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Taiwan investments in Philippines driven by island’s labor shortage

REUTERS

THE investment pledges from Taiwan obtained by a Philippine Economic Zone Authority (PEZA) mission were a response to the island’s labor shortages, an economist said.

Foundation for Economic Freedom President Calixto V. Chikiamco said Philippine investments are a way for Taiwan companies to harness the Philippines’ surplus labor.

“Taiwan has a labor shortage and an ageing demographic profile. It’s likely they are looking to invest in the Philippines to take advantage of surplus labor in the Philippines and its location near Taiwan,” Mr. Chikiamco said.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that the Taiwan companies perceive opportunities in the high levels of plastic waste generated by the Philippines.

The promise lies in the current lack of cheap environment-friendly alternatives for packaging, he said.

PEZA recently led a five-day mission to Taiwan in which it was able to secure P20.6 billion in investment leads and pledges.

Some P11.36 billion was from a consortium of Japan and Taiwan companies making compostable packaging.

PEZA said that the consortium is interested in food service applications for its packaging.

A P7.95-billion investment pledge was made by a renewable energy company that wants to use recycled waste paper as feedstock. It also wants to pursue vertically integrated low-carbon papermaking and eco-packaging manufacturing.

“The same company is also interested in developing a waste-to-energy plant,” PEZA noted.

Meanwhile, another manufacturing company plans to put in P681.85 million to expand its Electronic Manufacturing Services business. It makes, assembles, inspects and tests electronic products and provides engineering support. 

A company that develops eco-friendly non-asbestos friction materials used in bicycle disc brake systems is also expected to invest P484 million, according to PEZA. 

The investment promotion agency also obtained a P171-million pledge from a Taiwan precision stamping and plastic model services company.

Asked when PEZA expects the pledges to materialize, PEZA Director General Tereso O. Panga said that the companies are at varying stages of the investment pipeline.

“Some are in exploratory stages, while some are in advanced stages — those who have already finalized site selection or made down payments in their preferred economic zones,” Mr. Panga said in a Viber message.

“Those in the latter stages of site selection might apply this year with PEZA. We expect those in exploratory stage to just be starting on site selection and register next year. Notwithstanding, we’re closely monitoring the developments on each of the leads,” he added.

PEZA said the companies in the exploratory stages are the Japan-Taiwan consortium and the renewable company, with the rest further along in the process.

“Whether or not these pledges will turn into actual investments depends on the ease of doing business here, the availability of power and other infrastructure, the security situation, and treatment from local governments toward investors,” Mr. Chikiamco said.

Mr. Ricafort said it is unlikely for the projects to materialize this late in the year.

“Aside from PEZA’s own efforts, we have like-minded government partners such as PTIC-Taipei that can do follow-up on the ground. Partner ecozone developers also ensure that the groundwork is done for a seamless preparation of the facilities,” he added. — Justine Irish D. Tabile

DoE drafting audit rules for energy firms

THE Department of Energy (DoE) is drafting guidelines that would govern the audit and reporting and remittance obligations of companies engaged in exploration, development and utilization of coal, petroleum, renewable energy (RE) sources, and power generation.

The DoE cited its authority to do so under Administrative Order No. 38, which allows it to “formulate and implement fiscal policies, programs, and regulations on the indigenous energy resources service contractors (SCs), power generation companies (GenCos), and energy resource developers (ERDs).” 

The draft circular covers the submission of financial reports; remittance of the government’s share of contracts to the DoE; direct remittance of financial benefits to the host local government units and designated beneficiaries of GenCos and ERDs; and the audit and evaluation of such reports and remittances.

“All submissions of mandated financial reports shall be complied with in accordance with the prescribed timelines as provided under existing DoE issuances,” the DoE said.

Failure to submit any financial reports on time will trigger a penalty of P1,000 per report, with “any fraction of a quarter considered one quarter,” the DoE said.

Lateness or non-submission after one year will trigger the “initiation of the suspension and/or cancellation of the coal, petroleum and RE service contracts and/or revocation of permits and accreditation certificates.”

