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DoF expects rice prices to fall below P50 per kilo by August

FINANCE SECRETARY RALPH G. RECTO — DEPARTMENT OF FINANCE FACEBOOK PAGE

THE LOWER tariff on rice imports is expected to bring rice prices to below P50 per kilogram by August, the Department of Finance (DoF) said.

“By slashing the tariff on imported rice from 35% to 15%, we anticipate an average of 10% reduction in retail prices for the rest of the year,” Finance Secretary Ralph G. Recto said at the Economic Journalists Association of the Philippines-San Miguel Corp. economic forum on Monday.

“This could lower the price of rice by at least P5 per kilo. From an average of P54.40 per kilo last June, prices could go down to below 50 pesos as early as August.”

President Ferdinand R. Marcos, Jr. implemented the tariff reduction via Executive Order (EO) No. 62 last month.

The Department of Agriculture’s price monitors reported that well-milled rice was selling in Metro Manila markets for as much as P55 per kilo.

Mr. Recto said that lower tariffs on rice could reduce full-year inflation by 0.18 percentage points.

Headline inflation eased to 3.7% in June from 3.9% in May. Rice inflation, which accounts for almost half of overall inflation, eased to 22.5% from 23% a month earlier.

Rice prices were likely to have remained above P50 had the government not cut tariffs, Mr. Recto said.

“A sustained high price of rice could continue to drive inflation, delaying the reduction of policy interest rates by the (central bank) and derailing the country’s economic growth trajectory,” he added.

Mr. Recto said that the tariff cut will result in foregone revenue of P9.2 billion this year but noted that “in the bigger picture, this improves the welfare of households, especially the poor.”

He also cited the 27.7% increase to P221.7-billion budget for agriculture sector, much of it going to modernizing farming. Around half of the agriculture budget goes to rice, he added.

“This will enable us to install more irrigation systems, construct farm-to-market roads, procure agri machinery and equipment, and prioritize research and development,” Mr. Recto said.

The DoF said it is working with Congress to ensure an increase in the P10-billion-a-year allocation for the Rice Competitiveness Enhancement Fund (RCEF), which is funded from import tariffs.

Republic Act No. 11203 or the Rice Tariffication Law, the law which creates RCEF, authorizes the fund to distribute machinery, seed, credit, and fertilizer for six years. The RCEF expired last month, but efforts are underway in Congress to extend its term and increase the annual allocation.

Farmer’s groups last week asked the Supreme Court to issue a temporary restraining order freezing EO 62, saying they were not consulted properly prior to its issuance, as the law requires.

“I don’t think there’s a reason for the courts to get involved in that,” Mr. Recto told reporters on the sidelines of the forum. — Beatriz Marie D. Cruz

Manufacturing weakness hinders poverty-reduction effort — NEDA

A WORKER adjusts a machine at a manufacturing facility in Manila, Dec. 10, 2008. — REUTERS

THE National Economic and Development Authority (NEDA) said weak manufacturing is preventing the Philippines from achieving its poverty-reduction goals.

“Given the country’s low level of development, the steady decline of agriculture and manufacturing’s share in GDP (gross domestic product) significantly limits our opportunities for poverty reduction,” NEDA Secretary Arsenio M. Balisacan said during the Economic Journalists Association of the Philippines-San Miguel Corp. economic forum.

The manufacturing sector accounted for 0.9 percentage point (ppt) of the 5.7% GDP growth reported in the first quarter, according to the Philippine Statistics Authority.

In comparison, net exports of goods and services accounted for 1.2 ppts of GDP. Mr. Balisacan said the services sector made up about two-thirds of GDP growth.

“We want growth that delivers prosperity. And so, we need to see those high productivity sectors and those pillars of growth must also come in and augment services,” he added.

He noted that growth in the manufacturing sector was a primary driver of poverty reduction in many Asian economies.

The Philippines’ poverty rate fell to 22.4% in the first half of 2023 from 23.7% two years earlier.

