Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 3816

Palay average farmgate price up 9.1% in April

THE average farmgate price of palay or unmilled rice rose 9.1% year on year to P18.79 per kilogram in April, according to the Philippine Statistics Authority (PSA).

“All regions continued to record positive annual increments in the average farmgate price of palay in April 2023,” the PSA said in its report.

The highest farmgate price of palay was recorded in Northern Mindanao at P20.77. The lowest was the Eastern Visayas price of P16.09.

“The highest year-on-year increase was registered in Northern Mindanao at 14.6%, while the lowest annual increment was noted in Cordillera Administrative Region at 3.7%,” the PSA said.

The average farmgate price in the Ilocos Region rose 7.7% year on year to P20.40 per kilo.

The Central Luzon farmgate price during the period grew 11% to P20.02.

The farmgate price rose 8.3% to P19.53 in the Western Visayas.

The farmgate price in the Central Visayas rose 13.5% year on year to P19.52.

On a month-on-month basis, the PSA said that the average farmgate price rose 1.2% from P18.57 in March.

“Month on month, 12 regions recorded higher average farmgate prices, while CAR, Ilocos Region, Cagayan Valley, and Eastern Visayas posted decreases for this month,” the PSA said.

Jayson H. Cainglet, executive director of Samahang Industriya ng Agrikultura (SINAG), estimated the current palay farmgate price at between P21 and P24 per kilo.

“As long as imports don’t compete with harvest season, the millers are encouraged to buy palay, even some (local government units),” he said. The peak of the harvest is March to May and September to October.

Mr. Cainglet said that SINAG affiliated millers signed a memorandum of agreement with the National Food Authority (NFA) in October, committing to buy palay at a base price of P21 per kilo.

He said with many buying at P21 per kilo, other traders and millers followed suit.

Under Republic Act No. 11203 or the Rice Tariffication Law, the NFA has been stripped of its power to import rice and has been reduced to maintaining an emergency inventory from domestically produced rice.

In the five months to May, the Philippines has imported 1.62 million metric tons of rice, up 7.69% from a year earlier. — Sheldeen Joy Talavera

VAT refund for tourists

After the Director-General of the World Health Organization declared an end to COVID-19 as a global health emergency, many of us grew eager to return to life as we knew it before COVID-19. Tourism was one of the hardest-hit industries during the height of the COVID-19 pandemic due to the mobility and international travel restrictions that were aimed at reducing the spread of the virus. Now, although many of us remain cautious and continue to wear face masks despite the lifting of most mask mandates, “revenge travel” — to make up for lost time — is a high personal priority for many.

While there are broader factors that will boost tourism (airport capacity and infrastructure, to name two), one proposal aims to improve our attractiveness as a travel destination from a tax perspective. Under House Bill (HB) No. 7292, non-resident tourists would be allowed to obtain a value-added tax (VAT) refund on their purchases of goods worth at least P3,000. The bill was approved by the House of Representatives on third and final reading, and the President himself has signaled his backing for the proposal in principle.

INTERNATIONAL PERSPECTIVE
The concept of recouping VAT or similar consumption taxes on foreign tourists’ purchases is not new. In fact, according to the House Ways and Means Committee Chairman, we are one of the last few Asian destinations that do not have a tourist VAT refund system. To better understand this proposal, let’s take a brief look at some of our neighbors.

In Indonesia, Malaysia, Singapore, Thailand, and Vietnam, the general procedures can be outlined as follows: 1) obtain and keep the tax invoices for eligible purchases; 2) show travel documents together with the invoices and the goods purchased (and not consumed) to the refund counter at the airport; and 3) claim the tax refund, most commonly in cash (local currency). Naturally, each jurisdiction has its own set of procedures and rules regarding controls (some have specific “tax-free” shops), purchase or tax amount thresholds, the number of days between when the purchase was made and when the refund is claimed, and even the actual refund mechanism (some allow refunds via credit card reverse charge). Nevertheless, the overarching procedures appear quite similar.

