Home Blog Page 1806

Delayed VAT refunds scored

PHILIPPINE STAR/RUSSELL PALMA

THE GOVERNMENT must push for stricter penalties against internal revenue officers who cause delays in value-added tax (VAT) refund claims, economists and tax experts said at the weekend.

Last week, Senator Sherwin T. Gatchalian filed a bill proposing to transfer the responsibility of processing VAT refunds to the Department of Finance (DoF) Revenue Operations Group from the Bureau of Internal Revenue (BIR) as companies give up on their claims due to delays.

“Transferring the tax refund mandate to the DoF is no assurance that this proposed new VAT refund body will not implement the same inefficiencies as the BIR, in the guise of ensuring maximum government revenues from business activities,” Terry L. Ridon, a public investment analyst and convenor of think tank InfraWatch PH, said in a Facebook Messenger chat.

“The Senate should look into stiffer penalties against BIR officials in the event of unreasonable delays in processing VAT refunds and other tax claims.” 

Even foreign companies and investors have been complaining about stalled VAT refund claims.

The American Chamber of Commerce of the Philippines, Inc. has said VAT refunds for jet fuel purchases take as long as five years to resolve.

Benedicta Du-Baladad, founding partner and chief executive officer of Du-Baldad Associates, a law firm that specializes in tax commercial and corporate services, said the BIR should ensure that the 90-day period allowing the taxpayer to challenge a tax assessment is strictly followed.

“Any grant of refund beyond the 90-day period should earn interest at the same rate as that imposed in delayed payment of the government,” she said in a Viber message.

“Likewise, any denial of claim that is without legal and factual basis as found out by the court later on should be a ground for an administrative case against the officers handling the case. That’s equity and fairness.”

Earlier, Senate President Juan Miguel F. Zubiri said Japanese companies had threatened to leave the Philippines after finding it difficult to secure timely VAT refunds.

Mr. Gatchalian’s bill also ensures businesses are entitle to a VAT zero-rating on local purchases, provided they operate at 70% capacity.

“Rather than transferring the mandate, we can also consider equipping BIR with the soft and hard skills and infrastructure to make this mandate possible for them,” John Paolo R. Rivera, president and chief economist at Oikonomia Advisory & Research, Inc., said in a Viber message, commenting on the Senate bill. — John Victor D. Ordoñez

Better vocational review sought

THE PHILIPPINE Business for Education (PBEd) is calling on the government to ensure private sector involvement in reviewing the technical-vocational education and training (TVET) track in the country’s basic education program, with Senator Sherwin T. Gatchalian citing sufficient funds allocated for assessors.

“The industry support in all these efforts is crucial,” said PBEd Executive Director Justine B. Raagas of the TVET track for senior high school (SHS). “We urge greater private sector participation in the ongoing SHS review and call on business leaders to open work-based training opportunities to lead to employment.”

“Under this year’s national budget, P50.012 million was allocated to expand TESDA’s (Technical Education and Skills Development Authority) pool of assessors, adding 11,000 to TESDA’s assessors,” Mr. Gatchalian said in Filipino as he underscored the importance of the TVET track. “This is an important step for them (students) to have good jobs after they finish school.”

The SHS program, which is under congressional scrutiny, aims to embed TVET across tracks, facilitating curriculum development, certification, and employment linkages.

This is undertaken through collaborations between the Departments of Labor and Employment (DoLE) and of Education (DepEd), the Commission on Higher Education (CHED), and TESDA, which was firmed up by their signing of Joint Memorandum Circular 2 last week.

As agreed, the DepEd shall lead curriculum development and revision to integrate TVET into SHS tracks; TESDA will certify graduates and provide technical expertise; CHED shall develop credit transfer policies for TVET-certified students; and DOLE would facilitate employment partnerships for SHS learners.

Many of these goals are part of the proposed Batang Magaling Bill, filed as Senate Bill 2367 by Mr. Gatchalian, chairman of the Senate Basic Education Committee.

He said efforts to expand TESDA’s pool of assessors align with the goal of ensuring quality assessments.

“These initiatives are critical for boosting job prospects for TVET graduates and enhancing industry responsiveness in skills development programs,” said Ms. Raagas.

“By design, the K-12 program aims to give students enough time to acquire skills to thrive in whatever path they choose to take,” she added. — Chloe Mari A. Hufana and John Victor D. Ordoñez

DoT chief insures CL tour guides

TOURISM Secretary Ma. Esperanza Christina G. Frasco has rolled out over P2.55 million worth of accident insurance coverage for tour guides in five provinces in Central Luzon (CL).