The government aims to slash the poverty rate to 9% by the time it steps down in mid-2028.

“While we continue to buoy consumption and enhanced services, we must reinvigorate the other pillars of economic growth, investments and exports, particularly manufacturing and agribusiness, to sustain growth and make it more resilient in the years and decades to come,” Mr. Balisacan said.

“So that’s why if you look at our efforts, we are so focused on improving the ecosystem for investment,” he added.

The ICT (information and communications technology) and BPM (business process management) industries can serve to strengthen manufacturing, Mr. Balisacan added.

The S&P Global Philippines Manufacturing Purchasing Managers’ Index, which measures factory activity, slowed in the Philippines to 51.3 in June from 51.9 in May due to low demand and reduced worker numbers. — Beatriz Marie D. Cruz

Full electrification expected to require P72 billion in funding

ILOILO CITY — The Department of Energy (DoE) said it is seeking P72 billion for its total electrification program, and estimated the economic benefit of providing power to the entire country at P315 billion.

On the first day of the US Embassy’s 16th Media Seminar on Monday, Energy Undersecretary Rowena Cristina L. Guevara said that the estimate for the funds needed to achieve total electrification covers the period to 2028.

“A portion of that budget will be taken out of a loan because we already have a budget allocated for total electrification — around P3 billion to P5 billion per year,” Ms. Guevara said.

“So that’s around P25 billion, and we need P72 billion … so we might need to borrow because we have a deficit and the budget cannot increase suddenly,” she added.

She said that the DoE is in talks with the World Bank and the Asian Development Bank (ADB) for the loan. The program will seek to build distribution lines, electrify remote barangays and sitios, and install home solar systems.

Ms. Guevara said that the department presented the program and its economic benefits to the National Economic and Development Authority and the Department of Finance last week.

“We presented to them our request, and they seem to be happy about the numbers that came out of our study, particularly the economic benefits,” she said.

“Nobody reported (the estimated economic benefits) to them before. So, because of that, we’re thinking of a possible loan from ADB or the World Bank and thinking of government appropriations through the Department of Budget Management (DBM),” she added.

According to the study, giving low-income families access to up to eight hours of electricity a day will boost their income by 17.9%, while their expenditure is expected to increase by 17%.

If access to electricity were increased to eight hours to 16 hours per day, income and expenditure are expected to increase by 33.3% and 33%, respectively.

If low-income families are given access to electricity for 16 to 24 hours a day, their income and expenditure are projected to increase by 49.4% and 52.2%, respectively.

“If we are able to do total electrification, the economic benefit (of) P315 billion… (is equivalent to) 1.8% of our gross domestic product (GDP),” Ms. Guevara said.

“And the total electrification program is just P72 billion. If you invest that but get P315 billion back, wouldn’t that be a win?” she added.

According to Ms. Guevara, more than 2 million households currently have no access to electricity.

The DoE estimates the current household electrification rate at 93.12% at the end of March, while the target for this year is 94.83%.

President Ferdinand R. Marcos, Jr. said in his State of the Nation Address last year that the target is to achieve full household electrification by the end of his term. — Justine Irish D. Tabile

Below-market KADIWA rice to be priced initially at P45-P48 per kilo

DA PHOTO

THE Department of Agriculture said on Monday that it will launch the sale of subsidized rice to the broader public via KADIWA stores, with initial pricing set at P45-P48 per kilogram.

Agriculture Assistant Secretary and Spokesperson Arnel V. de Mesa said that the subsidized rice program will offer well-milled rice, and is separate from another program targeted at vulnerable segments of society for P29.

“Due to the developments which have caused rice prices to fall, most likely, the selling price will also go down,” Mr. De Mesa told reporters.

The price of well-milled rice in Metro Manila markets was between P48 and P55 per kilo as of July 5, according to DA price monitors.

“The program will run parallel with the P29 rice. The participating KADIWA centers will be doubled next week. By August, Visayas and Mindanao will also be included,” he added.

