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Rice imports at end of Feb. top 728,000 MT

REUTERS

RICE IMPORTS totaled 728,254.49 metric tons (MT) year to date at the end of February, up 84.6% from a year earlier, according to the Bureau of Plant Industry (BPI).

According to BPI data, rice imports in February more than doubled year on year to 303,603 MT.

The US Department of Agriculture (USDA) projects Philippine rice imports of 4.1 million MT this year.

The last projection is 5.1% higher than the previous forecast of 3.9 million MT, according to a report from the USDA’s Foreign Agricultural Service.

The BPI reported that Vietnam remained the Philippines’ top supplier of rice, accounting for 53.7% of imports on volume of 390,997.22 MT.

In January, the Vietnamese government signed a memorandum of understanding to supply the Philippines with 1.5 million to 2 million MT of rice annually for five years.

Thailand supplied 195,921.38 MT during the period, or 27% of the total shipments.

The government has also expressed interest in engaging with Cambodia on a potential deal to supply rice to the Philippines.

Imports from Cambodia amounted to 1,620 MT in the first two months, accounting for 0.2% of the total.

President Ferdinand R. Marcos, Jr. said that a trade deal would bolster supply at a time when the domestic crop is threatened by droughts and dry spells brought on by El Niño.

Damage to agriculture from El Niño has topped P1.23 billion, with the Western Visayas the hardest hit region, according to a report by the National Disaster Risk Reduction and Management Council.

The government weather service, known as PAGASA (Philippine Atmospheric, Geophysical and Astronomical Services Administration), said last week that 25 provinces on Luzon and five in the Visayas have the potential to develop drought conditions, while 22 may potentially experience dry spells until the end of March.

Another 15 may also experience dry conditions during the month. — Adrian H. Halili

BCDA signs four deals with Australian companies

BCDA

THE Bases Conversion and Development Authority (BCDA) said on Monday that it signed four deals with Australian suppliers of smart-city solutions.

“These agreements will help not just the BCDA but the whole country to navigate toward a safe and sustainable future in terms of digital transformation and renewable energy transition,” BCDA President and Chief Executive Officer Joshua M. Bingcang said.

“Through these deals, we will also be able to drive inclusive economic growth and create more high-quality employment opportunities for those living within the economic zones we operate,” he added.

The four deals form part of the $1.53 billion in agreements clinched by President Ferdinand R. Marcos, Jr. at the Philippine Business Forum in Melbourne.

Kaizen ANZ Pty Ltd. has been tapped to develop, design, construct, commission, and fund a Tier-3 data center in Poro Point Freeport Zone, La Union.

“This will provide the Philippines with a robust and scalable infrastructure for secure and efficient computer, network, and storage technology capabilities,” the investment promotion agency said.

The deals also include a partnership with St. Battalion GigaFactory, Inc., which will introduce next-generation battery manufacturing in the Philippines through four factories in New Clark City.

BCDA also signed a memorandum of understanding (MoU) with Energy Decarb Pty Ltd. to deploy decarbonization solutions at BCDA sites.

“This deal includes the orchestration of renewable energy, storage, and e-mobility, aimed at reducing energy costs and reliance on grid power,” the BCDA said.

An MoU with Passenger Urban and Rapid Vehicles Solutions, Inc. aims to explore potential opportunities in providing electric vehicle fleets within BCDA properties.

“This would include the design, installation, and operation of fast-charging stations,” the BCDA said. — Justine Irish D. Tabile

Cold chain infrastructure to help cut food waste, costs, UN agency says

REUTERS

THE United Nations Industrial Development Organization (UNIDO) said cold chain technology can help the Philippines reduce waste and reduce losses in transporting food, ultimately reducing the price of goods.

Celia B. Elumba, chief technical advisor at UNIDO, said that at least a third of food production is lost due to inefficiency in the transport of goods. 

“30% to 50% of food that is transported from the regions where it is produced is lost by the time it gets to the people who will be consuming it… because of the stress that comes with (transporting goods),” Ms. Elumba told BusinessWorld.