In a statement on Sunday, the Department of Tourism (DoT) said that tour guides from Pampanga, Aurora, Bataan, Bulacan, and Tarlac received the insurance, which was personally funded by Ms. Frasco.

Aside from the personal accident insurance coverage, the tour guides also received tour guiding kits from the department as part of its efforts to improve Clark as an alternate gateway for tourist markets to and from the Philippines.

“The DoT recognizes the indispensable role of local community guides in the tourism industry, being considered frontliners in championing the country’s local destinations and upholding the rich Filipino culture, heritage, and history,” the DoT said.

The beneficiaries were from the Porac Tour Guides Association, Guides Alliance Bulacan at Your Service, Bataan Peninsula Tour Guides Association, Eco Tour Guides Association of San Luis Aurora, City of San Fernando, Pampanga Tour Guides, Accredited Guides Association of Pampanga, Bulacan Tour Guides, and Doña Remedios Trinidad, Bulacan Tour Guides.

The DoT also signed partnership agreements with eight sectoral partners to prepare Central Luzon’s industrial and business districts for hosting the anticipated MICE Conference on July 10–12 this year.

Under the memoranda, the different agencies committed to training stakeholders, from tourism enterprises to academic institutions and community-based organizations.

The DoT, through its Office of Industry Manpower Development, managed to train over 127,000 workers last year. For this year, it is aiming “to hit the bigger goal of 150,000 workers trained this year.”

As of May 10, there are around 5,500 tourism frontliners, with 2,152 from the accommodation sector, 1,506 from the academe, and 1,204 from the local government units in Central Luzon. — Justine Irish D. Tabile

Baguio preparing for La Niña

PHILSTAR FILE PHOTO

BAGUIO CITY — Mayor Benjamin B. Magalong of this city said he wants early preparations for the La Niña weather pattern, setting in motion initiatives in the face of above-normal rainfall expected to follow the long-drawn drought caused by El Niño.

“With the experience that we are having with El Niño where we are now into our seventh month of drought, weather experts fear a possible rebound through the coming La Niña which would mean strong typhoons and abnormally high rainfall and so we have to prepare this early to avoid casualties and severe damage to properties,” the mayor said over the weekend.

Under its “Making Cities Resilient (MCR) 2030” program, the Baguio city government has an outline of initiatives to combat looming climate change risks, he said. 

In terms of infrastructure preparations, the rehabilitation and clean-up of drainage and water ways and slope protection fixtures are underway.

Barangays are also being prepared through continuing capacity building and information education and communication programs, said Mr. Magalong.

Barangay officials recently participated in a series of seminars on disaster risk reduction and climate change adaptation to prepare their barangay response teams conducted by the City Disaster Risk Reduction and Management Office under Engr. Charles Bryan Carame.

The mayor said emergency response will be fortified with the introduction of the “orange bag” project where barangays will be required to keep ready emergency tools in attending to emergency situations especially during calamities. — Artemio A. Dumlao

Body scanners for Bilibid urged

BUCOR

IN LIGHT of the controversy over strip-searching visiting wives of inmates at the New Bilibid Prison (NBP) in Muntinlupa City, a congressman urged the government to provide non-invasive forms of body search assets like body scanners.

Prison guards at the national penitentiary should also undergo gender and elderly sensitivity training to prevent incidents of body searches that trample on the dignity of prison visitors, Bukidnon Rep. Jonathan Keith T. Flores said in a statement issued in Filipino on Sunday.

“I call on the Department of Justice (DoJ) and the Department of Budget and Management (DBM) to provide the National Bilibid Prison with non-invasive body search assets such as machines being used in major airports and drug-sniffing dogs,” he said.

Wives of political prisoners locked at the NBP filed a complaint with the Commission on Human Rights (CHR) after their “traumatic experience” of being strip-searched, with an elderly visitor subjected to body cavity searches under a directive from prison officials.

“I was made to squat three times and then bend over while opening my private parts to check for any hidden illegal items,” Gloria Almonte, one of the complainants, said in a statement released by political prisoner support group KAPATID last week. “I felt shame during those moments… it felt like my dignity as a human being was being trampled upon.”

The DoJ and DBM should provide the necessary funding for the national penitentiary to procure security equipment to prevent invasive strip searches for prison visitors, Mr. Flores said.

