ASSISTANT Secretary Leonido J. Pulido III is expected to attend a hearing in Tagbilaran City on Sept. 15 to shed light on the higher prices of fuel in Bohol compared to adjacent provinces. The Bohol provincial board called for another investigation on the persistent disparity of fuel prices between Bohol and those in Negros Oriental and Cebu. Board Member Tomas D. Abapo, Jr., who made the call for the probe, said gasoline and diesel prices in Tagbilaran City are still on average higher by P4 per liter despite an investigation they conducted last year. In 2014, the price differences were even higher at P8 to P12 per liter. Bohol Gov. Edgar M. Chatto previously threatened to elevate the matter to Malacañang and file cases against those found to be manipulating the prices of fuel in the island province. Mr. Chatto has also relayed the issue to 1st District Representative Rene L. Relampagos for a possible investigation in Congress. — The Freeman

Milo-FC Barcelona football initiative set into motion

THE recently launched football partnership between Milo Philippines and FC Barcelona got rolling with the conduct of the training sessions involving some 140 kids from different parts of the country.

In line with both groups’ shared vision of seeing children live better lives through a more healthy and active lifestyle, the program, dubbed “Road to Barcelona,” was held early this month at the McKinley Hill Stadium in Taguig City.

The program is a four-year values-driven tie-up between Milo Philippines and the globally known football club to develop not only the skills of participating kids but also inculcate in them the values of humility, effort, ambition, respect and teamwork.

During the training camp held from Sept. 2-3, kids from Metro Manila, Cavite, Iloilo and Cebu gathered to train under FC Barcelona (FCB) coaches Arnau Blanco and Marti Vila where they hoped to be among those nominated to the team representing the country in the FCB Escola Camp in Barcelona happening next month.

Milo Philippines will be sending a team of 10 kids to participate in the international training camp at Nou Camp. The players to be selected will be chosen based on the right mix of values (60%) and skill (40%).

From the list, two outstanding team members will be granted an all-expense-paid trip in recognition of their skills and values. The remaining eight slots will be chosen based on the local camp ranking system.

A selection panel led by the MILO FCB Road to Barcelona Team will help identify the players who will be included in the event. Just as important as skill, the principal values that define the spirit of FCB and the essence of MILO, will be included in the criterion for selection of the said players.

Considering the scope of their partnership with FC Barcelona, Milo officials said the program gives added dimension to their local sports development thrust.

“It refreshes the Milo sports program considering that this is the first time that we are deep-diving into football. We’ve always had everything. We have 15 Olympic sports [for various programs]. We have the Milo Marathon for 40 years. Apart from the Philippine Football Federation’s (PFF) Kasibulan program which we have been supporting since the ’90s this is the only time we have invested in a football program with the hopes of seeing our vision through as well as supporting the PFF in its goal of producing more Filipino players,” said Robbie de Vera, Sports Marketing Executive of MILO Philippines, in an interview with BusinessWorld.

“By linking with a big football club like FC Barcelona we believe we can get the word out to more people and inspire them,” he added.

On the part of FC Barcelona, the partnership with Milo Philippines was something it had to do, seeing how noble the cause is and how it is in tune with what the team stands for and the direction it is taking.

“You see the kids smiling, improving, enjoying, trying to understand our philosophy, and it really is fulfilling for us coaches. Having them play together as a team and learn the values and skills in football is amazing to witness. For us, it is important that we help Filipinos experience the Barca way through our program,” said FCB Escola Camp coach Blanco during the training run. — Michael Angelo S. Murillo

Vista Land ventures into mixed-use development in Davao City

DAVAO CITY — A subsidiary of Villar-led Vista Land and Lifescapes, Inc. is adding a shopping mall within a planned 15-hectare residential subdivision in the southern area.

The 2.6-hectare Vista Mall project of Vista Land’s Camella Communities Davao, Inc. was recently approved on second reading by the Davao City Council following the recommendation of the subcommittee on housing, rural and urban development for high-end projects.

Documents from the council show the company has completed the requirements for preliminary approval and locational clearance as well as the development permits for the project.

The Mines and Geosciences Bureau, on the other hand, has issued a “certification for possible geohazard and recommended mitigating measures.”

The three-storey Vista Mall will be located inside the Cerritos subdivision in the Tugbok District.