“The idea of the cold chain is to help secure that supply and value chain, avoid food waste, and make sure that the cost of the product will be better because you don’t lose as much and you don’t have to recover that lost revenue,” she added.

Last week, UNIDO led the turnover of four demonstration facilities to three Metro Manila beneficiaries under the Global Partnership for Improving the Food Cold Chain in the Philippines project.

The project is being implemented by UNIDO, the Department of Environment and Natural Resources, the Technical Education and Skills Development Authority, and ATMOshpere.

The three beneficiaries — Icebox Logistics Services, Inc., InsightSCS Corp., and Ideamorphosis, Inc. — received a 20-foot-long refrigerated marine refrigerated unit using carbon dioxide (R744) and an R290 cooling module for refrigerated trucks.

“These logistics enterprises provide a range of services, including ‘last mile’ deliveries catering to smallholder farmers,” UNIDO said.

“As early adopters of energy-efficient, low carbon cold chain technologies using natural refrigerants, they are expected to serve as models for the industry to adopt greener and more sustainable approaches,” it added.

Cold Front Technologies Asia, the local contractor for the refrigerated trucks, said that the R290 is the first of its kind in the country.

“It runs on natural refrigerant… is fully electric… (and) much more energy efficient, much more fuel efficient, and able to maintain the life of the engine of the vehicle,” according to Emilio Gonzalez La’O, president of Cold Front. — Justine Irish D. Tabile

Treasury, DoF appointees announced

BW FILE PHOTO

PRESIDENT Ferdinand R. Marcos, Jr. has appointed former Deputy Treasurer and World Bank Officer Sharon P. Almanza as the new national treasurer, replacing Rosalia V. de Leon, who is now a Monetary Board member.

Mr. Marcos also appointed two new undersecretaries and one assistant secretary for the Department of Finance (DoF), as well as two new directors for the Information Management Service, the DoF said in a statement on Monday.

Ms. Almanza had been officer-in-charge at the Bureau of the Treasury, having served as deputy treasurer.

She was also seconded to the World Bank Group between 2021 and 2023 as the alternate executive director and senior advisor for the Constituency of Brazil, Colombia, Dominican Republic, Ecuador, Haiti, Panama, Philippines, Suriname, and Trinidad & Tobago.

Ms. Almanza has also held positions in the DoF as the division chief for Debt and Risk Management and Multilateral Assistance for the International Finance Group (IFG).

Mr. Marcos also appointed Rolando G. Tungpalan as the finance undersecretary for the Corporate Affairs and Strategic Infrastructure Group.

Mr. Tungpalan will be in charge of fast-tracking the rollout of the Build Better More program by addressing bottlenecks and helping create a conducive environment for investors.

He had served as undersecretary for Investment Programming at the National Economic and Development Authority (NEDA), chairing the Technical Boards of the Investment Coordination Committee and the Infrastructure Committee of the NEDA Board.

He was also the primary government representative for multilateral and bilateral programming of official development assistance, leading negotiations and high-level consultations.

Joven Z. Balbosa was appointed undersecretary for the International Finance Group (IFG), where he will be in charge of securing foreign development financing and formulating policy related to prudent external resource mobilization.

He will also head the collaboration of the DoF with other government agencies on international agreements covering trade, investments, and tax treaties.

Mr. Balbosa had served as advisor to the Southeast Asian Department of the Asian Development Bank and as an economist at the World Bank.

Gerald Alan A. Quebral was appointed assistant secretary for the Revenue Operations Group, tasked with overseeing Bureau of Internal Revenue (BIR) operations to ensure adequate revenue collection.

Mr. Quebral was previously the executive director of the Congressional Oversight Committee on Comprehensive Tax Reform Program in the Senate and House of Representatives.

He also spent almost 20 years as a revenue officer in various BIR divisions. — Aaron Michael C. Sy

House plenary awaits new MSME lending quotas bill

A vendor sits in a stall selling products in sachet packaging at a public market in Manila, Philippines, Aug. 1, 2019. — REUTERS

A SUBSTITUTE House bill extending by 10 years the lending quota for micro, small and medium enterprises (MSMEs) and de-emphasizing the need to provide collateral is currently awaiting plenary discussion.