The P29 rice is meant to be sold to persons with disabilities, solo parents, and senior citizens, as well as those below the poverty line, at 10 kilos per month, subject to monitoring via booklets issued to beneficiaries.

Rice sold at P29 will be taken from ageing stocks held by the National Food Authority.

He said that the DA is also studying whether to limit the quantities of rice sold at P45-P48.

The national network of KADIWA stories is at about 300 outlets, along with 119 pop-up stores operating on rotation.

“We want this to be a sustainable and long gestating program. Our target is for it to be implementable until the end of our President’s term,” Mr. De Mesa said. — Adrian H. Halili

Luzon Economic Corridor rail cost estimated at $7B — Go

ICTSI.COM

THE cost of setting up the rail lines linking the various sites along the Luzon Economic Corridor was estimated at $7 billion by Secretary Frederick D. Go of the Office of the Special Assistant to the President for Investment and Economic Affairs.

Mr. Go made the remarks on the sidelines of the Economic Journalists Association of the Philippines-San Miguel Corp. economic forum on Monday.

Mr. Go said that a number of countries are interested in investing in the US and Japan-backed corridor’s development. “I believe that European countries are now wanting to join in on this project,” he added.

Mr. Go said discussions with interested countries are still at the preliminary stages.

“Say the UK will join, or say for example, a few countries from the European Union (EU) will join, they will encourage companies, both government and private corporations, from their countries to invest in that corridor,” he said.

“When we say invest in that corridor, we’re not just talking about the rail, we’re talking about everything that goes up around it — the infrastructure and businesses.”

The project is being pursued under a trilateral agreement between the Philippines, US and Japan. The proposed corridor seeks to boost connectivity between Manila, Batangas, Subic and Clark via a cargo rail line.

The project will “prioritize strategic investments in high-impact infrastructure projects such as rail, ports, clean energy, data centers, and agri-business centers,” Mr. Go added.

The Philippine Economic Zone Authority (PEZA) has said that many of its locators are expected to benefit from the corridor.

There are about 1,600 PEZA-registered manufacturing, service, and export-oriented companies based in 137 economic zones in Metro Manila, Clark, and Batangas.

The project is being pursued under the US-led G7 Partnership for Global Infrastructure and Investment and is the “first of its kind” in the Indo-Pacific region, according to the US State department.

Meanwhile, Mr. Go said the contract to maintain and operate Laguindingan International Airport in northern Mindanao is expected to be awarded to the private sector soon.

“Moreover, within this quarter, we are also expected to award a concession agreement for the Laguindingan International Airport,” he said.

The Transportation department has said that at least two parties have expressed interest in the upgrade and operations contract for the airport. — Beatriz Marie D. Cruz

Vietnam fertilizer supply partnership eyed

DA.GOV.PH

THE Department of Agriculture (DA) said it is studying a potential fertilizer supply deal with a company from Vietnam.

In a statement on Monday, the DA said that it was looking to tap Binh Dien Fertilizer Joint Stock Co. for NPK (nitrogen, phosphorus and potassium) fertilizer.

“We see great potential in partnering with Binh Dien. Our country stands to benefit significantly from their advanced technology and expertise in agriculture,” Agriculture Secretary Francisco P. Tiu Laurel, Jr. was quoted as saying.

He added that the agreement, which is being structured as a distribution arrangement, could also lead to a potential investment in a manufacturing facility in the Philippines.

“They aim to contribute their specialized knowledge to enhance agricultural practices in the Philippines while fostering their own growth outside Vietnam,” the DA said.

The company was quoted as saying that the Philippines could be a “strategic opportunity” for its international expansion.

Binh Dien is one of Vietnam’s largest producers of NPK and has a combined capacity of 1 million metric tons (MMT). It supplies around 30% of Vietnam’s fertilizer requirements.

“Their management and technical team’s expertise is impressive and much needed in the Philippines,” he added.

