IT was a rousing start for the Philippine women’s volleyball team in the 29th Southeast Asian Games in Kuala Lumpur, Malaysia, yesterday as it defeated host team Malaysia in straight sets, 25-18, 25-11 and 25-16, in its debut at MITEC Hall 11.
Jaja Santiago of the Philippines in action against Vietnam in the 29th Southeast Asian Games. — PSC-POC MEDIA GROUP
Drawing a solid and balanced effort from the entire team made up of a selection of professional and collegiate standouts, the Filipina spikers was in synch right from the very start and showed no letup in dominating its opponent as the game wore on.
Such steadiness from the team allowed coach Francis Vicente to try out various combinations that hardly stymied the potency of the team collectively.
Jaja Santiago notched 11 kills and a block for team-high 13 points while Aby Marano chipped in 11 markers for the Nationals.
Jovelyn Gonzaga had nine points and Alyssa Valdez finished with eight.
Team captain Mika Reyes said their win over Malaysia was a good start for them as they try to improve on the fifth-place finish that the country had in the event in Singapore in 2015 while also aiming for a podium finish for the first time since 2005.
“This is a good start. But we should still not get complacent. We still have to work hard and win over Vietnam to make it easier for us to reach our goal,” said Ms. Reyes, who finished the game with two points.
With the win, the Philippines assured itself of advancing to the crossover semifinals from Group A after Vietnam defeated Malaysia on Wednesday.
Next for the Philippines is Vietnam today for the top spot in their group that would position them to challenge the second place team from Group B and possibly avert an early encounter with defending gold medallist Thailand.
In the lead-up to the SEA Games, the Philippines defeated Vietnam in the 2017 AVC Asian Senior Women’s Volleyball Championship held in Binan, Laguna, in one of its matches, making their SEA Games encounter all the more anticipated.
The game between the Philippines and Vietnam is set for 2 p.m. also at MITEC Hall 11.
THE FIRST iteration of the Film Development Council of the Philippines (FDCP)-led Pista ng Pelikulang Pilipino (PPP) has ended its successful week-long run with the 12 films showcased in cinemas nationwide garnering P149.5 million in gross receipts – well above the P100 million goal, according to an FDCP executive.
“[I would like to extend my] never-ending gratitude to all of those who came to support the Pista ng Pelikulang Pilipino. This one-week celebration is proof everyone can come together and celebrate our own works of art. Because of the success of the PPP, you proved that there’s an audience for quality films that not only makes one laugh or shed tears but also shape the nation’s consciousness as long as the story is fit for the taste of the audience it is targeting,” said Mary Liza Diño-Seguerra, chairman and CEO of the FDCP, in an Aug. 23 Facebook post.
The festival was created “in hopes to provide more avenues to local films and producers,” said Ms. Diño-Seguerra during a press conference back in May.
PPP ran from Aug. 16-22 in all cinemas nationwide.
The films screened were: Birdshot by Mikhail Red, 100 Tula para kay Stella by Jason Paul Laxamana, Ang Manananggal sa Unit 23B by Prime Cruz, AWOL by Enzo Williams, Bar Boys by Kip Oebanda, Hamog by Ralston Jover, Paglipay by Zig Dulay, Patay na si Hesus by Victor Villanueva, Pauwi Na by Paolo Villaluna, Salvage by Sherad Anthony Sanchez, Star na si Van Damme Stallone by Randolph Longjas, and Triptiko by Miguel Franco Michelena.
While the festival was not a competition, the FDCP nonetheless gave special citations for select films – the Audience Choice Award was given to 100 Tula para kay Stella, the Critics’ Choice Award went to Birdshot, and the Special Jury Prize Award was given to Patay na si Hesus.
Ms. Diño-Seguerra, in a separate Facebook post, said she was heartened by the response of the audience as they clamored for an extension and announced that some festival films will continue to be screened nationwide until the end of the month under CineLokal, where select SM cinemas screen independent and award-winning local films.
