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National Revenue Authority touted as possible BIR, BoC replacement

BW FILE PHOTO

THE overhaul of the government’s main revenue agencies must be revisited, particularly the consolidation of the bureaus of Customs and Internal Revenue into a National Revenue Authority (NRA), a former Finance department official said.

Former Undersecretary Cielo D. Magno called for the revival of a proposal to establish the NRA, “given all of these challenges and problems with respect to revenue mobilization.”

“I think it’s again time to think of reforming the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BoC), and revisiting the idea of creating a National Revenue Authority,” she said in a University of the Philippines School of Economics event on Feb. 6.

House Bill 695, filed in 2017 by former President Gloria Macapagal‑Arroyo, sought to replace the BIR and streamline tax collection.

Last year, the BIR came under fire from the private sector over the alleged misuse of letters of authority, which serve as the precursor to tax audits. The Bureau of Customs also faced complaints from US firms about intrusive inspections, inconsistent charges, and demands for “facilitation fees.”

Both agencies missed their 2025 collection targets as the economy slowed in the wake of the flood control corruption scandal and a freeze on rice imports.

Meanwhile, Raymond Abrea, chairman and chief executive officer of the Asian Consulting Group, backed the abolition of both bureaus and proposed a state-owned, professionally managed, performance‑driven NRA.

Mr. Abrea said the NRA should operate like a government‑owned and -controlled corporation (GOCC) to insulate revenue collection from political interference.

“This is crucial because the Constitution mandates that the authority to collect revenue rests with the government. So the legal aspect of that needs to be studied carefully,” he said in the Chikahan with Prof. Cielo Magno: The Tax ng Ina Mo Podcast on Feb. 4.

Mr. Abrea likened the NRA to the Inland Revenue Authority of Singapore.

A GOCC structure would free the NRA from budget constraints, attract top private‑sector talent, and fully automate tax and customs administration using digital platforms, artificial intelligence, and blockchain systems, he added.

The government hopes to collect P4.82 trillion in revenue in 2026, with P3.431 trillion expected from the BIR and P1.003 trillion from the BoC.

BusinessWorld reached out to the Department of Finance, but said its officials were not immediately available to comment.

The BIR and Customs Commissioners were approached for comment, but had not replied at the deadline. — Aubrey Rose A. Inosante

Ceramic tile imports could be subject to safeguard measures investigation

WILCON

THE Department of Trade and Industry (DTI) said it will be looking into possible safeguard measures against imported ceramic tiles.

In a notice dated Feb. 3, the DTI said it received an application from the Ceramic Manufacturers’ Association, Inc. to initiate a preliminary investigation into imported ceramic tiles from various countries.

“The application alleged that the increased imports have contributed significantly to the serious injury suffered by the local industry,” it said.

After evaluating the application, the DTI said there are prima facie indications that justify the initiation of the probe.

“The period of investigation is from 2020 up to the first quarter of 2025,” it said.

In a report, the DTI said imports of ceramic tiles have been fluctuating from 2020 to 2024, with imports growing 81% from 2020 to 2022 before decreasing 29% in 2023. In 2024, imports were little changed.

During the period of investigation, China accounted for 71% of the imported ceramic tiles, followed by Indonesia (14%) and Vietnam (10%).

The report also found that imports have consistently accounted for much more than the volume of domestic production.

“In 2020, the imports’ share relative to domestic production was approximately 235%, rose sharply in 2021, and reached its peak in 2022. This indicates that imports grew much faster than local production during this period,” it said.

In the first quarter of 2025, the report found that imports were equivalent to about three times domestic output.

“The market share of the domestic industry steadily declined from 2020 to 2024, while imports increased their share over the same period,” it said.

“Market conditions in the first quarter of 2025 indicate a strong reliance on imports, with domestic industry contributing only marginally to total supply,” it added.

“Based on the above findings, there are indications that increased imports of ceramic tiles are the substantial cause of serious injury to the domestic industry in terms of loss of market share, declining domestic sales, utilization rate, reduction in labor productivity, incurred losses, and increased production cost,” the DTI said. — Justine Irish D. Tabile

Farmer training seen helping revive Samar abaca industry

BW FILE PHOTO

FARMERS in Calbayog City are receiving training on modern abaca production techniques, fiber grading, and disease management, part of a program to revive the Samar abaca industry.

