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MGB pushes end of ban on open-pit mining

THE MINES and Geosciences Bureau (MGB) has asked the Environment chief to end the ban on open-pit mining which his predecessor had imposed, the bureau’s head told reporters last weekend.

“The recommendation was submitted to (Environment) Sec(retary Roy A.) Cimatu,” MGB Director Wilfredo G. Moncano said in a mobile phone message.

“MGB’s position is that the ban on open-pit (mining) should be lifted because it has no legal basis. The law allows it.”

The bureau has been reviewing this order of Mr. Cimatu’s predecessor, Regina Paz L. Lopez, along with her crackdown on 26 of the country’s 41 operating metal mines and 75 others in pre-production stage suspected of spoiling their project sites.

Mr. Cimatu has said that he will raise the open-pit mining ban to the Mining Industry Coordinating Council that will convene on Aug. 25. The multi-department council was formed in 2012 by then president Benigno S.C. Aquino III through Executive Order No. 79 issued in July that year. That same order imposed a moratorium on new projects until the government’s existing revenue-sharing with the industry is revised. Such a bill was filed in the closing months of Mr. Aquino’s administration last year, but was not acted on by Congress.

Mr. Moncano also noted that President Rodrigo R. Duterte himself, who has threatened to tax “to death” irresponsible miners, knows that existing laws allow open-pit mining.

“The President’s pronouncement during the mining company executives and NGO dialogue on Thursday, August 3, 2017, in Malacañang was clear: open-pit mining is allowed because there is a law allowing it,” Mr. Moncano recalled.

“However, mining should be done responsibly, following international best practices.”

Sought for comment, Ronald S. Recidoro, officer-in-charge of the Chamber of Mines of the Philippines, replied via text: “We said that open-pit mining is an internationally accepted mining method and is allowed under the (Philippine) Mining Act” of 1995, or Republic Act No. 7942.

He said the group is scheduled to elect new officers some time next month. — Janina C. Lim

Technology, the dragon slayer

Companies that don’t have a digital strategy are toast.

Perhaps I should amend that: companies that don’t embrace technological change face extinction.

Radical statement, you might say? Recently, Ford, Inc., the motoring giant, ousted its CEO, Mark Fields, even though he had presided over Ford’s record growth in profits in 2015. The reason? Ford hasn’t embraced technological change fast enough. It risks being left far behind when the industry will be dominated by electric vehicles and self-driving cars. General Motors and Nissan have leapt out of the gate with fully electric cars. Tesla, the electric vehicle car maker whose market value exceeds that of the traditional car makers like Ford and GM, is grappling with a sweet problem: it can’t manufacture the Tesla Model 3 cars fast enough. Meantime, other players, such as Google and Uber, are coming out with their versions of autonomous cars and trucks. With their expertise in software, they are threatening to relegate traditional car makers to commodity producers, just as Microsoft did with the PC manufacturers.

Furthermore, with self-driving cars, will commuters still buy cars or just rely on car-sharing services?

However, car makers aren’t the only ones facing an existential threat. Sparkplug companies, oil filter suppliers, and yes, oil producers will see falling demand when the car industry shifts to electric cars. These changes will have geo-political implications, as oil producing nations Saudi Arabia and Russia, will see even radically reduced demand. Where then will that leave our OFWs in the Middle East?

On the other hand, it would seem that real estate would be immune to technological changes. Not so. While the mall building boom is still on fire here, in many places in the United States, some malls have become ghost towns, with consumers buying more and more online and shunning malls. In Singapore, the shift to e-commerce has also hurt the mall owners, with a number of spaces being boarded up.

Mall owners here are beginning to realize this, although most have taken defensive positions. Ayala bought fashion site Zalora for its back-end expertise while SM bought into Dennis Uy’s Chelsea Logistics. Probably the theory is that if e-commerce takes off in the Philippines, e-commerce sites would still need logistics firms to fulfill customers’ orders.

On the other hand, SM and Ayala are trying to reposition their malls as more than shopping destinations. Malls are where families go for entertainment, get health checkups, apply for passports, or simply hang around like in a park.

Incumbents, which are hoping that laws and regulations can help them fend off competition empowered by technology, will have another think coming. For example, the Constitution restricts mass media ownership strictly to Filipinos. However, the mass media behemoth now is Facebook, sucking up most advertising money with content that it doesn’t even pay for.

Perhaps this is the reason why the Prietos decided to sell Philippine Daily Inquirer to billionaire SMC Chief Ramon Ang. President Duterte’s rants and threats against the owners of PDI may have been a factor in the their decision to divest, but probably, not the fundamental reason. The fact is the media landscape is changing rapidly with new technologies. People are increasingly consuming content on their digital devices like tablets and phones, rather than on print. The story of change, disruption, and sale is playing out all over the world. In the United States, the storied Washington Post, which had been owned by the Graham family for generations, has been sold to the richest man in the world (briefly), Amazon founder, Jeff Bezos.