The three top-grossers – 100 Tula Para Kay Stella, Bar Boys, and Patay Na Si Hesus – will continue their cinema run outside the festival also in select cinemas.
ABS-CBN News reported that 100 Tula para kay Stella grossed P60 million on Aug. 21.
Cinema ’76 Film Society, a micro-cinema house located in San Juan, will also be featuring select films from the PPP until the 29th.
CAGAYAN DE ORO CITY – Maj. Gen. Ronald Villanueva assumed command of the Philippine Army’s 4th Infantry Division on Thursday, Aug. 24, at Camp Evangelista situated in Barangay Patag here. Mr. Villanueva takes over leadership of the ‘Diamond’ division from Maj. Gen. Benjamin Madrigal Jr., who has been appointed as the new chief of Southern Luzon Command. Before taking his new post, Mr. Villanueva was the Chief of the AFP’s Intelligence Service. He was Company Commander under the 53rd Infantry Battalion in 1987; Commanding Officer of the 28th Infantry Battalion in 2003, and later led the 26th Infantry Battalion until 2005. He was commander of the 1002nd Infantry Brigade stationed in Sarangani Province from 2014 to 2016. — News5/interaksyon.com
DAVAO CITY — The city is projecting additional revenue of P722 million with the approval of new assessment levels for real property and amendments to the 2005 Revenue Code of Davao City.
The Davao City Council — Carmencita A. Carillo
The new assessment scheme is expected to bring in P326 million while the code amendments will raise P396 million. The revised assessment levels will be applied to the market value of the real property to determine assessed value.
“We expect an additional income of P326 million with the full implementation of the Schedule for Market Values (SMV) of all lands and base unit construction cost as the basis for real property assessment,” according to Councilor Danilo C. Dayanghirang, chair of the committee on finance, ways and means.
The council approved on third and final reading “an ordinance approving the SMV of all lands and base unit construction cost as basis in the 2018 General Revision of Real Property Assessments in Davao City to take effect beginning calendar year 2019.”
The City Assessor’s Office proposed the following amendments in the SMV based on the 2009 approved assessment level: from 10 to 5% for residential, from 20 to 10.75% for agricultural, from 25 to 12% for commercial, from 25 to 15% for industrial, from 25 to 15% for mineral and from 10 to 5% for timberland.
The committee, however, recommended a much lower SMV at the following rates: 4% for residential, 9.5% for agricultural, 11.75% for commercial, 15% each for industrial and mineral and 5% for timberland.
“We reduced the SMV rates because we want to make sure that we follow the basic principle that it should be affordable and based on capacity to pay of taxpayers,” he said. The SMV was reduced to cushion the impact of the upward adjustment or increase of the market value of lands, buildings, machineries, and other improvements, and in consideration of the rising cost of inflation.
The new SMV will be implemented in tranches within three years to give businesses more time to adjust to the rates and to become competitive. A third of the total increase shall be due and collectible in 2019, two-thirds of the total increase will be due and collectible in 2020 and the total increase due and collectible by 2021.
Meanwhile, the approval of the amendments to the Revenue Code will lead to a new taxation scheme for individuals and companies doing business in the city.
Mr. Dayanghirang said the amendments are long overdue considering that the city did not amend its Revenue Code in the last 12 years. The Local Government Code authorizes the local government units to adjust tax rates every five years.
Human Resources Management Office Chief Erwin Alparaque, who is also head of the Tax Research and Action Team, said one of the proposed changes in the Code is the imposition of taxes on multinational corporations and other businesses even if they do not have a branch office or sales office in the city.
Most multinational companies still insist that they declare their gross receipts from income derived in the city to their principal offices in Makati or Manila. The amendment to the Code seeks to solve this problem on the situs of tax or place of taxation.
The City Council is also projecting a more than 300% increase in the taxes that will be levied upon quarry operators with the Revenue Code amendment.
