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Expanded senior, PWD discount scheme to take effect March 25 

PHILIPPINE STAR/EDD GUMBAN

A JOINT ORDER expanding special grocery discounts to senior citizens and persons with disabilities (PWDs) was signed on Thursday and is expected to take effect on March 25.

In a statement, the Department of Trade and Industry (DTI) said that the joint administrative order (JAO) signed by the DTI, the Department of Agriculture (DA), and the Department of Energy (DoE) will increase the special discounts for senior citizens to P125 per week from P65 on their purchases of basic necessities and prime commodities (BNPCs).

Subject to review every five years, the JAO also increased the purchase cap to P2,500 from P1,300 per week, which had been the cap for 14 years.

“The discount is for the exclusive use of senior citizens and PWDs, with no provision for carrying over any unused amount to the following weeks,” the DTI said. 

“Moreover, the joint order reiterates the right of senior citizens and PWDs to purchase their basic goods through a representative, extends the discounts to online purchases, and clarifies the rule against double discounts,” it added.

On a monthly basis, the new order raised the total value of goods that could be purchased to P10,000 from the previous limit of P5,200. However, it does not apply to barangay-registered microbusiness establishments and cooperatives.

“We recognize the valuable contributions of our senior citizens and PWDs to our society, and this initiative reiterates our unwavering commitment to ensure their access to essential goods,” according to Trade Secretary Alfredo E. Pascual.

“Providing senior citizens and the differently abled with additional discounts on agricultural products forms part of President Ferdinand Marcos, Jr.’s vision of providing Filipinos with affordable food and better nutrition,” Agriculture Secretary Francisco P. Tiu Laurel, Jr. said.

“This special discount will be magnified once our strategy to produce more food by modernizing agriculture bears fruit,” he added.

The goods that will be covered by the JAO are the BNPCs defined by the Price Act, and the discounts under the order are separate from the 20% statutory discount granted under the Expanded Senior Citizens Act of 2010 and An Act Expanding the Benefits and Privileges of PWDs.

The draft of the order is accessible through the DTI website and is expected to take effect once published on March 25.

Retailers have previously raised concerns about the implementation of increased discounts on BNPCs and called it a “burden” that the private sector needs to bear.

In particular, Steven T. Cua, president of the Philippine Amalgamated Supermarkets Association, Inc., said that if the government will not allow the discounts to be deductible, “retailers will have to resort to jacking up prices.”

However, according to the DA, the JAO will allow businesses that grant the special discounts to deduct these from their income tax payments.

The JAO stems from an initiative of Speaker Ferdinand Martin G. Romualdez to raise the weekly discount to a total of P500 per month, which he announced last month.

Citing the Philippine Statistics Authority, the DA said that around 15 million Filipinos are aged 60 or older, while around 12% of the population is estimated to be severely disabled based on the 2020 census. — Justine Irish D. Tabile

2025 budget preparations ‘on track,’ DBM says

BUDGET SECRETARY AMENAH F. PANGANDAMAN — COURTESY OF DEPARTMENT OF BUDGET AND MANAGEMENT FACEBOOK PAGE

PREPARATIONS for the 2025 national budget remain ‘on track,’ the Department of Budget and Management (DBM) said on Wednesday.

On the sidelines of a conference, Budget Secretary Amenah F. Pangandaman told reporters that government agencies have submitted their Tier 1 proposals, which cover budgets for ongoing programs.

“By the end of March, Tier 1 would be completed… and then we’ll ask them to submit their Tier 2,” she said.

She said no issues have cropped up as yet to delay the submission of the budget.

“Government agencies are used to this. This is our third budget (under the Marcos administration), and they know their priorities already.”

Under the Constitution, the National Expenditure Program, or the National Government’s spending plan for next year, must be submitted to Congress within 30 days after the President’s State of the Nation Address.

The DBM is scheduled to transmit budget documents to Congress on July 22.

Next year’s national budget is P6.12 trillion, or 6.1% higher than the spending plan for 2024.

“The Fiscal Year 2025 budget aims to continuously address the socio-economic issues our country has been facing, e.g., high food prices, increasing fuel prices, and the scars that the pandemic has left, among others,” the DBM has said. 