In January, the Philippine and Vietnamese governments signed an agreement giving the Philippines a quota of 1.5 MMT to 2 MMT of rice annually for five years.

Imports from Vietnam amounted to 1.71 MMT as of June 27, according to the Bureau of Plant Industry. This accounted for 74% of the 2.31 MMT imported during the first half. — Adrian H. Halili

The EoPT Law on Computerized Accounting Systems (CAS)

I have been practicing tax for a while now, and I was a bit surprised to discover how technical tax practice can get. In my first year as an associate, I was stunned by the details that we needed to review for our client’s application for registration of Computerized Accounting System (CAS) and Computerized Books of Account (CBA). I was also surprised at how challenging it was to secure a Permit to Use (PTU) for CAS/CBA. It would be a big deal for us if one of the teams handling this type of application passed the scrutiny of the Bureau of Internal Revenue’s (BIR) Technical Working Group (TWG).

One example is that multinational companies using CAS globally spend significant amounts on the reconfiguration of their CAS in order to comply with the rules of the Philippines. Since these rules are not required by other tax authorities in other countries, the reconfiguration is done solely for the Philippines.

There are still challenges today, but I can honestly say that the BIR’s efforts to streamline the requirements and process to secure a PTU for CAS/CBA have been significant since then.

The BIR had several issuances to address these concerns. In 2020, citing the Ease of Doing Business and Efficient Government Service Delivery Act of 2018 (RA 11032), the BIR issued Revenue Memorandum Circular No. 010-20 Suspending the Requirement for Permit to Use Computerized Accounting System, Computerized Books of Account, and/or Component(s) thereof.

In RMC 010-20, all taxpayers with pending applications filed with the National Accreditation Board (NAB) and assigned to the TWG for evaluation were allowed to use their CAS/CBA without securing a PTU, but they were required to submit a sworn statement, a sample print copy of the system-generated receipts and invoices, and a sample print copy of the system generated books of account in order to secure an Acknowledgement Certificate (AC) within three days from submission. Here, the BIR removed the requirement for a system demonstration, but the system will be subject to post-evaluation by the BIR during tax audits.

Further, it is worth noting that the BIR mentioned in this RMC that in case of any enhancement, modification, or upgrade in the system, the taxpayer must notify the bureau.

Following RMC 010-20, the BIR issued RMC 005-21, which simplified the policies on the application for registration of CAS and CBA. For this RMC, policies related to Electronic Storage System (ESS), Middleware, and other similar systems were provided. In this RMC, the BIR introduced the various action points for taxpayers should there be major system enhancements, upgrades, or minor enhancements. The BIR then issued RMC 009-2021, which provided detailed guidelines for CAS/CBA applications. Here, the BIR clarified that an enhancement is considered major if it involves a change in the functionalities of the system, particularly enhancements that will have a direct effect on the financial aspect of the system, which includes modified computations and other financial-related issues that were considered.

This type of enhancement was specifically mentioned by the BIR in Revenue Regulations (RR) 7-2024 and RR 11-2024. Pursuant to the provisions of the Ease of Paying Taxes (EoPT) law, Section 3 of RR 7-2024 provides that all VAT-registered persons and those required to register for VAT must comply with the following:

1. A VAT-registered person shall issue a duly registered VAT invoice, for every sale, barter, exchange, or lease of goods or properties, and for every sale, barter, or exchange of services, regardless of the amount of the transaction.

2. A VAT invoice shall be issued as evidence of the sale of goods and/or properties and the sale of services and/or leasing of properties issued to customers in the ordinary course of trade or business, whether cash sales or on account (credit), which shall be the basis of the output tax liability of the seller and the input tax claim of the buyer.