Outside of ASEAN, Taiwan seems to have similar procedures as outlined above, albeit with an option to use an “E-VAT Refund Machine” instead of proceeding to a refund counter. Interestingly, Japan has a drastically different approach: either a) pay for the purchase with consumption tax already deducted upon presentation of a passport, or b) obtain a refund by visiting the designated tax exemption bulk deduction counter (in-store, not at the airport) and presenting the purchased goods, receipt, and passport.

CURRENT PHILIPPINE VAT RULES
The purchase of goods within the Philippines is generally subject to 12% VAT. As an indirect tax, VAT is passed on to and shouldered by the buyer. As a tax on the “value added,” the ultimate consumer or end-user primarily bears the cost of VAT. This burden is especially felt by individual buyers, who are typically not VAT-registered and do not have the benefit of claiming input VAT credits on their purchases.

The proposal for VAT refunds on tourist purchases would add Section 112-A to the Tax Code, the salient portions of which read as follows:

“SEC. 112-A. TOURIST VAT REFUND. — A tourist shall be eligible for a value-added tax (VAT) refund on goods purchased from accredited retailers in the Philippines if such goods are taken out of the country within sixty (60) days from the date of purchase, and the value of goods purchased per transaction amounts to at least three thousand pesos (P3,000.00) …

For purposes of this section, a ‘tourist’ shall refer to a foreign passport holder, who is a non-resident individual not engaged in trade or business in the Philippines.”

The proposal seems simple enough. Tourists who are foreign nationals and not residents of the Philippines can refund the 12% VAT imposed on goods that they purchase within 60 days before they leave the country. The bill authorizes the Secretary of Finance to promulgate the rules and regulations for the law’s implementation. It appears that the legislators prefer giving leeway to the executive branch as to the exact mechanics of the VAT refund process.

POINTS FOR CONSIDERATION
According to the Presidential Communication Office, the VAT refund program for foreign tourists is targeted for implementation by 2024 and is billed as an effort to boost tourist arrivals. The counterpart Senate bill still faces hearings at the Senate Committee on Ways and Means at this writing. Nevertheless, here are a few salient points to consider about the pending measure:

1) Administration: With the ultimate goal of boosting tourist spending in mind (thus helping retailers generate more sales and growing our economy), the government should ensure that rules or requirements are simple to comply with for retailers.

2) Convenience: From the foreign tourists’ perspective, a tedious process for obtaining a VAT refund will discourage them from applying in the first place, in turn discouraging them from spending. It bears highlighting that, at 12%, we have the highest VAT rate in ASEAN.

3) Safeguards: As a refund program, this measure will likely entail funds to be programmed into the government’s annual budget. As with any government-funded measure, policies for transparency and governance must be strictly enforced.

As we welcome foreign visitors, we can, in addition to showing them a great time at our beaches and other destinations, perhaps they will also buy more “pasalubong” for their loved ones back home — VAT-free, if this proposal becomes law.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

 

Marion D. Castañeda is a senior manager at the Tax Services department of Isla Lipana & Co., the Philippine member firm of the PwC network.

+63 (2)8845-2728

marion.castaneda@pwc.com

Philippines ranked 22nd heading into FIBA World Cup tournament

GILAS Pilipinas will head into battle as 22nd-ranked team in a field of 32 at the 2023 FIBA Basketball World Cup, according to the federation’s initial power rankings.

The Philippines, serving as the tournament’s main host, topped rivals Iran (No. 31), Jordan (No. 28) and Lebanon (No. 26) in the rankings.

FIBA said the presence of NBA guard Jordan Clarkson from the Utah Jazz is expected to bolster the Gilas bid along with the hometown advantage.

Australia, following its first-ever podium finish in the Tokyo Olympics with a bronze medal, is top ranked in the region at No. 4.

The continent’s other teams are co-host Japan (No. 14), New Zealand (No. 16) and China (No. 21).

Dominican Republic and Italy, two of the men’s teams’ opponents in Group A, are ranked No. 12 and No. 13, respectively. Angola is at No. 29.

