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Motor vehicle road user’s tax

PHILIPPINE STAR/MIGUEL DE GUZMAN

In his State of the Nation Address (SONA) on July 24, 2023, President Marcos announced the motor vehicle road user’s tax as an essential measure under the medium-term fiscal framework.

Given the urgency of addressing the country’s need for greater fiscal space, the House committee on ways and means promptly tackled House Bill No. 376 at its first meeting after the SONA.

The measure is authored by Albay Rep. Joey Salceda, who heads the committee. His bill aims to update the existing motor vehicle user’s charge with a simpler and more responsive tax structure on motor vehicle road users.

Reforms on this front have been long overdue since the motor vehicle user’s charge rates were legislated in 2004 and have not been adjusted to inflation. Had indexation been automatically applied, about P114 billion could have been generated over the past 18 years. Furthermore, the existing charge structure consists of 23 different tax rates, making things unnecessarily complex and difficult to implement.

Rep. Salceda’s bill is projected to generate an additional P13.5 billion in the first year of its implementation and up to P64 billion by the third year. More importantly, the reform is not merely a revenue-generating measure as it also aligns with principles of social justice and progressivity.

For one, this measure is fundamentally a tax on the rich. Over half of the richest decile of households own at least one car, according to data from the 2021 Family Income and Expenditure Survey. Meanwhile, the car-owning proportion of the next decile with the highest income (9th decile) falls to about 17%. For the poorest 30% of households, only 1.6% likely own a car.

Thus, increasing the rates on motor vehicles is highly progressive. Salceda’s proposal furthers this by levying a higher rate on sports utility vehicles.

Additionally, the bill will exempt motorcycles from the tax, which likely stems from the perception that these are consumed by lower-income households. Perhaps the principle of progressivity can nuance this feature by taxing the big bikes that are more likely to be luxury or nonessential. But we also argue that taxing all motor vehicle road users, including motorcycles, is socially and economically justified because they all contribute to what economists call negative externalities such as traffic and pollution.

While it is obvious that the burden of a motor vehicle tax falls mostly on the rich, we must also carefully weigh the equitability of the government’s current expenditures on the road sector.

The University of the Philippines School of Urban and Regional Planning says 70% of people in Metro Manila rely on public transportation, while taking up just 22% of the space. Meanwhile, only 30% are private vehicle users, but they take up 78% of the space. An efficient transportation system is necessary to facilitate economic growth and development. Conversely, inequitable transport policy may exacerbate economic inequalities.

Not only do the benefits of our existing road infrastructures skew toward the rich, but the cost of these programs is also effectively subsidized by government resources.

The government collected about P14.5 billion from taxes related to vehicle purchases, such as automobile excise taxes and value-added tax (VAT), based on 2019 data from the Bureau of Internal Revenue, Land Transportation Office (LTO), Land Transportation Franchising and Regulatory Board (LTFRB) and Metro Manila Development Authority (MMDA). Vehicle registration fees generated about P15.7 billion. Gasoline and diesel taxes generated P37.2 billion in total revenue, but we attribute just P10.7 billion or less than 30% to road users, based on the country’s petroleum demand profile. Including other fees collected as well as fines and penalties, the total fiscal resources generated from road users amounted to P43.6 billion in 2019.

On the other side of the equation, the 2019 General Appropriations Act allocated P75 billion to benefit road users in the form of road repairs and construction, traffic management and general regulation. This included P57.3 billion worth of capital outlays for construction of road networks and P6.8 billion in maintenance and operating expenditures for the road network repairs and maintenance program of the Public Works department; P7.9 billion for the Conditional Matching Grant to Provinces initiative to implement road construction, repairs and rehabilitation; and nearly P3 billion allocated for the regulatory and management programs of the LTO, LTFRB and MMDA.

The net result is that road users are subsidized to the tune of at least P30 billion every year. Unfortunately, revenues from motor vehicle user’s charge have only eroded due to inflation, while the cost of road infrastructure has risen over time.

Deliberations on the motor vehicle road user’s tax are on the right track; the ways and means committee is receptive toward proposals to increase allocations that will benefit people and not just cars. These should include greater emphasis on active transport, road safety and public transportation such as PUV modernization.