In a national budget memorandum released this week, the DBM said the budget priorities for Tier 2 proposals included food security, health, education, social protection, and shovel-ready infrastructure projects. — Beatriz Marie D. Cruz

NEDA to roll out real-time agri market info system

PHILSTAR FILE PHOTO

THE National Economic and Development Authority (NEDA) said it plans to set up an information system supplying real-time agricultural data.

“What we have agreed on is really to implement right away the national information marketing network… because we see that there are inefficiencies in our market,” NEDA Undersecretary Rosemarie G. Edillon told reporters on the sidelines of the United Nations Development Programme Investor Map for the Philippines launch.

“For example, you’re a trader from Pampanga, and you find out that it’s cheaper (to trade) in Tarlac, then you go to Tarlac,” Ms. Edillon said in Filipino.

The information system would be patterned after the National Information Network (NIN) under Republic Act No. 8435 or the Agriculture and Fisheries Modernization Act.

The NIN was meant to harmonize inconsistent agricultural data from various agencies and research institutions.

Separately, NEDA’s food inflation subcommittee is looking into the Department of Agriculture’s (DA) delayed distribution of minimum access volume (MAV) quota allocations this year.

In February, the DA proposed the suspension of the MAV for pork and corn to lower dependence on imports. The quota for pork was to be reallocated to give processors a larger share compared to the traders.

Last month, the Meat Importers and Traders Association wrote to Agriculture Secretary Francisco P. Tiu Laurel, Jr., saying the quotas should have been distributed earlier this year.

Under the MAV, overseas producers of selected commodities are allowed to ship in goods up to a quota for a lower tariff, with shipments exceeding the quota charged higher rates. The MAV system is a feature of the World Trade Organization’s trading system.

In December, President Ferdinand R. Marcos, Jr. signed Executive Order 50, which extended the low-tariff regime for pork, rice, corn and coal.

Tariff rates were kept at 15% (within the MAV quota) and 25% (for shipments exceeding the quota) for pork, 5% (within the quota) and 15% (for shipments exceeding the quota) for corn, and 35% (all countries of origin) for rice until Dec. 31. — Beatriz Marie D. Cruz

FMCG spending growth seen decelerating to 0.4% this year

DATA and analytics company Kantar said growth in in-home spending for fast-moving consumer goods (FMCG) in the Philippines could slow drastically to 0.4% this year from the 6% posted in 2023.

At the launch of the FMCG Outlook 2024 Philippines on Thursday, Laurice Obana, shopper insights director at Kantar’s Worldpanel Division, said the projection for 2024 is on the conservative end due to the market’s volatility.

“In 2023, we saw a little bit of normalcy because after so many months, or even years, of heightened inflation, we started to see it controlled or going down. So it is actually a reason for us to be optimistic,” Ms. Obana said.

“However, we do know that circumstances can also be volatile, and so while there is a lot of reason for us to be optimistic, we think that maybe the proper way to approach things in 2024 is to be cautiously optimistic,” she added.

She said that the report projected continued recovery in certain FMCG categories like healthy foods, pampering products and home care items.

“In 2023, which we’re seeing to be continuing in 2024, we saw that there’s continued recovery in certain categories such as healthier options like soy milk, yogurt, and cereals, pampering is also recovering, home care including pet food, cleaning and paper products,” she said.

“Some categories are also being deprioritized and we see it in baby categories and hygiene,” she added.

She said consumer purchases of alcohol will fall, while a slowdown in infant or growing-up milk and baby diapers has also been noticed.

To further support growth in spending for FMCGs, Kantar said that businesses should make every purchase valuable for shoppers.

“Filipino shoppers will continue to look for value in every purchase and they are not limited to affordable brands or smaller packs,” it said.

“Brands must therefore find their edge to gain the attention of the buying public,” it added.

Businesses were also advised to explore FMCG channels as shoppers explore “an expanded repertoire of FMCG channels.”

“Observed in 2023 and continuing till the present, almost half of households shopped across 6 to 8 channels — from sari-sari stores and grocery stores to supermarkets and e-commerce sites,” Kantar said.