Reigning Olympic champion USA and World Cup titlist Spain paced the 32-team cast at No. 1 and No. 2, respectively. Also in the Top 5 are France (No. 3) and Slovenia (No.5).

Canada, Germany, Serbia, Greece and Brazil, in order, rounded the Top 10. — John Bryan Ulanday

Gilas beaten by Estonia 81-71 in European training camp ‘friendly’

GILAS Pilipinas lost 71-81 to home side Estonia, which coach Chot Reyes described as essential to the overall development of the FIBA World Cup-bound Filipinos.

Groping for form early but displaying fighting heart in the first friendly of its European camp Tuesday night in Tallinn, Gilas fought back hard after trailing by 22 but faded in the end.

“Like I said in the dugout, I was very impressed, I was very happy with our first game considering this is June Mar’s (Fajardo) first game in six months and Japeth’s (Aguilar) first game in four months,” Mr. Reyes said in an update posted by the Samahang Basketbol ng Pilipinas.

Estonia, which was represented by younger players from its men’s team, opened the game held at the Kalevi Sports Hall with nine unanswered points en route to a 41-19 lead.

The Estonians held a 49-35 lead at the break before Gilas cut it to 64-59 after three and threatened further at 66-63 midway through the fourth. But with Justin Brownlee forced to the bench on cramps, the Filipinos failed to complete the fightback.

“For us to continue to battle — we were down 20 and still we showed a lot of fight, putting ourselves within a basket, we were three points down in the middle of the fourth, and we played the fourth without Justin Brownlee who had suffered cramps already by that time,” said Mr. Reyes.

“So (it’s a) good first step (and I’m) very, very happy. Going into this ballgame, we know we still have a long way to go, still a lot of work to be done because this is a work in progress, so (I) can’t ask for more.”

Dwight Ramos showed the way with 16 for Gilas, which played with only 11 players with Scottie Thompson nursing back spasms. Mr. Brownlee, who entered the camp just two days before the game, finished with eight in 19 minutes as Thirdy Ravena shot nine and Mr. Fajardo hauled down nine boards.

“I thought we didn’t play good defense in the first half but in the second half we tightened up a lot more and that allowed us to get back and stay in the game,” Mr. Reyes said.

The Nationals were undone by 23 turnovers, which Estonia converted into 21 easy points.

Mr. Reyes’ troops had little time for rest and recovery with a tough duel against fellow World Cup team Finland in the cards Wednesday night.

“The good news is it was a good first step. The bad news is tomorrow’s game is going to be five or ten times tougher than today’s game,” Mr. Reyes said.

“So again, we’ll see how we respond and how we react tomorrow. Like I said, that’s the reason why we’re here. This is the time that we make our mistakes, that we adjust and we grow and we develop resilience as a team.” — Olmin Leyba

Creamline shoots for solo PVL leadership

PHILSTAR FILE PHOTO

Games Today
(Filoil EcoOil Arena)
1:30 p.m. — Creamline vs Gerflor
4 p.m. — Choco Mucho vs Farm Fresh
6:30 p.m. — Petro Gazz vs Foton

THE CREAMLINE traveling show hits the road again, shooting for the solo lead against a debuting Gerflor today (June 29) in the Premier Volleyball League Invitational Conference at the Filoil EcoOil Arena.

The Cool Smashers put on a strong opening day performance Tuesday when they schooled the youth-injected Crossovers in a 25-22, 25-22, 25-17 victory that sent them straight to the top early.

The franchise, champion in six of the last nine conferences, joined F2 Logistics, which survived another rookie squad Farm Fresh, 25-22, 25-20, 25-23, and Cignal, an 18-25, 25-18, 25-21, 25-22 winner over Petro Gazz, at the top.

Creamline is still heating up as Alyssa Valdez, the team’s heart and soul, has yet to recover her old form after she struggled and finished with just three hits on her return from a knee injury early in the year.

“I really feel like a rookie again,” said the national team captain and the face of Philippine volleyball.