Given Salceda’s demonstrated political adeptness in swiftly shepherding the President’s priority tax measures and his support for more progressive policies, we anticipate that the motor vehicle road user’s tax bill will get public support.

Given the above, too, Rep. Salceda will likely go the extra mile to champion further tax reforms. These include taxes on alcopops, vapes and nonessential goods, among other products. The additional revenues from the different tax measures are necessary to create the fiscal space and fund urgent social programs that the administration has identified.

 

AJ Montesa heads the tax policy team of Action for Economic Reforms.

BDO slips as US credit rating downgrade affects PHL market

BW FILE PHOTO

BDO Unibank, Inc. inched down last week after the United States’ credit rating downgrade affected the local market, eclipsing the bank’s strong financial results.

A total of 13.13 million BDO shares worth P1.90 billion were traded from July 28 to Aug. 4, data from the Philippine Stock Exchange (PSE) showed.

The Sy-led bank’s share price finished at P141 apiece, 4.1% lower than its July 28 close of P147 each.

Year to date, the stock’s price rose by 33.4%.

“While BDO’s strong results could have led to some positive reactive moves, we think that much of the price action this week was driven by external factors,” Rastine Mackie D. Mercado, research director at China Bank Securities Corp., said in an e-mail.

These external factors, he said, include the broad market risk-off sell-off last week following Fitch’s downgrade of the US credit rating.

“We also think that some investors treated BDO’s earnings release as a ‘sell-on-news’ opportunity to take some profit,” Mr. Mercado added.

Japhet Louis O. Tantiangco, senior research analyst at Philstocks Financial, Inc., said investors focused on the Fitch move despite the bank’s “impressive” financial results.

“The downgrade has negative implications for the US and consequently the global economy which is why investors opted to exit the market last week,” he said in a Viber message.

BDO reported last week that its consolidated net income soared by 52.6% year on year to P18.72 billion in the second quarter.

Its attributable net income, likewise, grew by 53.2% to P18.70 billion from the P12.21 billion booked in the same period last year.

This brought the attributable net profit in the first semester of the year to 47%, higher than the P23.94 billion posted in the January to June period in 2022.

Meanwhile, debt watcher Fitch downgraded the US government’s top credit rating, Reuters reported, a move that garnered an angry response from the White House and surprised investors, coming despite the resolution of the debt ceiling crisis two months ago.

Fitch lowered the US to AA+ from AAA, citing fiscal deterioration over the next three years and repeated down-the-wire debt ceiling negotiations that threaten the government’s ability to pay its bills, Reuters said.

The downgrade made Fitch the second major rating agency after Standard & Poor’s strip the country of its triple-A rating.

For Mr. Tantiangco, the bank’s lending operations will remain healthy and be sustained in the second half of the year.

“BDO’s full-year net income attributable could rise by 30.4% year on year while for the [third quarter], bottom line could increase by 22.5% year on year,” he said.

He added that from a historical standpoint, BDO is at bargain levels, which should make it compelling for investors.

For BDO, investors are expected to monitor the country’s bank lending data.

“If the growth continues in our bank lending, then this could spur positive sentiment for our banks in the market,” Mr. Tantiangco said.

For Mr. Mercado, prospects of continued top-line growth remain given the outlook of sustained loan growth, Net interest margin strength and fee income expansion can convince investors to consider BDO.

“While current valuations could lead to continuing near-term profit taking, we think that BDO could still have some room to eventually run higher.” 

He also added that the Sy-led bank has built a strong NPL (nonperforming loan) coverage to guard against potential adverse impacts to asset quality in case macro risks materialize.

He pegged BDO’s support and resistance at P141.80 and P150, respectively.

Mr. Tantiangco, on the other hand, placed support at the P140.00-P142.00 range and resistance at P150. — Abigail Marie P. Yraola

Cotabato farmers trained in VCO, coco water production

COTABATO PROVINCE

THIRTY FARMERS from Libungan, Cotabato Province have undergone training in virgin coconut oil (VCO) and coconut water production, provincial officials said.

The training was conducted by the Office of the Provincial Agriculturist (OPAg).

Provincial Advisory Council member Rosalie H. Cabaya said the training was designed to raise farmer incomes by preparing them to sell higher value-added products.