The city’s quarry operators pay only P15 per cubic meter of quarry resources which is only around P60 per truckload. Under the amendment to the city’s Revenue Code, quarry operators will have to pay up to P50 per cubic meter or about P200 for every truckload.
Mr. Dayanghirang justified the proposal to increase the tax rates for quarry operators considering that the quarry industry harvests the city’s natural resources and their trucks also contribute to road damage.
Section 138 of the Republic Act 7160 or the Local Government Code, provides that tax on sand, gravel and other quarry resources allows the province to “levy and collect not more than ten percent (10%) of fair market value in the locality per cubic meter of ordinary stones, sand, gravel, earth, and other quarry resources, as defined under the National Internal Revenue Code, as amended, extracted from public lands or from the beds of seas, lakes, rivers, streams, creeks, and other public waters within its territorial jurisdiction.”
The proceeds of the tax on sand, gravel and other quarry resources shall be distributed as follows: 30% for the province, 30% for the component city or municipality where the resource was extracted and 40% for the barangay where the resources were extracted. — Carmencita A. Carillo
JERUSALEM — White House aide Jared Kushner meets Israeli and Palestinian leaders Thursday with the aim of restarting long-stalled peace talks, but pessimism is high over President Donald J. Trump’s pledge to reach the “ultimate deal.”
The visit comes with both Palestinian President Mahmud Abbas and Israeli Prime Minister Benjamin Netanyahu not in position to make major concessions, some analysts say, and no details have emerged of how Mr. Trump’s team would overcome that.
Mr. Trump also faces a range of crises in addition to controversies at home that may make it difficult for him to focus on the complexities of a major Israeli-Palestinian peace push.
“President Trump has made it clear that it is a top priority for him to work toward achieving a comprehensive and lasting peace agreement between Israelis and Palestinians,” a US official said.
“He remains optimistic that progress toward a deal can be achieved.”
The visit is part of a regional tour by Mr. Kushner, who is also Trump’s son-in-law, Trump aide Jason Greenblatt and Deputy National Security Adviser Dina Powell.
They have also held talks with Egyptian, Saudi, Emirati, Qatari and Jordanian officials.
“I think (Israeli-Palestinian conflict) clearly remains important, important enough that senior officials continue to engage on it, including Jared Kushner,” Dan Shapiro, US ambassador to Israel under Barack Obama, told journalists this week.
“But given the very poor prospects of a significant political breakthrough, I’d be surprised if it warrants a major investment by the president.”
Palestinian leaders have grown frustrated with the White House after initially holding out hope that Mr. Trump could bring a fresh approach to peace efforts despite his pledges of staunch support for Israel.
Mr. Trump aides have held a series of meetings with both sides, portraying them as hearing out concerns before deciding on a way forward, while the US president himself visited Israel and the Palestinian territories in May.
But Palestinian leaders note that the White House has not even said clearly whether its focus will be a two-state solution to the conflict, which has been longstanding US policy.
The two-state solution envisions an independent Palestinian state alongside Israel and has been the focus of international diplomacy for years.
When Mr. Trump met Netanyahu at the White House in February, he said he would support a single state if it led to peace, delighting right-wing Israelis who want to annex most of the West Bank, but raising deep concern among Palestinians.
Signaling their frustration, some Palestinian leaders have spoken of taking a harder line in recent days. — AFP
NEW YORK – Taylor Swift, one of the top-selling pop stars of recent years, on Wednesday announced a new album, Reputation, to be released on Nov. 10.
The 27-year-old singer, who this week has been sharing cryptic videos of a snake showing its fangs, revealed little else about her sixth studio album but said a first single would come out Thursday.
She also posted on social media the album’s cover art, with Swift staring forward in front of reels of newsprint in which her name is written ad nauseam.
While Swift has offered no clues about the sound or themes of Reputation, public image has long been one of her favorite topics with lyrics that takes on the perceptions of her in the media.