In a statement, the Philippine Fiber Industry Development Authority (PhilFIDA) said farmers are expected to emerge with skills in planting material management, disease identification and control, fiber extraction, and quality classification.

PhilFIDA said the training sessions will help boost the production of high-quality fiber and enhance market competitiveness, en route to reviving the island’s abaca industry.

The Philippine Statistics Authority (PSA) reported that abaca production in Samar has declined over the past decade, dropping from 1,807 metric tons (MT) in 2010 to about 940 MT in 2024.

The province’s share of national abaca production  also declined from 2.72% in 2010 to 1.45% in 2024.

Last week, participants attended a two-day training session organized by the government of Calbayog, with resource support from PhilFIDA.

The program included hands-on field activities, such as disease identification and a visit to the city’s regular abaca nursery in Barangay Gabay.

“PhilFIDA remains committed to empowering abaca farmers through continuous skills development and technology transfer,” it said. — Vonn Andrei E. Villamiel

Zambales fishing ban called unauthorized as submarine cable maintenance commences

DNV

A GROUP of fisherfolk said it is protesting a temporary fishing ban declared for San Felipe, Zambales to accommodate maintenance work on a submarine cable.

In a statement on Monday, the Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (PAMALAKAYA) questioned the validity of the restrictions, which they said disrupted fishing activities and affected the income of small-scale fisherfolk in the area.

According to the group, the Chinese-flagged supply vessel Feng Hua 21, operated by FH Offshore Engineering, arrived in San Felipe on Feb. 5 to carry out repair and maintenance work for the Luzon Festoon Cable Repair and Maintenance Project.

“It is unacceptable to ban fishing to accommodate the operations of a foreign vessel,” PAMALAKAYA National Chairperson Fernando L. Hicap was quoted as saying in the statement.

Mr. Hicap also cited previous offshore activities by Chinese firms in the area, which he said disrupted fishing operations and damaged marine resources.

The group also raised concerns over the legal basis of the restriction, noting the absence of a provincial ordinance or a formal declaration from the Bureau of Fisheries and Aquatic Resources (BFAR) authorizing a fishing ban.

“The fishing ban is arbitrary and has no legal basis in the absence of a formal declaration from the appropriate government agency,” Mr. Hicap said.

The group said the cable repair and maintenance work is expected to continue until March and will also affect other coastal areas, including Dasol, Pangasinan; Luna, La Union; and Nasugbu, Batangas. — Vonn Andrei E. Villamiel

What to expect after lifting of audit suspension

On Jan. 27, the Bureau of Internal Revenue (BIR) officially announced the lifting of its audit freeze, signaling the resumption of full audit and enforcement activities with the issuance of Revenue Memorandum Order No. 001-2026.

As Valentine’s Day approaches, most people are looking forward to receiving love letters with chocolates and roses. In the world of tax, taxpayers should prepare their hearts, as the BIR may soon begin sending their version of “love letters” in the form of electronic Letters of Authority (eLAs), assessment notices, advisories, and audit‑related communications.

SINGLE-INSTANCE AUDIT FRAMEWORK
A key change accompanying the resumption of BIR audits is the single-instance audit framework. Under this policy, a taxpayer is subject to only one eLA per taxable year, covering all applicable internal revenue tax types, including Value-Added Tax (VAT).

However, a separate audit or verification authority may be issued for cases that are transactional, event-based, or terminal in nature.

REQUEST FOR NON-CONSOLIDATION OF VAT AUDIT CASES
Despite the single-instance audit framework, a taxpayer with multiple pending eLAs within the same taxable year may file a written request for non-consolidation with the RDO/OAS/LT Audit Divisions handling the eLA that covers all internal revenue tax types, except VAT. The request must indicate: (a) the name of the investigating office (e.g., VATAS/LTVAU); (b) the eLA serial number/audit case number; (c) the date of issuance; and (d) the tax type and taxable period covered by the eLA.