Similarly, the telco duopoly — PLDT-Smart and Globe Telecom — can’t be sure that the Constitutional restrictions and their control of spectrum — will shield them from competition forever. For one thing, the political situation has changed — in the Sulong Conference sponsored by the Department of Finance held last Aug. 8 to consult with businessmen and civil society leaders, a major demand of the Conference was for a third telecommunications player. Moreover, President Duterte just passed a Public Internet Law that mandates free public Wi-Fi in public spaces. This means that a user can get free Wi-Fi instead of using up his load to connect.

However, a bigger thing is that technology may erode the duopoly’s dominant position. Broadband may become more ubiquitous, thanks to non-mobile technologies — satellite, microwave dish, and yes, balloons. Because of technological developments and the presence of satellites with the Philippines as their footprint, satellite broadband may be able to provide Internet connection in our archipelagic country far cheaper than fiber or mobile. In Sri Lanka, a Google-sponsored project aims to deliver Internet through balloons.

Whereas mobile technologies won’t go away, telcos will have to compete with these technologies. In fact, a mobile phone is connected to Wi-Fi by default, rather than mobile broadband, so the more ubiquitous and cheaper Wi-Fi becomes,the more telcos will see their data revenue fall. In the United States, the phone giant, Verizon, seeing the handwriting on the wall, has been acquiring Internet companies, such as Yahoo and AOL, in order to pivot to a different business model in the future.

The scary thing for CEOs is that no matter how much they are aware of new technologies, they can still get blindsided. Just look at camera companies. Who would have thought that Canon’s biggest competitor would be the iPhone? Neither did the GPS companies like Garmin think the smartphone would be a competitor.

New technologies are today’s dragon slayer. New technologies help curb the abuses of rent-seekers and monopolists, if not entirely disrupt them.

The only monopoly that seems immune to technological developments is government as a provider of public services. Public transportation, the administration of justice, the maintenance of peace and order, transport regulation, and other public services are as bad as ever. Can we ever hope for a technological fix?

Calixto V. Chikiamco is a board director of the Institute for Development and Econometric Analysis.

idea.introspectiv@gmail.com

www.idea.org.ph

Central bank seeks to calm nerves frayed by peso weakness, says no ‘free fall’ in sight

THE RECENT WEAKNESS of the peso should not cause alarm among investors, the country’s central bank chief said over the weekend, pointing out that the monetary authority is armed with ample funds to stabilize the currency as it hovers near an 11-year low.

Espenilla
Bangko Sentral ng Pilipinas (BSP) Governor Nestor A. Espenilla, Jr.

Bangko Sentral ng Pilipinas (BSP) Governor Nestor A. Espenilla, Jr. sought to temper pessimism towards the peso after it breached the P51-to-a-dollar level during Friday’s trading before closing P50.98 against the greenback, its weakest value since a P51.05 finish on Aug. 29, 2006.

“The peso is market-determined. It’s natural for it to show volatility as it adjusts to market conditions and all the short-term uncertainties such as increased tension in North Korea,” Mr. Espenilla said in a text message to reporters on Sunday.

“We don’t expect it to do a free fall because our economic fundamentals now — unlike before — are solid and very strong.”

Traders last week attributed the peso’s depreciation largely to worsening tensions between the United States and North Korea that have sent investors scampering for cover away from most Asian currencies, except the yen.

Last week, US President Donald J. Trump threatened North Korea with “fire and fury” after Pyongyang announced it planned to lob missiles over Japan at waters around Guam.

Ms. Espenilla signaled confidence that the currency’s weakness is temporary, pointing out that the central bank can manage sharp exchange rate swings.

“The peso is capable of correcting itself as the market calms down and digests the relevant information,” Mr. Espenilla said.

“Moreover, BSP will always be there strategically if volatility is considered excessive,” the central bank chief added, explaining: “We have a huge pile of foreign currency reserves to play an effective stabilizing role.”

The country’s dollar reserves totaled about $80.787 billion in July — the smallest amount in seven months but still enough to cover 8.6 months’ worth of import payments, well above the three-month global standard.

The central bank sometimes uses reserve funds to influence daily peso-dollar trading by buying more of the local currency in order to temper steep movements.

‘NOT OVERHEATED’
Mr. Espenilla also addressed mounting concerns over the Philippines’ widening current account deficit which analysts said has been putting pressure on the local currency, attributing the gap to the acquisition of more capital equipment related to business expansion and the government’s infrastructure push.

“It’s natural for it to run moderate current account deficits. In fact, it’s sub-optimal for it to be persistently running current account surpluses. That’s like the equivalent of deploying our own savings to the world instead of using those internally to finance our own investment needs,” the BSP chief explained.

Saying that the economy is “doing well and… is not overheated”, Mr. Espenilla said the central bank remains “vigilant”.

“Let’s calm down. We’re on the right track.”

The country’s economic managers expect the peso to range between P48 and P50 to a dollar this year and in 2018.

The peso averaged P50.0263 against the greenback in the seven months to July, according to central bank data.