Swift, who had her start as a teenager strumming her own country songs on guitar, shifted to a more mainstream pop style on her last album, 1989, which came out in 2014 and was named after her birth year.
1989 became the fastest selling album in the United States in a decade, although her sales were dwarfed a year later by English balladeer Adele’s 25 album.
1989 also earned the Grammy for Album of the Year, making Swift the first woman until Adele to win the top music industry prize twice.
Swift was back in the news last week as she triumphed in a lawsuit against a radio DJ in Denver who she said fondled her buttocks during a routine photo opportunity in 2013.
The singer, who has described herself as a feminist, made a donation after the incident to a charity that supports victims of sexual assault.
Despite her poise in going public on her experience, it remains to be seen if her album tackles broader social issues. Swift, whose country roots won her a fan base in conservative parts of the United States, has steered clear of political commentary at a time that many fellow celebrities are bashing US President Donald Trump.
Swift made headlines with 1989 by shunning Spotify, accusing the streaming giant of short-changing artists, although she ended her boycott in July. – AFP
CEBU CITY Mayor Tomas Osmeña announced yesterday there are multi-billion companies that have expressed interest to invest in a call center at the South Road Properties (SRP). The Call Center City will be a one-stop shop for outsourcing with amenities to be offered to agents working there. “We are packaging a program whereby a call center agent can finish college while still working. Later, they can even choose to pursue a master’s degree without resigning. The agent will work, study, and live all in the same building complex,” the mayor said. The so-called Call Center City will have movie theaters, restaurants, bars, and recreation facilities, among others, Mr. Osmeña also said. — The Freeman
MANILA — Two years after a hot debut at the stock exchange, Xurpas stocks have continued to slide recently. The Philippine tech company’s stock lost over half of its price from last year’s peak as market expectations leveled down after a string of acquisitions that have yet to bear fruit.
After its initial public offering (IPO) price of P3.97 each in December 2014, the company’s stock hit a high of P19.24 in April last year before a sustained downtrend. Shares in Xurpas closed at P5.57 each on Thursday.
Joseph Y. Roxas, president of Eagle Equities, Xurpas stock is “very expensive based on its current level of income.”
“The outlook for a tech stock is that growth is supposed to be very fast and that is not showing in the numbers,” Mr. Roxas said, noting that its current price-to-earnings ratio of 41.07 remains high.
During the first half of 2017, the company’s net income attributable to shareholders rose 7% to P108.72 million year on year. However, its second quarter earnings went down 71.5% to P13.82 million, which Xurpas attributed to seasonality of earnings, as some clients put mobile campaigns on hold.
Xurpas Chairman and Chief Executive Officer Nico Jose S. Nolledo said it is “important for the market to look at Xurpas as a long-term play.”
“When investors look at us as a tech company, I think the expectation is that we will grow as fast as a high-growth privately held company. But at the same time, grow our bottom line as if we were an established blue-chip that’s been around for a hundred years. That balance is very difficult to keep,” Mr. Nolledo added.
Xurpas went public in 2014 after having built a business record making mobile products, seen as a high-growth industry due to the unrelenting smartphone and mobile broadband penetration locally. Internationally, it was also a heady time for e-commerce and mobile, coming three months after Chinese tech giant Alibaba raised $21.8 billion in a blockbuster IPO tagged as the biggest in the US, and the unveiling of the Apple Watch, the company’s first new product under CEO Tim Cook and marketed as “the next chapter in Apple’s story.”
Post-IPO, Xurpas has snapped up a series of companies. Based on the company’s 2016 annual report, it already holds a dozen companies in its portfolio. Its last major acquisition was in October last year when the company bought Singaporean mobile marketer Art of Click for $45 million.
Mr. Nolledo said they are now quite done with shopping to pivot towards being a “platform” business, likening it to what tech companies like Airbnb and Uber do.