Meanwhile, businesses are also advised to focus on health and pets which Kantar said are commending more of the shopping budget.

“In 2024, Kantar believes that Filipinos will continue to allot a budget for their pets, with pet food gaining relevance among pet owners. Pet grooming and pet accessories are areas that they may also spend more on this year,” it added. — Justine Irish D. Tabile

Mining tax regime proposal seen reaching Senate plenary by May

THE SENATE is hoping to start by May plenary debate on a measure seeking to simplify and amend the fiscal regime for the mining industry, a senator said on Thursday.

“We want to sponsor it when we come back in May,” Senator Juan Edgardo M. Angara, who heads a ways and means subcommittee tackling House Bill No. 8937, which seeks to simplify the tax regime for the industry, told reporters after a hearing on the measure.

The Chamber of Mines is looking into the Department of Finance’s (DoF) proposal of reduced windfall profit tax tiers, and plans on seeking a middle ground that simplifies the fiscal regime without increasing taxes by too much, Michael T. Toledo, the chamber’s chairman, told BusinessWorld.

“We are 100% for the House proposal,” he said. “There are just differences in tiers as stated in our position paper, we made an analysis; the lowering of the tiers would increase the average effective tax rate by about 1%.”

He said that the mining industry is overtaxed, adding that measures to amend the fiscal regime should consider local and national taxes that mining companies have to deal with.

The House of Representatives approved the bill in September. Its version proposes margin-based royalties and a windfall profit tax on large-scale miners. There is no Senate counterpart bill.

The DoF is proposing a simpler mining regime with just four windfall profit tax tiers from 10 tiers under the House bill.

The current regime requires mining companies to pay corporate income tax, excise tax, royalty, local business tax, real property tax, and fees to indigenous communities.

The Mines Geosciences Bureau (MGB) backs the House proposal retaining royalties for metallic and non-metallic operations within mineral reservation at 5% of the market value of the gross output, MGB Assistant Director Marcial Mateo said at the hearing.

The MGB also supports the DoF’s proposal of a royalty of 3% for metallic mining operations outside reservations, and 1% for non-metallic operations.

Philex Mining Corp. Senior Vice-President and Chief Financial Officer Romeo B. Bachoco said a simpler mining tax regime would spur processing and production of copper and gold, noting that foreign investors are reluctant to fund mining projects here due to lack of “certainty in the tax regime.”

“We are banking on the passage (of this House measure),” (which is) “very timely for us and will address the concerns of our investors alike.”

The DoF is expecting its proposals for the tax regime to generate an average of P10.23 billion a year from 2025 and 2028.

The government also expects to generate P5.5 billion from royalties from miners operating within mineral reservations, P1.31 billion from royalties on miners outside reservations and P3.37 billion from windfall profit taxes.

“This is only the first step in developing the mining industry, we need to establish (mineral) processing first and proper valuation of ores is needed,” Finance Assistant Secretary Karlo Fermin S. Adriano said at the hearing. — John Victor D. Ordoñez

Calamity declaration needed to deal with road congestion — MAP

PHILSTAR

A STATE of calamity should be declared in Metro Manila to unlock special powers to deal with extraordinary road congestion, according to the Management Association of the Philippines (MAP).

In a presentation to a House Committee on Wednesday, MAP Transportation and Infrastructure Committee Chairman Eduardo H. Yap said events causing P1 billion in damage typically qualify as calamities, and estimated the damage from road congestion at P3.5 billion daily.

Mr. Yap said such a declaration would trigger the expedited release of relief measures to deal with the problem.

“The MAP Holistic Plan calls for such a declaration, albeit a traffic crisis, and a new management task force headed by a traffic czar,” Mr. Yap said.

He said that there is a need to undertake a “comprehensive program consisting of short-, medium- and long-term measures to provide the soonest relief with administrative and management measures, and long-term sustainability through structural interventions, particularly transportation infrastructures focused on mass public transportation.”

He added that electric vehicles (EVs) should be encouraged through incentives and that public buses on the EDSA Busway be progressively converted to electric power.

Exempting private EVs from road congestion charges when such a system of travel demand management is set up could be one way to incentivize their adoption, according to Mr. Yap.

