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Marcos inks Ease of Paying Taxes Act

PPA POOL PHOTO

By Kyle Aristophere T. Atienza, Reporter

PRESIDENT Ferdinand R. Marcos, Jr. has signed into law the Ease of Paying Taxes Act, a measure that seeks to update the country’s taxation system and boost government revenues.

The act, which amends several sections of the National Internal Revenue Code of 1997, introduces several tax reforms, including the simplification of the filing process for small and medium enterprises, according to the Presidential Communications Office (PCO).

In a statement over the weekend, the PCO said the important features of the law include the classification of taxpayers into micro, small, medium, and large and the classification of value-added tax refund claims into low-, medium-, and high-risk.

Under the law, tax returns can be filed — either electronically or manually — with any authorized agent bank, Revenue District Office, or authorized tax software provider.

It also eliminates the distinction between documentation and basis of sales of goods and services and ensures availability of registration facilities to non-Philippine resident taxpayers.

The law removes the Value Added Tax (VAT) official receipt as a requirement for substantiating refund claims and input and output taxes, making the VAT invoice the sole supporting document required in declaring output taxes and claiming input taxes for both sale of goods and services.

Under the law, only medium and high-risk VAT refund claims are subjected to auditing. The Commissioner of Internal Revenue shall explain any denial of VAT refund claims within the 90-day VAT refund claim window, and the decision can be appealed within 30 days from receipt of the denial.

The new law enforces a 180-day process period on claims for refund of erroneous or illegal tax collection, increases the fees for the mandatory issuance of receipts for each sale and transfer of goods and services to P500 from P100, and reduces the number of income tax return pages to two from four pages, the PCO said.

The new law also mandates the Bureau of Internal Revenue (BIR) adopt an integrated and automated system for facilitating basic tax services and set up an electronic and online data and information system, it added. It also requires the BIR to boost its technology capabilities in line with the goal to digitalize its services.

“The law’s implementing rules and regulations shall be promulgated 90 days from the effectivity of the Act after the consultation of the Finance Secretary with the BIR, and the private sector,” the measure read.

“The law’s implementing rules and regulations (IRR) shall be promulgated 90 days from the effectivity of the Act after the consultation of the Finance Secretary with the BIR, and the private sector,” the PCO said.

House Ways and Means Chair Jose Maria Clemente S. Salceda, in a statement, noted that the law exempts overseas Filipino workers, who do not acquire any income in the Philippines, from income tax.

“[The new law] brings our tax administration system to the digital world — allowing the BIR to shift to a full digitalization,” he said.

Jeepney drivers decry being unjustly accosted over non-consolidation

PHILSTAR

By Jomel R. Paguian

TRANSPORT group Manibela claimed that some public utility jeepney drivers have been apprehended by authorities for not having consolidated franchises, despite new guidelines allowing them to operate until Jan. 31.

In an interview with BusinessWorld recently, Manibela president Mar Valbuena said some jeepney drivers who refused to apply for consolidation were apprehended by Land Transportation Office (LTO) enforcers, who allegedly informed that they could not ply their routes anymore.

“What the LTO enforcers do is they tell our members that they cannot operate starting the next day, force them to go home, leaving passengers no choice but to alight from the vehicles,” he said in Filipino.

The LTO did not immediately respond to a message seeking comment on the matter.

Under the Public Utility Vehicle Modernization Program (PUVMP), jeepney drivers and operators are mandated to merge their separate franchises into a cooperative or corporation by Dec. 31, 2023, to obtain franchises for modern public utility vehicle (PUV) units.

But while the Land Transportation Franchising and Regulatory Board (LTFRB) decided to push through with the year-end deadline, unconsolidated PUVs were permitted to operate until Jan. 31 — a month-long grace period beyond the deadline.

Mr. Valbuena said the LTO did not follow the extension granted to them and instead insisted on apprehending some of their members.

“Status quo should be upheld. We should not be apprehended unless we violate traffic rules,” he said. “But they (LTO enforcers) question our legal entitlement despite an order allowing us to operate until the end of the month.”