The country posted a $318-million current account deficit in the first quarter, equivalent to 0.4% of gross domestic product.

That compares to a $600-million deficit expected by the central bank for the full year, reversing from 2016’s $601-million surplus.

WEAKNESS EXPECTED TO PERSIST
In a research note on Friday, analysts at the Singapore-based DBS Bank said the central bank’s decision to keep its monetary policy stance unchanged last week “indicated its tolerance of a softer currency,” as it realized that strong import demand will be sustained.

“While the peso has been the worst performing unit in the region, the BSP expects the depreciation trend to continue,” DBS said.

“As it is, there was no strong suggestion that the BSP is about to hike rates anytime soon in a bid to slow down the depreciation of the peso.”

The central bank’s policy-setting Monetary Board maintained benchmark interest rates and banks’ reserve requirement steady on Thursday last week in the face of firm domestic demand and manageable inflation, with price increases seen to remain within the 2-4% target band annually until 2019. — Melissa Luz T. Lopez

The longer you wear it, the brighter it gets

Product Review
Color Jolt Matte
by Maybelline

MAYBELLINE PHILIPPINES recently announced the entry of its newest lip line: the Color Jolt Matte — a curious product which promises “3x more pigment… to get intense lip color in just a New York minute,” according to a company press release.

Now, the New York-based drugstore makeup brand already has quite an extensive lip line, from the newer Powder Mattes and the Loaded Bolds to the older Color Show lip colors, but it seems that Maybelline is bent on serving all kinds of markets which is why it introduced this hyper-pigmented lip stain — yet matte — hybrid.

Coming in eight colors from “Don’t Pink with Me” (an intense, almost neon, pink), to a token nude/brown shade called “Show Off Nude,” to a deep red named “Vamp Red,” a single 5-ml tube will set you back P299.

BusinessWorld was given all the eight shades to try out and this writer has been testing them out for two weeks and the verdict is — well honestly, I’m not that impressed.

First things first though, they weren’t joking when they said this product is packed with pigment. A small, almost pinhead amount of product is enough to almost entirely cover my lower lip, but what they don’t tell you is it can be patchy — especially the nude/brown shade which I only used once and never again because it was really patchy (and the color not flatter my fair skin).

For a product whose main selling point is the pigment which would ideally not require a second swipe, it needed another to even out the color.

The felt tip applicator is a nice touch because it almost made me like the squeeze tube design, which I have never been fond of. The applicator is soft and adequately applies lip product without much difficulty.

For those who have trouble with the doe-foot applicators which come with most liquid lipsticks, this might actually be a good starter product — it feels similar and one will benefit from it being a lot shorter than other applicators.

Texture-wise, the product glides on smoothly like butter (though the product itself looks like latex or oil paint), reminiscent of the popular Nyx Soft Matte Lip Cream, and it does dry down semi-matte (not completely matte) after a few minutes of letting it set.

And like the aforementioned product, it does not dry out your lips and it does feel weightless — but do remember to prep your lips beforehand (exfoliate and moisturize).

Now, for P299 you don’t get a lot of product — just a measly 5-ml tube. While I do get the point that the hyper pigmented formula means that one uses less product, I [would] still feel cheated (if I actually had paid for these) if I was given this tiny tube.

Next, the color range isn’t very nice. There is an orange, a neon pink, a neon purple, a darker neon pink/purple, another pinkish red, a deep red, and a nude. Let’s hope if ever this product clicks that they expand the color range to something beyond neon.

Still on neon pinks, especially “Don’t Pink with Me” — upon first application, this shade does not look too bad. It actually brightened up my face — which was a plus — but once it wore off (in about three hours) for some odd reason, the neon got neon-er. It does not fade or stain lightly, if anything, the colors get brighter.

A lot of the shades didn’t work for me: in fact, the only shade I did like was the Vamp Red which led me to the conclusion that this product is not for everyday use but for very occasional, “I want to be in the ’70s” kind of party look.

Maybelline, again, has an extensive line of lip products at the same price point, many of which — like the aforementioned Powder Mattes or the Creamy Mattes — behave better and offer more colors. I believe they would be the better choice. — Zsarlene B. Chua

Are there soul mates in the office?

It’s no longer just in showbiz that the question of special relationships that endanger the marketability of love teams and the box-office appeal of rising stars is routinely dismissed with the insignificant tag — we’re just friends. So what if we have the same mailing address.

Friendship is a loose and often undefined relationship without a job description or a list of obligations. There is no formal agreement specifying duties (Must confide latent amorous interest as soon as this becomes evident) or imposing rules like frequency of meetings.

It can be disputed if a claimed friendship is even reciprocated or recognized. The higher a person goes up the corporate or political ladder, the greater the number of acquaintances claiming to be his buddy. So proof of actual friendship is not even required.