In an earlier interview with BusinessWorld, Camella Communities Manager Marlon Nino B. Escalicas said the company is expanding its footprint in the city not just in the residential segment but also through commercial developments. — Carmelito Q. Francisco

Suu Kyi skips UN assembly to deal with crisis

YANGON — Myanmar’s national leader Aung San Suu Kyi, facing outrage over violence that has forced about 400,000 Rohingya Muslims to flee to Bangladesh, will not attend the upcoming UN General Assembly because of the crisis, her office said on Wednesday.

The exodus of refugees, sparked by the security forces’ fierce response to a series of Rohingya militant attacks, is the most pressing problem Ms. Suu Kyi has faced since becoming leader last year.

Critics have called for her to be stripped of her Nobel peace prize for failing to do more to halt the strife which the UN rights agency said was a “textbook example of ethnic cleansing.”

Aid agencies will have to step up operations “massively” in response to the refugee flow into Bangladesh, a senior UN official said, adding that the $77 million the United Nations had appealed for last week would not be enough.

But a Bangladeshi border force officer said the number of people crossing into his area had fallen sharply, apparently because everyone had left districts most affected by the violence.

Ms. Suu Kyi, in her first address to the UN General Assembly as leader in September last year, defended her government’s efforts to resolve the crisis over treatment of the Muslim minority.

This year, her office said she would not be attending because of the security threats posed by the insurgents and her efforts to restore stability.

“She is trying to control the security situation, to have internal peace and stability, and to prevent the spread of communal conflict,” Zaw Htay, the spokesman for Suu Kyi’s office, told Reuters.

International pressure has been growing on Buddhist-majority Myanmar to end the violence in the western state of Rakhine that began on Aug. 25 when Rohingya militants attacked about 30 police posts and an army camp.

The raids triggered a sweeping military counter-offensive against the insurgents, described by the government as terrorists. Refugees say the security operation is aimed at pushing Rohingya out of Myanmar.

They, and rights groups, paint a picture of widespread attacks on Rohingya villages in the north of Rakhine State by the security forces and ethnic Rakhine Buddhists, who have torched many Muslim villages.

Authorities have denied that the security forces, or Buddhist civilians, have been setting the fires, and have blamed the insurgents. Nearly 30,000 Buddhist villagers have also been displaced, they say.

The Trump administration has called for protection of civilians, and Bangladesh says all the refugees will have to go home and has called for safe zones in Myanmar.

But China, which competes with the United States for influence in Asia, said on Tuesday it backed Myanmar’s efforts to safeguard “development and stability.”

The UN Security Council is to meet on Wednesday behind closed doors for the second time since the crisis erupted. British UN Ambassador Matthew Rycroft said he hoped there would be a public statement agreed by the council.

However, rights groups denounced the council for not holding a public meeting. Diplomats have said China and Russia would likely object to such a move.

PUBLIC SUPPORT
Myanmar’s military, which ruled for almost 50 years until it began a transition to democracy in 2011, retains significant political powers and is in full control of security.

Nevertheless, critics say Ms. Suu Kyi could speak out against the violence and demand respect for the rule of law.

But anti-Rohingya sentiment is common in Myanmar, where Buddhist nationalism has surged since the end of military rule.

Ms. Suu Kyi, who the military blocked from becoming president and who says Myanmar is at the beginning of the road to democracy, could risk being denounced as unpatriotic if she were seen to be criticizing a military operation that enjoys widespread support.

A mob in central Myanmar threw stones at Muslim shops on Sunday but there have been no serious outbreaks of communal violence elsewhere.

The government has warned of bomb attacks in cities and those concerns are likely to be compounded by an al Qaeda call to arms in support of the Rohingya.

“The savage treatment meted out to our Muslim brothers … shall not pass without punishment,” al Qaeda said in a statement, according to the SITE monitoring group.

Bangladesh was already home to about 400,000 Rohingya who fled earlier conflict and many of the new refugees are hungry and sick, without shelter or clean water.

“We will all have to ramp up our response massively, from food to shelter,” George William Okoth-Obbo, assistant high commissioner for operations at the UN refugee agency, told Reuters during a visit to the Kutupalong camp in Bangladesh.

He declined to say how many people he thought might come but Bangladeshi officer Lieutenant Colonel Ariful Islam said numbers were falling off sharply in his area.

“The people who arrived in the early days after the atrocities, now they’ve come out,” Islam told Reuters. — Reuters

Two MRT-3 passengers injured: Human error or signaling problem?