The above invoicing and accounting requirements, which will have a direct effect on financials, VAT recording, among others, must be implemented by the taxpayers who are using CAS, CBA, or CBA with Accounting Records (CBA with AR). As these changes are enhancements with a direct effect on the financial aspect, they are considered major enhancements that require taxpayers to update their system registration following the existing guidelines for registering  CAS or CBA with AR. It must be noted as well that the existing AC or PTU must be surrendered to the BIR in exchange for a new AC.

However, it is worth noting that there are companies or industries, such as financial institutions and educational institutions exempt from VAT, which are using CAS and that these taxpayers are already recognizing revenue on an accrual basis, for tax purposes. The change of document serving as primary evidence from invoice does not affect the recording of revenue. It can be argued that these industries will no longer need system enhancement because the current setup is already proper based on the new law and regulations. Hence, the question is, do they need to secure a new AC as required by RR 7-2024 and RR 11-2024? Perhaps if the taxpayer can prove that there is no direct impact, these taxpayers will no longer be required to secure an AC, so long as the current one used is capable of issuing invoices.

On the other hand, taxpayers are given until Dec. 31, 2024 to reconfigure their systems and implement these enhancements to comply with EoPT law.

While the period given seems reasonable and subject to extension, the dilemma for taxpayers lies in the actual implementation of the changes, not to mention the disruption to their normal operations. However, transition periods are always challenging. And we all look forward to the time that we realize that these challenges we encounter right now have bought so much ease to taxpayers conducting business in the Philippines.

Let’s Talk Tax is a weekly newspaper column of P&A Grant Thornton that aims to keep the public informed of various developments in taxation. This article is not intended to be a substitute for competent professional advice.

 

Gemmalu O. Molleno-Placido Is a senior manager of the Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

pagrantthornton@ph.gt.com

Philippines and Japan sign defense pact amid growing China tensions

JAPANESE Foreign Minister Yoko Kamikawa and Philippine Defense Secretary Gilberto C. Teodoro, Jr. shake hands after signing a pact that eases the entry of equipment and troops for combat training in both countries, as President Ferdinand R. Marcos, Jr., Foreign Affairs Secretary Enrique A. Manalo and Japanese Defense Minister Minoru Kihara look on. — PHILIPPINE STAR/ KJ ROSALES

By John Victor D. Ordoñez and Kyle Aristophere T. Atienza, Reporters

THE PHILIPPINES and Japan on Monday signed a pact that eases the entry of equipment and troops for combat training, saying they want stability in the region amid growing tensions with China.

Japanese Foreign Minister Yoko Kamikawa, who visited Manila, called the so-called reciprocal access agreement a “landmark achievement.”

“This is another milestone in our shared endeavor to ensure a rules-based international order,” Philippine Defense Secretary Gilberto C. Teodoro, Jr. told reporters after the signing.

The agreement is the first of its kind to be signed by Japan in Asia, and coincides with increased Chinese assertiveness in the South China Sea, where Beijing’s expansive claims conflict with those of several Southeast Asian nations.

Ms. Kamikawa and Mr. Teodoro signed the deal in the presence of Philippine President Ferdinand R. Marcos, Jr. and Japanese Defense Minister Minoru Kihara at the presidential palace in Manila.

Ms. Kamikawa and Mr. Kihara were in Manila for the second 2+2 ministerial meeting with their Philippine counterparts. 

“Your presence here increases our confidence,” Mr. Marcos told the Japanese side. “I’m very glad that we have come to this day.”

A United Nations-backed tribunal based in the Hague in 2016 voided China’s expansive claims in the sea for being illegal.

Japan, which last year announced its biggest military build-up since World War II in a step away from its post-war pacifism, does not have any claims to the South China Sea, but has a separate maritime dispute with China in the East China Sea, where they have repeatedly faced off.

It has supported the Philippines’ position in the South China Sea and has expressed serious concern over China’s actions, including recent incidents that resulted in damage to Philippine vessels and injured a Filipino sailor.

“The Philippines and other Southeast Asian Nations are situated in… a key junction of Japan’s sea lanes; advancing defense cooperation and exchanges with the Philippines is important for Japan,” Mr. Kihara said.