House Bill (HB) No. 10049, which remained with the House Committee on Rules as of last week, seeks to further support the growth of MSMEs with new chapters and revisions to Republic Act 6977, or the Magna Carta for MSMEs law.

The amendments seek to address the mandatory allocation of credit resources to MSMEs by lending institutions, which had expired in June 2018.

“There is the need to strengthen and enhance the financing and other support programs for MSMEs,” according to Misamis Oriental Rep. Christian S. Unabia, who chairs the House Committee on MSME development.

Mr. Unabia told BusinessWorld in a Viber message that the amendments specify that lending institutions should “allocate 10% of their total loan portfolio” for MSMEs for an additional 10 years, stipulating however that “only a maximum of 3% thereof shall be the allocation for medium enterprises.”

The amendments also require lending institutions to “actively support and participate in programs” that could enable the growth of MSMEs.

“Lending institutions shall also adopt cash flow-based lending which places emphasis on the capacity to pay of an MSME rather than collateral,” according to a proposed amendment.

The bill also requires the government to offer “at least 20%” of “procurement opportunities for goods and services” to MSMEs.

Selected government facilities are also required to provide eligible MSMEs with 1% of their physical space to market their products and services.

The proposed law also encourages privately owned malls and supermarkets to provide free space or allocate at least 20% of their rentable space to eligible MSMEs, with a 20% rent discount.

MSMEs account for 99.59% of all business establishments, according to the Philippine Statistics Authority.

They accounted for 5.6 million jobs or 65.10% of the workforce. — Kenneth Christiane L. Basilio

CREATE MORE legislation clears House on 2nd reading

REUTERS

THE House of Representatives on Monday approved on second reading the CREATE MORE (CREATE to Maximize Opportunities for Reinvigorating the Economy) bill via plenary voice vote.

The measure seeks to harmonize the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act and its implementing rules and regulations (IRR).

Legislators adopted House Committee Report No. 935 in totality as House Bill 9794.

Philippine Chamber of Commerce and Industry President George T. Barcelon told BusinessWorld that “businesses welcome this development because it broadens further our (ability) to attract more FDI (and enhance) ease of doing business.”

Aside from addressing the inconsistencies between the CREATE Act and its IRR, the CREATE MORE bill also seeks to address concerns about the value-added tax (VAT) refund process.

“The VAT regime must be simple, clear, and transaction-based,” Albay Rep. Jose Maria Clemente S. Salceda and House Ways and Means chair said in a statement. “The incentives regime under the CREATE transition period must be without any ambiguity. And the VAT refund system must work.”

The proposed measure also sets a 20% corporate income tax rate on domestic and foreign corporations under the enhanced deduction income tax regime.

CREATE MORE expands VAT exemptions on imports and the VAT zero-rating on local purchases to current export enterprises accredited by the Export Marketing Bureau.

The bill allows the information technology and business process outsourcing industry to “conduct business under alternative work arrangements.”

The proposed law also returns the power to grant tax incentives to investment promotion agencies (IPA) such as the Philippine Economic Zone Authority and the Subic Bay Metropolitan Authority.

The measure proposes to convert the Fiscal Incentives Review Board into an oversight body for IPAs.

Aside from the CREATE Act, the measure also seeks to amend the National Internal Revenue Code of 1997 and the Ease of Paying Taxes Act. — Kenneth Christiane L. Basilio

Upstream oil and gas industry bats for enhanced incentives

BW FILE PHOTO

By Sheldeen Joy Talavera, Reporter

THE upstream oil and gas industry pressed for the enhancement of the incentives regime to accelerate the exploitation of energy resources, the Philippine Petroleum Association (PPA) said.

“Ensure strong inter-agency cooperation, and comprehensive support to petroleum service contractors, so that exploration activities can be implemented speedily and efficiently,” PPA President Edgar Benedict C. Cutiongo said in an e-mail interview last week.