There are degrees of friendship. There is a close friend (He attends the New Year’s Eve dinner at home), an acquaintance (Familiar with your first wife’s name and affiliation), a childhood buddy (Last seen in the high school reunion). The ties that bind differ — classmate, childhood neighbors, or thrown together by chance in a difficult situation like a foreign mugging.

There is now a new category, brought on perhaps by the cluttered hierarchy of closeness that has taken the place of “close friend.” The “soul mate” harks back to the Greek philosophers, maybe Socrates who talked about looking for the missing half of your soul. The soul mate is a person who completes you and settles down your once restless quest for the perfect partner. It’s never too late.

Are there soul mates to be found in the office?

For one, people who can finish your sentences are not considered particularly close, only rude — why do you keep interrupting me before I get to my point? That is not at all what I meant to say.

In a social setting, the soul mate can be a wonderful person to talk with as she is always on the same wave length and able to converse without the need for words. (How can you take the minutes of a meeting if everyone is quiet and just staring at each other?)

Nothing strains soul mating more than a business partnership or reporting relationship. The perfect harmony that soul mates display will only look like obsequiousness. The posture of constant and invariable assent and admiration can be easily mistaken as being a fawning “yes man.” (Yes, sir, you put that argument so well.)

Intimacy is seldom defined by goals. There is no assignment of tasks and responsibilities which need to be rated at the end of a period. Time, treasure, and talent are given to a soul mate not out of expectations of reward or good ratings but merely to make the other person happy and at peace. Action and thought are guided only by a fond regard for another.

Seldom will one in power declare openly and consistently that a specific person is a soul mate except perhaps in the context of a speech at a wedding, and referring always to the newlyweds. The inappropriateness of acknowledging unique ties of friendship in a corporate setting can arise out of the fear of alienating others whose help one also needs to succeed.

Still, in the context of separations and public displays of public disaffection (I don’t seem to know here anymore. Who is this beast?), there is no need to use the once-favored terms for a third party in a ménage a trois. Terms like lover, interloper, other man, or even special friend require too much legal proofs and presumptions of guilt.

A soul mate, on the other hand, propounds an undefined closeness arising from a chance encounter. (Sparks flew when we met at a product launch.) Even the activities mutually enjoyed do not necessarily refer to anything prurient — we can play chess without a board.

Presumptions of more pedestrian types of intimacy are dismissed as base and totally misunderstanding the relationship — she had nothing on but the radio.

The ambiguity of what a soul mate is can make such a label difficult to place in an office setting. There are more robust and clear-cut corporate terms for the positive attitude of an executive or employee — team player, prepared to do the heavy lifting, and always on the same page.

The soul mate lives in another plane, where money doesn’t matter… or is presumed not to.

A. R. Samson is chair and CEO of Touch DDB.

ar.samson@yahoo.com

Exhibit honors National Artist for Fashion Ramon Valera

VALERA AND THE MODERN: An Exhibit on the Life and Work of National Artist for Fashion Design, Ramon Valera, will be launched on Aug. 31 at the De La Salle-College of Saint Benilde (DLS-CSB).

The opening will coincide with the designer’s birthday, and likewise marks his 45th death anniversary.

Valera’s work will be set against Modernism, the design paradigm in the Philippines prevalent during the Post-War period. Examples of the scale models and old photographs of the art, architecture, interior graphics, and furniture design from the period spanning from the 1950s to 1970s will be will be shown in order to situate Valera in the context of a country recovering from the war and how design was utilized in forging the identity of a newly declared nation.

Event partner Tantoco-Rustia Foundation president Zenaida Tantoco, together with art patron Danny Dolor, restoration and conservation specialist Tats Manahan, the family of Jose Carlos Garcia-Campos, the designer’s niece and nephew Peching Zulueta-Gomez and Bambi Zulueta, are instrumental in loaning family memorabilia, the long gowns, and assisted in sourcing pieces owned by prominent families.

A favorite of many of the country’s elite when it came to formal Filipiniana, Ramon Valera’s name invokes the look that has been identified as being uniquely Filipino.

The exhibit will likewise introduce his innovations in fashion design to a new generation. As inspired by Valera, DLS-CSB’s Fashion Design and Merchandising program students will design and interpret his classic terno.

The show is the first La Salle production on Valera, an alumnus of then De La Salle College and the recipient of the 2007 DLSAA (De La Salle Alumni Association) Distinguished Lasallian Awardee.

Valera and the Modern will be on view until Oct. 14 at the SDA Gallery, DLS-CSB School of Design and Arts Campus, 950 Pablo Ocampo St., Malate, Manila. For inquiries and details, contact the Center for Campus Art at 230-5100 local 3849 or e-mail campus.art@benilde.edu.ph.

Stay indoors, PHL advises some 125 Filipinos in Charlottesville

By Mario M. Banzon

THE PHILIPPINE Embassy in Washington DC has urged an estimated 125 Filipinos living in the college town of Charlottesville in the US state of Virginia “to stay indoors and avoid large gatherings of people,” the Department of Foreign Affairs (DFA) said in a statement on Sunday.