Manibela said apart from Metro Manila, incidents of unjust apprehension were reported by their members in Isabela, Cebu, Bacolod, and Iloilo.

Meanwhile, another transport group Pagkakaisa ng mga Samahan ng Tsuper at Operator Nationwide (PISTON) argued that the proposal of some lawmakers to extend the deadline for franchise consolidation is “meaningless,” demanding a more inclusive program for a just transition in public transport.

PISTON communications officer Jan Atienza told BusinessWorld “franchise consolidation directly transfers public transport into the hands of big business owners and corporations. It contradicts the nature of public transport as a public service that should not be corporatized or privatized.”

Manibela earlier expressed the same stance on the issue, clarifying that they instead clamor for an extension of their franchises and provisional authorities to ply their units even without consolidating.

HOUSE PANEL TO INVESTIGATE ALLEGED PUVMP ANOMALIES
THE HOUSE Committee on Transportation is set to start a probe into alleged anomalies in the implementation of the PUVMP, a lawmaker said on Sunday.

In a statement, transportation panel head Antipolo Rep. Romeo M. Acop said Speaker Martin G. Romualdez sought the investigation after reports of alleged instances of corruption and irregularities in the jeepney modernization campaign.

“We cannot allow corruption to take root in the implementation of the modernization program, he said. “If we are to proceed with the modernization of our PUVs, we must make sure there is not even a whiff of irregularity.”

The congressman said the panel could proceed with the probe under the rules of the House of Representatives even without a resolution or privilege speech.

Over the weekend, Mr. Romualdez called on the Department of Transportation (DoTr) to review its implementation of the PUVMP, which transport groups have opposed citing the risk of increasing the number of unemployed Filipinos.

“We are responding to the directive of Speaker Romualdez to investigate these very serious allegations,” Mr. Acop said. “We will get the consensus of members of the committee of so we can start our hearings by Wednesday. — with a report from John Victor D. Ordoñez

Congressional probe on cutting aid to SHS students sought

PHILIPPINE STAR/ WALTER BOLLOZOS

By John Victor D. Ordoñez, Reporter

A PHILIPPINE lawmaker has filed a resolution seeking an investigation on recent memos issued by the Commission on Higher Education and the Department of Education (CHED) that cut off financial aid to senior high school (SHS) students.

“This issue highlights the failure of the government during the transition period that it even failed to simply call for a thorough consultation with all the stakeholders but now is unilaterally removing the subsidies for these students,” Party-List Rep. France L. Castro said in the resolution filed on Jan. 5

In a memo dated Dec. 18, the CHED said it is discontinuing the senior high school program in state universities and colleges (SUCs) and local universities and colleges (LUCs).

The agency, in a separate memo, had also cut off financial aid for Grades 11 and 12 students in these public colleges.

Ms. Castro reiterated the need for consultations with teachers and students before the education agencies implemented the memos.

There are about 17,751 Grade 11 students and 2,030,451 Grade 12 students enrolled in SUCs and LUCs, according to the DepEd.

Senators have called on DepEd and CHED to ensure students are not displaced in phasing out the senior high school program, especially in the provinces.

CHED Chairman Prospero E. de Vera III earlier said there was no legal basis to continue the SHS program since the transition period for the K to 12 program, which was from school years 2016-2017 to 2020-2021, is over.

“It is the duty of the House of Representatives to exercise its oversight function in ensuring that government programs and initiatives, particularly those concerning education are in line with the principles of equity, transparency and accountability,” Ms. Castro said.

Marcos open to dialogue with predecessor

PRESIDENTIAL COMMUNICATIONS OFFICE

PRESIDENT Ferdinand R. Marcos, Jr. is open to meeting with his predecessor following the latter’s request to talk to him regarding the situation of Sonshine Media Network International (SMNI), which has been suspended by the National Telecommunications Commission (NTC).

Last Saturday, former president Rodrigo R. Duterte said he wanted to talk to Mr. Marcos “indirectly” over the investigation of SMNI, which is owned by the former’s spiritual adviser, Apollo C. Quiboloy.