The congestion charges are part of the National Economic and Development Authority’s National Transport Plan, which aims to impose a “travel-demand-regulating” measure in busy roads such as EDSA. 

“Current efforts at building big-ticket transportation infrastructure and certain traffic measures will contribute to traffic decongestion, but all these disparate measures must be under a comprehensive plan, such as MAP’s Holistic Plan, to effectively address this multi-decade long traffic congestion problem which is worsening by the year,” Mr. Yap said. — Justine Irish D. Tabile

40-company Czech delegation exploring potential PHL tie-ups

REUTERS

CZECH REPUBLIC Agriculture Minister Marek Vyborny led a 40-strong business delegation to the Philippines, which he said is targeting partnerships in agriculture, food, labor, water management, and forestry.

Mr. Vyborny said some of these companies currently operate in the Philippines.

“We are accompanied by a business delegation of more than 40 Czech companies representing the Czech agriculture and food industries. We are going to take part in two business forums; the first is this one that we just opened in Manila, and the second one is tomorrow in Davao,” he said at a business forum at the Fairmont Manila on Thursday.

He said the delegation is following through from the visit of Czech Prime Minister Petr Fiala to the Philippines last year and President Ferdinand R. Marcos, Jr.’s visit to the Czech Republic last week.

“The Czech Republic has a lot to offer our partners in the Philippines, such as in the areas of animal production, cattle breeding, milk production, and even innovation and technology,” Mr. Vyborny said.

“To give you an example, when it comes to milk cattle and milk yields, we are number three in the European Union,” he said.

He added that the Czech Republic is also a leader in processed meat, beer, and hops cultivation.

“But it is not only about animal production, dairy, or beverages; it’s also about innovation and technology in the agriculture and food sectors. And I’m really glad that we are opening cooperation in these areas in the Philippines as well,” he said.

He added that in the Czech Republic, water management and forestry are overseen by the Ministry of Agriculture.

“So we are ready to discuss with our Philippine partners issues related to that, like deforestation. Most of these areas, water management and forestry, closely relate to our chapter of cooperation with our Philippine partners, such as in science, research, and development,” he said.

The Czech delegation also includes employment agencies such as Randstad HR. Solutions s.r.o.

“We are aware that the Philippines would like to enhance cooperation when it comes to the labor market, and we are ready to use that potential. We are ready to offer various job positions in agriculture, water management, and forestry for your nationals in the Czech Republic,” he said.

The Czech Republic has recently increased the quota for Filipino citizens from 2,500 work permits in 2023 to 10,500 in 2024.

“This will not only create another level of relationship between our two countries but also enhance the two economies and eventually help transfer know-how from the Czech Republic to the Philippines and create a new generation of Filipinos with a strong connections to the Czech Republic,” said Czech Ambassador to the Philippines Karel Hejč.

He said the Czech embassy is currently reorganizing to double its personnel.

“And that is for two reasons: one is to support the process of hiring a labor force in the Philippines, and the other is to process the necessary paperwork with all the guarantees that the state provides,” he added.

Mr. Vyborny is set to meet with Agriculture Secretary Francisco P. Tiu Laurel, Jr., at which he is expected to sign an agreement signifying a commitment to collaborate in agriculture and food.

“It’s a letter of intent… While it specifically mentions agriculture, it will also cover things like aquaculture, the food industry, science, research, and water management,” he said.

According to the Czech Chamber of Commerce, total trade between the two countries hit $1.14 billion last year, with Czech imports accounting for $999.73 million. — Justine Irish D. Tabile

Kaliwa Dam hits 30% completion

A MAN arrives at a shallow part of Agos River, where the Metropolitan Waterworks and Sewerage System is planning to build a dam. — PHILSTAR FILE PHOTO / EFIGENIO TOLEDO IV

THE P12.2-billion Chinese-funded Kaliwa Dam project has hit a construction progress milestone of 30% and is on track for completion by 2027, according to the Metropolitan Waterworks and Sewerage System (MWSS).

“Nagkaroon tayo ng delays sa Kaliwa dahil (We had delays with Kaliwa because) it took us eight years to get the clearances and permits, pero ngayon diretso ang ating tunnel boring machine (the tunnel-boring machine is now in constant operation),” MWSS Administrator Leonor C. Cleofas told reporters recently.