If there’s another positive from the return of Ms. Valdez to active shape, it was multiple Most Valuable Player winner Tots Carlos returning to her original position as opposite hitter from assuming the outside spiker role in the former’s stead.

It resulted in Ms. Carlos delivering a masterful 24-point effort.

“Masayang pakiramdam na nakabalik na din ako sa posisyon ko (It feels good to return to my position),” Ms. Carlos said.

Choco Mucho and another newcomer, Foton play their first game of the conference against Farm Fresh at 4 p.m. and Petro Gazz at 6:30 p.m., respectively. — Joey Villar

Volleyballer Santiago signs with new team in Japan

JAJA SANTIAGO has officially signed with a new team in the Japan V.League Division 1 — JT Marvelous — dashing hopes by her fans for a possible Premier Volleyball League (PVL) return.

Santiago’s signing with JT Marvelous was made official Wednesday in a website post months after the end of her stint with the Saitama Ageo Medics, her team for the past four years.

Chery Tiggo listed Ms. Santiago as a reserve in its PVL Invitational Conference roster that opened the possibility that the former national team star and league MVP (Most Valuable Player) would lead the franchise to another title after they won the 2021 Open Conference crown.

She never did.

Ms. Santiago is also reportedly undergoing the naturalization process in Japan.

With JT Marvelous, winner of two titles in the last four conferences, Ms. Santiago is expected to claim further recognition after being named best middle blocker in past seasons. — Joey Villar

Obiena on track to hit Olympic qualifying norm

EJ OBIENA — PHILIPPINE STAR/JUN MENDOZA

If EJ Obiena’s bronze medal-clinching vault in the 62nd Ostrava Golden Spike in the Czech Republic can be used to gauge his Paris Olympics form, then the Filipino World Championship bronze medalist is just about right on track.

With the Olympic qualifying cycle inching closer, Mr. Obiena achieved what he initially came for and effortlessly breached the 5.82-meter Paris Games standard with plenty to spare as he cleared 5.90m.

It didn’t qualify the World No. 3 and Asian record-holder just yet as the qualifying process officially starts when the calendar hits July 1.

But it was an indication that Mr. Obiena, barring any untoward incident, will inevitably do so and qualify for a second trip to the greatest sports show on Earth after his Tokyo Games appearance.

Forget about the Southeast Asian Games king falling and succumbing to Armand Duplantis, the world record holder and Olympic champion who won the Ostrava by a mile with a magnificent 6.12m, again.

And never mind Mr. Obiena missing out on a silver after lower-ranked Australian Kurtis Marschall snatched it after vaulting an identical 5.90m right on the latter’s first attempt.

What mattered was the intent that anytime Mr. Obiena wills it, he can handle 5.82m and get the job done.

The bronze was just icing on the cake.

And Mr. Obiena, whose best is a six-meter that only 28 vaulters have accomplished, should get it done as he goes directly for that precious Olympic berth in one of the two meets he has lined up for himself — the Wanda Diamond League’s Bauhaus-Galan set July 2 in Stockholm and the Meeting International de Sotteville on July 7 in France. — Joey Villar

Women’s basketball team rebounds with win over Chinese Taipei

GILAS Pilipinas women delivered when it mattered the most, learning their lessons from two straight defeats to turn in a win in the 2023 FIBA Women’s Asia Cup Division A yesterday at the Quaycentre in Sydney.

Licking their wounds from huge defeats against Australia and Japan, the Filipinas poured it on against Chinese Taipei with a 92-81 win, their first since being promoted to Division A in 2015, to end their Group B campaign in style.

Gilas, at 1-2, thereby dodged potential relegation to Division B and advanced to the next round for the first time in the elite tourney, which serves as a qualifier for the Paris Olympics.

The Gilas women had a 33.5-point average losing margin against Chinese Taipei in their past two meetings.

Duke University ace Vanessa de Jesus once again stamped her class with 25 points, two rebounds, four assists and two steals as Gilas finally upended its fierce rival after losing in 2017, 57-83, and 2021, 93-52.

Veterans Jack Animam and Afril Bernardino also turned in stellar performances on both ends of the floor.