Non-compliant GenCos and ERDs may result in a DoE recommendation to suspend or revoke their permits, certificates, and other authorizations to the Energy Regulatory Commission for appropriate action.

GenCos and ERDs will be required to submit to the DoE an electricity sales report and allocation and remittance report on a per power plant basis within 60 days after each billing quarter of a calendar year.

“The DoE shall commence the audit of the books of account of the auditee within 36 months following the end of each calendar year. Any audit shall be completed within 12 months from the commencement thereof,” the department said.

“Within 45 working days following the completion of such audit, the DoE shall issue an initial audit report, including audit exceptions on the reported revenues, expenditures, and electricity sales in kWh (kilowatt hour), if any,” it added.

Meanwhile, the DoE said that failure to remit the assessed government share will result in interest and/or surcharges computed from the day following the date when the assessment became final and executory. — Sheldeen Joy Talavera

Tax vision, pillars, and purpose 

Vision, values, and purpose are crucial components of every organization’s strategic framework. Vision embodies the direction where the establishment wants to go. Core values keep it on track. Whereas purpose unifies and helps the people within the organization understand the why behind the direction, keeping them motivated to stay on the path.

Together, these shape the fundamental purpose of existence of every organization. These three must be clear, motivational, and inspirational to serve as a guiding force – be it in the private or government sector.

This is the third article in our series following the 2nd SGV Tax Symposium, which focused on how a sustainable and effective tax ecosystem can advance the sustainability agenda for both the public and private sectors. In this article, we will talk about how the SGV tax vision is taking shape, given added impetus by the pillars of the Bureau of Internal Revenue (BIR) in its priority programs.

Four years ago, SGV’s Tax Service Line articulated its own tax vision to reinvigorate the way that it operates, one that is consistent with the firm’s ultimate purpose of “nurturing leaders and enabling business for a better Philippines.” This tax vision is simple and straightforward — to create a tax ecosystem where: 1) taxpayers are willing to comply; 2) we work closely with regulators to attain positive outcomes, 3) tax practitioners are armed with skills and integrity, and 4) the country becomes an investment haven where businesses flourish — all for a better Philippines.

Among the critical players in SGV’s envisioned tax ecosystem are the regulators, who we consider vital partners in the progress of the nation.

In February, the BIR, under the leadership of Commissioner Romeo Lumagui, Jr., unveiled its priority programs for 2023 during its yearly tax season kickoff. These programs focus on four pillars that form the foundation of the BIR under Lumagui’s leadership, namely, excellent taxpayer service; integrity in the revenue service; audit and enforcement; and digitalization.

These key focus areas were laid down in Revenue Memorandum Circular No. 38-2023 dated March 23 to emphasize the shift of the BIR from strict tax administration to the delivery of efficient, courteous, and timely services to encourage taxpayers to file tax returns and pay the correct taxes on time. BIR Assistant Commissioner Jethro M. Sabariaga, one of our keynote speakers, highlighted these pillars in his talk during the SGV Tax Symposium held on Oct. 25.

Zeroing in on both the strategies and the underlying purpose behind them, we see how there are positive alignments between SGV’s tax vision and the BIR’s priority programs.

EXCELLENT TAXPAYER SERVICE
By highlighting the importance of process improvement and exceptional client service, the BIR hopes to generate more revenue by combatting disinformation, reeducating taxpayers and stakeholders while standardizing its processes. Consistent with this commitment, the BIR recently launched programs to allow the online filing of requests such as Tax Identification Numbers and certain types of certificates, as well as reducing the documentary requirements in some identified BIR applications.

This is aligned with the first tenet of SGV’s tax vision of building a tax ecosystem where taxpayer compliance is voluntary and not enforced. If businesses are equipped with proper information and systems, and the value of timely and correct payment of taxes is clearly articulated to taxpayers, we believe that this can lead to a gradual transformation of taxpayer mindsets where tax becomes a dutiful obligation rather than an onerous burden.

TRANSPARENCY AND INTEGRITY
The BIR’s intensified campaign to underscore the value of transparency and integrity parallels SGV’s commitment to deal with the government, clients, and stakeholders with probity and accountability.