If no request is filed, the separate eLAs covering the same taxable year will automatically be consolidated.

SYSTEM-ASSISTED AUDIT SELECTION
Another key change is the introduction of the system-assisted taxpayer selection process. As a general rule, all taxpayers are generally considered for audit and assessment. However, the selection of taxpayers who will actually be audited will take place using defined criteria, subject to approval by the Commissioner of Internal Revenue. This new process is expected to ensure objectivity and integrity in the selection of taxpayers to be audited.

MANDATORY USE OF STANDARDIZED AUDIT CHECKLIST
The RMO also required BIR examiners to use a standardized checklist of documents. The checklist will be applied consistently and across all offices and audit cases. Additional documents may be requested only if directly relevant, reasonably necessary, within the authorized scope of the audit, and clearly explained and properly documented.

EXAMINATION OF VOLUMINOUS RECORDS
A recurring issue for the taxpayers is the submission of voluminous records, which can be costly and burdensome. In this regard, the RMO emphasized that taxpayers should be given reasonable options on the manner and venue of examination (either in the BIR office or in the taxpayer’s registered place of business). If the taxpayer chooses to have the examination conducted at his registered place of business, the taxpayer must provide a suitable area within the premises for the orderly examination of records.

KEY DATES IN RMO 001‑2026
While most people are busy setting dates for Valentine’s Day, taxpayers should also mark their calendars for these important compliance dates under RMO 001‑2026:

• Feb. 16 – deadline to request non‑consolidation of multiple pending eLAs.

• March 4 – automatic consolidation of all pending eLAs for the same taxpayer and year, except those with approved requests for non-consolidation of VAT audit cases.

• April 30 – last day of eLAs with approved request for non-consolidation of VAT audit cases to proceed independently

• May 4 – automatic consolidation of all pending eLAs with approved request for non-consolidation of VAT audit cases

• May 15 – winding-up operations of VATAS and LTVAU

TAKEAWAY
With the resumption of the full audit operations and the implementation of the Single‑Instance Audit Framework, the BIR will no longer issue multiple or overlapping eLAs covering the same taxpayer and taxable year. Further, taxpayers with pending eLAs must carefully assess whether consolidation works to their advantage and act promptly should they wish to request non‑consolidation, especially given the strict deadlines.

While the resumption of BIR audits may feel like a less romantic way to celebrate Valentine’s Day, it also encourages us taxpayers to sharpen our tax compliance practices as the BIR aims to ensure transparency, prevent misuse/abuse of audit authority, uphold due process, and promote fairness, responsibility and accountability in the conduct of tax audits moving forward.

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.

 

Pamela Angelica D. Sayco is a semi-senior from the Tax Advisory & Compliance practice area of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

pagrantthornton@ph.gt.com

Seahawks dominate Patriots, 29-13, to win Super Bowl LX

THE SEAHAWKS celebrated the 29-13 victory vs. the Patriots in Super Bowl LX. — SEAHAWKS.COM

SANTA CLARA, California — Kenneth Walker III rushed for 135 yards and Seattle’s top-ranked scoring defense scored the decisive blow in a 29-13 win over the New England Patriots in Super Bowl LX at Levi’s Stadium on Sunday.

The Seahawks, who led the NFL in allowing an average of 17.2 points per game during the regular season, held the Patriots scoreless until the fourth quarter. And when New England twice appeared to have generated significant momentum, twice the Seahawks’ defense responded with turnovers.

The final blow came with the Patriots trying to rally from a 22-7 deficit with 4:27 remaining in the game. Seahawks cornerback Devon Witherspoon hit Patriots quarterback Drake Maye on a blitz, popping the ball in the air. It was intercepted by Uchenna Nwosu, who returned it for his first career touchdown, all but cementing the second Super Bowl title in Seahawks history.

The final tally for Seattle’s defense was six sacks, eight tackles for loss, three forced turnovers and the touchdown.

Sam Darnold threw for 202 yards and a touchdown, and Jason Myers connected on all five of his field-goal attempts. Three came in the first half, when Seattle took a 9-0 lead to the locker room while New England managed only 51 yards of total offense. However, the Seahawks left the Patriots in the game by failing to reach the end zone despite two trips inside the red zone.