The statement follows on the heels of violent clashes last Saturday, Aug. 12, between hundreds of white supremacists or nationalists — as news reports abroad have described the ralliers — and counter-protesters, against whom a car had plowed into that crowd, killing a 31-year-old woman, according to a report by Reuters.

Nineteen others were also reported injured in the clashes. Reuters said the suspect in the attack, identified as James Alex Fields, Jr., a 20-year-old white man from Ohio, has been detained by police.

The DFA statement said the embassy estimates there are around 125 Filipinos in Charlottesville.

The statement also referred to the demonstrators accordingly as “white nationalists” and “counter-protesters.”

“Foreign Affairs Secretary Alan Peter S. Cayetano was informed this morning by Embassy Charge d’Affaires Patrick Chuasoto that no Filipino has been reported among the injured or arrested as a result of the violence,” the statement also said, adding:

“According to Secretary Cayetano, police normally notify foreign embassies if there are foreign nationals injured or arrested in such disturbances.”

“So far, the Philippine Embassy has not received reports from the Filipino Community or the Charlottesville police,” Mr. Cayetano said in the statement.

“The Embassy, at the same time, urged Filipinos in Charlottesville, which is home to the University of Virginia, and neighboring areas to stay indoors and avoid large gatherings of people,” the statement said, adding that the Embassy is “closely monitoring the situation in Charlottesville.”

BIAP proposes options for beverage tax

By Arra B. Francia and Elijah Joseph C. Tubayan
Reporters

THE BEVERAGE Industry Association of the Philippines (BIAP) has proposed to lower the tax to be imposed on sugar sweetened beverages (SSB) under the tax reform program of President Rodrigo R. Duterte’s administration, which the industry said would put a strain not only on companies but also local farmers who supply their produce.

In an updated position paper sent to the Senate committee on ways and means earlier this month, BIAP presented three options for the proposed beverage tax under House Bill No. 5636, instead of the current volume-based tax rate which automatically puts a P10 per liter tax for products with locally produced sugar and P20 per liter for products with sugar produced elsewhere.

The first option is based only on caloric sweetener content, similar to laws imposed in the United Kingdom and Singapore that taxes beverage based on the amount of sugar they contain.

“Under the tiered system, the industry will be more encouraged to introduce new products promoting proper sugar intake, and invest more resources to provide Filipino consumers a wider range of low- and no-calorie beverages,” the BIAP said.

The second option suggests a tax of P10 per kilogram on all caloric sweeteners used in beverages only, which would increase the prices of products by only 12%. Under the current proposal, prices could increase by as much as 40%.

“If the tax will be imposed, the prices of these products will increase from 30-40% kasi iba-ibang varieties pa within the 3-in-1… So it will increase from P1.50 to P3 depending on the variant. For the ordinary consumer, that’s going to be a hefty increase,” Nestle Philippines Senior Vice-President and Head of Corporate Affairs Ernesto S. Mascenon told BusinessWorld in an interview in Makati last week, referring to the 3-in-1 product that mixes coffee, sugar, and creamer into one product.

Nestle Philippines is one of 14 members of BIAP that would be affected by the beverage tax. Other members are Universal Robina Corp., Kopiko, Coca-Cola FEMSA Philippines, and Zest-O Corp.

“We’re the sachet economy here in the Philippines, because the consumer will not anymore buy separately sugar or creamer so in terms of affordability. The 3-in-1 is the right format for the Filipinos based on their cash flow,” Mr. Mascenon said.

Meanwhile, the third option will place a P5 per kilogram tax on all caloric sweeteners used as raw material, which would broaden the tax base beyond the beverage industry. Aside from a lower than 5% increase on the retail price, the measure would also cover all products that contain caloric sweeteners, not just manufactured goods.

“Si Juan dela Cruz bibili sa karinderia (buys at the canteen), he will pay now the SSB tax. (But) if you go to (a coffee shop) and buy a P150 coffee latte, you will not be paying any tax because it will not be covered. Those who buy from the coffee shop will not be taxed kasi manufactured lang definition ng batas (because the definition by law only covers manufactured goods),” Mr. Mascenon said.

Mr. Mascenon also explained how the tax would affect the farmers. “(Of the) (d)irect business of the companies involved there are 14 of them will be hampered, but it will also affect the supply chain down the line. It will reverberate down to the farmers, both sugar and coffee farmers at a time when we are saying the worst sector in our economy which has the highest poverty level is the agricultural sector,” he explained.

For instance, Nestle sources its green coffee needs locally in coffee-producing provinces such as Cavite and Batangas, as well as other parts of Mindanao. One of the company’s sources is Silang, Cavite, where more than half of the 5,000 farmers are into coffee farming.

“By imposing additional charge, the consumption and the demand would drop. If this happens, processors such as Nestle would not buy as much as they have done in the past. When that happens, farmers might lose interest in coffee farming,” Silang Vice-Mayor Aidel Paul Belamide said in an interview.