“I do not want to control the President but rather I’d like to talk to him indirectly,” Mr. Duterte told Davao-based reporters.

On Sunday, Presidential Communications Office Secretary Cheloy Velicaria-Garafil said in response: “President Marcos is always available to former President Duterte.”

“The President will contact him (Mr. Duterte) now to ask if he wants a meeting,” she told reporters.

Last month, the NTC issued a 30-day suspension order against SMNI, which came after the Movie and Television Review and Classification Board (MTRCB) suspended two of its shows for 14 days after a probe into alleged violations in their content.

The House of Representatives has accused the network of violating franchise provisions.  The Committee on Legislative Franchise has found that SMNI violated at least four sections of its franchise.

In opposing the NTC’s decision to investigate SMNI, Mr. Duterte said on Saturday that the agency has “not come up with any allegations or charges of any wrongdoing.”

“One of these days perhaps, I’ll come up with a statement, not necessarily defending Pastor Quiboloy, but just to say something about the way things are, and it would mean Pastor Quiboloy or anybody for that matter,” he said.

In his program on SMNI, Mr. Duterte had accused House Speaker Martin G. Romualdez, a cousin of Mr. Marcos, and other lawmakers of corruption without citing any proof.

Mr. Duterte had also made comments that appeared to be a death threat against ACT Teachers Party-list France L. Castro, who had strongly opposed his daughter’s confidential and intelligence funds.

Mr. Duterte, speaking to reporters in his home province, said he has not said anything negative against Mr. Marcos.

“As far as I am concerned, I have not crucified him, not even criticized him severely, maybe commented on the directions of the government. That’s all,” he said. — Kyle Aristophere T. Atienza

Calamity fund releases hit P15B

A man walks through a mud-covered cornfield in Tuguegarao after heavy flooding due to Typhoon Ulysses, Nov. 19, 2020. — PHILIPPINE STAR/MICHAEL VARCAS

ALMOST two-thirds of the government’s National Disaster Risk Reduction and Management Fund has been released as of end-November, according to the Department of Budget and Management (DBM).

Latest data from the DBM showed that P15.024 billion or 65% of the P23.205-billion calamity fund had been released in the 11-month period.

National government agencies received the bulk or P13.335 billion of the fund releases. Broken down, the Department of Public Works and Highways (DPWH) received the biggest allocation at P6.7 billion.

This was followed by the Department of Social Welfare and Development (P5.05 billion), the Department of Agriculture (P1 billion), the Department of Transportation (P342.47 million), the Department of National Defense (P207.64 million), and the Department of Science and Technology (P35.18 million).

Meanwhile, data showed that P688.887 million was released to government-owned and -controlled corporations (GOCCs) as of end-November.

Releases to the National Housing Authority reached P386.54 million while the Philippine Ports Authority was provided P78 million.

At the end of November, P8.181 billion remained undistributed from the fund.

The fund is used for the aid, relief and rehabilitation services to communities or areas affected by human-induced and natural calamities and other capital expenditures for disaster operations. — Luisa Maria Jacinta C. Jocson

Residents collect beached sardines

RESIDENTS of the coastal village of Tinoto in Maasim, Sarangani, help themselves with heaps of tiny sardines, locally called lopoy, that washed ashore on Sunday. — DENR-12

COTABATO CITY — An unusually large volume of tiny sardines were swept onto the beaches of Maasim town, Sarangani province at dawn on Sunday, a peculiar event that has superstitious villagers believing it is a sign of good tidings for the year.

“This is a blessing from God. We are thankful to God for this,” Allan Gomez Dionaldo, a 28-year-old villager, told reporters in Filipino. He and his neighbors had collected at least five pails of tiny sardines each at the beach in Barangay Tinoto.

Village officials helped oversee the collection of what fishery experts called juvenile pelagic sardines for all to have a fair share. Hundreds of villagers had brought home least 20 to 30 kilos each of the tiny sardines, locally called lopoy.