The Philippines has a visiting forces agreement with the United States and Australia. Tokyo, which hosts the biggest concentration of US forces abroad, has a similar deal with Australia and Britain, and is negotiating another with France.

The reciprocal access agreement will take effect after being ratified by both countries’ Parliaments.

The pact is not targeted against any country, Ms. Kamikawa told a news briefing in Manila after the 2+2 ministerial meeting.

“The Philippines is a strategic partner that shares values and principles with Japan, and strengthening that relationship is not against any particular country in mind but rather something that is crucial for peace and stability in the region,” she said in Japanese.

Japan is committing to provide the Philippines with more patrol vessels and surveillance radar systems that it can deploy in the South China Sea, she said.

“Japan believes that the issue is directly related to the peace and stability of the Indo-Pacific region, and it opposes any attempt to change the status quo by force,” Mr. Kihara told the same briefing in Japanese.

Philippine Foreign Affairs Secretary Enrique A. Manalo said the military pact with Japan allows the parties to have a framework for cooperation in defense and other related issues. “It could serve as a force for stability in the region, for greater prosperity.”

Joshua Bernard B. Espeña, who teaches foreign policy at the Polytechnic University of the Philippines, said Japan has contributed to the stability of the Indo-Pacific region “throughout the years.”

“So, Manila will gladly accept all the help it would get from it,” he said in a Facebook Messenger chat. He said the pact’s effectiveness would heavily depend on “American contribution to the larger trilateral and regional alliance network.”

‘DEEP WOUNDS’
Don Mclain Gill, who teaches international relations at De La Salle University, said Japan could not replace the US in case American politics turns inward after the November elections “given the strategic limitations Japan still faces in playing a larger role as a defense partner.”

“But Japan remains one of the most important constants in our foreign policy calculations,” he said via Messenger chat. “In a scenario where the US may dial down its support for Manila, our partnership with Japan is likely to remain steadfast and consistent.”

Meanwhile, activist Antonio L. Tinio said the Senate should reject the military pact with Japan because it puts the Philippines in the middle of a potential war in the South China Sea.

The Philippines could be used as a staging ground for foreign military forces if tensions erupt in the waterway, Mr. Tinio, spokesman of civic group P1NAS, said in a statement.

“P1NAS calls on the Filipino people to oppose this dangerous agreement and calls on the Senate to deny its ratification,” he said.

“This agreement must be seen in the context of the ongoing US-led military build-up in the region. The US is pushing its allies, particularly Japan, towards massive militarization to serve as its proxies,” he added.

The military pact is part of the US strategy to contain China and keep its dominance in Southeast Asia, Mr. Tinio said.

“The reciprocal access agreement confirms the US intention to use the Philippines as a springboard for military action… to support its wars,” he added.

“While we stand firm in defending our sovereign rights in the West Philippine Sea, we must not allow this conflict to be used as a pretext for turning our country into a battleground for a US-China war for regional hegemony,” he said, referring to areas of the sea within the country’s exclusive economic zone.

The military pact also “reopens the deep wounds” of war crimes committed by Japan against Filipinos during World War II, he added.

Mr. Tinio said the reciprocal access agreement is not just a simple defense pact.

“It carries profound historical significance that cannot be ignored,” he said. “The Filipino people have not forgotten the atrocities committed during that dark period of our history, including the systematic use of comfort women, the Bataan Death March and countless other war crimes.”

Senate President Francis G. Escudero said they would scrutinize the deal “like other treaties that the Senate is asked to ratify by the Executive.” “Regardless of whether it ‘agitates’ another country, I believe we should pursue it if it is in our national interest and I believe that it is,” he told reporters in a Viber group message — with Kenneth Christiane L. Basilio and Reuters

Marcos urged to certify as urgent bills on oil regulation

PHILIPPINE STAR/ WALTER BOLLOZOS

By Kenneth Christiane L. Basilio

PHILIPPINE President Ferdinand R. Marcos, Jr. should certify as urgent a package of bills that seeks to lower oil prices as another round of fuel price increases looms, a congressman said on Monday.