Governor Emmylou J. Taliño-Mendoza has said one of the goals is also to make Cotabato farmers practice sustainable agriculture.

Ms. Mendoza said the province is continuing to identify areas suitable for coconut plantations and to develop new technology for coconut manufacturing.

According to OPAg, Cotabato Province had 78,727 hectares deemed suitable for coconut plantations. — Maya M. Padillo

5 Tips for Sustainable Fashion

FAST FASHION, the mass production of disposable clothing manufactured within a short period, cements the field as one of the most polluting industries in the world. Designer and entrepreneur Roxoanne Bagano-Dizon of wedding atelier Roxoanne Bagano Couture confirmed this phenomenon contributes a considerable amount to social and environmental damage.

“It exploits human labor, degrades local economies and pollutes nature,” she explained. “While the traditional model involves raw materials, fast fashion utilizes synthetic and low-quality alternatives created rapidly.”

Ms. Bagano-Dizon, an educator under the Fashion Design and Merchandising (FDM) Program of the De La Salle-College of Saint Benilde (DLS-CSB) School of Environment and Design (SED), likewise expounded on the importance of sustainable fashion in this issue.

“It is designing, generating and distributing clothing with ethics in mind,” she stated. “Adopting this approach to both production and consumption can help reduce our footprint and lessen our impact on society.”

To guide the general public to contribute to this movement, Ms. Bagano-Dizon listed some choices one can consider to protect the environment, starting with their own wardrobes.

1. Shop smarter.

Before any purchases, ask yourself if you need it. Source from brands that adopt eco-friendly methods. Avoid clothes from synthetic materials. Choose organic, natural or recycled fibers.

2. Embrace minimalism.

Do not buy impulsively. Invest in timeless pieces which you can wear for a long time. Try to avoid short-lived trends. Make do with what you have.

3. Thrift.

Go for second-hand or consignment stores. You may find affordable and unique items. Consider swapping clothes with friends. You likewise divert clothes from landfills.

4. Rent.

Rent for special events. There are many online options for formal attire, designer accessories and even everyday wear. It likewise allows you to don outfits you cannot afford to buy.

5. Care.

Practice good clothing care habits. Wash in cold water, use eco-friendly detergents and air-dry. Follow the instruction label and avoid excessive laundering.

Judge allows US antitrust Google search claims to go to trial

REUTERS

WASHINGTON — A US judge hearing the Justice Department’s antitrust lawsuit accusing Google of unlawfully maintaining monopolies in the internet search market let stand key claims made by the federal government.

Google, a unit of Alphabet, had asked for summary judgment on all the government’s claims in the case.

US Judge Amit Mehta, in a decision made public in Washington on Friday, granted Google’s request on some grounds but allowed the remainder of the claims to proceed to trial next month.

The Justice Department sued Google in 2020, accusing the $1.6-trillion company of illegally using its market muscle to hobble rivals in the biggest challenge to the power and influence of Big Tech since it sued Microsoft Corp. in 1998.

Mehta is also hearing a case brought against Google by the attorneys general of 38 states and territories.

Mehta tossed out accusations brought by the states that Google made it harder for internet users to find specialized search engines, like Expedia for travel or OpenTable for restaurants, saying the states “have not demonstrated the requisite anticompetitive effect in the relevant market.”

Google said Friday it appreciated the court’s “careful consideration and decision to dismiss claims regarding the design of Google Search” in the case brought by the states. — Reuters

Zycus’ AI-powered solution elevates procurement processes of leading Philippine retail giant

Zycus, a pioneer of AI-powered Source-to-Pay solutions, is driving a procurement revolution in the Philippines as it collaborates with a leading retail giant to deliver unparalleled efficiency and triumph for all stakeholders involved.

Zycus’ procurement system seamlessly adapts to the ever-evolving business landscape. With unparalleled flexibility offered by Zycus’ system, the said retailer can now customize and tailor procurement processes to meet specific requirements, fostering agility and scalability across its 3000+ stores.

“We are privileged to have partnered with such an esteemed industry leader in the Philippines. Zycus has played a pivotal role in their procurement transformation, empowering them to achieve remarkable efficiency gains, fortify stakeholder relationships and cut costs,” Carl Kimball, Regional Vice-President of Zycus, said.