“We’ve over-invested in making sure that we make the right transition to the platform side of business,” Mr. Nolledo said. “The platform side is where you create an ecosystem that allows third party partners to access your audience.”
Luis A. Limlingan, head of research at Regina Capital, likened the company’s strategy to one of a venture capital firm placing bets on start-ups, where only one out of 10 bets usually pay off.
“A lot has happened to the company over the course of the year,” Mr. Limlingan said. “From the alluringly aggressive company that generates high earnings with low debt and low assets, Xurpas has now entered into a dormant state with still above average margins (although significantly lower than previous years). The reason for this is due to the company’s strategy to currently integrate everything that they have acquired.”
On the other hand, Justino B. Calaycay, senior research analyst at Philstocks Financial, Inc., said investors may now just be opting for more traditional equity classes.
“Against the rising backdrop of generally cautious optimism heading into the second half of the year, investors may have increasingly become more risk-averse, opting instead for what comes closest to safe havens insofar as equities are concerned,” Mr. Calaycay said.
Amid the change in investor mood from sizzling to tepid, Mr. Nolledo said Xurpas remains confident of its prospects as opportunities in mobile digital advertising continue to expand, not just in the Philippines but regionally as well where they are now carving their space.
“It’s a learning experience both for ourselves and the market,” Mr. Nolledo said.
Early payments made for foreign loans surged by over a third as of end-April, data from the Bangko Sentral ng Pilipinas (BSP) showed, which may have contributed to the depreciation of the peso over the past months as it added to the demand for dollars.
BSP Managing Director Francisco G. Dakila, Jr. said debt prepayments totaled $2.014 billion as of end-April, jumping by 35.1% from the $1.491 billion settled during the comparable year-ago period.
The national government and private businesses may choose to frontload their payments of external debt ahead of the arrival of goods and services they avail of, especially when market conditions appear favorable.
The first four months of the year saw entities choosing to settle their dues ahead of time, which the central bank official said was in line with expectations that the country’s debt burden will sustain a downtrend.
“This is consistent with what we see that the long-run trend is for our foreign indebtedness to go down in proportion to the size of the economy,” Mr. Dakila told reporters during a briefing last week.
The country’s external debt amounted to $73.805 billion as of end-March, around 80% of which come with medium and long-term maturities. Foreign debt accounted for 24.5% of the country’s gross domestic product as of end-2016, lower than the 26.5% share it took a year prior, according to BSP data.
Financial markets encountered added volatility earlier this year as the United States Federal Reserve introduced a fresh lift-off in interest rates in March, while baring hints that it was on track with its plan to raise rates twice more within 2017.
Other external developments which likely affected market sentiment between January-April include political concerns in Europe, particularly the start of formal discussions for the United Kingdom’s exit from the European Union.
While paying off external loans would bode well for the economy, Mr. Dakila said it likely caused a short-term depreciation for the peso during the period.
“Debt prepayment is a welcome development, but of course it will have impact on the peso-dollar rate,” Mr. Dakila explained. “When you prepay, you demand dollars to pay your indebtedness… It’s an additional demand for dollars, but the purpose of that is to lower your indebtedness.”
The peso traded above P50 versus the dollar since mid-February before returning to P49.705 on April 10, a level sustained for the rest of the month.
Central bank officials have said that the daily exchange rate continues to be market-driven, but maintained that they stand ready to intervene whenever they see excessive swings during trading.
The BSP estimates the peso to trade between the P48-50 range this year, although some private economists said the local currency could finish around the P51 level by December.
ROTTERDAM — Dutch police are investigating possible terror links after arresting a Spaniard driving a van containing gas canisters close to a rock concert which was abruptly canceled over fears of an attack.
The man “was arrested and taken to the police station,” Rotterdam police said in a Tweet late Wednesday, following a tip-off from Spanish authorities.
The arrest came little under a week after twin vehicle attacks in Spain killed 15 people, which were claimed by the Islamic State group.