In the meantime, the DoJ and Bureau of Corrections (BuCor) could borrow equipment from the Office of Transportation Security so they could immediately halt the practice of invasive body searches, he added.

The BuCor on Friday suspended the practice of strip and body cavity searches pending an investigation on the complaint lodged by wives of political prisoners. — Kenneth Christiane L. Basilio

House to kick off plenary deliberations on Rice Tariffication Law amendments

PHILIPPINE STAR/MICHAEL VARCAS

THE HOUSE of Representatives will begin plenary debates on a proposed measure seeking to amend the Rice Tariffication Law this week, Speaker Ferdinand Martin G. Romualdez said Sunday.

Amendments to the rice law include extending the Rice Competitiveness Enhancement Fund (RCEF) for another six years and increasing its allocation to P15 billion from P10 annually.

The proposed amendments also include reinstating the National Food Authority’s (NFA) ability to sell rice directly to retailers, a move seen as reducing the retail prices of the staple product.

“We recognize the urgency of addressing the challenges faced by consumers due to high rice prices,” Mr. Romualdez said in a statement. “Through these plenary debates, we are taking decisive action to… ease the financial strain on Filipino households.”

The retail prices of rice range between P50 to P60 per kilo, according to the Philippine Statistics Authority.

“By amending the Rice Tariffication Law, we aim to bring about tangible reductions in rice prices, ensuring that Filipino consumers are not unduly burdened by high food costs,” Mr. Romualdez said.

Mr. Romualdez earlier said Filipinos would be able to avail rice at below P30 per kilo in July by authorizing the NFA to sell rice through Kadiwa centers.

The Kadiwa program is a marketing initiative by the DA allowing direct farm-to-consumer access.

However, the House leader said allowing the NFA to sell rice directly to Kadiwa centers is only a short-term solution to mounting rice prices, and that only through amending the rice law would rice become cheaper in the long run. — Kenneth Christiane L. Basilio

Market! Market! site being readied for redevelopment

TAGUIG.COM

THE Bases Conversion and Development Authority (BCDA) said the Market! Market! site in Bonifacio Global City (BGC) is set for disposal and redevelopment once its lease ends in 2027.

“The Market! Market! land will be redeveloped, and it will be mixed-use,” BCDA President and Chief Executive Officer Joshua M. Bingcang said at the One Clark Forum organized by the BCDA and the Economic Journalists Association of the Philippines.

“It is our single last big property in BGC, and we want to make sure that once we redevelop it, we’ll get the maximum value for the property,” Mr. Bingcang added of the 10-hectare semi-open air retail site managed by Ayala Land, Inc.

The BCDA plans to redevelop the site under a public-private partnership.

“Right now, it’s (the lease is) with Ayala, and of course Ayala can still participate in the redevelopment,” he said.

Meanwhile, the BCDA is also set to release the invitation to bid for the six-hectare mixed-use development in front of the Senate headquarters in Taguig after receiving approval from its board.

“We will publish the terms. But the proposal we got is that the investment should be at least P30 billion,” he said.

Located in front of the New Senate Building, Mr. Bingcang said that the area is a prime location as there will also be a Metro Manila Subway station in the area, which is the Senate-DepEd (Department of Education) Station.

“This is very prime. But right now, it is being occupied by the Navy. So, we will clear out the navy first,” he said. — Justine Irish D. Tabile

Clark public transport system could be bid out by end-2024 or early 2025

MABALACATCITY.GOV.PH

THE Bases Conversion and Development Authority (BCDA) is hoping to bring the Clark Integrated Public Transport System project to auction by the end of the year, pending the release of a feasibility study by the World Bank.

“We already had an agreement with the World Bank, and we just sent the contract to our external lawyer to study. But the agreement is for them to submit the report after six months, or in October,” BCDA President and Chief Executive Officer Joshua M. Bingcang told reporters.

“We can launch (the bidding) by the last quarter of 2024 or the first quarter of next year. The project cost, including the real estate, is around P3 billion to P5 billion,” said Mr. Bingcang.

The planned public-private partnership (PPP) needs to settle the division of labor on the project, including issues like who will build the infrastructure if necessary to mitigate risk for the private partner.

“Since it will be a PPP project, we will share in the risk. If the risk is too much for the private sector to bear, we can shoulder some of the costs, especially on the building of the stations, and then the private sector will just operate it,” he said.