The impact of the collaboration with Zycus has been nothing short of extraordinary. A senior leader at the organization expresses her excitement, stating, “Zycus has revolutionized our procurement processes, empowering us with streamlined operations, improved visibility & accountability, and greater flexibility. Their solution has truly elevated our performance and positioned us for long-term success as we pursue aggressive investments in the future growth of the Philippines, and get closer to the community.”

Efficiency gains, fast turnaround times

Zycus’ cutting-edge AI powered solutions have spearheaded a monumental shift in the retailer’s procurement processes, paving the way for remarkable efficiency gains. Zycus will also empower the retailer to take insights backed agile decisions. The results are astounding, with a staggering 171% increase in productivity, a 66% reduction in requisition approval time, and a remarkable 78% reduction in requisition-to-purchase order cycle time.

Centralized information visibility

Zycus has also centralized the organization’s procurement data, providing a comprehensive and real-time view of the entire procurement landscape. This newfound visibility enables swift and informed decision-making, propelling success to new heights.

Thus, with Zycus, fragmented data and scattered information are now a thing of the past.

Enhanced user experience

Zycus’ intuitive interface and user-friendly tools have ignited enthusiasm and engagement among the retail workforce. The seamless integration and enhanced user experience of the platform have accelerated adoption rates, driving efficiency gains and fostering a dynamic, collaborative procurement ecosystem.

“The implementation of Zycus has not only enhanced our process efficiencies and visibility but also provided us with the agility and scalability required to adapt to ever-changing market dynamics. It has truly transformed our procurement operations,” affirmed a department head at the retail giant.

In an era where strategic procurement and stakeholder relations are paramount for sustainable growth, Zycus has emerged as the undisputed catalyst for unparalleled success.

With an unwavering commitment to innovation and a shared vision for excellence, Zycus and the retail organization continue to redefine the boundaries of procurement excellence, setting new standards of productivity and triumph in the Philippines and beyond.

Discover how Zycus can empower your organization and drive success in the dynamic world of procurement. Visit www.zycus.com for more information about Zycus and its transformative procurement solutions. To learn more about Zycus solutions, contact us today!

 


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Inflation rates in the Philippines

POSSIBLE SUPPLY constraints affecting key food items threatens to reverse the downward trend in Philippine inflation, Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona said on Friday. Read the full story.

Philippines may extend executive order validity keeping tariff rates low

PHILSTAR FILE PHOTO

THE GOVERNMENT is considering a possible further extension of the validity period of an executive order (EO), which had reduced the Most Favored Nation (MFN) tariff rates on pork, corn, rice and coal, Finance Secretary Benjamin E. Diokno said.

“We will have a meeting in September to (see) if we have to extend,” Mr. Diokno said in a chat with reporters on Friday.

In December, President Ferdinand R. Marcos, Jr. signed Executive Order No. 10, which extended the lower tariff rates on key commodities to address rising prices.

EO No. 10 kept the reduced tariff rates for imports of swine meat at 15% for shipments within the minimum access volume (MAV) quota and 25% for those exceeding the quota. The corresponding rates for corn were 5% (within the MAV quota) and 15% (exceeding the MAV quota), and rice 35% in both cases. The rates are in force until Dec. 31.

Coal also retained its zero-import duty beyond Dec. 31, provided that its rates are subject to review every half year after that date.

Finance Undersecretary Zeno Ronald R. Abenoja said that the Inter-Agency Committee on Inflation and Market Outlook (IAC-IMO) is also reviewing other commodities that could stoke inflation.

“The IAC-IMO has started reviewing all these items but given the recent developments, typhoons and also external developments, the review not only covers the four agricultural commodities under the EO but also other drivers of inflation we’ve seen in the past few months,” he said.

However, Mr. Abenoja noted that the extension of the reduced tariffs will only cover the four original farm commodities.

“The extension will cover just four but the IAC-IMO reviews both food and non-food sources of inflation. A comprehensive review is ongoing,” he added.

In March, the Tariff Commission began its comprehensive tariff review program (CTRP) of the MFN tariff schedule from 2024 to 2028.

The tariff review is conducted every five years as required by Republic Act No. 10863 or the Customs Modernization and Tariff Act.