The so-called beaching of the big volume of sardines is a phenomenon caused by the confluence of a sudden change in sea temperature, wave direction and lack of planktons to feed on.

Cirilo Aquadera Lagnason, Jr., a staff member of the Protected Area Management Office of the Sarangani Bay Protected Seascape under the Department of Environment and Natural Resources-12, said the beaching of juvenile pelagic sardines is not a conclusive indication of underwater seismic activity as often interpreted by the public.

Old folks traditionally warn of a calamity or disaster to happen after there are peculiar but scientifically explainable beaching of fish species by the beach. — John Felix M. Unson

9 projects set for Davao Oriental

DAVAO CITY — Davao Oriental Governor Niño Sotero L. Uy Jr., the newly appointed chair of the Regional Development Council 11 (RDC 11), is raring to implement a total of nine livelihood projects for the province this year.

Last week, Mr. Uy led the signing of the Memorandum of Agreement (MoA) with the RDC 11 for the implementation of these projects funded under the Energy Regulations (ER) No. 1-94 Program issued by the Department of Energy (DoE).

A total of nine approved projects for the province will be funded under the region’s share of the ER 1-94 Development and Livelihood Fund (DLF) from the Aboitiz Power Subsidiaries with mostly farmers and members of different cooperatives as beneficiaries.

Among the projects that qualified for funding under DoE ER 1-94 policy guidelines include the Food Production and Processing Project and the Cultivation of Financial Literacy: Empowering Farmers for Sustainable Prosperity.

Also included in the list are the Lamiay na Buco Pie Davao Oriental; the Choco Ku-Kay-Oh: Chocolate Production in the Cacao-Rich Province of Davao Oriental Series 1 and 2; the Backyard Swine Raising; the Handicraft Project: Romblon, Fossilized Cacao Leaves and Abaca Scrunch; the Tara! Buko Pie Ta!; and the Procurement of Diesel Fishing Engine Project.

Mr. Uy said these projects will provide financial support to the province during these difficult times and allow Provincial Local Government Unit (PLGU) to focus on development projects that will benefit many people and communities.

Meanwhile, an official of RDC 11 expressed optimism over President Marcos’ appointment of Mr. Uy as the new RDC chairman last Wednesday. He replaced the late Governor Cora Malanyaon.

“This is a very much welcome appointment for RDC 11. Gov. Sotero Uy is a very capable leader, a young and development-minded person,” Arturo M. Milan, co-chairman of RDC 11 told Businessworld.

Mr. Milan said that with Mr. Uy at the helm of RDC 11, the dream of Ms. Malanyaon of a strong, resilient, and progressive Davao Region is on track to becoming a reality. — Maya M. Padillo

Over 32,000 PWDs receive grant

PHILSTAR FILE PHOTO

COTABATO CITY — Up to 32,246 persons with disability (PWD) received an initial P6,000 grant each in 2023 from the Bangsamoro region’s Ministry of Social Services and Development, the regional agency reported.

Local executives in the six provinces and three cities in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), among them mayors in Basilan and in Maguindanao del Norte, confirmed on Sunday that the MSSD-BARMM had also provided 35,113 marginalized families with livelihood support, skills training and educational subsidy via the Unlad Pamilyang Bangsamoro Program last year.

“We shall help expand these programs in our province, as planned by the MSSD, via technical and manpower support from our local government units,” Basilan Gov. Hadjiman Salliman said in reaction to this development.

A 46-year-old Maranaw PWD, Monder Sarmin Akil, whose lower limbs are deformed since birth, said he is thankful for the MSSD-BARMM’s subsidy and is looking forward to the expansion of the program in far-flung areas in Lanao del Sur.

“We supported the peace process between the government and the Moro Islamic Liberation Front and now we are benefiting from the BARMM government, created as a result of that peace process,” another PWD, Mursiba Salik Ansar, an ethnic Maguindanaon, said in Filipino.