Spanning approximately 60 kilometers, the bus rapid transit system will facilitate seamless travel from the airport to the city’s main gates and onward to the Clark Freeport Zone and to New Clark City. It will make use of electric vehicles and conventionally powered units compliant with the Euro 5 emissions standard.

“The target is to invite an operator that will provide services not just for New Clark City but also for the Clark Airport and the Clark Freeport Zone, and we will couple it with transport-oriented development,” Mr. Bingcang said.

He said such a business model will make the project more attractive to the private sector, as transport hub operators sometimes do not earn money from passenger fees.

“If you look at Tokyo, their stations are like malls. So, our model is transport-oriented development, and we will partner with real estate (companies) to make it viable,” he said. — Justine Irish D. Tabile

DENR probing Surigao del Norte mine’s failure to contain tailings

TWITTER.COM/DENROFFICIAL

THE Department of Environment and Natural Resources (DENR) said it has launched an investigation into Greenstone Resources Corp. after the reported failure of its tailings storage facility (TSF).

In a statement on Sunday, the DENR said it had dispatched a team to investigate the cause of the TSF failure and assess the extent of the damage.

“The (Mines and Geosciences Bureau) is also working closely with Greenstone Resources, local authorities and community leaders to ensure the safety and well-being of residents in the affected areas,” Environment Secretary Maria Antonia Yulo-Loyzaga said.

Greenstone Resources operates the Siana gold mine in Surigao del Norte.

Separately, the company said that cracks were discovered on the embankment of its tailing storage facility, caused by an earthquake and rains in Mindanao.

“The company voluntarily suspends its mining operations in order to expedite its emergency response activities, to closely examine what has transpired, and to ensure the absolute safety of its beneficiary communities,” it said.

The DENR said that it will investigate the factors that led to the incident, as well as the integrity of the facility and safety systems and procedures in place.

“Infrastructure failures highlight the urgent need for monitoring, regulation and oversight in the mining industry to de-risk operations and prevent incidents in the future,” Ms. Yulo-Loyzaga said.

“This is urgently needed especially because of the seismicity of our country and the impacts of climate change,” she added.

The DENR is currently reviewing the environmental and social impact of mining operation in the country.

“While we understand the important contribution to national development of the mining industry in Surigao del Norte and elsewhere in the country, risk management is a continuous dynamic and pro-active process,” she said.

Greenstone Resources said that it will rebuild any homes damaged by the incident. — Adrian H. Halili

Electricity spot prices rise in early April as hot weather spurs demand

BW FILE PHOTO

ELECTRICITY spot prices rose in early April due to the increase in demand, the Independent Electricity Market Operator of the Philippines (IEMOP) said.

The IEMOP said the average price at the Wholesale Electricity Spot Market (WESM) system-wide rose 33% to P6.90 per kilowatt hour (kWh).

Supply rose 2.1% to 19,210 megawatts (MW) while the demand was up 9.2% at 14,375 MW.

“Demand continues to rise across all regions as the summer season progresses and the heat index increases,” the IEMOP said.

The average WESM price in Luzon rose 31.6% month on month to P6.63 per kWh.

Supply grew 4.5% to 13,308 MW. Demand, meanwhile, jumped 10.1% to 10,310 MW.

In the Visayas, the spot price increased 39.5% from a month earlier to P8.73 per kWh.

For early April, supply fell 2.3% month on month to 2,349 MW while demand hit 2,002 MW, up 7.4%.

The spot price in Mindanao rose 40.9% from a month earlier to P6.43 per kWh.

Mindanao’s supply dropped 3.5% to 3,553 MW while demand increased 6.6% to 2,063 MW.

The IEMOP said that 19.68% of the trading intervals for April were subjected to the secondary price cap (SPC) compared to the previous month’s 7.04%.

The SPC is imposed when the rolling average of the generator weighted average price exceeds P9 per kWh, the market operator said.

“Congestion manifested for the month (7,501 intervals) is more than the March 2024 billing month (3,695 intervals) wherein during this scenario, high-priced plants cleared to meet the demand (such as oil-based),” the IEMOP said.

IEMOP operates the WESM, where energy companies purchase power when their long-term contracted power supply is insufficient to meet customer needs. — Sheldeen Joy Talavera

Foreign investors deterred by mining regulatory uncertainty, ambassador says

OCEANAGOLD.COM

By Adrian H. Halili, Reporter

REGULATORY uncertainty is expected to hinder further foreign investment in the Philippine mining industry, Canada’s ambassador said.