It is not enough that tax practitioners are equipped with the right technical tools — it is equally important to put a premium on consistently doing what is right.

AUDIT AND ENFORCEMENT PROGRAM
The BIR’s audit and enforcement program is aimed at leveling the playing field and allowing taxpayers to evaluate their processes, improve their compliance, and disprove any improper tax assessments. From this perspective, the BIR methodically seeks to shed its image as an adversary and transform into a collaborator for change, similar to SGV’s goal to be a catalyst in transforming the Philippine business landscape. In a sense, if the BIR continues to sustain this progressive approach, taxpayers may learn to adopt the mindset that they are key partners in the process of upholding the country’s tax ecosystem.

DIGITALIZATION
According to the BIR, it is striving for impartiality, transparency, and efficacy by implementing digitalization programs, elevating the tax administration in the Philippines to be at par with other tax agencies in the world.

As part of its strengthened digitalization program, the BIR recently launched eONETT (Electronic One Time Transaction), circularized through Revenue Memorandum Circular No. 56-2023 dated May 19. Under the eONETT system, taxpayers can file and report tax returns as well as pay the corresponding taxes due for these one-time transactions online, minimizing the need to set foot in a BIR office. 

This BIR pillar resonates with one of the tenets of SGV’s tax vision, which sees the Philippines as an investment haven where businesses flourish, ultimately for the betterment of the Philippines. Digitalization fosters transparency and efficiency, which allows businesses to thrive only with the minimum required regulatory intervention necessary.

VISION, VALUES, AND PURPOSE DRIVE ORGANIZATIONS
The BIR’s transformation agenda and SGV’s tax vision prove that both the public and private sectors place a premium on the inspirational and aspirational. Vision, values, and purpose drive organizations to their full potential and allow their stakeholders to support them through their own journeys. 

These are key to sustainable growth on either side of the fence, driving the necessary transformative changes to achieve a sustainable and effective tax ecosystem that works with both businesses and regulators to the benefit of all stakeholders, and collectively for the country.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the author and do not necessarily represent the views of SGV & Co. or EY.

 

Fabian K. Delos Santos is the head of Tax of SGV & Co.

Military modernization plan one of 46 Philippine laws without budgets

THE SPECIAL Forces Regiment (Airborne) of the Philippine Army celebrated its 61st founding anniversary at Fort Magsaysay in Palayan City, Nueva Ecija on June 25, 2023. — PPA POOL

By Beatriz Marie D. Cruz, Reporter

FORTY-SIX Philippine laws including the modernization of the Armed Forces of the Philippines (AFP) could not be enforced due to a funding gap of half-a-trillion pesos, according to a House of Representatives think tank.

The military has been unable to get the P297.7-billion budget it needs this year to implement the program, the Congressional Policy and Budget Research Department said in a report.

The Rice Tariffication Law has also failed to move given a P10.03-billion funding deficiency, while a law that seeks to allot a part of state earnings from the Malampaya natural gas project to help lower electricity prices lacks P184 billion, it said.

Another law that seeks to strengthen electric cooperatives needs P20.03 billion, while the Philippine Space Act has a funding deficiency of P10 billion. The Shelter Financing Act needs P9.04 billion. 

“Of the P554.5-billion total funding deficiency, about 95.7% or P530.8 billion can be traced to the six major laws with significant funding requirements,” the House think tank said in the report.

Republic Act 10349 or the revised AFP Modernization Act has a proposed P50-billion budget under the 2024 national appropriations. Defense Secretary Gilbert C. Teodoro told a Senate hearing in September the agency initially requested P115.1 billion.

Hansley A. Juliano, who teaches political science at the Ateneo De Manila University, said the military should show results to higher funding.

“There’s that fundamental dilemma the Armed Forces of the Philippines and Philippine National Police has had for a while now: they keep demanding resource hikes, but the money doesn’t go down to where it’s needed,” he said in a Facebook Messenger chat. “Our borders remain unprotected, and it’s only the general staff that’s getting richer.”

He also cited the need for more transparency in the enforcement of the AFP modernization program.