With less than 100 yards in total offense and just 12:58 left in the game, the Patriots quickly capitalized in a break in the action when a fan streaked across the field. After the fan was wrestled to the ground and removed by several security personnel, Maye hit Mack Hollins with a 24-yard completion on the next play.

It was the biggest play of the game for New England’s offense to that point, and Maye immediately went back to the well. He hit Hollins again on a perfectly-thrown 35-yard touchdown strike to the left side of the end zone, beating tight coverage from Seahawks cornerback Riq Woolen.

The Patriots appeared to have fully switched the momentum when they forced a punt and Maye marched them to their 44-yard line on the ensuing drive with a 16-yard scramble and a 7-yard toss to Kyle Williams. However, he threw an ill-advised pass into coverage on the next play that was intercepted by Seahawks safety Julian Love.

Love returned it to the Patriots’ 38-yard line. Six plays later, Myers connected on his fifth field goal of the game to extend Seattle’s lead to 22-7.

New England quickly moved the ball back into Seattle territory. But that’s when the Seahawks’ defense struck the decisive blow with Nwosu’s touchdown.

New England’s first down of the second half didn’t come until Seattle was flagged for defensive holding with 1:23 left in the third quarter. It was also the Seahawks’ first penalty of the game.

The Seahawks opened the scoring on a 33-yard field goal by Myers on their opening drive. Seattle took the kickoff and moved the ball 51 yards in just over three minutes, with Darnold sharp on completions to tight end AJ Barner and Cooper Kupp in tight coverage, but the drive stalled on the Patriots’ 14-yard line.

That proved to be the only scoring of the opening quarter. New England penetrated Seattle territory on both of its first two drives, only to suffer three negative plays — including a pair of sacks — that resulted in two punts. The Seahawks managed only one more first down in a pair of drives after the field goal.

Notes: Seahawks rookie defensive tackle Rylie Mills, who entered the game with one career solo tackle, recorded his first NFL sack when he dropped Maye for a 10-yard loss in the second quarter. Mills suffered a torn ACL toward the end of his 2024 season at Notre Dame, causing him to slide to the fifth round of last year’s draft. Mills was activated by the Seahawks in November, but played only a modest role in the line rotation. The first penalty of the game wasn’t called until 3:09 remaining in the second quarter, when Patriots left tackle Will Campbell was flagged for a false start. — Reuters

Frayna, Canino keep PHL Women’s Chess Championship lead

RAFAEL REX FELISILDA-UNSPLASH

JANELLE MAE FRAYNA and Ruelle Canino pulled off a pair of impressive victories in the 11th round on Sunday night to keep their stranglehold of the lead in the Philippine National Women’s Chess Championship in Malolos, Bulacan.

Ms. Frayna sacrificed a queen for a pair of rooks and then leaned on her superb endgame technique to gain an extra pawn that she used to outlast Cherry Ann Mejia in 76 moves of a Slav duel.

For Ms. Canino, she engaged Olympiad teammates Shania Mendoza into tactical fireworks in carving out a 56-move triumph in their super-sharp Sicilian encounter that kept her tied with Ms. Frayna at the helm 8.5 points apiece.

And by the looks of it, Mses. Frayna and Canino have no plans of slowing down as they are expected to go for the title and, with four rounds remaining, one of the three slots to this September’s World Chess Olympiad in Samarkand, Uzbekistan.

A full point off the pace at joint third in this tournament backed by host city Mayor Christian Natividad and the Philippine Sports Commission, was another pair of Olympiad mainstays in Jan Jodilyn Fronda and Bernadette Galas.

Ms. Fronda couldn’t find anything out of her timid Slav duel with Marie Antoinette San Diego and decided to split the point in 31 moves while Ms. Galas outplayed Queen Pamplona in a rook-and-pawn endgame in carving out a 54-move victory of a Center-Counter showdown.

Mhage Sebastian and Allaney Jia Doroy hurdled their respective foes to likewise stay in the Olympiad hunt with 6.5 and six points, respectively. — Joey Villar

Eala jumps to No. 40 in WTA singles, No. 99 in doubles

THERE is no way to go but up for the Filipina tennis rockstar.