Ms. Cleofas said that about 1.5 kilometers of the tunnel, which runs from Teresa, Rizal to General Nakar, Quezon province, has been bored.

“It’s a design and build. All of the equipment is already there… so it’s more of really maintaining the progress of the work,” she said.

The Kaliwa Dam is a bulk water supply project forming part of the MWSS New Centennial Water Source program. It is a 63-meter dam which is expected to supply an initial capacity of 600 million liters per day of water.

The dam is funded through a $211-million loan agreement between the MWSS and Export-Import Bank of China executed in November 2018.

“We’re still looking at three and a half years. Hopefully, the commissioning will be in the second quarter of 2028,” Ms. Cleofas said.

The project was previously scheduled for completion by 2026 and for operations by 2027.

It is expected to ease the demand on the Angat Dam, from which Metro Manila sources approximately 90% of its water supply. — Sheldeen Joy Talavera

ERC sees 239 power users eligible for Mindanao RCOA

MOREPOWER.COM.PH

AT LEAST 239 end-users are potentially eligible for the Retail Competition and Open Access (RCOA) scheme in Mindanao, according to the Energy Regulatory Commission (ERC).

In a statement on Thursday, the ERC said it has approved the eligibility thresholds for participation in the RCOA on Wednesday, which are consistent with the thresholds in force in Luzon and the Visayas.

RCOA allows participants to choose their electricity suppliers.

Mindanao consumers with an average monthly peak demand of at least 500 kilowatts for the 12 months preceding March 26 will be allowed to contract with any licensed/authorized electricity supplier on a voluntary basis.

The ERC said only 102 end-users in Mindanao would qualify if the threshold were set at one megawatt or higher.

“The Commission views the commencement of RCOA in Mindanao with immense optimism,” ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta said.

“We will continue to support and ensure that customers in Luzon, Visayas and Mindanao are able to exercise meaningfully their power to choose suppliers as a way to realize reasonable price of electricity,” she added.

The Department of Energy recently announced the start of RCOA commercial operations, as well as the Green Energy Option Program, on March 26.

Ms. Dimalanta said that the ERC will conduct an “aggressive information campaign” to capacitate contestable customers with the ability to “effectively transact” in the retail market and “properly discern” the best terms of power supply suited to their needs. — Sheldeen Joy Talavera

FDI attraction efforts seen hampered by shortage of qualified workers, weak infra

Bangko Sentral ng Pilipinas main office in Manila. — BW FILE PHOTO

ATTRACTING foreign direct investment (FDI) remains hampered by ease of doing business issues, the limited supply of skilled workers, and inadequate infrastructure, the Bangko Sentral ng Pilipinas (BSP) said in a blog post.

Attracting FDI “remains a challenge for policymakers in the Philippines,” it said in the blog post dated March 18.

The post, written by Marie Edelweiss G. Romarate, Ferdinand S. Co, and Hazel C. Parcon-Santos, also discussed the results of the business climate survey conducted by the BSP Research Academy in 2023.

The survey found that respondents “time spent in securing necessary business permits” as a key challenge to establishing their businesses.

It also cited concerns like red tape, finding workers with appropriate skills, arranging for utility connections, and corruption.

“The responses suggest that a significant portion of the challenges encountered by businesses in establishing themselves in the Philippines is associated with the inherent costs of regular business operations,” it said.

It cited these costs as including land, utilities, labor, permits, raw materials, and logistics.

“Additionally, certain challenges are linked to procedural and regulatory aspects, reflecting the country’s legal, political, and regulatory environment. Examples include delays in obtaining essential permits/licenses, instances of corruption, and the legal framework,” it said.

The post also noted that the survey results showed that businesses found it difficult hiring workers with the requisite skills as well as retaining them.

“This suggests that the existing labor pool in the Philippines does not possess the skill sets required by these companies,” it said.

“Furthermore, businesses highlight that the quality of infrastructure, including roads, bridges, ports, shipping, and warehouses, can impact their operations.”

The post also cited a previous discussion paper in 2021 that noted the Philippines’ low ranking in terms of FDI inflows compared to its neighbors.