“This lack of transparency on itemizing what those funds should be (and why they are needed) continues to feed the suspicion of civil society organizations who have had bad history with the AFP,” Mr. Juliano said, citing red-tagging and alleged human rights abuses by state forces.

Congressmen last month allotted P2.64 billion to expand and develop the runway on the Philippine-occupied Thitu Island in the South China Sea.

President Ferdinand R. Marcos, Jr. in February gave the US access to four more military bases on top of the five existing locations under their 2014 Enhanced Defense Cooperation Agreement (EDCA), amid China’s increasing assertiveness in the South China Sea.

The President this month started talks with Japanese Prime Minister Fumio Kishida on a reciprocal pact that seeks to boost military cooperation between the two countries.

The House think tank said a total of 205 laws had a funding deficiency between 1991 and 2022, with 163 of these unfunded and 42 only partially funded.

Marcos urged to recall envoy to China after water cannon incident

PHILIPPINE COAST GUARD FILE PHOTO

A SENATOR on Sunday asked the government of President Ferdinand R. Marcos, Jr. to recall the Philippine ambassador to China as a sign of protest after the Chinese Coast Guard again fired water cannons at Philippine vessels on a resupply mission in the South China Sea.

“It is up to the executive branch, and it is something we haven’t done yet,” Senator Francis N. Tolentino, who heads the Senate Special Committee on Maritime and Admiralty Zones, told DZBB radio in Filipino.

The Chinese Embassy in Manila did not immediately reply to a Viber message seeking comment.

The Philippine Task Force on the South China Sea on Nov. 10 said China’s coast guard used “dangerous maneuvers and a water cannon” to block a Philippine resupply mission to the BRP Sierra Madre at Second Thomas Shoal.

The Philippine Embassy in Beijing filed a diplomatic protest against China after the incident, it said.

China’s coast guard in a statement said the Philippine resupply vessels had infringed on China’s sovereign rights when it entered into waters near the Second Thomas Shoal.

“The China coast guard has followed Philippine vessels in accordance with the law, taken control measures and made temporary special arrangements for the Philippine side to transport food and other necessary daily necessities,” it said.

Mr. Tolentino said recalling the Philippine ambassador would show a high level of condemnation over China’s actions in the South China Sea.

“This is not cutting off [diplomatic relations],” he said. “This will just show that these incidents are too much, even after the many diplomatic protests we have filed.”

The Philippines filed 125 diplomatic protests against China from July 2022 to Nov. 7, Foreign Affairs spokesperson Ma. Teresita C. Daza said on Nov. 10.

Tensions between the Philippines and China have worsened after the Chinese Coast Guard fired water cannons to block Manila’s attempt to deliver food and other supplies to BRP Sierra Madre, which Philippines deliberately grounded in 1999 to assert its claims, on Aug. 5.

Second Thomas Shoal is about 200 kilometers from the Philippine island of Palawan and more than 1,000 kilometers from China’s nearest major landmass, Hainan Island.

Last month, the Philippines filed a diplomatic protest against China and summoned its envoy in Manila after its ships collided with Philippine vessels on a resupply mission the shoal.

China claims the South China Sea almost in its entirety based on a 1940s map, which a United Nations-backed tribunal said in 2016 is illegal.

“You can see how China is intensifying its activities…They are not abiding by international law,” Mr. Tolentino said.

41 Filipinos, 7 Palestinian spouses coming home

Palestinians wait at the Rafah border crossing between the Gaza Strip and Egypt Gaza Strip, Oct. 14, 2023. — REUTERS

FORTY-ONE Filipinos and seven Palestinian spouses who crossed to Egypt from Gaza were expected to arrive in the Philippines on Sunday evening, according to the Department of Foreign Affairs (DFA).

Ninety-eight Filipinos have crossed to Egypt since the Rafah Border Crossing opened earlier this month, while 16 Filipinos were still undecided about returning to the Philippines, Foreign Affairs Undersecretary Jose Eduardo A. de Vega said in a WhatsApp message on Sunday.

He added that 14 Filipinos were set to come home this week, while 23 Filipinos have decided to stay in Gaza.