Dutch bomb squad officials “were investigating the van” which was found just two streets away from the Maassilo concert hall where an American rock band were due to play, they added.
Earlier in the evening Dutch authorities decided to cancel the concert by Californian group Allah-Las in Europe’s largest port city after a tip-off from Spanish police around 5:30 p.m. (1530 GMT) about a possible terror attack.
“In the early evening I was warned by telephone that we had received a threat which had implications for an American concert at the Maassilo in Rotterdam,” the city’s mayor, Ahmed Aboutaleb, told a hastily-called press conference.
“This signal came from the Spanish police to the Dutch police,” he added.
But Mr. Aboutaleb, the country’s first Muslim and immigrant-born mayor who has spoken out against Islamic terror groups, added an investigation was under way and “we cannot say now if the van with the canisters was linked to the threat.”
The four-piece band, from Los Angeles, had been escorted from the concert hall by police wearing bullet-proof vests.
In a statement sent to AFP, they said they were “unharmed and are very grateful to the Rotterdam police and other responsible agencies for detecting the potential threat before anyone was hurt.”
Rotterdam police said that afterwards an officer “stationed close to the venue decided to stop a van that he saw driving at around 21:30 hrs.”
“The van had Spanish plates and was driven by a Spanish national. Inside the van were a couple of gas bottles. Whether there is a link with the terror threat is being looked into,” the statement in English said, adding “the driver was taken into custody.”
The international connections of the cell of mostly Moroccan nationals behind the Spanish attacks are being probed as investigators retrace their movements to France and Belgium.
Spanish police carried out new raids overnight Tuesday to Wednesday after vehicles ploughed into pedestrians on Barcelona’s busy Las Ramblas boulevard and a seaside promenade in the resort town of Cambrils.
Fifteen people were killed and more than 120 others were wounded.
Spanish court documents have shown that at least 500 liters of acetone, large quantities of nails and detonators as well as gas canisters were found in raids on a house in the town of Alcanar, south of Barcelona.
The Rotterdam building where Wednesday’s concert was to be held, which can hold about 1,000 people, was searched by the Dutch anti-terror squad after the crowd had been evacuated. — AFP
PERLAS Pilipinas, the Philippine national women’s basketball team, was dealt a telling blow in its bid in the 29th Southeast Asian Games yesterday after it bowed to host Malaysia, 60-56, that had a lot of repercussions in the team’s quest for gold.
Perlas Pilipinas absorbed a telling blow to its 2017 SEA Games campaign yesterday at the hands of host Malaysia, 60-56. — FIBA.COM
Less than 24 hours after their spirited fight back and victory over Thailand, 67-65, on Wednesday night, the Filipina ballers were back on the court to gallantly take on the Malaysian team in front of the latter’s home town crowd at the MABA Stadium, but their efforts fell short and along with it their chances of winning a gold medal in the biennial regional sporting meet.
Perlas Pilipinas fought side by side with the Malaysians early in the contest but a late charge by the hosts in the second period allowed them to take an 11-point cushion, 34-23, by the halftime break.
The Malaysians picked up from their strong closing in the second canto to start the third period, extending their lead by as much as 16 points, 43-27, with six minutes remaining in the quarter.
But the Philippines would make its move thereafter to cut its deficit to single digits at the end of the third quarter, 47-38.
Perlas Pilipinas, with its campaign on the line, rallied back in the fourth period, led by Allana Lim and Aracelie Abaca.
The team managed to tie the knot at 54-all with 4:36 left in the game.
Malaysia, however, would score the next four points to give itself breathing room, 58-54, with less than a minute to go.
Ms. Lim scored on a layup to slice Malaysia’s lead to two points with 12 ticks remaining but that was the closest they could get as two converted free throws by the hosts sealed the win.
Far Eastern University standout Lim top-scored for Perlas Pilipinas with 17 points while Analyn Almazan and Afril Bernardino added 11 and seven points, respectively.