“The Philippines, meanwhile, has faced challenges in improving its ranking, consistently landing at the 4th or 5th position in total FDI inflows per decade since the 1990s,” it said.

“Notably, among the ASEAN-5 nations, only the Philippines has never secured the top position in FDI inflows throughout past decades, with its highest ranking being 2nd in 1998.” — Luisa Maria Jacinta C. Jocson

PHL adult book readership declines to 42%

People browse piles of books at an event at The World Trade Center in Pasay City, Feb. 17, 2020. — PHILIPPINE STARMIGUEL DE GUZMAN

ADULT BOOK readership in the Philippines declined to 42% in 2023 from 54% in 2012, according to a survey conducted by the Social Weather Stations (SWS) and the National Book Development Board (NBDB).

The National Readership Survey (NRS) found that only 42% of adults (aged 18 and above) have read non-school books in the past year, while 47% of children (aged 8-17) did so.

Social media played a significant role in the decline of the readership of Filipinos, the NBDB concluded.

 “There are many distractions for the decline — social media, devices, environment,” according to NBDB Division Chief Officer in Charge Kevin Ansel S. Dy.

 “There has been a steady decline in the readership of Filipinos, and we find it very alarming,” he added.

 The survey found that adults and children still prefer reading printed materials over digital. Some 74% of adults preferred reading print books, followed by newspapers (21%) and magazines (17%).

 Meanwhile, 75% of children preferred reading printed books, followed by printed picture books  (27%), and printed comic books (16%).

 Adults and children also indicated a preference  for the works of Filipino authors. — Chloe Mari A. Hufana

Peso rebounds as Fed affirms rate cut view

BW FILE PHOTO

THE PESO climbed against the dollar on Thursday as US Federal Reserve Chair Jerome H. Powell said they remain on track to cut benchmark interest rates within the year.

The local unit closed at P56.03 per dollar on Thursday, strengthening by 10 centavos from its P56.13 finish on Wednesday, Bankers Association of the Philippines data showed.

The peso opened Thursday’s session stronger at P56.01 against the dollar. Its weakest showing was at P56.075, while its intraday best was at P55.888 versus the greenback.

Dollars exchanged dropped to $1.32 billion on Thursday from $1.54 billion on Wednesday.

“The peso strengthened after Fed Chair Powell explicitly mentioned the case for eventual US policy rate cuts while keeping the hawkish Fed’s policy stance,” a trader said in an e-mail.

Mr. Powell said on Wednesday recent high inflation readings had not changed the underlying “story” of slowly easing price pressures in the US as the central bank stayed on track for three interest rate cuts this year and affirmed that solid economic growth will continue, Reuters reported.

Speaking after a policy meeting at which officials left the benchmark overnight interest rate in the 5.25%-5.5% range and held onto their outlook for three cuts in borrowing costs this year, Mr. Powell said the timing of those reductions still depends on officials becoming more secure that inflation will continue to decline towards the Fed’s 2% target even as the economy continues to outperform expectations.

Inflation reports at the beginning of the year showed price pressures remained “elevated,” in the Fed’s view, but “haven’t really changed the overall story, which is that of inflation moving down gradually on a sometimes bumpy road to 2%,” Mr. Powell said at a press conference.

“It’s appropriate for us to be careful,” the Fed chief said, reiterating a go-slow approach to rate cuts that has been buttressed by the economy’s ongoing strength, with officials saying they are in no rush to ease monetary policy while the economy and the job market continue to grow.

The Fed’s affirmation of its plan to ease policy boosted the peso as rate cuts in the US could be matched by the Bangko Sentral ng Pilipinas, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Mr. Powell’s comments also caused the dollar to weaken, Mr. Ricafort added.

The dollar index was little changed at 103.24 on Thursday after having slid more than 0.5% on Wednesday, Reuters reported.

For Friday, the trader said the peso could strengthen further amid “reinforced views” of monetary policy easing this year.

The trader sees the peso moving between P55.90 and P56.15 per dollar on Friday, while Mr. Ricafort expects it to range from P55.90 to P56.10. — A.M.C. Sy with Reuters

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