Gaza’s border authority at the weekend said the Rafah land crossing into Egypt would reopen for foreign passport holders and dependents at 3 p.m. on Sunday after the border closed on Nov. 8 due to security concerns, Reuters reported.

On Nov. 1, the border crossing opened for the first time since the Israel-Hamas war erupted on Oct. 7.

The first batch of 35 Filipinos and a Palestinian spouse arrived in the Philippines on Nov. 10.

In a statement on Nov. 10, President Ferdinand R. Marcos, Jr. said 56 Filipinos crossed to Egypt last week via the Rafah Border Crossing.

The Philippines earlier placed Gaza under Alert Level 4, forcing Filipinos to return to the country. Israel is under Alert Level 2.

Israel launched a barrage of airstrikes in Gaza after Hamas militants backed by waves of rockets stormed from the blockaded Gaza Strip into nearby Israeli towns on Oct. 7, killing about 1,400 Israelis.

Israel has deployed tens of thousands of its troops for a ground assault on the Palestinian enclave and has enforced a blockade.

More than 10,000 Palestinians have died since the war started last month, according to Gaza health authorities. At least four Filipinos have died in the war.

Two babies died and dozens more after fuel ran out at Gaza’s largest hospital on Nov. 11, Palestinian authorities said at the weekend.

Mr. Marcos earlier said Israel Foreign Minister Eli Cohen had committed to ensure the immediate evacuation of Filipinos trapped in the conflict. —  John Victor D. Ordoñez

Petitioner vs Smartmatic not after ballot boxes

PHILIPPINE STAR/ RUSSELL PALMA

By Jomel R. Paguian

OPENING ballot boxes is unnecessary in investigating alleged irregularities in the 2022 national election, said National Citizens’ Movement for Free Elections (NAMFREL) former chairman Augusto C. Lagman, who filed a petition against automated election systems provider Smartmatic.

“We don’t need to open the ballot box. Our only question is why it (election returns) passed through a private IP (internet protocol) address before reaching the transparency server,” Mr. Lagman said in Filipino when interviewed.

The remark was made in response to Commission on Elections (Comelec) Chairman George Erwin M. Garcia who said in a Viber message last week that petitioners against Smartmatic can choose ballot boxes to open for a manual recount.

Smartmatic said in an e-mail that the use of a private IP address for transmission of votes “is not a violation of any rule of law.”

“It speaks volumes of Comelec’s unflagging commitment to modernization. What matters once again is that all the votes that had been counted, transmitted and canvassed were 100% accurate and not tampered with,” said Smartmatic.

Mr. Lagman, who is also a former Comelec commissioner, insisted that using a private IP address is illegal as it was not mentioned in the law, citing that election results should only be transmitted from precincts to municipal, provincial, and national servers.

“If you put up an IP address, that is not in the law and that should be prohibited,” said Mr. Lagman who claimed that going through a private IP address may give way for a “man-in-the-middle” to alter election results being transmitted to servers.

“We don’t know if the IP address transmits the correct data. It may be manipulated,” he added.

Mr. Lagman said Smartmatic should be banned from bidding for the 2025 national midterm elections given the alleged irregularities. “They (Smartmatic) should be banned. There was a man-in-the-middle in their systems,” he added.

Smartmatic said this claim is disinformation. “The petitioners’ obvious objective is to propagate disinformation,” said Smartmatic. “[T]here is no discrepancy between the precinct-level count and the data as received at the National Board of Canvassers and the Transparency Server.”

Smartmatic added that the petitioners are yet to prove a single-vote discrepancy in the transmitted results as against the precinct results.

Together with Mr. Lagman, former information and communications technology chief Eliseo M. Rio, Jr., Franklin Ysaac, and Leonardo O. Odoño filed the petition to ban Smartmatic on June 16.

Meanwhile, Mr. Rio’s group September Twenty One Reform Movement reiterated their call to ban Smartmatic in a news briefing on Thursday.

VP dodged criticism — analysts

PNA PHOTO BY ALFRED FRIAS

SOME political analysts are of the opinion that Vice President and Education Secretary Sara Z. Duterte-Carpio only gave up her pursuit of confidential funds for her office next year to avoid being a target of criticism.