Yearend reports obtained from the provincial offices of the MSSD-BARMM indicate that the ministry had also responded to requests for emergency assistance by 216,028 residents in the region in 2023, mostly channeled through local government units. — John Felix M. Unson

Beneco demands P200K payment

BAGUIO CITY — Following the past year’s leadership struggle within management, the Benguet Electric Cooperative (Beneco) is now intent on collecting over P200,000 in unpaid electricity bills by the Smart City Command Center (SC3) covering the months of August 2021 to December 2022.

For the unpaid bills to be settled, the Baguio City Council has approved the request for authority of Baguio City Mayor Benjamin Magalong so that the amount could be charged to the 2023 Appropriations of the SC3.

The Beneco sent its notice to the city government last Nov. 13, to collect P201,304 in electricity consumed by the SC in the fit of the pandemic when it operated the Iot boxes of the SC3, and Air Quality Monitoring devices installed in different parts of the city. 

Based on the certification of the Local Finance Committee, there is a P2,177,48.57 fund for the electricity expenses of the operation of the SC3, which Mr. Magalong intends to tap to settle the arrears. — Artemio A. Dumlao

NAIA upgrade winning bidder seen taking over by September

NINOY Aquino International Airport (NAIA) check-in counters. — BW FILE PHOTO

THE GOVERNMENT is on schedule with the timetable of the Ninoy Aquino International Airport (NAIA) upgrade project, the Transportation Secretary said, adding that he expects the winning bidder to take over operations and maintenance of the airport by September.

“We are looking at maybe three to six months; that is the target. I want the (actual take over) to be done not later than six months after the award,” Transportation Secretary Jaime J. Bautista told reporters. 

The opening of technical proposals for the project is scheduled for Jan. 15, Mr. Bautista said, adding that the opening of financial proposals of qualified bids is set for Feb. 7.

“The announcement of results of financial evaluation is on Feb. 14; the issue of notice of award will be on Feb. 15,” Mr. Bautista said, adding that the signing of the concession agreement is set for March 15.

Four groups have submitted bids for the P170.6-billion public-private partnership project to upgrade NAIA.

These groups are Manila International Airport Consortium, Asia Airport Consortium, GMR Airports Consortium, and SMC SAP and Co. Consortium.

Mr. Bautista said that the group with the proposal to remit the most revenue will win the contract for the rehabilitation and maintenance of NAIA.

“The most important, which will be the basis for the award, is the amount they will remit to the government,” he said.

Mr. Bautista added that aside from the revenue share, the Department of Transportation will also assess the bidder’s technical proposal.

According to the concession agreement, the winning bidder is required to pay about P30 billion upfront and P2 billion a year, plus a share of revenue.

The NAIA contract will initially cover 15 years, but can be extended by another 10 years. This will be under a rehabilitate-operate-expand-transfer arrangement, as provided for under the Build-Operate-and-Transfer law.

The project aims to increase the current annual passenger capacity of the NAIA to at least 62 million from the current 35 million. — Ashley Erika O. Jose

Goods prices tracked by DTI expected to post slower growth

A supermarket is seen in Quezon City, March 4 2022. — PHILIPPINE STAR/MICHAEL VARCAS

THE Department of Trade and Industry (DTI) said the price increase of goods that it tracks is expected to rise 6% this year, easing from the 10% growth posted in 2023.

“There are 217 items in the suggested retail price (SRP) bulletin; out of the 217, only a small percentage or 29% or 63 items have price adjustments,” Assistant Trade Secretary for Consumer Protection Group Amanda F. Nograles told reporters.

“I think it is good to highlight that for 154 items in the SRP bulletin or 71%, there will be no price movements,” she added.

According to Ms. Nograles, the price increase for food products classified as basic necessities and prime commodities (BNPCs) will range from 25 centavos to P7.25.

“If we will compare the price adjustment for 2023 versus 2024, the average will be around 6% compared to 2022 versus 2023 which is more than 10%. So, that means that it is just a minimal increase,” she said.

The products that will be affected by the adjustments are canned sardines, processed milk, coffee, bread, instant noodles, bottled water, processed canned meat and canned beef, and condiments. 