TWO INCIDENTS of passenger injuries were reported at the Metro Railway Transit (MRT)-3 yesterday morning due to problems in onboard signaling. Transportation Undersecretary for Railways Cesar B. Chavez told reporters in a message that MRT-3 control center staff informed him of a 30-year-old female who got “an abrasion on the right arm” and a 68-year-old male who had a “snap on the left rib.” The passengers sustained the minor injuries at the Shaw Boulevard station due to “ATP [automatic train protection] braking.” “ATP, also known as onboard signaling, belongs to [the] top three main causes of unloading incidents,” Mr. Chavez said in a message. BusinessWorld contacted the MRT management for comment, but has not received a reply as of reporting. Charles Perfecto A. Mercado, spokesperson of Busan Universal Rail, Inc., (BURI), the maintenance provider of MRT, said initial assessment indicates the incidents were due to human error. “…Our preliminary review shows that the Automatic Train Protection on the train worked, and stopped the train because the driver [drove at a speed of] at about 36 kph… the manual of operation indicated that the maximum should be 10-20 kph, so it’s a driver fault,” Mr. Mercado said. In an earlier message, BURI said the Department of Transportation (DoTr) “will issue the official incident report.”

TRAIN AUDIT
Meanwhile, Senator Grace Poe-Llamanzares yesterday called for an independent audit of the purchased China-made trains, which have been unusable due to incompatibility with existing facilities. During the Senate hearing on the Department of Transportation’s proposed P75.6-billion budget for 2018, Ms. Poe pressed officials to hire “an independent auditor that has no political affiliations” to check whether the 48 coaches supplied by Chinese firm Dalian Locomotive and Rolling Stock Co. Ltd. are safe and can be utilized in the capacity-burdened MRT-3. The independent assessment, she pointed out, can be used by the government as supporting document should it be necessary to return the trains. Mr. Chavez said out of the P3.8-billion contract cost with Dalian Locomotive, P800 million has so far been paid by the government. — Patricia Paola C. Marcelo

Standing at work

On Aug. 25, the secretary of the Department of Labor and Employment (DoLE) Silvestre H. Bello III issued Department Order 178-17 Series of 2017 entitled “Safety and Health Measures for Workers Who by the Nature of their Work Have to Stand at Work.”

DO 178-17 was issued in accordance with the power of the secretary of Labor and Employment to promulgate standards to ensure the safety and health of all employees and to set and enforce mandatory occupational safety and health standards in all places of work so that health risks may be eliminated, and safe and healthful working conditions in all workplaces will be ensured.

As the title suggests, DO 178-17 aims to curb the harmful health consequences which employees may suffer as a result of their being required by the nature of their work to stand at work during their entire shift. The typical examples would be retail and/or service employees, assembly line workers, teachers, security personnel, as well as cashiers, sales clerks, pharmacists, who are made to stand for the entire duration of their shifts.

Continuous standing at work usually causes discomfort and fatigue to the concerned employees. In fact, it has been shown that one should frequently alternate between sitting and standing in order to avoid fatigue. Otherwise, prolonged standing at work, especially in a fixed position, can cause sore feet, swelling of the legs and pain in muscles of the legs, back, shoulders and neck. Moreover, prolonged standing has been shown to cause varicose veins and may even lead to degenerative damage to the joints of the spine, hip, knees, and feet. The health risks are even worse for females who are required to wear high-heeled shoes at work.

DO 178 directs all employers and/or establishments to institute appropriate control measures in order to address the risks associate with standing at work or frequent walking. The measures outlined in DO 178-17 include the following:

• Implement rest periods to break or cut the time spent on standing or walking;

• Install appropriate flooring or mats that will mitigate the impact of frequent walking and prevent fatigue, such as wood or rubber floorings;

• Provide tables or work surfaces with adjustable heights to allow workers to alternately sit and stand while performing their tasks;

• Provide readily accessible seats to be used during rest periods or even during working hours, provided the employees can perform their duties in this position without detriment to efficiency. These can be small foldable stools which can easily be stowed away so as not to hamper the work area; and,

• Implement the use of footwear which is practical and comfortable. These should not pinch the feet or toes; are well-fitted and non-slipping; provide adequate cushion and support to the arch of the feet; either flat or with low heels that must be wide-based or wedge type and no higher than one inch.

The employers, in consultation with the workers, may adopt other measures to address the occupational safety and health concerns of workers who have to stand at work for long periods or whose functions require them to work frequently.

Aside from the directive to allow the employees to sit or stand at will whenever possible, DO 178-17 also forbids employers from requiring women in wearing high-heeled shoes at work. DO 178-17 thus makes the Philippines the first country in Asia to ban the mandatory wearing of high-heeled shoes in the workplace.