Mr. Belamide noted that in 2010, Nestle bought at least 3,000 metric tons (MT) of coffee beans from Silang, which comprises 95% of their municipality’s production. Annually, Nestle’s Mr. Mascenon said they buy around 12,500 MT of coffee for their products worth P1.3 billion.

Meanwhile, the combined annual revenue of the beverage industry is at P170 billion. In contrast, the first year of implementation of the tax is expected to bring in an additional P47 billion in revenue which will be used for health programs and sugar farmers affected by the measure.

‘WILLING TO DROP SUGAR TAX’
For its part, the Department of Finance (DoF) clarified that it is open to dropping taxes for sugar-sweetened beverages under package one of the tax reform program in exchange for passing its original full version of the bill, as urged by Mr. Duterte.

“What I told Angara was I am willing to drop the sugar tax, but pass the original DoF bill,” Secretary Carlos G. Dominguez III told reporters on Friday.

This is after reports quoted Senator Juan Edgardo M. Angara, chair of the Senate committee on ways and means, as claiming that Mr. Dominguez offered a compromise to remove the P10 per liter excise tax on sugar sweetened beverages in the package, but pass the full P6 increase in petroleum tax instead of the phased-in P3-P2-P1 scheme spread over three years.

Mr. Dominguez was referring to the DoF-proposed bill filed by Senate President Aquilino “Koko” dL. Pimentel III under Senate Bill No. 1408 where the P3-P2-P1 would still remain as well as other originally-proposed measures, except for the P10 per liter sugar-sweetened beverages excise tax.

“He is quoting me as saying, go to the original… the fuel. I said no, it’s the whole package filed by Senator Koko Pimentel,” Mr. Dominguez clarified.

Senate Bill No. 1408 expects to yield P169.1-billion additional revenues in the first year of implementation, which is greater than the diluted House-approved Bill No. 5636 expected to collect P133.8 billion, and also greater than the downward-adjusted P157.2-billion DoF version.

Asked whether the sugar-sweetened beverage tax will still be part of the comprehensive tax reform program under package five together with other health measures, Mr. Dominguez replied in the affirmative.

“You don’t have to pass it this time,” he added.

The Finance chief said his department only included the sugar-sweetened beverage tax as part of the first package, after the House of Representatives “took out a lot” in their proposed version.

“That is the only reason quite frankly why that sugar came in.”

Mr. Angara for his part, when sought for comment, said that despite the proposed compromise it would make the bill even more difficult to convince legislation in passing it.

“Might be counterproductive since that would involve some repudiation of the changes made by the House. It would mean restoring the removal of VAT exemptions for seniors, persons with disabilities and cooperatives and other contentious provisions, so that may prove difficult especially at the level of the bicameral conference,” he told BusinessWorld in a mobile phone message.

Key differences between Senate Bill No. 1408 and House Bill No. 5636 included, among others, the mandatory indexation to inflation of petroleum excise taxes, withdrawing value-added tax (VAT) exemptions on cooperatives, a four-bracket excise tax schedule instead of a five-bracket and phased-in approach in the House version, a higher final tax on fringe benefits, and a lower exemption threshold on 13th month pay and other bonuses.

The first comprehensive tax reform package aims to lower personal income tax rates while it removes some VAT exemptions, increase excise taxes on oil products and automobiles, and harmonize estate and donor’s tax rates.

Succeeding packages would include reforms on corporate income tax rates and fiscal incentives, property taxes, capital taxes, health, environment, and luxury taxes.

The DoF aims to have the first package approved before the year ends and implement it immediately in 2018. The additional revenues are seen as a cornerstone of the Duterte administration’s P8.4-trillion “golden age of infrastructure,” which will drive up the economy to grow 7-8% annually in 2018-2022.

Gilas sweeps group assignments, barges into quarterfinals

By Michael Angelo S. Murillo
Reporter

GILAS Pilipinas earned automatic entry into the quarterfinals of the 2017 FIBA Asia Cup in Beirut, Lebanon, after it defeated Qatar, 80-74, last night and swept its assignments in its grouping in group play of the prestigious continental tournament.

Gilas sweeps group assignments, barges into quarterfinals
Matthew Wright led Gilas Pilipinas to an 80-74 win over Qatar last night to barge directly into the quarterfinals of the 2017 FIBA Asia Cup. — FIBA ASIA CUP WEB SITE

Finishing with a 3-0 record in Group B, the Philippine national men’s basketball team secured one of the four direct passes to the quarters given to the teams which finish at the top of the four groups at the initial round of the competition.

Gilas edged out defending champion China (2-1) and Iraq (1-2) in its group, leaving the latter two to go through the knockout qualification to earn a quarterfinal slot.

The Philippines joined New Zealand (Group C) and Australia (Group D) as early qualifiers. As of this writing, Iran (2-0) and Jordan (2-0) were to dispute the top spot in Group A.

Against Qatar, Gilas got the job done despite fielding in only 10 players, with big men June Mar Fajardo and Christian Standhardinger rested because of injury.