“One of the inhibitors to deeper, you know, investment here has been the frequency, the uncertainty of some of the (changes in) regulations. You know, the regulatory framework,” Canadian Ambassador to the Philippines David Hartman told BusinessWorld on the sidelines of a mining industry event last week.

The government plans to implement a new mining fiscal regime for companies operating within and outside of mineral reserves to drive economic growth.

Under the proposed tax regime, the government expects to generate around P5.5 billion from royalties on miners operating within mineral reservations, P1.31 billion from royalties on miners operating outside reservations and P3.37 billion from windfall profit taxes.

In 2023, the value of mineral production hit P249.05 billion, according to the Mines and Geosciences Bureau.

“What we are hearing now from the government is trying to move in the direction to give that level of certainty to the market, so that (foreign companies) can make these investments,” he added.

Earlier, the Department of Finance proposed a margin-based royalty of 1.5-5%, with only four tiers, compared to the 10 tiers in House Bill No. 8937.

Large-scale metallic mining operations inside mineral reservations will still pay the government the equivalent of 5% of their gross output.

“It is a very costly sector in which to do business. And so, obviously, people are going to be looking for that greater degree of certainty,” he said.

Mining companies currently pay corporate income tax, excise tax, royalty, local business tax, real property tax, and fees to indigenous communities.

Separately, the Department of Environment and Natural Resources said that it is seeking to shorten the approval process for mining permits by one to three years.

According to Environment Secretary Maria Antonia Yulo-Loyzaga the typical approval period for mining permits could run as long as six years.

“We hope that in fact this year, with the work we are doing on digitalizing permitting… we can shorten that permitting time,” Ms. Yulo-Loyzaga told reporters.

Meanwhile, Mr. Hartman said that more capital market participation on the Philippine bourse could draw more interest from Canadian investors.

“I think the more that we can go to capital markets here to participate in some of these processes, the more interest that will be,” he said.

The Philippine unit of Australian-Canadian mining company OceanaGold Corp. is set to list on the Philippine Stock Exchange on Monday, May 13.

“The fact that there’s all of these policy initiatives underway from the government, makes the Philippines a much more palatable, a much more interesting, a much more potentially prosperous area in order to do business,” he added.

OceanaGold Philippines, Inc.’s initial public offering consists of 456 million common shares, equivalent to a 20% stake in the company.

“The Philippines has all the raw ingredients, all the capacity to grow this industry here…the future potential for the mining sector, for future economic growth, for the prosperity of the people of the Philippines is incredibly promising,” Mr. Hartman said.

DBM says budget release rate hits 86%

BW FILE PHOTO

AROUND 86% of the 2024 national budget had been released by the end of April, the Department of Budget and Management (DBM) said.

In its Status of Allotment Releases report, the DBM said it released P4.96 trillion out of the P5.768-trillion budget.

Around P809.16 billion remains undistributed, the DBM said.

The pace of releases is slightly ahead of the 85.8% rate posted by end of April 2023.

Of the total released, 97.2% or P3.4 trillion went to government agencies. Special Purpose Funds accounted for P248.66 billion.

Automatic appropriations amounted to P1.25 trillion, DBM said.

Allotment releases included P231.3 million for the Retirement and Life Insurance Premiums of several National Government agencies.

The DBM also said P10 billion was released to implementing agencies of the Rice Competitiveness Enhancement Fund.

Meanwhile, the DBM has released calamity funds amounting to P6.73 billion as of April 30 to rebuild houses and rehabilitate other infrastructure damaged by typhoons.

The Department of Public Works and Highways received P3.74 billion while the Department of Social Welfare and Development (DSWD) was allocated P2.89 billion, according to the DBM’s National Disaster Risk Reduction and Management Fund update.

The Department of Human Settlements and Urban Development received P102.9 million to construct 190 houses in Ilocos Sur affected by a recent earthquake, DBM said.

The DBM said that P1.34 billion was released to the DPWH for infrastructure repairs in the Southern Tagalog, Bicol, and Eastern Visayas regions affected by various typhoons and volcanic activity.

The DPWH and DSWD received P1 billion and P875 million respectively to replenish their Quick Response Funds, which are standby funds that can be tapped readily to support relief and rehabilitation efforts during calamities.

Around P16 billion under the calamity fund remains undistributed, the DBM said.

The government’s 2024 spending plan is 9.5% higher than last year’s, and is equivalent to 21.7% of gross domestic product. — Beatriz Marie D. Cruz