The undersized Bernardino turned in a stat line of 18 points, 10 rebounds, three assists, three steals and a block while Ms. Animam had 16 points on perfect 8-of-8 shooting and 15 rebounds.

“It’s time to (prove) we belong in the FIBA Asia Cup. Hopefully, it’s not the last. We hope to continue winning. This is for our country, for our program and for our federation,” head coach Pat Aquino said.

“It’s special. This is a testament to our program, especially with everybody behind, the sacrifices and the work we put into. It’s the icing on the cake, knowing what this means to Philippine basketball,”Ms. Animam added.

Ms. De Jesus, Ms. Bernardino and Ms. Animam led a 15-2 run in the first half to transform a 15-18 deficit to a 30-20 lead.

At the turn, Gilas held a 51-38 lead and only needed to repel the repeated rallies of Taipei, led by Yu-Ting Lin’s 21 points, from there on heading home.

Gilas, which endured beatings against Australia, 105-34, and Japan, 95-57, is likely to play Group A second seed New Zealand in the qualification to the semis.

The next phase features the second and third-ranked teams in Groups A and B to dispute the last two spots in the Final Four to join the top squads, which will earn automatic seats.

China is a cinch for the No. 1 slot in Group A as reigning champion while Japan and Australia are to slug it out for the Group B leadership in the tourney that will reward the champion an outright berth in the Paris Summer Games, with the next four teams getting invites to the Olympic qualifiers. — John Bryan Ulanday

PHL men’s softball team clinches 3rd at Asia Cup

THE PHILIPPINES repeated over Hong Kong, 7-0, yesterday to seal a third-place finish in the WBSC Men’s Softball Asia Cup in Kochi, Japan and a spot in World Cup.

Juliuz Rosh dela Cruz was at the center of the storm and dominated from the mound, pitching a one-hitter in five innings.

Amateur Softball Association of the Philippines president Jean Henri Lhuillier lauded the Jasper Cabrera-coached team for the feat.

“We are more than proud of our boys as they showed how passion can lead to victory. Their hard work definitely paid off and we are more than glad to support them as they prepare for the World Cup,” he said.

The Philippines now has four teams eligible for the World Cup, the other three being the Blu Girls, the co-ed slo-pitch team and the women’s Under-15 squad.

First baseman John Norwen Lucas blasted a double to left centerfield that sent designated player Melvin de Castro and shortstop Justine John Rosales safely home to open things up for the Filipinos, who seized a 2-0 lead at the bottom of the third inning.

It opened the floodgates as centerfielder Kenneth Torres singled to right for two more RBIs (runs batted in), right-fielder John Israel Antonio added one RBI with a single to middle and third baseman Michael Pagkaliwagan scored on a stolen base that capped the 6-0 blitz during the inning.

The Hong Kongese, who were still reeling from an 8-0 beating they suffered from the Filipinos the day before, were never the same from there and settled for fourth place.

World power Japan and 2019 Southeast Asian Games gold winner Singapore were battling for the gold at deadline time. — Joey Villar

Pogacar, Vingegaard set for third act amid Tour de France safety worries

PARIS — The Tour de France looks set to be a battle between defending champion Jonas Vingegaard and twice winner Tadej Pogacar, but there is a question mark over the Slovenian’s form while riders’ safety will be scrutinized after the death of Gino Mader.

Mr. Pogacar was enjoying a sterling season, winning Paris-Nice and the Tour of Flanders, before breaking his wrist two months ago, leaving the 2020 and 2021 Tour winner fighting to make a full recovery before the Grand Depart in Bilbao on Saturday.

Mr. Pogacar’s UAE Emirates team has been reinforced with the recruitment of Britain’s Adam Yates and Felix Grossschartner — two major additions for the mountain stages. If the 24-year-old is back to his best then the stage is set for a potentially vintage battle with Mr. Vingegaard.

The Danish rider, who will again be able to rely on the formidable Jumbo Visma team, won the Criterium du Dauphine and will start as the big favorite. He and his team made Mr. Pogacar crack last year in the ‘stage of the century’ a year after Mr. Vingegaard took second place behind the Slovenian.