It covers tariffs of agriculture and food products; chemicals and chemical products; textiles, paper and leather products; metal and non-metal products; and machinery and transport equipment.

Mr. Abenoja said that the Department of Finance is also participating in the CTRP review.

“If you look at the tariff structure, a lot of tariff rates have gone down quite dramatically. There are a few peaks related to certain commodities; that is being reviewed together with other private sector partners so we can prepare for any adjustments in this tariff structure, if any,” he added. — Luisa Maria Jacinta C. Jocson

16 Isuzu Traviz units activated as rescue vehicles in Oriental Mindoro

PHOTO FROM ISUZU PHILIPPINES CORP.

ISUZU PHILIPPINES CORP. (IPC) recently released 16 units of the Traviz, which will be deployed as rescue vehicles in the Second District of Oriental Mindoro. In a formal ceremony, Isuzu Calapan leadership turned over the units to Second District of Oriental Mindoro Rep. Alfonso Umali, Jr., Board Member Jean Paulo Umali, Pinamalayan Mayor Aristeo Baldos, and Mansalay Mayor Ferdinand Maliwanag.

Due to inclement weather, IPC President Tetsuya Fujita sent a recorded message expressing the company’s gratitude to the province for its continued trust in Isuzu. “It is our honor to be part of this program to assist in helping our kababayans here in Mindoro, especially during this rainy season,” he said.

IPC previously provided Traviz rescue vehicles to the local government unit, which have been fielded to different barangays. The recent delivery will still be part of the LGU’s continuous campaign to modernize and strengthen its rescue efforts, and will be distributed to select barangays in the province. “We trust the Isuzu Traviz for its reliability and solid build,” said Rep. Umali.

IPC reiterated its Isuzu Advantage of providing “excellent after-sales service” to its customers nationwide through its strong dealer network and parts availability. On top of that, the company also offers free safety and eco-drive training, on-site servicing through Isuzu Mobile Medic, and fleet servicing and assessment conducted by its expert service technicians and Japanese truck engineers.

For more information, visit www.isuzuphil.com.

Taylor Swift’s Eras Tour is a potent reminder that the internet is not real life

AMERICAN singer-songwriter Taylor Swift on the Eras Tour in Arlington, Texas, April 2. — RONALD WOAN-COMMONS.WIKIMEDIA.ORG

IN THE WEEKS leading up to June 16, 2023, when I attended the Pittsburgh leg of Taylor Swift’s Eras Tour, the online chatter about the 33-year-old singer had become draining.

The internet was ablaze with rumors about Swift dating Matty Healy, the lead singer of the English pop-rock band The 1975. Some Swifties — the term used for diehard Taylor Swift fans — berated the pop superstar for dating Healy, who’d become mired in controversy for appearing on a podcast whose hosts made racist comments about the rapper Ice Spice.

As the Pittsburgh leg of the tour approached, I wondered if I were about to dive headfirst into an angry mob of tens of thousands of Swifties.

On the day of the show, Acrisure Stadium was mobbed with 72,000 people, but the Swifties in attendance were far from angry.

In that moment we became deeply connected by our shared love and admiration for Swift’s music. Sociologist Emile Durkheim described this phenomenon as “collective effervescence,” the unique surge in feeling when large groups of people come together for a shared purpose.

“It was rare, I was there, I was there,” Swift belted out during “All Too Well.”

I was there, too, as life events touched by Swift flashed by: sitting at my first desktop computer as a teenager in Kathmandu, Nepal, replaying “Love Story” on LimeWire; my first week in the US, during the 2009 MTV Video Music Awards, when Kanye West infamously interrupted Swift; how Swift’s eighth studio album, “Folklore,” brought me back to life after it seemed as if the world were on the verge of imploding in 2020.

The Eras Tour was not my first experience of collective effervescence. Nor was it the first time I felt such a strong disconnect between the online and offline worlds.

Right before the pandemic began, there was the painfully quiet fizzling out of the Bernie 2020 movement. As a volunteer for that campaign, I had the remarkable experience of connecting with other Americans who wanted a Bernie Sanders presidency.

I especially appreciated how this role connected me to the people who make up the Nepali diaspora in the US. We hoped to improve our immigrant experiences, whether it involved no longer fearing the deportation of loved ones or easier access to healthcare.