The Lower Oil Prices bill package, which seeks to regulate the oil industry and centralize the procurement of oil products, could lead to lower petroleum prices if enacted into law, Deputy Minority Leader and Party-list Rep. France L. Castro said in a statement.

“This package includes critical measures such as House Bill No. 400 or the Lower Oil Price bill, House Bill No. 3003 to renationalize Petron, House Bill No. 3004 to unbundle oil prices, House Bill No. 3005 for centralized procurement of petroleum and House Bill No. 3006 to regulate the downstream oil industry,” she said.

“This bill package, when made into law, can lower oil prices, cause a domino effect in lowering basic products and services, and at least alleviate the suffering of consumers,” she added.

Fuel retailers on Monday announced an increase in oil prices for the fourth straight week, due to geopolitical tensions in the Middle East, according to the Department of Energy (DoE).

“Geopolitical tensions in the Middle East, an unexpectedly large withdrawal in US crude inventories and optimistic forecasts for summer fuel demand have all contributed to pushing prices in oil products higher,” Energy Director Rodela I. Romero said in a statement last week.

Oil companies said prices on Tuesday would jump by P1.60 per liter of gasoline, P0.65 per liter of diesel and P0.60 per liter of kerosene.

The Philippines deregulated the oil industry in 1998, ultimately resulting in fuel price increases “to go unchecked,” according to House Bill No. 3006 filed by Party-list Reps. France L. Castro, Arlene D. Brosas and Raoul Danniel A. Manuel in 2022.

The bill seeks to create a petroleum regulatory council to police against drastic increases in oil prices and prevent runaway price hikes.

The lawmakers are also seeking to centralize the procurement of imported crude oil by creating a national petroleum exchange system, which would allow the country to buy the cheapest crude oil in the world market.

Under House Bill No. 3005, the National Petroleum Exchange Corp. must get “the best prices” for imported oil products while also ensuring adequate supply.

Also part of the bill package is House Bill No. 400, which will cut the excise tax on petroleum products under the Tax Reform for Acceleration and Inclusion (TRAIN) law and exempt these from value-added tax.

The measure could slash P6 per liter of diesel and P5.35 per liter of unleaded gasoline, the authors said in the bill’s explanatory note.

The lawmakers are also seeking to make the price-setting by petroleum companies transparent by forcing them to provide a detailed computation of costs.

Under House Bill No. 3004, oil companies must provide a breakdown of costs affecting oil prices such as import and freight costs, refining charges and their profit margins on petroleum products before the DoE Oil Industry Management Bureau and House energy committee.

Legislators are also looking at renationalizing Petron Corp. so the government could use it to set “fair and regulated prices.”

Petron Corp. did not immediately reply to a Viber message seeking comment.

Under the measure, the Philippine National Oil Co. (PNOC) will reacquire Petron within four years using funds from the national budget.

“Malacañang and the House leadership must prioritize these measures,” Ms. Castro said. “It’s time to stop runaway oil prices and provide real relief to our people.”

She said these reforms should not be delayed because spiraling fuel prices have “far-reaching consequences” on the economy.

“These price hikes don’t just affect transportation; they inflate the costs of basic goods and services, further burdening our already struggling populace,” she added.

SWS: 4 of 10 Filipinos expect life to improve in next 12 months

PHILSTAR

ALMOST half of Filipino adults expect their quality of life to improve in the next 12 months, according to Social Weather Stations (SWS) poll in March.

The pollster in a statement posted on its website said another 44% said they did not expect any changes, 7% said it would worsen, while the rest did not answer.

The pollster said about 13% of the respondents were from Metro Manila, 45% from areas in Luzon outside the capital region, 19% from the Visayas and 23% from Mindanao.