Following a stellar campaign in Abu Dhabi, Alexandra “Alex” Eala soared to a new career-high rankings in both the singles and doubles of the Women’s Tennis Association (WTA) leading up to another tour stop in the nearby Doha City.

Ms. Eala reached No. 40 in the singles, up five rungs from No. 45 last week, while also breaking into the Top 100 at No. 99 in the doubles — thanks to a pair of deep runs in the stacked WTA 500 Abu Dhabi Open.

It’s the second straight month of Ms. Eala’s steady rise in WTA ranks, climbing from No. 49 to start the year then No. 45 made possible by a productive stretch in Asia and the Pacific.

Her latest feat was a quarterfinal finish in the Abu Dhabi singles coupled by a doubles final four stint with “SEA-ster” Janice Tjen of Indonesia.

That run included a win against the super tandem of Cristina Bucsa (WTA doubles No. 22) and two-time Grand Slam champion Shuai Zhang of China (WTA No. 7), who just came off an Australian Open title run, to reach the semifinals.

Before that, Ms. Eala also made a quarterfinal finish in the WTA 125 Philippine Women’s Open, her first pro tournament at home, and had a final four stint in the WTA 250 ASB Classic in Auckland, New Zealand.

She also gained a few points in a first-round exit in the Australian Open, where she made her main draw debut to complete her appearance in the four majors after previous qualifications in the US Open, French Open and Wimbledon.

And albeit not counted in the WTA rankings, Ms. Eala bagged the exhibition title in the Kooyong Classic in Melbourne.

At stake in Doha is at least 65 ranking points and $26,000 purse if Ms. Eala reaches the second round, possibly getting her to Top 30-35. She’d settle for 10 points and $18,300 with an early boot for a plateau at Top 40-45.

Ms. Eala enters a busier stretch after Doha, strutting her stuff back in the United Arab Emirates at the Dubai Tennis Championships on Feb. 15 to 21 and the Indian Wells (BNP Paribas Open) on March 4 to 15 before a grand return in the Miami Open on March 17 to 29. — John Bryan Ulanday

Cignal clashes with tough Farm Fresh in PVL All-Filipino

PHILSTAR FILE PHOTO

Games on Tuesday
(MOA Arena)
4 p.m. – Farm Fresh vs. Cignal
6:30 p.m. – Creamline vs. Choco Mucho

AN INSPIRED Cignal tries to sustain one of its strongest starts in franchise history as it battles a dangerous Farm Fresh in Tuesday’s PVL All-Filipino Conference at the MOA Arena.

The Manny V. Pangilinan-owned Cignal Super Spikers’ decision to stick to their old guns rather than going on a spending free agent spree has been bearing fruit after zooming to the top with two wins in a row including a 25-20, 16-25, 25-19, 25-18 win over the soup up Choco Mucho Flying Titans on Thursday in San Juan.

Erika Santos, Vanessa Gandler and Jacqueline Acuña showed they’re more than their beauty queen-like physiques and combined to deliver the most decisive blows with 18, 16 and 13 points, respectively.

Ms. Santos said the key was sticking to what they do best.

“We just stick to our strengths,” said the PVL on Tour MVP.

And that best must have been playing rock solid defense that helped them tame Choco Mucho’s two-headed dragon in Sisi Rondina and Eya Laure.

They would need that and more when they tackle the loaded Farm Fresh Foxies, who are eyeing their first victory after absorbing a heartbreaking 25-23, 13-25, 21-25, 25-15, 15-12 defeat to the Brooke Van Sickle-headed Nxled Chameleons a week ago.

Farm Fresh was one of the squads that went on a free-agent binges after picking up Royse Tubino, Ara Galang, Mylene Paat and Rem Palma among others but would need to familiarize them more with remnants like Alohi Robins-Hardy, Trisha Tubu, Ces Molina, Riri Meneses and Lorene Toring.