“This is meant to counter the ongoing offensives being made against her and her allies by her detractors and rivals in the House,” Arjan P. Aguirre, who teaches political science at the Ateneo de Manila University, said in a Facebook Messenger chat.

Mr. Aguirre said the move may help the Vice President gain public sympathy if she appeared as the “underdog” and “the bigger person” in the argument about secret funds for civilian agencies.

“She (Ms. Duterte-Carpio) is now backtracking given the public opposition as well as the reactions of the House,” Maria Ela L. Atienza, who teaches political science at the University of the Philippines, said in a Viber message.

Office of the Vice President (OVP) Media and Public Relations chief Jefry M. Tupas did not immediately reply to a Viber message seeking comment on these views. 

Citing a statement from Ms. Duterte-Carpio, Senator Juan Edgardo “Sonny” M. Angara told plenary last week that the Vice President would not pursue her request for P500 million in confidential funds next year “because it is seen to be divisive.”

Last week, senators ended plenary debates on the P1.874-billion budget of the OVP, pending amendments.

Ms. Duterte-Carpio will also forgo the Department of Education’s (DepEd) request for P150 million in confidential funds, asking senators to realign the funds to the country’s learning recovery program.

The House of Representatives had stripped confidential and intelligence funds for the Office of Vice President and the Department of Education next year.

The lower chamber transferred P1.23 billion worth of these budgets to security agencies amid worsening tensions with China. — John Victor D. Ordoñez

Women’s union flags job bias

JOB SEEKERS attend a job fair in Manila, May 31, 2023. — PHILIPPINE STAR/EDD GUMBAN

WOMEN-LED labor union expressed concern over the weekend that the higher unemployment rate among females might be indicative of cultural precepts that women should prioritize unpaid domestic work in the household.

Citing results of the September Labor Force Survey (LFS) of the Philippine Statistics Authority (PSA) that joblessness in September was higher for females at 5.2% than males at 4.1%, the Federation of Free Workers Women’s Network (FWN) said women jobseekers easily face discrimination for their domestic roles.

“Even if they (women) apply for a job, employers still ask them if they are married because employers think they will have a hard time at work if they are married or have children,” FWN President Maria Victoria G. Bellosillo said.

Other factors contributing to the gender disparity in terms of employment are the lower pay for female workers compared to their male counterparts and harassment in the workplace.

The FWN has been lobbying for the implementation of a national wage increase to address the gender pay gap.

“Support for a higher minimum wage is crucial because there is still a gender pay gap experienced by female workers, where the average basic pay for men is still higher than that of women,” FWN focal person for gender equality Anna Leah Colina, speaking in Filipino, said.

Ms. Colina added that women workers in the electronic manufacturing industry face the brunt of its decline as they experience reduced working hours. September LFS results showed that the industry dropped 888,000 workers year on year.

“We feel the economic crunch in the manufacturing sector, and it’s affecting women. In electronics, where the majority of workers are women, there’s a slowdown in global demand, leading to temporary shutdowns, resulting in a ‘no work, no pay’ situation, and a reduction in their work days,” she said.

Ms. Bellosillo said that aside from equal pay and benefits, women employees’ rights must be respected by providing them sufficient parental leave and breastfeeding areas in workplaces.

She also emphasized the call against workplace harassment against women as President Ferdinand R. Marcos, Jr. endorsed the ratification of the International Labour Organization Convention (ILO C190) which establishes the right of workers against violence and harassment. She said harassment in the workplace caused some women to leave their workplace and distress in their mental health. — Jomel R. Paguian

IPAs spark accountability debate

A PROPOSAL returning tax incentive power to investment promotion agencies (IPAs) will only give rise to accountability issues, professor and former Department of Finance (DoF) undersecretary Cielo D. Magno said over the weekend.

“We have to remember that incentives are foregone revenues of government which could have been used to provide social and economic services to the public. There must be accountability to ensure that when we give businesses incentives, we are getting something in return from these foregone revenues,” Ms. Magno, who currently teaches economics at the University of the Philippines, said in a Viber message.