Malaysia, for its part, was led by Chong Yin Yin with 12 points.
With the loss, the Philippines dropped to 3-2 in five games, good for fourth place at this point of the competition with chances of winning gold very little if at all with one game left in its schedule.
Malaysia continues to lead the standings at 4-0, followed by Indonesia at 3-1.
In SEA Games women’s basketball, the team with the most wins at the end of the single round-robin tournament wins the gold.
THE SENATE committee on ways and means is eyeing a multi-tiered excise tax based on sugar content, but capped at P5 per liter instead of the Finance department’s volume-based P10 per liter.
During the Senate hearing on the sugar-sweetened beverage tax measure under the Tax Reform for Acceleration and Inclusion (TRAIN) yesterday, Senator Juan Edgardo M. Angara floated the idea of the multi-tiered tax pegged on a beverage’s sugar levels to make the tax more targeted.
The TRAIN proposal imposes a flat rate of P10 per liter on sugar-sweetened beverages regardless of the sugar content.
“It does not distinguish between beverages (with varying sugar content). So it’s a bit blunt if it’s not targeted to those sweetened ones. We might look into the possibility of specifying sugar levels, to distinguish between sweeter beverages and those which are not so sweet,” said Mr. Angara, who chairs the ways and means committee.
“We want to get the consensus where the levels will be set, but for the senators, they’re okay with three tiers, as long as the maximum level does not exceed P5 per liter,” said Mr. Angara.
He said that this approach would incentivize beverage manufacturers to lower their sugar content, “so you can reward those who put less sugar in their beverages.”
Federation of Philippine Industries President Jesus L. Arranza however said that the multi-tiered proposal may be anti-competitive.
For its part, the Department of Finance (DoF) said that it will let the Department of Health (DoH) decide on the taxation structure of sugar-sweetened beverages, as the program is primarily intended as a health measure.
“I will defer to the DoH,” Finance Undersecretary Karl Kendrick T. Chua told reporters yesterday on the sidelines of the hearing.
“[The proposals] have pros and cons. It now depends on which one will deliver the best health impact because its really a health measure… so we will meet that objective before the revenue,” he said.
The Finance department’s volume-based flat P10 rate is more attractive from a fiscal perspective as it is easier to administer.
DoH Undersecretary Mario C. Villaverde however backed the original Finance department proposal, but said he is open to studying the health benefits of the multi-tiered system.
“Our position is to support the house bill version… It’s much simpler, easier to enforce and administer because of the simplicity of the mechanism,” he said.
Mr. Villaverde also defended the P10 proposal to burden the rich more rather than the poor, as they consume bulk of the sugar-sweetened beverages.
As for the proposed P5 cap, Mr. Villaverde said that it would not be enough to discourage consumers to shift away from sugar-sweetened beverages.
“Generally it should be around 20% additional tax. P5 is only around 10%.”
Industry representatives also proposed before the committee to include non-caloric and artificial sweeteners, but this approach has yet to be studied by the panel.
However Mr. Villaverde noted that artificial sweeteners have no direct link to the development of diabetes.
“Its effect is more on the taste buds. People get a taste for sweets and crave sweetened food and beverages and that means craving more sugar. That’s the downside of it,” he said.
“The consumption of the rich is already high. So the growth of consumption will only be marginal because they are the number one consumers. But among the poor, their consumption is increasing, and we would want to prevent them from consuming more. So the additional tax would become preventive, before their consumption increases,” added Mr. Villaverde.
As for the effect on the beverage manufacturers, audit firm KPMG R.G. Manabat & Co. reported that businesses will take between 6.1 years to 15.8 years to recoup their forgone revenue from the imposition of the sugar-sweetened beverage tax.
It also said that an average small store will lose about P300 in daily revenue, noting that 40% of store sales are from such beverages. — Elijah Joseph C. Tubayan