The upstream oil and gas industry deals with exploration and production.

Mr. Cutiongco said that the government should also “assure potential investors and participants on the clarity and stability of the fiscal terms” under the Philippine Conventional Energy Contracting Program.

One item the industry would like to stress is the retention of the fiscal incentives provided under Presidential Decree No. 87, otherwise known as The Oil Exploration and Development Act of 1972 and “if possible, to improve the incentives.”

Accelerating exploration activity will unlock the full potential of the country’s natural resources, according to Mr. Cutiongco, with the global demand for oil expected to increase over time, driven by economic and population growth.

“One of the countries that will see rising demand for oil is the Philippines, which relies heavily on imports to meet its domestic consumption,” he said.

The Philippines consumes 450,000 barrels of petroleum a day, mostly due to the transport sector, he said.

Citing the 2023 report from Fitch Solutions Risk and Industry Research, Mr. Cutiongco said that oil demand is projected to increase at an average annual rate of 3.4% between 2022 and 2031.

Net oil imports, on the other hand, will grow at around 3.5% over the same period.

“This means that the Philippines will need to import about 0.35 million barrels per day (mb/d) of oil by 2026, up from 0.27 mb/d in 2021. This will have implications for energy security, trade balance, and environmental sustainability,” he said.

The Philippines imported 3,476 million liters of crude oil during the first half of 2023, according to the Department of Energy (DoE). This was up 23.7% from 2022.

Mr. Cutiongco said the scope of Executive Order No. 60, which reorganizes the Philippine Gas Project into the Philippine Upstream Petroleum Task Force, “should be expanded to include all upstream service contracts” and not just to Malampaya Service Contract No. 38.

The DoE recently launched the first conventional energy bid round which offers pre-determined areas for potential exploration and development of various energy resources, including coal, petroleum, and native hydrogen.

Health infra investment must be made before health crises strike, ADB says

PHILIPPINE STAR/ MICHAEL VARCAS

INVESTMENTS in health infrastructure and preventive care need to be made before the next major public health emergency hits, the Asian Development Bank (ADB) said.

“Efforts to build a robust system should begin during normal times,” the ADB said in a report, “What has COVID-19 Taught Us About Asia’s Health Emergency Preparedness and Response?”

“This means building an established supply chain and health workforce with knowledge of disease transmission and vaccine delivery,” it added.

The ADB said many governments invested in testing laboratories, contact tracing, and quarantine facilities only during the pandemic and struggled to keep up with the surge in demand.

When the pandemic hit, governments resorted to lockdowns to curb the spread of the virus.

In the Philippines, which had one of the longest and strictest lockdowns, growth was set back, as was education.

The lockdown in the capital region exceeded the 76-day quarantine in Wuhan, the Chinese city where the first outbreak of the coronavirus was detected.

Philippine schools were closed between April 2020 and March 2022, one of the longest school closures in the world. The Philippines only resumed full face-to-face classes for public and private schools in November 2022.

Nine out of 10 Filipino children struggle to read and write simple text, the World Bank said in a 2021 report.

Unemployment also surged to an all-time high of 17.7% or around 7.3 million jobless, due to the lockdowns.

“Asian economies generally experienced relatively mild economic losses compared with the rest of the world, but they did not seem to recover from these losses any quicker,” the ADB said.

The report also noted that many governments relied on non-pharmaceutical interventions (NPIs), which stalled economic growth.

“While stringent NPIs have been associated with lower COVID-19 mortality rates, they also led to large economic contractions, reductions in psychological well-being, and substantial learning losses,” according to the report.

The Philippine economy contracted 9.5% in 2020, the steepest fall since 1947, according to the Philippine Statistics Authority.

The ADB also highlighted the need to bolster data infrastructure to aid government officials in their policy making.

“Governments should also rely on non-traditional data sources, including big data from the private sector and citizen-generated data,” it said.

Citing the cost of emergency preparedness, the ADB said local authorities must determine which emergencies are most likely to happen in their respective jurisdictions.