Mr. Pogacar, however, has earned the nickname ‘Baby Cannibal’ in reference to Belgian great Eddy Merckx and he will be out for revenge this year on a course that favors mountain battles and attacking riders.

Mr. Pogacar returned to competitive racing in his national championships earlier this month, winning both the time trial and road race titles, but the Tour is a different affair altogether. He is expected to throw everything at Mr. Vingegaard as he did last year, when he attacked on all terrains, earning the support of the French crowds.

Descents played a substantial part in last year’s Tour, with Mr. Pogacar risking all to unsettle Mr. Vingegaard in the descent from the Col de Spandelles and Britain’s Tom Pidcock going down the Col du Galibier at breakneck speed en route to the stage win at L’Alpe d’Huez.

Both riders were at the limit, showcasing rare talent but also the dangers of going down an asphalt road at 100kph wearing lycra on tubeless tires less than 3cm wide.

Swiss Gino Mader died earlier this month after crashing down a ravine in a descent at the Tour de Suisse, raising more questions about riders’ safety and triggering calls for safety nets in the most dangerous downhill sections.

The topic will be discussed at the teams’ meeting with organizers of the Tour before the start in Bilbao. The race will hit the Pyrenees after only five days with the first summit finish in Cauteret on Stage 6 after going up the punishing Col du Tourmalet, while pure sprinters might have a chance to shine the following day in Bordeaux.

This is where Mark Cavendish could break the all-time record for stage wins on the Tour de France that he currently shares with Merckx after taking 34 victories.

Behind Mr. Vingegaard and Mr. Pogacar, the battle to finish on the podium will rage on but none of those contenders could realistically expect to win the title.

Jai Hindley, Ben O’Connor, Mikel Landa, Enric Mas and Tom Pidcock all have a shot at the podium. As do Frenchmen David Gaudu and Romain Bardet, but home fans will likely need to wait at least another year for a first French winner since 1985.

Thibaut Pinot, who was agonizingly close to winning the race in 2019 when he was forced to abandon injured two days from the finish, will be on a farewell Tour in his last season after taking fifth place overall on the Giro d’Italia and the crowd favorite will certainly provide some tear-jerking moments.

While Pinot is on his way out, 2019 champion Egan Bernal is making his comeback on the Tour three years after abandoning and a year after a high-speed crash left him with back, leg, knee and chest injuries. — Reuters

China’s Xi vows to protect foreign investors

US and Chinese flags are seen in this illustration. — REUTERS

CHINESE leader Xi Jinping pledged that his nation would do right by foreign investors, underscoring his government’s attempts to assuage worries about the economy and unpredictable policymaking.

“Development is the top priority of the Communist Party of China in governing and rejuvenating the country,” Mr. Xi told New Zealand Prime Minister Chris Hipkins during his official visit to Beijing on Tuesday.

“We will continue to vigorously promote high-level opening up and better protect the rights and interests of foreign investors per the law,” Mr. Xi said, according to the official Xinhua News Agency.

China’s attempts to encourage foreign investors have ramped up in recent weeks as it’s become increasingly clear that the economy’s recovery following the end of Beijing’s Covid Zero policies is starting to flag. Efforts in the US and Europe to “de-risk” supply chains by reducing their reliance on China have further clouded the prospects for future growth.

At a “Summer Davos” dialog in Tianjin on Tuesday, Chinese Premier Li Qiang told 120 entrepreneurs from around the world that his nation was willing to work with them, Xinhua reported.

Mr. Li also delivered a speech at that economic forum warning that attempts by governments to politicize their economies would only fragment the world, and recently returned from a trip to Germany where he urged chief executive officers (CEOs) there to to take the lead on risk-proofing their supply chains.

Meantime, Bernard Arnault, the billionaire CEO of LVMH, is making his first trip to China since the pandemic. The French entrepreneur was spotted at a high-end shopping mall in Beijing on Tuesday, the Global Times tweeted, citing photos taken circulating on a social media platform.