The proposed shift, part of the CREATE MORE Bill pending in Congress, would weaken the Fiscal Incentives Review Board (FIRB) and if it were dissolved, “water down” accountability, she added.

President Ferdinand R. Marcos, Jr. sought the power to grant and approve tax incentives to IPAs, Albay Rep. Jose Ma. Clemente Salceda told the House Ways and Means Committee last week.

The move would essentially “wind down” the FIRB’s power to grant and approve fiscal incentives.

“The proposal to revert authority to the relatively autonomous IPAs will not only prevent that kind of nationally coordinated incentives system for national development but will likely even encourage them to compete with each other to attract foreign investment,” IBON Foundation executive director Jose Enrique A. Africa said via Viber.

“The first order of business on the matter of fiscal incentives is to design these as part of a much broader strategic industrialization policy and not just to attract FDI for its own sake,” Mr. Africa added.

The CREATE is also sought amendments to address issues in delayed value-added tax (VAT) refunds.

“If we want to fix VAT refund, accelerate the implementation of e-invoicing and the digitalization of BIR and pass the Ease of Paying Taxes bill,” Ms. Magno said. “Removing the accountability process in awarding incentives will not solve the problem regarding VAT refund.” — Beatriz Marie D. Cruz

Gov’t needs climate fund support

FREEPIK

ACKNOWLEDGING government limitations, the Climate Change Commission (CCC) is calling for more private sector investments for climate action projects, an official said over the weekend.

“The government simply cannot do it alone,” Robert E.A. Borje, vice-chairman of the CCC told reporters on Saturday. “So (the private sector) needs to invest also. It also becomes a good business sense because they need to adapt.”

However, he said government should be able to provide the incentives and the support needed so that companies would invest in these projects, making them “as strong and as climate adaptive as possible.”

Mr. Borje said the CCC is “almost done” with the national adaptation plan which aims to reduce the impact of climate change, create long-term support mechanisms for climate change technologies, and facilitate the adaptation of climate change measures into policies, programs and activities. 

By next year, the CCC will work on the implementation plan of the Nationally Determined Contribution, a climate action plan to cut emissions and adapt to climate impacts.

“Moving forward it is important that there is enough funding for these two, and that is the next step,” Mr. Borje said.

Meanwhile, the CCC is also planning to conduct a climate roadshow. “We will go to the different, key, local government units along with other stakeholders para pag-usapan ang ano pa ang dapat gawin pag dating sa adaptation (ng climate initiatives),” he said. — Adrian H. Halili

SC upholds architects’ authority

PHILSTAR FILE PHOTO

THE PHILIPPINE Supreme Court (SC), in a decision issued by the SC Second Division on March 15 and released on Nov. 9, ruled that only licensed architects, not civil engineers, can prepare, sign, and seal architectural documents.

This ruling overturns a Court of Appeals (CA) decision that questioned certain rules in Presidential Decree No. 1096, the National Building Code.

The SC said that the decision “cannot be considered to have any legal effect nor part of the National Building Code,” because the Code, as published in the Official Gazette, did not mention that civil engineers may sign architectural plans in the first place. Moreover, the SC ruled that the Architecture Act of 2002 impliedly repealed provisions in the Civil Engineering Law of 1950 which authorized civil engineers to prepare, sign, and seal various plans, including architectural documents.

“The repeal of a statute is a matter of legislative intent…The language of [the Architecture Act] reveals an intention on the part of the legislature to provide for a limitation on the civil engineers’ authority to prepare, sign, and seal documents relating to building construction,” said the High Tribunal.

In the same ruling, the SC upheld that only registered and licensed architects, or interior designers, may prepare, sign, and seal the architectural interior or interior design documents.

The ruling was made after Leo Cleto Gamolo and the Philippine Institute of Civil Engineers, Inc. filed a petition for declaratory relief before the Regional Trial Court (RTC) to authorize civil engineers to sign architectural documents.

The RTC denied the petition on Jan. 29, 2008, but was overturned by the CA on Jan. 5, 2012. — Jomel R. Paguian

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