But then repeated news cycles about “toxic Bernie Bros” seemed to drain the movement’s momentum. Mainstream media outlets reported that Sanders’ base was made up of white male cyberbullies. Negative tweets had been amplified, and the words and behaviors of a few Sanders supporters all of a sudden were being portrayed as representative of an entire movement.

The contrast between what was being said online versus my own experiences was jarring: Here I was working to find transportation for 80-year-old Nepali grandmas who didn’t speak English but wanted to vote for Sanders.

Post-election analysis would show that the Bernie Bro trope was entirely constructed; there was no evidence to show that young white men made up a majority of Sanders’ supporters. The movement, in fact, consisted of a diverse coalition of people from marginalized races and genders.

TOXIC ONLINE BEHAVIOR
Online narratives distort real life more often than you might realize.

Research consistently shows that a small minority of people who have social media accounts post the vast majority of content.

In what’s termed the “90-9-1 rule,” 90% of users on these websites only “lurk” or read content, 9% of the users reply or re-post with occasional new contributions, and only 1% of the users frequently create new content.

Pioneered by Jakob Neilson, the 90-9-1 rule is one of many theories within internet studies that describe participation rates, and different scholars find support for different variations of this rule. Reddit, for example, has over 1 billion monthly active users, but according to a 2017 conference paper, an overwhelming majority of Reddit users are lurkers. X, the website and app formerly known as Twitter, had around 350 million users as of 2023; however, research from 2019 found that 75% of its users were lurkers.

In other words, most of the discussions happening on websites like Reddit and Twitter come from a vocal minority of users — whose posts are then curated and boosted by algorithms.

Nonetheless, in the past decade, the news media have increasingly constructed narratives about collective reality based on what happens on these websites.

Of course, toxic online behavior exists in all online communities. But it represents the words of a smaller minority of users within the already small minority of people who post content online. Media narratives that emphasize certain groups as toxic based on online behavior — whether they are describing fandom or politics — fall into the trap of confusing the internet with real life.

In the weeks when Swift was dating Healy, a vocal minority of Swifties came head-to-head with a vocal minority of Healy’s defenders. Then the celebrity pair ended their relationship, and collective attention moved on from that topic almost immediately.

Several weeks of nonstop debate, attacks and hand-wringing ended up being utterly meaningless — except to social media companies that converted this brief obsession into clicks, engagement and ad revenue.

My forthcoming book, Attention and Alienation, brings renewed focus to an increasingly demystified phenomenon: The online attention economy maximizes profits by designing algorithms that boost engagement, particularly by promoting negativity and outrage.

DIRE CONSEQUENCES
Sometimes the consequences of mistaking the internet for real life are dire.

Take reproductive health. Online rage about the Supreme Court’s decisions to overturn Roe. v. Wade peaked within a few days and people moved on to different topics.

Today, reports about reproductive healthcare take up very little news media space compared with garden-variety trending topics like “Barbenheimer” — the double blockbuster release of the movies Barbie and Oppenheimer on July 21, 2023.

In the real world, many people continue to suffer from lack of access to lifesaving reproductive healthcare across the US, while the online chattering class celebrates the radical feminism of the Barbie movie.

Perhaps it’s time to sideline social media and the internet when evaluating the nature of our collective reality. Reality exists outside of our devices, whereas social media algorithms push whatever keeps us tethered to the screen. There is little evidence to support the idea that online discourse represents collective experiences.

That might be easier said than done: 94% of journalists say they use social media for their jobs.

But as an internet researcher — and Taylor Swift fan — I am hopeful that experiences like the Eras Tour will wake up more people to the fact that human beings are more united than social media algorithms would have us believe.

THE CONVERSATION VIA REUTERS CONNECT

Aarushi Bhandari ia an assistant professor of Sociology in Davidson College.

SEC warns public on two unregistered entities

THE Securities and Exchange Commission (SEC) has warned the public against two unregistered entities soliciting investments despite having no licenses to do so.

In separate advisories, the regulator identified the two investment-taking entities as B2B Trading Center OPC and LeBronify/Authority Circle.

“The Securities and Exchange Commission has noticed that B2B Trading Center OPC, an entity purportedly engaged in direct selling and social e-commerce, and individuals or group of persons related thereto are soliciting investments through its Go Diamond.On-line Program,” the regulator said.