In their absence, Carl Bryan Cruz, Gabe Norwood and Calvin Abueva stepped up while Matthew Wright provided stability on offense.

The two teams fought it tooth and nail early in the match until Mr. Wright went on an eight-point scoring spree down the stretch to help his to a 25-16 lead at the end of the first quarter.

In the second period, it was Mr. Cruz who waxed hot for Gilas, scoring the team’s first 10 points to give them a 10-point cushion, 35-25 with 3:37 to go in the period.

Gilas would use it as a springboard to extend its lead to 14 points, 41-27, at the midway point of the game.

The Philippines continued to dominate at the start of the third canto, establishing its biggest lead of 20 points, 49-29, with a triple from Gabe Norwood at the 7:56 mark.

But Qatar would go on a mini run, outgunning Gilas 12-2, to cut its deficit by half, 51-41, with a little less than four minutes left in the period.

Gilas though would regroup and find its bearing to continue to hold sway, 59-47, at the end of the third quarter.

In the payoff quarter, Qatar tried hard to come back, even getting close by five points, 75-70, with 2:08 left in the game, but the Philippines was not a willing party to any comeback as Mr. Wright and Terrence Romeo continued to frustrate the Qatari team en route to the win.

Mr. Wright was the high point man for Gilas with 25 points, going 7-of-12 from three-point country.

Mr. Cruz had 13 while Mr. Norwood was do-it-all with 10 points, seven rebounds, five assists and two blocks.

Mr. Romeo was the other Gilas player who finished in double-digits in scoring with 10 points.

Mansour Elhadary, meanwhile, paced Qatar with 23 points and six assists while Abdulrahman Saad had 18 points and 11 boards.

In the quarterfinals, Gilas will either face South Korea (2-1) from Group C or Japan (2-1) from Group D, who are to play against each other in the knockout qualification today.

DoJ to hear today rebellion case vs Maute, drug case vs Peter Lim

By Kristine Joy V. Patag
Reporter

THE DEPARTMENT of Justice (DoJ) on Monday, Aug. 14, conducts its preliminary investigation hearing on two high-profile cases as it tackles complaints against businessman and alleged drug lord Peter Lim, and suspected members of the terrorist Maute group.

Mr. Lim is set to be summoned to the DoJ today, at 10:00 a.m. for the preliminary investigation on his alleged violation of the Comprehensive Dangerous Drugs Act.

Assistant State Prosecutors Aristotle Reyes and John Michael Humarang head the investigation on the complaint filed by the Philippine National Police Criminal Investigation and Detection Group (PNP-CIDG).

A subpoena was served at the residence of Mr. Lim last Aug. 2. His family, through his daughter Caryl Lim, earlier issued a statement that they welcome the investigation as it is an “opportunity to finally clear his name from these malicious and false accusations.”

Also expected to appear before Messrs. Reyes and Humarang today are Roland “Kerwin” Espinosa, Jr., convicted drug lord Peter Co, Marcelo Adorco, Max Miro, Lovely Adam Impal, Ruel Malindangan and Jun Pepito.

Mr. Espinosa is currently under the Witness Protection Program (WPP) of the DoJ.

At 2:00 p.m., the DoJ will hold the preliminary investigation hearing on the rebellion complaints filed against 58 suspected Maute members and their alleged recruiter, Nur Supian of the Moro National Liberation Front.

Senior Assistant State Prosecutor Peter L. Ong led the panel of state prosecutors in conducting the inquest proceeding against the 59 last July 28.

The suspects, who are currently detained at Camp Bagong Diwa, Taguig City, are expected to submit their counter-affidavit today.

The Supreme Court (SC) has granted Justice Secretary Vitaliano N. Aguirre II’s request to move the trial away from Cagayan de Oro City — currently under martial law — citing threats to the prosecutors.

Once the case reaches court trial, it will be handled by the Taguig Regional Trial Court (RTC) following the SC’s order.

ASEAN champion Ceres continues to roll at PFL

By Michael Angelo S. Murillo
Reporter

FRESH from its conquest of the AFC Cup ASEAN Zonal Final last week, Ceres-Negros FC continued to roll in its Philippines Football League (PFL) return at the weekend, beating Kaya FC-Makati, 3-2, in their fixture on Saturday at the University of Makati Stadium.

ASEAN champion Ceres continues to roll at PFL
AFC Cup ASEAN Zonal champion Ceres-Negros FC beat Kaya FC-Makati, 3-2, in its PFL return on Saturday. — CERES-NEGROS FC WEB SITE/PAULA ANDREA MARIE PURI/PFLrts

Goals from Omid Nazari, Arnie Pasinabo, Jr. and Bienvenido Marañon did it for “The Busmen” as they improved to eight wins, one draw and two losses and 25 points in 11 games to date in the first season of the country’s national football league.

Host Kaya started strong in the contest but as it wore on Ceres got its footing firmer and made its move.

Ceres scored first in 19th minute when Mr. Nazari connected on a clean low shot to give his team the 1-0 edge.