Meanwhile, sister teams Creamline (0-1) and Choco Mucho (1-1) collide at 6:30 p.m. in a battle between two most popular club teams in the land. — Joey Villar

Japan’s ‘Iron Lady’ Takaichi forges historic election win

Sanae Takaichi, the newly elected leader of Japan’s ruling party, the Liberal Democratic Party (LDP), attends a press conference after the LDP presidential election in Tokyo on October 4, 2025. — YUICHI YAMAZAKI/POOL VIA REUTERS

TOKYO — Japanese Prime Minister Sanae Takaichi’s coalition swept to a historic election win on Sunday, paving the way for promised tax cuts that have spooked financial markets and military spending aimed at countering China.

The conservative Ms. Takaichi, Japan’s first female leader who says she is inspired by Britain’s “Iron Lady” Margaret Thatcher, delivered 316 seats of the 465 in parliament’s lower house for her Liberal Democratic Party (LDP), its best ever result.

With coalition partner, the Japan Innovation Party, known as Ishin, Ms. Takaichi controls 352 seats and a supermajority of two-thirds of seats, easing her legislative agenda as she can override the upper chamber, where she does not have a majority.

WINTER ELECTION BRINGS BLIZZARD OF VOTES
“This election involved major policy shifts — particularly a major shift in economic and fiscal policy, as well as strengthening security policy,” Ms. Takaichi said in a television interview as the results rolled in.

“These are policies that have drawn a great deal of opposition… If we have received the public’s support, then we truly must tackle these issues with all our strength.”

US President Donald J. Trump congratulated Ms. Takaichi on the result, wishing her “great success in passing your Conservative, Peace Through Strength agenda” in a social media post.

“Sanae’s bold and wise decision to call for an election paid off big time,” said Mr. Trump, who will host Ms. Takaichi at the White House next month.

Ms. Takaichi, 64, called the rare winter snap election to capitalize on her buoyant personal approval ratings since she was elevated to lead the long-ruling Liberal Democratic Party late last year.

Voters have been drawn to her straight-talking, hardworking image, but her nationalistic leanings and emphasis on security have strained ties with Japan’s powerful neighbor China, while her promises of tax cuts have rattled financial markets.

Residents trudged through snow to cast their ballots with record snowfall in some parts snarling traffic and requiring some polling stations to close early. It was only the third post-war election held in February, with elections typically called during milder months.

Outside a polling station in the town of Uonuma in the mountainous Niigata prefecture, teacher Kazushige Cho, 54, braved below-freezing temperatures and deep snow to cast his vote for Ms. Takaichi’s Liberal Democratic Party.

“It feels like she’s creating a sense of direction — like the whole country is pulling together and moving forward,” Mr. Cho said.

But Ms. Takaichi’s election promise to suspend an 8% sales tax on food to help households cope with rising prices has rattled investors concerned about how the nation with the heaviest debt burden among advanced economies will fund the plan.

Ms. Takaichi said on Sunday she would speed up consideration of the sales tax cut while focusing on fiscal sustainability.

“Her plans for the cut in the consumption tax leave open big question marks about funding and how she’s going to go about making the arithmetic add up,” said Chris Scicluna, head of research at Daiwa Capital Markets Europe in London.

PROPELLED BY YOUTH-LED CRAZE
The head of Japan’s top business lobby Keidanren, Yoshinobu Tsutsui, welcomed Ms. Takaichi’s win as restoring political stability. “Japan’s economy is now at a critical juncture for achieving sustainable and strong growth,” he said.

The LDP, which has ruled for almost all of Japan’s post-war history, had lost control of both houses in elections over the past 15 months under Ms. Takaichi’s predecessor, Shigeru Ishiba.

Ms. Takaichi has managed to turn around the party’s fortunes by striking a chord with younger voters.

She has even sparked a “sanakatsu” craze, roughly translated as “Sanae-mania.” Her handbag and the pink pen she scribbles notes with in parliament have been in high demand.

China is not a fan, however.

Weeks after taking office, Ms. Takaichi touched off the biggest dispute with Beijing in over a decade by publicly outlining how Tokyo might respond to a Chinese attack on Taiwan, the democratic island claimed by China.

China responded with several countermeasures, including urging its citizens not to travel to Japan.