Personal optimism in Metro Manila went down to 42% from 47% in December, to 24% from 27% in the Visayas and to 32% from 43% in Mindanao, SWS said. Optimism in Luzon areas outside Metro Manila went up to 44% from 40%.

SWS said about 12% of Filipinos had at most some elementary education, 25% had some junior high school education, 28% finished junior high school or had vocational schooling, 21% attended college or finished a vocational course, while 10% finished college or took post-graduate studies.

Inflation could ease in the coming months after President Ferdinand R. Marcos, Jr. issued an order lowering tariffs on rice to 15% from 35%, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.

But typhoons could disrupt business operations in the coming months, he added.

Inflation eased to 3.7% in June from 3.9% in May, within the central bank’s 3.4-4.2% forecast, according to the Philippine Statistics Authority.

SWS earlier said 46% or about 12.9 million Filipinos thought they were poor, compared with 47% or about 13 million in December. It added that 3 of 10 Filipinos rated themselves as borderline poor, while 23% said they were not.

SWS interviewed 1,500 Filipino adults for the poll, which had an error margin of ±2.5 points.

The survey responses are split between optimism and a neutral belief in their future quality of life, Terry L. Ridon, a public investment analyst and convenor of the think tank InfraWatch PH, said in a Facebook Messenger chat.

“A big portion of these results reflect not just current economic conditions but the general optimistic attitude of Filipinos despite economic difficulties,” he said. “This, however should not be taken by the government as a sign to lose focus on resolving pressing concerns, such as the rising prices of food and basic commodities.”

Roughly half of Filipinos feel that inflation is finally easing, “thus leading higher consumption and to good times ahead,” Leonardo A. Lanzona, who teaches economics at the Ateneo de Manila University, said in a Facebook Messenger chat.

“The other half thinks that even if inflation slows, prices remain elevated, keeping the situation as is. The rest think we are not out of the woods yet and inflation is going to get worse,” he added. — John Victor D. Ordoñez

DoH told to expand care for poor

PHILSTAR FILE PHOTO

THE HOUSE of Representatives committee on appropriations on Monday ordered the Department of Health (DoH) to improve its implementation of a program that gives poor patients free medical care in government hospitals by expanding its coverage to include private and semi-private wards.

Congressmen agreed on the motion amid reports that poor patients were being forced to stay in private and semi-private wards, which are not free, for lack of bed space in charity wards.

“I move that the secretary of Health be directed to issue an administrative circular reiterating to all DoH, National Government and local government hospitals that the application of the No Balance Billing [policy] includes admission in a private room,” IloIlo Rep. Janette L. Garin, a former Health secretary, told a committee hearing.

Under the policy, poor patients will not be charged additional fees beyond the packaged rates during their confinement period.

“We need to triple our bed capacity to serve millions of Filipinos,” Health Secretary Teodoro J. Herbosa told the hearing.

He said the Philippines has a bed-to-population ratio of 0.5 per 1,000. “The minimum for a health system to function is 1.5 beds per 1,000,” he added. — Kenneth Christiane L. Basilio

DBM cites limited intel funds

BW FILE PHOTO

CONFIDENTIAL funds in the 2025 national budget would be limited to agencies with security and intelligence functions, according to the Department of Budget and Management (DBM).

“It would be something similar to what happened in the (2024) General Appropriations Act,” Budget Undersecretary Joselito U. Basilio told economic forum on Monday.

Congress realigned P650 million in confidential funds of the Office of the Vice President and Department of Education (DepEd) in this year’s budget to security agencies.

Lawmakers moved confidential funds worth P300 million to the National Intelligence Coordinating Agency; P100 million to the National Security Council; P200 million to the Philippine Coast Guard; and P381.3 million for the development or expansion of an airport on Thitu Island in the South China Sea.

The Budget department is proposing a P6.352-trillion budget for next year, 10.1% higher than this year and equivalent to 22% of economic output. — Beatriz Marie D. Cruz

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