“Tailoring interventions for a specific economy, prioritizing pharmaceutical interventions in health emergencies, and integrating crisis response into macroeconomic policies are needed for an effective and context-specific response,” it said.

Doctor and public health consultant Raymond John Naguit said in an e-mail that the government’s “militarized responses to the pandemic exacerbated various inequities towards marginalized sectors.”

Over 100,000 individuals were arrested for allegedly violating quarantine protocols between March and September 2020.

Jose Rene D. de Grano, president of the Private Hospitals Association of the Philippines, Inc., said the health emergency response should be data and science driven.

“Government should always consult the medical experts and not rely on politicians who think more of how people will respond to their moves,” Mr. De Grano said in a Viber message.

Gene A. Nisperos, faculty member of the University of the Philippines College of Medicine, said the Philippines should address inadequate staffing of health facilities and strengthen the capacity of district hospitals and local health centers.

“We are still ill-equipped, because almost all of the problems exposed by the COVID pandemic remain unresolved,” he said via telephone.

Four years since the pandemic, Mr. Naguit said the Philippines has yet to “address issues related to building capacity of local health governments on health, create a robust and interoperable health information system that can guide policymaking, and address the long-standing issues of health workforce.” — Beatriz Marie D. Cruz

House plenary starts debating RBH7

PHILIPPINE STAR/KRIZ JOHN ROSALES

SUPPORTERS of economic amendments to the Constitution took to the floor at the first plenary session on the second reading of the Resolution of Both Houses (RBH) No. 7 following committee deliberations.

“Today, after more than a week of lengthy debates and discussion on Resolution of Both Houses No. 7, we will now vote for the approval on the Committee Report 985, which adopted Resolution of Both Houses No. 7 without amendment,” Majority Leader and Zamboanga City Rep. Manuel Jose M. Dalipe said.

Mr. Dalipe has said that he expects plenary proceedings on RBH No. 7 to be shorter than the two weeks it took to discuss the liberalization of certain economic provisions in the Constitution at committee level. — Kenneth Christiane L. Basilio 

Consolidation urged for water regulators — WB

DEPARTMENT OF AGRICULTURE HANDOUT

WATER management agencies need to be reorganized to achieve integration in water resource management, a World Bank (WB) expert said.

“Compared to other countries, we have a very, very fragmented water sector… because for us to actually do projects out there, it takes so much effort from national to local… we have become so decentralized,” World Bank Senior Water Supply and Sanitation Specialist Maria Fiorella Fabella said at a forum on Monday.

Ms. Fabella said the current state of the water agencies has led to “very fragmented mandates and policies” at agency and LGU level.

She cited many “overlaps” in regulating water service providers, with local government units (LGUs) having different delivery standards.

She said water businesses need tariffs that “accurately reflect the true costs of providing services.”

“Creditworthiness of water service providers is very much needed because no matter how much help they get from the National Government, if they are not creditworthy, they will continue to rely on government support,” Ms. Fabella said.

Citing the Philippine Water Supply Sanitation Plan from the National Economic and Development Authority, she said that there is a need to invest P107 billion annually in the water sector.

Ms. Fabella said LGUs are “the ultimate responsible people” for providing water services.

“But before the LGUs can provide these services, it would require National Government because of water resource management. Where will all this water come from?” she said.

Ms. Fabella said that the government must use the limited resources efficiently, prioritize areas, and maximize use of public funds.

Water demand in the National Capital Region of 3,700 million liters per day (MLD) in 1995 has increased to 5,000 MLD in 2020, and is projected to hit 8,400 MLD by 2045, she said.

“It is important that water resource management is aligned. Not just for water supply, but all the uses of water for irrigation, for water supply, hydropower,” she said. — Sheldeen Joy Talavera

EoPT Act: Insights on the draft Implementing Rules and Regulations

They say good things come in threes. In April 2021, I wrote an article for this section, “Wish list for reforms on tax filing, payment, and administrative compliance.” In that article, I listed three wishes, some of which were addressed by the Ease of Paying Taxes (EoPT) Act, which was then a bill. My wishes and the general taxpayer’s wishes then are to enhance the portability of tax transactions by removing restrictions on the filing and payment of taxes, institutionalizing the acceptance of e-signatures on all tax returns and documents required by the BIR, and removing the distinction between the value-added tax (VAT) sales invoice and VAT official receipts.