Taiwan President Lai Ching-te was one of the first foreign leaders to congratulate Ms. Takaichi, saying he hoped her victory would “bring a more prosperous and secure future for Japan and its partners in the region.”

Ms. Takaichi’s strong mandate could accelerate her plans to bolster Japan’s defenses, further angering Beijing, which has cast her as attempting to revive its militaristic past.

Japan’s Defense Minister Shinjiro Koizumi told TV stations on Sunday evening that he wanted to push ahead with policies to strengthen Japan’s defense while pursuing dialogue with China.

“Beijing will not welcome Takaichi’s victory,” said David Boling, principal at the Asia Group, a firm that advises companies on geopolitical risk.

“China now faces the reality that she is firmly in place — and that its efforts to isolate her completely failed.” — Reuters

Leading China critic Jimmy Lai sentenced to 20 years in jail after Hong Kong security trial

Photo of Hong Kong tycoon Jimmy Lai by Studio Incendo/CC BY 2.0/Wikimedia Commons

HONG KONG — Hong Kong’s most vocal China critic, media tycoon Jimmy Lai, was sentenced on Monday to 20 years in jail, ending the city’s biggest national security case which drew international concern about the city’s freedoms and autonomy.

Mr. Lai’s sentence on two counts of conspiracy to collude with foreign forces and one for publishing seditious materials ends a legal saga that has spanned nearly five years.

Mr. Lai, founder of the feisty but shuttered Apple Daily newspaper, was first arrested in August 2020 and was convicted last year.

His 20-year sentence was within the harshest penalty “band” for offenses of a “grave nature” and is the most severe punishment meted out yet, the three national security judges said.

Mr. Lai’s sentence was enhanced by the fact that he was the “mastermind” and driving force behind “persistent” foreign collusion conspiracies, the judges said.

They cited prosecution evidence that the conspiracies had sought sanctions, blockades and other hostile acts from the US and other countries while involving a web of individuals including Apple Daily staff, activists and foreigners.

Besides Mr. Lai, six former senior Apple Daily staffers, an activist and a paralegal were sentenced to jail terms ranging between six and 10 years.

“In the present case, Lai was no doubt the mastermind of all three conspiracies charged and therefore he warrants a heavier sentence,” the judges said.

“As regards the others, it is difficult to distinguish their relative culpability.”

The 78-year-old, a British citizen, has denied all the charges against him, saying in court he is a “political prisoner” facing persecution from Beijing.

Mr. Lai’s plight has been criticized by global leaders including US President Donald J. Trump and British Prime Minister Keir Starmer, spotlighting a years-long national security crackdown in the China-ruled Asian financial hub, following mass pro-democracy protests in 2019.

Those concerns reflected in part Mr. Lai’s longstanding international profile as a pro-democracy critic of China’s Communist Party leadership and his extensive political connections, particularly among US Republicans — ties that prosecutors cited during the case.

At the height of the protests in July 2019, Mr. Lai met then-US Vice-President Mike Pence and then-Secretary of State Mike Pompeo in Washington.

Beijing in 2020 imposed the national security law upon Hong Kong, saying it was necessary to stabilize the city after months of sometimes violent unrest.

LIFE IN PRISON?
The case has drawn calls for Mr. Lai, whose friends and supporters say is in frail health with diabetes and high blood pressure, to be freed.

Mr. Lai’s son, Sebastien Lai, said from outside Hong Kong that the sentence “is devastating for our family and life-threatening for my father,” marking the “total destruction” of the Hong Kong legal system.

“After more than five years of relentlessly persecuting my father, it is time for China to do the right thing and release him before it is too late.”

Mr. Lai, who is also one of Hong Kong’s most prominent Roman Catholics, arrived at the court on Monday in a white jacket, with hands held together in a praying gesture as he smiled and waved at supporters.

“The harsh 20-year sentence against 78-year-old Jimmy Lai is effectively a death sentence,” said Elaine Pearson, Asia director of Human Rights Watch. “A sentence of this magnitude is both cruel and profoundly unjust.”

Hong Kong police swiftly played down concerns about Mr. Lai’s health. Chief Superintendent Steve Li of the force’s national security department said Mr. Lai’s health concerns had been “exaggerated” and added that the tycoon deserved his sentence.