Meanwhile, non-food items that will be affected by the price adjustments are toilet soap, candles and batteries.

“If you look at the categories that will be affected by the notice of price adjustments, not all brands and variants in each category filed notice,” Ms. Nograles said.

“So, what is important to highlight is if there will be a price increase in one category, the consumers can still choose another brand or variant where prices did not move,” she added.

Out of the 63 stock keeping units (SKUs), prices for 59 items rose, two items will implement a weight reduction and a corresponding price increase, and two items a weight and price reduction.

“Our plan is around this month, we will start releasing the letter of concurrence and notice of approvals,” Ms. Nograles said. “But I think it is also important to note that even if those are released, the manufacturer will need some time to implement the price adjustments.”

“So, there will be some lag from the time that the DTI releases the notice of approval or letter of concurrence to the time that the actual price increases in the market are effective,” she added.

Trade Secretary Alfredo E. Pascual said that the department is optimistic that there will be fewer requests for price adjustments.

“Going forward, we are optimistic that the requests for price adjustment will be mitigated because the inflation rate has come down,” Mr. Pascual said.

Mr. Pascual said that manufacturers cited the increasing cost of packaging materials and logistics as reasons for seeking price adjustments.

The DTI last released an updated SRP bulletin in February 2023 and only released one last year, compared with the three times in 2022.

“That is an indication of our efforts, as much as possible, in mitigating the price increase of the BNPCs,” Ms. Nograles said.

“Hopefully by the first quarter of 2024 we will update the SRP bulletin to reflect all of the adjustments this year,” she added. — Justine Irish D. Tabile

DoE plan must elevate energy security to top priority item, think tank says

FREEPIK

By John Victor D. Ordoñez, Reporter

THE Department of Energy (DoE) should designate energy security as its main focus when it submits the Philippine Energy Plan (PEP) to Congress, according to a think tank.

“From power generation to transmission to distribution and supply, they all should harmonize into one goal — energy security,” Bienvenido S. Oplas, Jr., president of the free market think tank Minimal Government Thinkers, said in a Viber message.

Senator Sherwin T. Gatchalian last week sought an explanation from the DoE on the delays to its energy roadmap, which had been due on Sept. 15.

The PEP will outline the Philippines’ energy goals between 2023 and 2050.

Under the Electric Power Industry Reform Act, the DoE must submit to Congress an updated energy roadmap annually.

Mr. Oplas said the DoE must ensure enough power is available to consumers to dispel worries of blackouts, especially after recent power outages in Panay.

“The DoE must consider power price fluctuations, surges and dips,” he said. “Which means the DoE should remain agnostic about where the energy comes from.”

DoE Director Michael O. Sinocruz earlier told BusinessWorld that the department is finishing its National Strategic Transmission Plan and wrapping up the consultation process before it submits the energy roadmap by the end of January.

He said the plan will include a smart and green grid plan that would tackle efficient transmission of power to accommodate more renewable energy sources.

The government is aiming to increase the share of renewable energy (RE) in the power generation mix to 35% by 2030 and to 50% by 2040. RE currently accounts for 22% of the energy mix.

The DoE has said the PEP will also detail the government’s plan to tap nuclear energy.

The Energy Regulatory Commission on Jan. 4 said the Panay power outage has been referred to an interim grid management committee for investigation.

President Ferdinand R. Marcos, Jr. on Saturday said the National Grid Corp. of the Philippines (NGCP) must take responsibility of the power outage in the Western Visayas on Jan. 2.

The NGCP on Jan. 2 reported that multiple power plants tripped, including units of Panay Energy Development Corp. and Palm Concepcion Power Corp.

Camarines Sur Rep. Luis Raymund F. Villafuerte, Jr. said on Sunday that legislators must reconsider the legislative franchise of the NGCP.

“The only way we can hope for things to change for the better is for the 19th Congress to recast the NGCP’s franchise to, among others, possibly strip it of his task as traffic manager of the nationwide transmission system, or to revoke the concession altogether,” he said in a statement.