Would-be investors are required to choose from several packages for investments from P5,000 to P150,000. Investors may also earn from referrals and recruitment.

“The public is made aware that an “investment contract,” a kind of security, exists when there is an investment or placement of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others which is present in the pyramiding investment scheme of B&B Trading Center OPC through its Go Diamond.On-line Program,” the SEC said “Pyramiding, being fraudulent and unsustainable is not a registrable security.”

It said that while B&B Trading Center is registered with the SEC, it is not allowed to solicit investments as it does not have a license to do so.

Meanwhile, LeBronify/Authority Circle is “engaged in investment taking activities under the guise of freelancing consultancy,” the SEC said.

“As promoted by a certain “Niel Reichl” through his Facebook Account, Instagram account, Spotify Podcast and TikTok Videos, the would-be investors may invest either P500,000, 750,000 or 2,000,000 with the first and second option having a lock-in period of 12 months with a minimum 100% interest after the maturity of the investment,” the regulator added.

LeBronify/Authority Circle is not registered with the SEC as a corporation and is not allowed to solicit or take investments or issue securities, it said.

The scheme used by the entity “has the characteristics of a “Ponzi Scheme” where money from new investors are used in paying “fake profits” to prior investors and is designed mainly to favor its top recruiters and prior risk takers and is detrimental to subsequent members in case of scarcity of new investors,” the SEC said. — AHH

Mexico says US refuses to cooperate on GM corn studies

REUTERS

MEXICO CITY — The US has denied a request by Mexico to jointly conduct scientific research on the health impact of genetically modified (GM) corn, a Mexican government official said, a sign the two sides could be inching closer to a formal trade dispute.

Mexico has repeatedly called on the US to work together on scientific studies amid a conflict over the Latin American country’s plans to limit the use of GM corn. Mexico buys about $5 billion worth of corn from its trade partner annually, most of which is GM yellow corn used for livestock feed.

The US, however, denied this request and made it clear it will not participate in new scientific studies with Mexico, Mexican Deputy Agriculture Minister Victor Suarez said in an interview with Reuters.

The two countries discussed Mexico’s request, including during a visit by US Agriculture Secretary Tom Vilsack, but the US will not oblige, Mr. Suarez said.

“They did not want to establish a period in which the two parties agree to carry out impact studies on animal health and human health,” Mr. Suarez.

“Their science is the Word of God. That is not science, that is ideology,” he added.

When asked to comment on what Mr. Suarez said, the US Department of Agriculture referred Reuters to previous remarks by Mr. Vilsack stating that the US “fundamentally disagrees” with Mexico’s position on biotechnology.

Mexico wants to ban GM corn for human consumption in the food staple tortilla, which is mostly made of white corn, and eventually replace GM yellow corn used for livestock feed, arguing that biotech corn harms native varieties and may have adverse health effects.

The US has argued that Mexico’s plan is not based on science and will hurt US farmers.

In June, Washington requested a new round of trade dispute settlement consultations with Mexico under the US-Mexico-Canada Agreement (USMCA), which are underway.

If the two sides cannot resolve the conflict within 75 days, or by Aug. 16, the US can request a dispute settlement panel to decide the case.

Canada also joined the consultations.

Mr. Suarez said the US does not have the evidence to support its argument in a panel, but that Mexico would be ready.

“If they establish the panel, we will defend ourselves. And if we defend ourselves, we think we are going to win,” Mr. Suarez said, adding that Mexico’s policy has no commercial impact on the US.

Mr. Suarez estimated that between 10% and 15% of foreign corn purchases could be substituted by domestic production by the end of President Andres Manuel Lopez Obrador’s mandate in 2024.

The government is buying 1.5 million metric tons of white corn from producers in Sinaloa state at 6,965 pesos per ton ($409) after the country saw major unrest in the sector prompted by a drop in international grains prices.

The state government will also buy half a million metric tons at that price. Mr. Suarez said the price is based on a calculation of production costs and seeks to revalue the Mexican white grain and separate it from the “commodity” price of yellow corn on the Chicago grains exchange.

“This breaks the price link with Chicago,” Mr. Suarez said, adding that the program would soon expand to other states. — Reuters