Less than three years from then, those wishes came true in the form of the EoPT Act, or Republic Act No. 11976, which was signed into law on Jan. 5 and published in the Official Gazette on Jan. 7. Taxpayers and the tax community indeed welcomed the new year 2024 right.

The EoPT Act includes the following amendatory provisions:

• Out-of-district filing and payment of taxes;

• One VAT base and invoice for the sale of goods and services; and

• Digitalization, electronic filing, and acceptance of certain BIR applications.

To effectively implement the above provisions and other provisions of the EoPT Act, the law authorizes the Secretary of Finance, after consultation with the Bureau of Internal Revenue (BIR) and the private sector, to promulgate the necessary rules and regulations within 90 calendar days from the effectivity of the EoPT Act.

As such, the BIR was quick to release the draft revenue regulations (RRs), holding a public consultation on the draft in February. The public consultation, which ran for two days, gave the private sector the chance to hear the BIR’s discussion of the draft RRs and thereafter to provide insights and comments on the draft rules to effectively implement the EoPT Act.

With the above EoPT amendments to the Tax Code, below are the insights that the BIR may consider in finalizing the implementing rules and regulations in line with the EoPT objective of minimizing the burden on taxpayers in complying with tax laws:

OUT-OF-DISTRICT FILING AND PAYMENT OF TAXES
The draft revenue regulations on the filing of tax returns and payment of internal revenue taxes provide that the filing of tax returns and payment of tax with corresponding due dates be made electronically on any available electronic platform. However, in case of unavailability of such platforms, the same can be done manually with any Authorized Agent Bank (AAB), Revenue Collection Officer (RCO), or Authorized Tax Software Provider (ATSP), regardless of the Taxpayer Identification Number (TIN) registration.   

While the draft RR recognizes manual filing and payment to any AAB, RCO, or ATSP regardless of TIN registration, it seems that the same draft RR also limits the filing and payment of taxes via electronic channels. Manual filing and payment anywhere can be done only in case of unavailability of the electronic platforms (eFPS/eBIRForms) and the online banking platforms of AAB and ATSP.

However, not all taxpayers have the capacity and means to file and pay taxes online, and available online payment facilities have a daily limit on the amount of tax that can be paid per transaction. Hence, to encourage payment of taxes, the implementing rules and regulations could consider giving flexibility to the taxpayers on electronic filing and manual payment of their taxes as long as these are paid on time.

ONE VAT BASE AND INVOICE FOR THE SALE OF GOODS AND SERVICES
Aligned with the amended rules provided under the EoPT Act, the draft RR on VAT and other percentage taxes provides that only an “invoice” is to be issued for both sale of goods and services. Also, VAT on the sale of goods and services will both be based on gross sales.

For ease of doing business, taxpayers engaged in sale of services will be allowed to strike the words “Official Receipt” on the face of the manual and loose-leaf printed receipts and stamp “Sales Invoice” to be issued as the primary invoice to customers until Dec. 31, 2024. Taxpayers using CRM, PoS, and computerized books of account (CBA) with e-receipting or electronic invoices may change the word “Official Receipt” to “Sales Invoice” without the need to notify the BIR. However, other changes to the CBA to comply with the change in VAT base for the sale of services will be considered major enhancements that require taxpayers to update their system registration with the BIR. The reconfiguration of machines and system adjustments must be undertaken on or before June 30, 2024.

In addition, the transitory provision of the draft RR provides that billed but uncollected receivables from the sale of services is subject to 12% VAT upon the effectivity of the RR. The output VAT due on the transaction is to be declared in the immediate taxable quarter following the effectivity of the RR. Taxpayers are apprehensive of this transitory provision due to the possible cash flow issues that may arise from the expected huge VAT payable for all their accounts receivables. To invoice the output VAT and sale to the customer, the seller is to replace the billing statement/statement of account with Invoices.