DO 178-17 will become effective 15 days after its publication in a newspaper of general circulation. As of date, it has yet to be published. The date of effectivity is significant since DO 178-17 directs all covered employers and establishments to comply and to notify the DoLE, through the Regional Office which has jurisdiction over the workplace, of the adoption of the safety and health measures within thirty (30) days from the effectivity of DO 178-17.

While the new DO does not contain a provision on the penalties or sanctions to be imposed, employers who will ignore or defy the new DO may be issued an Order of Compliance by the DoLE. Thus, employers must determine whether or not they are covered by the new DO, and if so, comply with the directives, as well as the reportorial requirement.

(The views and opinions expressed in this article are those of the author. This article is for general informational and educational purposes only and not offered as and does not constitute legal advice or legal opinion.)

Martin Luigi G. Samson is an Associate of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW), Davao Branch.

(6382) 224-0996

mgsamson@accralaw.com

Senate to retain ‘50%-70%’ of DoF tax package

THE SENATE is planning floor deliberations on Sept. 20 on new revenue measures that will partly compensate for dilutions of the original tax reform program proposed by the Department of Finance (DoF).

Senate ways and means committee chair Senator Juan Edgardo M. Angara said the chamber aims to retain about 50% to 70% of the DoF’s Tax Reform for Acceleration and Inclusion Act, but maintained the revenue outcome will be unchanged.

“More or less it’s maybe 50 to 60 or 70% of what the DoF proposed,” he told the media after the tax reform’s synthesis hearing yesterday.

Changes include the lowering of the sugar-sweetened beverage excise tax to P5 per liter from P10 initially, the phasing of the P6 excise tax on petroleum, as well as the bracket structure for the automobile excise tax.

“I think we will stick to the three-year structure that the house proposed, its just the distribution of the P6,” he said.

The value-added tax exemptions on the sale of socialized housing and on renewable energy will likewise be retained — adding to the list of those sectors keeping their exemptions in the House version, such as sales booked by cooperatives and purchases by senior citizens and persons with disabilities.

Mr. Angara has not provided final details on the changes, noting that the chamber is still working on it.

He said that the committee is still waiting for the comments of all Senators before a final committee report emerges.

However, despite these modifications, the Senator said that he expects around P130 billion in additional revenue for the first year of the tax reform’s implementation.

“It’s about the same, P130 (billion),” said Mr. Angara.

The projected outcome is due to measures like a higher tax on interest income on foreign currency deposits, higher taxes on dividend income, an excise tax on cosmetics, and levies on plastic bags.

The committee’s projected revenue is slightly lower than that of the House-approved version, House Bill No. 5636, which is expected to generate P133.8 billion, also significantly lower than the Finance department’s original P157.2 billion version.

Despite forwarding these measures to make up for the losses, Mr. Angara said that it still has to be further studied. There are still no hard figures for the newly proposed duties.

“I think we also need to balance the effects, the equity effects of the proposed tax package.”

“Clearly, the plastic bag levy needs to be studied further in view of what the [Trade department] said. They are still constructing a road map so maybe we can hold off on that, since even the DoF doesn’t know yet how to administer such a tax.”

“Cosmetics, we have to look at if there’s a way that we can separate the vanity procedures from the medical procedures if there is, then we want to tax one but not the other.”

Finance Undersecretary Karl Kendrick T. Chua said he welcomes the introduction of the new measures, but added that they have to undergo further study, not being part of the DoF’s original package.

“We welcome that they are considering it, but we need studies and consultation similar to what we did for package one. So we hope that we will put more priority on the original package one, because those measures are really well-studied,” he said.

“Basically we have to hear it and get more information. It’s too early, we have to do full homework,” added Mr. Chua.

Asked whether his team in the Finance department has revenue estimates for the new measures, he said: “These are very very preliminary estimates.”

Mr. Chua said he continues to hope for passage of the DoF’s version, and plans to urge legislators to strengthen the bill during the plenary deliberations as well as in the bicameral conference before the President approves it.

Mr. Chua said that the P133.8 billion revenue level has been programmed into the 2018 budget — which was approved on second reading — leaving the Senate little room to tweak the tax reform bill further.

“If they cut something, they have to find some alternative,” Mr. Chua said.

He also added that the government faces additional costs next year.

“There’s a free tuition that has to be funded, P50 billion… Marawi, P30 billion. So P134 plus P80 billion is more than P200 billion, so as much as possible we want them also to consider the bigger picture,” he said. — Elijah Joseph C. Tubayan