It was a lead the Bacolod-based team would carry all the way to the halftime break but not after the engagement saw some chippy moments along the way.

Ceres was once again first on the scoreboard in the second half as Mr. Pasinabo found the bottom of the net from outside the box in the 50th minute for a 2-0 advantage.

A minute later though Kaya would respond behind Robert Mendy, who turned a saved play by Ceres into a goal when he fired one in to cut their deficit to 2-1.

Ceres created further distance anew in the 63rd minute care of Mr. Maranon, who took cue from the creative play of teammate Fernando Rodriguez to tap in the team’s third goal.

Kaya tried to find ways to claw its way back. But it could only muster one point the rest of the way, off a Jordan Mintah goal inside stoppage time, for the final score.

Having come out triumphant in a rough and tough game, Ceres coach Risto Vidacovic was satisfied with the win but he did not mince words on the officiating which he felt lost control in said game.

“I think we deserve the victory because we played better, we tried to play football all the time. I think the first foul was a clear red card so I don’t know what’s going on here. It’s very dangerous already but I don’t like to talk about them (referees) because they are part of football. Somebody has to protect the players. If nobody protects them, one day something very, very serious will happen,” said Mr. Vidakovic in the post-match press conference.

Mr. Nazari, who started the scoring for Ceres, was named man of the match.

“I think we deserve it (the win). We tried to play football even though it’s hard to play here. Luckily we won this game,” said Mr. Nazari after the game.

Despite the loss, Kaya (8-3-5) still remains in the top three in the PFL standings, as of this writing, at third with 27 points, behind league-leading FC Meralco Manila (10-3-2) with 33 points and second-running Global Cebu FC (8-4-2) with 28 points.

Ceres returns to the field on Wednesday against Meralco at the Panaad Park and Football Stadium while Kaya also plays on the same day versus JPV Marikina FC (6-1-6).

Rain or Shine stops two-game skid with 94-86 win over Kia

By Michael Angelo S. Murillo
Reporter

THE Rain or Shine Elasto Painters halted a two-game skid yesterday, beating the Kia Picanto, 94-86, in the Philippine Basketball Association (PBA) Governors’ Cup’s return after a week-long break.

Rain or Shine stops two-game skid with 94-86 win over Kia
The Rain or Shine Elasto Painters got back on the winning track after beating the Kia Picanto, 94-86, yesterday. — ALVIN S. GO

Sporting a new roster look, including that of a new import in J’Nathan Bullock, the E-Painters made it a successful outing in their fourth game in the season-ending PBA tournament by staving off the Picanto.

Rain or Shine found itself in a tight fight early in the contest, exchanging leads and runs.

A late charge though by the E-Painters would see it take the opening canto, 21-17.

The paint masters sustained their hot form to start the second quarter, outscoring the Picanto, 9-4, behind Chris Tiu’s hot shooting to extend their lead to nine points, 30-21, in the first three minutes.

Mr. Bullock would then pad Rain or Shine’s lead to 13 points, 37-24, in the next minute and half.

But Kia fought back as the period progressed to cut their deficit to 44-36 by the halftime break.

In the third canto, the two teams continued to jostle.

The Picanto had their moments but the E-Painters would remain in control, this notwithstanding the ejection of big man Beau Belga midway on a flagrant foul 1 on Kia’s Jason Ballesteros and use of foul language thereafter as he went to the bench that merited a technical foul.

Rain or Shine held a 71-59 lead at the end of the third quarter.

The E-Painters tried to put away the game early in the payoff period, scoring the first five points to extend their lead, 76-59, with 10 minutes left in the contest.

Kia, however, would go on an 11-0 blast in the next three minutes, led by import Markeith Cummings, to come within six points, 76-70, at the 7:17 mark of the quarter.

James Yap and Mr. Bullock would conspire to score the next five points to give their team extended breathing space, 81-70, a minute later.

The Picanto tried to chip away at Rain or Shine’s lead but the closest they could get was five points with 1:57 to go in the game as the E-Painters went on to park the win.

Mr. Bullock led Rain or Shine with 20 points and 10 rebounds in his debut while Mr. Tiu finished with all-around numbers of 13 points, five rebounds and eight assists.

Mr. Belga had 12 points before being ejected.

Kia, for its part, was paced by Mr. Cummings with 30 points to go along with seven boards.

“We played sloppy in the second half but we knew our import can shoot and the rest of the team just kept fighting,” said Rain or Shine coach Caloy Garcia after the game.

“We are still working on our chemistry with all the new players we have. But they are learning quick,” he added.

Rain or Shine (2-2) returns on Sunday, Aug. 20, against the TNT KaTropa while Kia (0-6) also plays on the same day versus GlobalPort Batang Pier.

After going on a one-week break to give way to Gilas Pilipinas’ bid at the 2017 FIBA Asia Cup in Beirut, Lebanon, the PBA rests anew on Wednesday and returns on Friday.

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