We note the BIR’s consideration of giving ample time to the taxpayers to comply with the changes under the EoPT Act. However, the BIR may also consider the specific transitory clause of the EoPT Act in light of the ongoing preparations of the taxpayers for the annual filing of tax returns and financial external audits of taxpayers.

Note that the transitory provision of the EoPT Act specifically provides that taxpayers are given six months from the effectivity of the implementing revenue regulations to comply with the amendments to Title IV on the Value-Added Tax and Title V on Other Percentage Taxes of the NIRC, as amended. Thus, affected taxpayers should be given six months from the effectivity of RR to reconfigure and update CAS registration with the BIR and to remit any VAT due on billed but uncollected receivables from services already rendered as of the effectivity of the RR.

Last, the general rule that changes in tax laws should be applied prospectively unless they are favorable to taxpayers must be taken also into consideration. For the sale of services which were billed and rendered under the old law, is it possible for the BIR to consider them as not be covered by the EOPT Act and subject to VAT only upon collection?

DIGITALIZATION, ELECTRONIC FILING AND ACCEPTANCE OF CERTAIN BIR APPLICATIONS
Sections 43 and 44 of the EoPT Act require the BIR to develop an Ease of Paying Taxes and digitalization roadmap and eventually to adopt an integrated digitalization strategy by providing automated end-to-end solutions for the benefit of taxpayers. Specifically, EoPT already provides electronic applications for cancellation of VAT registration and transfer/cancellation of registration.    

With this BIR digitalization program mandated by EoPT and the ongoing efforts of the BIR on digitalization, I do hope that the BIR will soon allow the use of electronic signatures and/or provide facilities for electronic submission of documents and letters that are still required to be manually filed with the BIR. This will not just be more convenient for taxpayers, but it will also save the BIR storage costs and time spent looking for lost dockets.

As the truthful reporting of income and timely payment of taxes due are fundamentals to healthy functioning of societies, I do hope that the above insights on the draft implementing rules and regulations of the EoPT Act be considered to ensure smooth and easy compliance by taxpayers on the changes brought by the new law.

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.

 

Ma. Lourdes Politado-Aclan is a director from the Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

pagrantthornton@ph.gt.com

Peso appreciates to 2-month high

BW FILE PHOTO

THE PHILIPPINE peso appreciated to a two-month high as the dollar hovered at two-month lows amid falling global oil prices.

It closed at P55.37 a dollar, 20 centavos stronger than on Friday, according to Bankers Association of the Philippines data posted on its website.

This was the peso’s strongest finish since it closed at P55.37 a dollar on Dec. 29, 2023.

The peso opened at P55.59 a dollar, weakened to as much as P55.65 and strengthened to as much as P55.37 against the greenback.

Dollars exchanged dipped to $1.09 billion from $1.21 billion on Friday.

The peso gained as the dollar remained at two-month lows and as global crude prices eased, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.

The dollar index rose by 0.06% to 102.74, hovering not far from Friday’s low of 102.33 — a level not seen since Jan. 15, Reuters reported.

Brent futures fell by 0.2% or 12 cents to $81.96 a barrel as of 7:23  a.m. GMT, while the US West Texas Intermediate (WTI) dropped by 0.2% or 21 cents to $77.80.

Both benchmarks fell last week, with Brent down by 1.8% and WTI 2.5% lower.

“The peso appreciated today after US Federal Reserve Chairman Jerome H. Powell affirmed market views of US policy rate cuts later this year,” a trader said in an e-mail.

Mr. Powell on Thursday told a Senate banking committee hearing the US central bank was “not far” from gaining the confidence it needs about falling inflation to begin cutting interest rates.

The Fed raised borrowing costs by 525 basis points from March 2022 to July 2023 to 5.25-5.5%.

The trader expects the peso to strengthen further on Tuesday as markets expect softer US inflation data for February.

The trader said the peso might move between P55.20 and P55.45 a dollar, while Mr. Ricafort sees it at P55.30 to P55.50. — Aaron Michael C. Sy