The judges said they were not inclined to give Mr. Lai any deduction for his medical condition, age and solitary confinement but acknowledged he would face a “more burdensome” time than other inmates. They cut a month off the sedition sentence and one year each for the collusion charges.

Beijing and Hong Kong officials have said that Mr. Lai has received a fair trial and all are treated equally under a national security law that they say has been vital to restoring order to the city.

Dozens of Mr. Lai’s supporters queued for several days to secure a spot in the courtroom, with scores of police officers, sniffer dogs and police vehicles — including an armored truck and a bomb disposal van — deployed around the area.

“I feel that Mr. Lai is the conscience of Hong Kong,” said a man named Sum, 64, who was in the queue.

Mr. Starmer raised the case of Mr. Lai, who holds British citizenship, during a meeting with Chinese leader Xi Jinping last month in Beijing, according to people briefed on the discussions, and called for his release.

Mr. Trump too, raised Mr. Lai’s case with Mr. Xi during a meeting in October. Several Western diplomats told Reuters that negotiations to free Mr. Lai would likely begin in earnest now that he has been sentenced.

His lawyer, Robert Pang, said he could not comment when asked whether Mr. Lai would appeal, saying he has 28 days to do so. — Reuters

Thailand’s Bhumjaithai Party prepares for coalition talks after big election win

PIXABAY

BANGKOK — Thailand faced a realignment of conservative politics on Monday after Prime Minister Anutin Charnvirakul’s Bhumjaithai Party won a stronger-than-expected general election victory, with coalition talks expected to start in the coming days.

With 94% of votes counted, Bhumjaithai was way ahead of its rivals after Sunday’s vote, securing 193 of the 500 seats in Thailand’s parliament, according to Reuters’ calculations based on election commission data.

The election result sent Thai stocks up by around 3%, hitting their highest level in more than a year as the risks of further political instability receded.

The People’s Party, which led some polls in the run-up to the vote, trailed on 118, with the Pheu Thai Party third with 74.

A handful of other parties won a combined 115 spots in the 500-seat parliament, according to Reuters calculations, but the final number of party-list seats could change under Thailand’s proportional electoral system.

Mr. Anutin called the election in December after less than 100 days in office and has sought to capitalize on a wave of nationalism generated by Thailand’s three-week conflict with Cambodia in December. He described the election result as “a victory for all Thais.”

Bhumjaithai had received 30.2% of the constituency votes, with analysts saying it consolidated the conservative vote after the surge in nationalist fervor, and took a string of seats from the once dominant Pheu Thai, controlled by the billionaire Shinawatra family.

ANUTIN PROMISES CAMBODIA BORDER WALL
Asked about forming a coalition, Mr. Anutin said in a Monday news broadcast that he wanted to form a government with a strong majority, but he was still waiting to see the final election results.

“We need a strong government,” he said.

Underscoring the role that nationalism played in the vote, Mr. Anutin also vowed to build a wall along Thailand’s border with Cambodia and strengthen the military.

“I will still have to build the wall. I must keep strengthening the military’s capabilities. I believe Thai soldiers can win against anyone. And I still believe we need to keep the border checkpoints closed, not open them,” he said.

The prime minister previously indicated that if he was re-elected, the incumbent ministers of finance, foreign affairs, and commerce would retain their roles in a new cabinet.

VOTERS BACK CONSTITUTIONAL CHANGE
The left-leaning People’s Party has already ruled out the possibility of joining a coalition led by Mr. Anutin, with its leader Natthaphong Ruengpanyawut saying late on Sunday that it would not seek to form a rival coalition.

Polls at the end of January had the People’s Party significantly ahead of Bhumjaithai, but analysts said the surge in nationalism provoked by the Cambodia conflict favored the conservatives.

Voters also backed up a proposal to change the constitution, with nearly two-thirds in favor of replacing a charter put in place after a 2014 military coup, which critics say gave too much power to an undemocratic senate.

It is expected to take at least two years to implement the new constitution, with two more referendums required to endorse the drafting process and the final text. — Reuters

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