The itinerary for Mr. Arnault’s entourage includes meetings with local teams in several cities, people familiar with the trip have said, declining to be named discussing the billionaire’s whereabouts.

Mr. Arnault’s trip follows visits to China by other high-profile executives in recent weeks, including JPMorgan Chase & Co. CEO Jamie Dimon and Tesla, Inc. head Elon Musk. Apple, Inc.’s Tim Cook traveled to China in March to celebrate the iPhone maker’s ties to the region.

Besides Mr. Xi, Mr. Hipkins met the head of China’s legislature Zhao Leji as part of his visit to the Asian nation this week.

“I emphasized the key focus of our visit was to reaffirm our close economic relationship by supporting businesses renew their connections with Chinese counterparts and helping grow new ones to support New Zealand’s economic recovery,” Mr. Hipkins said in a statement after meeting the two.

China’s charm offensive likely faces skepticism. While Mr. Xi has repeatedly insisted that economic development is the Communist Party’s “top priority,” his government has clearly made protecting national security a central focus.

A clampdown this year on foreign consultancy firms that help global investors and multinational firms understand China — part of a nationwide anti-espionage campaign — has weakened the appetite for investment from overseas firms.

Prior to that effort, abrupt regulatory tightening moves affecting industries ranging from technology to real estate had already been sending foreign capital fleeing from the nation’s financial markets.

A record share of European companies say doing business in China is getting more difficult, according to a recent survey that noted some firms are already following through on plans to divest from the economy. Some American firms have also reconsidered investment. — Bloomberg

Over 11 million Britons faced hunger in 2022

People walk outside the Bank of England in the City of London financial district in London, Britain, May 11, 2023. — REUTERS

LONDON — One in seven people in the United Kingdom (UK) faced hunger last year because they did not have enough money, according to a report published on Wednesday by food bank charity the Trussell Trust.

It said this equates to 11.3 million people, more than double the population of Scotland, and blamed a dysfunctional social security system, as well as a cost of living crisis that is showing little sign of easing.

Britain is the world’s sixth-biggest economy but its citizens have been pressured for more than a year by high inflation which has outstripped pay growth for almost all workers.

Government forecasters estimate UK households are in the midst of the biggest two-year squeeze in living standards since comparable records started in the 1950s.

The Trussell Trust’s network of 1,300 food bank centers across the UK provided a record 3 million food parcels in the year to March, up 37% and more than double the amount provided five years ago.

“This consistent upward trajectory exposes that it is weaknesses in the social security system that are driving food bank need, rather than just the pandemic or cost of living crisis,” it said.

The charity said that 7% of the UK population was supported by charitable food support, including food banks, yet 71% of people facing hunger had not yet accessed any form of charitable food support.

It also noted that one in five people forced to turn to food banks in its network are in a working household and called on the UK government to ensure the benefits system covers essential costs.

“We know people are struggling, which is why we’re providing record financial support worth an average 3,300 pounds ($4,206) per household,” said a spokesperson for the Department for Work and Pensions in response to the report.

The government has also raised benefits and the state pension in line with inflation, increased the minimum wage and supported families with food, energy and other essential costs, said the spokesperson.

Prime Minister Rishi Sunak’s key economic pledge to halve overall inflation in 2023 before a probable 2024 election has been undermined by persistently high food inflation, outpacing the broader inflation rate across the whole economy and adding strain to household budgets already stretched by higher taxes and mortgage rates.

Food and drink inflation was running at 18.3% in May according to the most recent official data, and 14.6% in June according to the most recent industry data.

On Tuesday, British supermarket executives rejected allegations they were profiteering at the expense of consumers through the cost of living crisis.

Soaring food prices have contributed to the biggest squeeze on living standards in Britain since records began in the 1950s, and prompted questions about who is responsible. Trade unions and politicians have accused the supermarkets of “greedflation,” saying they’ve been too slow in passing on lower producer prices to consumers. — Reuters

1...3,8153,8163,817...13,385Page 3,816 of 13,385
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube