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Palay farmgate average price rises 18.1% in Oct.

PHILIPPINE STAR/KRIZ JOHN ROSALES

THE farmgate price of palay, or unmilled rice, rose 18.1% year on year to an average of P20.6 per kilogram in October, according to the Philippine Statistics Authority (PSA).

The PSA reported that all regions except the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) posted increases in average farmgate prices during the period.

The highest farmgate price in October was reported in Northern Mindanao at P23.56 per kilo, up 29.2% from a year earlier.

This was followed by the Ilocos Region with average palay prices increasing 22.8% to P22.92 per kilo from a year earlier.

The lowest farmgate price was posted in BARMM, with farmgate prices of P17.36 per kilo. The region recorded the only year-on-year decline at 7.3%.

The National Food Authority in September approved higher buying prices for palay of P19-23 per kilo for dry grain and P16-19 per kilo for wet. The previous buying price for palay was P16 per kilo wet and P19 per kilo dry.

On a month-on-month basis, the PSA said that the average farmgate price rose 3.5% from September.

The PSA said 10 regions saw higher farmgate prices of palay month on month, while five regions posted declines. — Adrian H. Halili

PHL cited as among region’s leaders in curbing illicit trade

BW FILE PHOTO

THE PHILIPPINES was singled out as a “regional leader” within ASEAN in curtailing illicit trade and piracy, the Transnational Alliance to Combat Illicit Trade (TRACIT) said.

“Strengthening interagency and interdepartmental cooperation is essential in the fight against illicit trade,” TRACIT said in its “Fighting Fakes, Contraband and Illicit Trade: Spotlight on The Philippines” report.

It added that the Philippines is also a leader in promoting domestic cooperation, particularly in intellectual property coordination, because of the Intellectual Property Office of the Philippines (IPOPHL) and the 15-member National Committee on Intellectual Property Rights (NCIPR). 

The report said that the collaboration of NCIPR-affiliated agencies helped the Philippines remain off the US Trade Representative Special 301 Watchlist starting in 2014.

TRACIT is an independent, private sector initiative seeking to mitigate the economic and social damage caused by illicit trade and works to strengthen government enforcement mechanisms.

It presented the global illicit trade report at the IP Enforcement Summit organized by IPOPHL.

In a global illicit trade index commissioned by TRACIT, the Philippines ranked 64th out of 94 countries.

The Philippines had an overall score of 49 out of 100, slightly above the ASEAN average of 46 points, but below the global average of 60.

The Philippines registered the strongest performance in the transparency and trade metric, where it ranked 24th, followed by supply and demand (55th), and customs environment (60th).

“While there’s room for improvement across all categories, significant efforts are required in the Government Policy category, where perceptions of corruption and limited compliance with FATF (Financial Action Task Force) standards lower its overall performance,” TRACIT said.

According to TRACIT, the illicit economy in the Philippines is driven by its proximity to major Asian economies such as China, corruption, weak regulatory and enforcement systems, widespread smuggling, tax evasion, and insufficient deterrent effect of existing sanctions. 

The country report said that the tax evasion and tax-related crimes are estimated to cost the Philippines over P300 billion in revenue annually. The country was also singled out as frequently ranking among the 20 countries with the highest levels of illicit financial flows.

“These flows are often deeply connected to underlying illicit trade and represent a substantial loss of billions of dollars in tax revenue, undermining economic growth, exacerbating poverty and inequality, and weakening governance and public institutions,” it added.

To curb illicit trade, TRACIT said that the Philippines must strengthen its customs environment, cooperation with neighbors, enforcement of intellectual property rights, the severity of criminal penalties, and controls on money laundering, among others. — Justine Irish D. Tabile

LANDBANK cited as top GOCC for governance

BW FILE PHOTO

LAND BANK of the Philippines (LANDBANK) was named the top government-owned and -controlled corporation (GOCC) in terms of good governance practices last year, the Governance Commission for GOCCs (GCG) said.

The GCG’s corporate governance scorecard gave LANDBANK the top rating of 102.5 for 2022.

The scorecard is used to “assesses the corporate governance initiatives (e.g., stakeholder relationships, disclosure and transparency, and responsibilities of the board) of GOCCs through a methodology benchmarked against international practices,” according to the GCG.

LANDBANK was followed by the Social Security System (102.19); Government Service Insurance System (102.08); and Development Bank of the Philippines (100).

Also among the ranking GOCCs were the Bases Conversion and Development Authority and Clark Development Corp. (99); John Hay Management Corp. (98); LBP Insurance Brokerage, Inc. (97.92); Philippine Reclamation Authority (97.5); Cebu Port Authority, National Home Mortgage Finance Corp., and LBP Resources and Development Corp. (96.5); and the National Electrification Administration (95.94).

LANDBANK President Lynette V. Ortiz said the bank plans to maintain momentum by taking a balanced approach to risk management and providing support to priority sectors.

“We really are looking to properly balance risk-taking and risk management and we’re very much focused on the priority lending centers. Our mandate of course is to support the entire agri value chain but at the same time look at the sustainability projects, infrastructure projects, all in aid of the development of our country,” she told reporters on Monday.

Ms. Ortiz also said the bank will likely exceed its P35-billion earnings target this year.

The bank reported that net profit rose 24% to P31.85 billion in the first nine months.

“We will be exceeding the target. I’m hoping we will really surprise everybody with our results. There’s still a month and a half left, we’re really pushing hard to do the best we can still, but we’re looking to surprise on the upside,” Ms. Ortiz said.

“I think we’ve been able to deploy our capital very well to projects that are providing us with sufficient returns. On top of the lending, it’s the proper management of our balance sheet (and) our discipline in costs,” she added.

Meanwhile, Ms. Ortiz said LANDBANK has met with the newly appointed Maharlika Investment Corp. (MIC) president and chief executive Rafael Jose D. Consing, Jr. to discuss strategy moving forward.

“We’ve actually met with the president of the MIC, to basically get a good sense of his strategy and how he (plans to proceed). Clearly top of his agenda is to make sure the board is properly constituted; second, to get his top team in place so we can all meet and start the hard work of… deploying the capital,” she said.

“More or less the sectors he intends to focus on (are) very much aligned and in sync with LANDBANK’s own mandate,” she added.

At his first briefing as MIC head last week, Mr. Consing said the fund will prioritize tourism infrastructure, energy security, and digital infrastructure.

Ms. Ortiz said she is confident in Mr. Consing’s ability to steer the fund.

“I have the utmost respect (for) his capabilities, skillset, professionalism and integrity. I’ve worked with him for more than a decade, so I’m very hopeful and excited that the MIC will fulfill what it’s set out to do,” she added.

Under the law creating the MIF, LANDBANK and the DBP are required to contribute P50 billion and P25 billion, respectively, to the initial capital of the fund. The MIC has authorized capital stock of P500 billion. — Luisa Maria Jacinta C. Jocson

PHL startup fundraising down about 40% in year to date — VC

CORE CAPITAL

STARTUP tech fundraising declined in 2023 due to adverse market conditions, according to Gobi-Core Philippine Fund, which provides early-stage venture capital (VC).

In its Philippine Startup Ecosystem Report, Gobi-Core said that the year-to-date fundraising in the Philippines is running 40% below the year-earlier level.

“Fundraising for startups experienced a stark 40% decline, reflecting a conservative investor approach,” Gobi-Core said.

Gobi-Core founding partner Carlo Chen-Delantar said that he only expects 50 to 60 deals for 2023, down from over 100 deals closed in 2022.

“This shows that the market downturn is now already affecting not only the ASEAN region but globally,” Mr. Chen-Delantar said on the sidelines of the Opening Ceremony of the Philippine Startup Week 2023.

The report, which was released on Monday, cited a 21% decline in deal count so far in 2023, indicating a shift in investor sentiment amid lower returns from debt investments and increased stock market uncertainty.

“The average deal size mirrored these challenges, plummeting by 37.5%, signifying a cautious approach by investors navigating an environment marked by fluctuating interest rates and financial market volatility.”

However, Mr. Chen-Delantar said that the decline should not be a cause of concern because investments are available.

“It is just a question of both inflation market dynamics and what things would look like for 2024. As you know, the Philippines is also reliant on the global markets, most especially the US,” he said.

The report said startups will continue to navigate the difficult fundraising landscape.

“Additionally, the uncertainty in the stock market further contributed to a more risk-averse investor community, emphasizing the need for startups to adapt and strategize in order to secure funding in this dynamic and challenging environment,” the report added.

Mr. Chen-Delantar said that it is costly to build startups right now amid the high inflation environment.

“If you are going to build a startup right now with inflation and the cost of labor, the cost of capital would be around 12.5% to 25%. It is 12% to 25% more expensive to run a business mainly because of the macro conditions,” he said.

The five biggest challenges that founders or startup owners face, said Gobi-Core, are inadequate infrastructure, talent and manpower shortages, government and regulatory hurdles, access to funding and cultural challenges.

“The government’s increasing support in recent years signals a positive direction, yet there is still a need for further collaboration,” it said.

Strengthening support programs, simplifying regulatory processes, and enhancing infrastructure can further improve the positive impact of government backing on the startup ecosystem,” it added. — Justine Irish D. Tabile

How to avoid receiving a Subpoena Duces Tecum from the BIR

An ounce of prevention is worth more than a pound of a cure. At any stage of the tax assessment process, complications will surely arise when the notices and requests from the Bureau of Internal Revenue (BIR) remain unheeded.

During the early stages of the tax assessment process, examiners authorized by the BIR through the issuance of a Letter of Authority (LoA) are empowered to conduct the examination of the books of account and tax records of the taxpayer by directly requesting such documents from the latter. During this stage, the taxpayer is given a specific period to submit the requested documents upon the receipt of the First Notice. In case the taxpayer fails to submit all the requested documents in the First Notice, the BIR will issue the Second and Final notice to submit the required records and documents.

It is only when the taxpayer fails to substantially comply with the Final Notice to submit required records and documents will a Subpoena Duces Tecum (SDT) be issued by the BIR to the taxpayer. Pursuant to Revenue Memorandum Order (RMO) No. 10-2013, in case the information or records requested are not furnished within the period prescribed in the written notice, or when the information or records submitted are substantially incomplete, the revenue officer conducting a verification or investigation is to request an SDT through a Memorandum Report. The officer is to state therein the relevant facts, specify the particular documents or records not made available to him and the taxpayer liable or the third party or office concerned.

WHAT IS AN SDT?
Pursuant to Section 1 of Rule 21 of the Rules of Court, it is worthy to note that an SDT is a coercive process requiring the taxpayer to bring with him any books, documents, or other things under his control. (8199 Convenience Corp. v. Commissioner of Internal Revenue, C.T.A. EB Case No. 1912, Sept. 3, 2020)

Pursuant to Section 2 of the Tax Code, as amended, the BIR is conferred the authority to assess and collect all national internal revenue taxes, fees, and charges. To aid the BIR in the discharge of such mandate, Section 5(c) of the Tax Code endows upon the Commissioner of Internal Revenue, or his duly authorized representatives, the power to command the production of books, papers, records, or other data of any person liable for tax, required to file a tax return, or in the possession of such documents.

ENFORCEMENT
As a rule, the SDT is served by personally delivering a copy of the SDT to the party at his registered address before it is served to the taxpayer’s known address, or simultaneously to the taxpayer’s registered address and known address. In case personal service is not practicable, the SDT may be served by substituted service or by mail as per RMO No. 10-2013, as amended by RMO No. 08-2014.

If a taxpayer receives an SDT from the BIR, the taxpayer is given a final opportunity to comply with the request for documents by the BIR and is ordered to appear in person before the Commissioner or his duly authorized representative at the time and place specified in the SDT. From there, the taxpayer is allowed to submit the requested documents by the BIR and/or to present his side and supporting alternative documents in case of unavailability or inapplicability of the documents requested.

CRIMINAL ACTION
For failure to obey the directives of an SDT, which is to personally appear before the requesting officer and to produce the requested documents, Section 266 of the Tax Code, as amended, provides for a punishment of fine and imprisonment for the unwilling or unsuspecting taxpayer. Section 266 of the Tax Code, as amended, penalizes by fine and imprisonment any person, who, despite being summoned, neglects to produce books of account, records, memoranda, or other papers required therein.

In the case of Ang vs. People, (CTA EB Criminal Case No.095, Aug. 2, 2023), the Court of Tax Appeal En Banc outlined the elements of this offense. First, the offender is duly summoned; second, offender is summoned to appear and produce books of account, records, memoranda or other reports, or to furnish information as required by the Tax Code, as amended; and third, the offender neglects to appear or to produce the documents just mentioned.

In the unlikely event that a taxpayer fails to obey the directives stated in the SDT, the BIR may endorse the case for the issuance of a warrant of arrest to be issued against the taxpayer. In the case of associations, partnerships, or corporations, the penalty is to be imposed on the partner, president, general manager, branch manager, treasurer, officer-in-charge, and the employees responsible for the violation as per Section 253 (d) of the Tax Code, as amended. From here, the tax assessment process elevates into a full-blown trial in court to which the taxpayer must present his defense against the improper issuance of the SDT and more importantly, to prove his innocence towards the alleged violation of Section 266 of the Tax Code.

COMPLIANCE WITH BIR REQUESTS
Close coordination with the BIR examiners during first contact establishes a good relationship throughout the assessment process, which also assists in bridging any gap or gray area that may arise during the preliminary stages of requesting documents from the taxpayer. Communication and attending to the request for documents is material in resolving problems in the early stages of the tax assessment process.

Conservatively, full compliance with any request from the BIR alleviates any complication which may arise during the tax assessment process. By attending and fully complying with all the notices the taxpayer receives from the BIR, it removes the risk of being issued an SDT. Essentially, at any stage of the tax assessment process, taxpayers should be proactive in coordinating with the BIR examiners to address their requests for documentation and records and to promptly submit these items to build rapport, promote transparency, and smoothen the flow of the tax assessment process.

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.

 

Ramon Vaugh F. Dy III is an associate of the Tax Advisory & Compliance Practice Area of P&A Grant Thornton. P&A Grant Thornton is one of the leading audits, tax, advisory, and outsourcing firms in the Philippines, with 29 Partners and more than 1000 staff members. We’d like to hear from you! Tweet us: @GrantThorntonPH, Facebook: P&A Grant Thornton, pagrantthornton@ph.gt.com www.grantthornton.com.ph

Philippines woos neighbors to craft code of conduct on South China Sea

AN AERIAL VIEW of the BRP Sierra Madre at the contested Second Thomas Shoal on March 9, 2023. — REUTERS

THE PHILIPPINES has approached neighbors such as Malaysia and Vietnam to discuss a separate code of conduct regarding the South China Sea, President Ferdinand R. Marcos, Jr. said on Monday, citing limited progress toward striking a broader regional pact with China.

Relations between the two have grown more tense under Mr. Marcos, who has increasingly complained about China’s “aggressive” behavior while rekindling strong ties with the Philippines’ sole treaty ally, the United States.

Speaking in Hawaii at a livestreamed event, the Philippine leader said escalating tension in the South China Sea required the Philippines to partner with allies and neighbors to maintain peace in the busy waterway, with the situation now “more dire.”

“We are still waiting for the code of conduct between China and ASEAN (Association of Southeast Asian Nations) and the progress has been rather slow unfortunately,” Mr. Marcos said.

“We have taken the initiative to approach those other countries around ASEAN with whom we have existing territorial conflicts, Vietnam being one of them, Malaysia being another and to make our own code of conduct.

“Hopefully, this will grow further and extend to other ASEAN countries.”

The embassies of China, Malaysia and Vietnam in Manila did not immediately reply to a request for comment on a possible code.

The remarks by Mr. Marcos followed his meeting on Friday with Chinese President Xi Jinping on the sidelines of the Asia-Pacific Economic Cooperation forum in San Francisco.

The leaders discussed ways to reduce tension in the disputed strategic waters after a series of confrontations this year.

In the past few years, ASEAN and China worked toward creating a framework to negotiate a code of conduct, a plan dating as far back as 2002. But progress has been slow despite commitments by all parties to advance and fast-track the process.

‘MORE DIRE’
Talks on components of the code have yet to start, with concerns about how far China, which claims ownership of most of the South China Sea, is committed to a binding set of rules that ASEAN nations want to align with international law.

China stakes its claim on its maps with the use of a “nine-dash line” that loops as far as 1,500 km (900 miles) south of its mainland, cutting into the exclusive economic zones (EEZ) of Brunei, Indonesia, Malaysia, the Philippines and Vietnam.

Manila and Beijing have engaged in on-off confrontations for years as China has become more assertive in pressing its maritime claims, alarming neighbors and other nations operating in the key trade route, such as the United States.

China has turned submerged reefs into military installations equipped with radar, runways and missile systems, some inside the Philippines’ EEZ.

“The nearest reefs that the PLA has started to show interest in… for building bases have come closer and closer to the Philippine coastline,” Mr. Marcos said, referring to the People’s Liberation Army (PLA) Navy of China.

“The situation has become more dire than it was before.”

By contrast, he added, the United States “has always been behind us… not only in terms of rhetoric, but also in terms of concrete support.”

“Tensions in the West Philippine Sea are growing, with persistent unlawful threats and challenges against Philippine sovereign rights and jurisdiction over our exclusive economic zone and the continental shelf — actions that violate obligations under international law,” Mr. Marcos said.

He vowed not to give up “a single square inch of our territory to any foreign power,” as he cited the need to upgrade the country’s defense capability and work with more nations.

“We will insist on the preservation of the sovereignty and integrity of the country, while working closely with international partners in the bilateral, regional and multilateral settings in developing rules and processes to address these challenges.”

Mr. Marcos said upgrading the Philippines’ defense and civilian law enforcement capabilities would make the Philippines a reliable partner in regional security.

He said the Philippines also must address “broader notions of security, and that now will include economic security.” “We welcome public-private partnerships, particularly engagements between and outside our military and defense establishments,” he said.

Mr. Marcos said cooperation on cyber-security is also a priority because it affects both national and economic security.

“Critical infrastructure, whether with respect to ports, energy and telecommunications, they will require cyber-security measures to be in place for the country to be resilient.”

Since taking office in 2022, Mr. Marcos has pursued warmer ties with the US, in contrast with the pro-China stance of his predecessor.

Tensions in the region, where China has built man-made islands with missiles and airstrips, have increased this year.

“I do not think anybody wants to go to war,” Mr. Marcos said. — Kyle Aristophere T. Atienza with Reuters

Philippines to get new air defense system next year — senator

PAF.MIL.PH

THE PHILIPPINES is expected to get a new air defense system next year, including more radars to bolster its air defense capability, a senator said during plenary debates on the 2024 budget on Monday, amid increasing tensions with China.

“By next year, we will witness the arrival of ground-based air defense systems and we are going to have additional radars that would be integrated into the system,” Senator Ronald M. dela Rosa, who sponsored the Defense department’s budget, told the plenary.

“This will be the backbone of our air defense,” the former national police chief said, noting that the foundation of the Philippines’ air defense capability would be laid out in five years.

The Senate would increase the country’s defense budget particularly for air defense and anti-ship missions, Senate President Juan Miguel F. Zubiri told the plenary.

He proposed a special provision in the 2024 General Appropriations bill that would exempt procurement for armed services from being posted in the Philippine Government Electronic Procurement System so the purchases would not be known by other countries.

He also said military purchases should be exempted from the Philippine procurement law and get the most effective weapons rather than the cheapest ones.

“We’ll put a special provision because we need it,” Mr. Zubiri said.

The Department of National Defense (DND) has a proposed budget of P233.27 billion under the Senate’s version of the 2024 budget.

Under the budget, P50-billion was allocated to the revised Armed Forces of the Philippines (AFP) modernization program. Mr. Dela Rosa said the AFP initially requested P115 billion.

He noted that the AFP modernization program, which has a 15-year timeline split into three horizons, had been delayed.

“If we go by the dates, we should be in Horizon 3 by now, but because of some delays, even Horizon 2 is not yet completed.”

Horizon 1 is from 2013 to 2017, costing P97 billion across 53 projects, Mr. Dela Rosa said. During the period, 36 projects were completed, while 17 are pending. 

Mr. Dela Rosa said Horizon 2 was scheduled to run from 2018 to 2022 with a P429-billion budget. Out of 97 projects, 51 have been implemented while 46 are ongoing.

Horizon 3 is from 2023 to 2027, with P1.8 trillion needed for 37 projects. Mr. Dela Rosa noted that 46 projects from Horizon 2 were carried over to Horizon 3, while the other 39 were scrapped.

None of the Horizon 3 projects have been completed, Mr. Dela Rosa said.

President Ferdinand R. Marcos, Jr. in July underscored the importance of the Philippine Air Force’s patrols amid geopolitical tensions in the Asia-Pacific region.

The president said the Philippine Air Force’s maritime air patrol missions are needed to uphold the country’s territorial integrity and safeguard Philippine maritime zones.

Mr. Marcos said the government would continue modernizing the Armed Forces, including the Philippine Air Force.

India, which is part of the United States-led quadrilateral security dialogue, in June reiterated its offer to help the Philippines fund the defense modernization program. — Beatriz Marie D. Cruz

Marcos says he doesn’t want VP to get impeached

PHILIPPINE STAR/ RUSSELL PALMA

PRESIDENT Ferdinand R. Marcos, Jr. on Monday said he and his allies were not seeking to remove Vice-President Sara Duterte-Carpio, adding that there were no cracks in the ruling political coalition.

“We’re closely monitoring this because we don’t want her to be impeached,” Mr. Marcos told reporters during his trip to Honolulu, Hawaii at the weekend. “She does not deserve to be impeached.”

“We will make sure that this is something we will pay very close attention to.”

Mr. Marcos said his relationship with Ms. Duterte remains “excellent.” “We are very different in many ways, but we are also very similar in many ways.”

“On a professional level, nothing but good things to say about the work she has done in the Department of Education,” he added. “On a very personal level, we get along very well.”

The impeachment rumors came after the House of Representatives stripped her office and the Education department, which she heads, along with other agencies, of confidential funds for next year.

Her father, ex-President Rodrigo R. Duterte, has described the House of Representatives as the country’s “most rotten institution” after the House move.

On Sunday, Ms. Duterte-Carpio said she thinks she still enjoys the trust of Mr. Marcos.

“Why? Because before he left, I asked him about the impeachment and he told me the truth that he knows about the impeachment,” she said.

Mr. Marcos, 66, has veered away from key policies of his predecessor, standing up to China and pursuing closer ties with the US.

Ms. Duterete-Carpio on Sunday said her office was looking into alleged moves to impeach her at the House of Representatives, which presidential cousin and Speaker Ferdinand Martin G. Romualdez earlier denied.

Addressing the supposed rift in the UniTeam coalition made up of the biggest political parties and most influential clans, Mr. Marcos said in Filipino: “It has gotten stronger.”

“More people are going to Lakas, more people are going to PFP (Partido Federal ng Pilipinas),” he said. “We are consolidating the UniTeam. It actually has become bigger and stronger than it was before.”

Partido Federal is the party of Mr. Marcos, while Lakas-CMD is the party of Mr. Romualdez. — K.A.T. Atienza

MMDA downplays jeepney strike; groups disagree

PHILIPPINE STAR/EDD GUMBAN

By Jomel R. Paguian

WHILE the Metro Manila Development Authority (MMDA) downplayed Monday’s beginning of a three-day transport strike against the phaseout of jeepneys as nothing more than the “normal rush hour” foot traffic situation, public utility vehicle (PUV) drivers and commuters believe it made significant impact.

“I can confidently say that the public transport was not paralyzed [by the strike] this morning,” MMDA Acting Chairman Romando S. Artes told a press briefing, as collated data with the Philippine National Police (PNP) recorded 550 protesters at 12 rally sites throughout the National Capital Region (NCR).

Pinagkaisang Samahan ng mga Tsuper at Operators Nationwide (PISTON) national president Mody T. Floranda whose group spearheaded the strike, claimed that major roads in NCR were paralyzed because 90%-95% of jeepney drivers and operators joined their protest.

“They are downplaying the strength of the movement. The military trucks for free rides show that the transport sector’s strike is positive and strong,” Mr. Floranda, speaking in Filipino, said in an interview.

Speaking on behalf of the commuters, labor group Kilusang Mayo Uno (KMU) secretary general Jerome Adonis said the authorities just wanted to “mellow down” the impact of the strike.

“If they think that [the public transport] is normal, on the part of commuters and workers, that’s not true,” he said in Filipino.

Mr. Artes stood by his assessment, saying the MMDA had to deploy only 66 of its 686 vehicles on standby to give free rides to commuters on Monday morning, claiming fewer passengers were stranded than they expected.

Joining the media briefing, Vice President Sara Z. Duterte-Carpo said her office was eyeing the possible deployment of its buses to provide free rides amid during the three-day transport strike.

At the same time, she said: “Our call is to continue the dialogue. Whatever their grievances, their issues, they should bring them to the table in talks with the government.”

PISTON is waging a three-day strike to call for the suspension of the government’s Public Utility Vehicle Modernization Program (PUVMP), which effectively phases out traditional jeepneys in favor of new generation transport vehicles by the end of the year.

In addition, The PUVMP requires drivers and operators to form corporations and cooperatives to get new transport franchises. PISTON believes that “franchise consolidation is a phaseout.”

Despite the call, the Vice President reiterated the recorded 70% compliance rate of PUV drivers with the proposed modernization plan.

In response, Mr. Floranda said that the almost 129,000 drivers and operators who filed their applications for the modernization program were forced, as non-compliance comes at the cost of their franchise.

“They were afraid that if you don’t comply, you won’t be able to renew your franchise, you won’t be able to register,” he said.

Mr. Adonis added that those who signed up to enter cooperatives under the PUVMP are suffering to pay added fees.

“Even those who consolidated into cooperatives are also struggling to make their payments. Many of them are at a loss now,” he said.

Land Transportation, Franchising and Regulatory Board (LTFRB) Chairperson Teofilo E. Guadiz III promised to respect the protesters’ rights and would not void franchises of drivers on strike, contrary to what he said last week.

“We can suspend their franchise, but as a gesture of good faith because we encourage them to modernize, we can accommodate what they are doing,” Mr. Guadiz, speaking in mixed English and Filipino said in the press briefing. “As long as they do not cause trouble, we will respect their freedom of expression.”

School voucher to be expanded

PHILSTAR

A HOUSE of Representatives committee approved on Monday a measure that seeks to expand a voucher program that subsidizes tuition in private schools to include kindergarten and elementary pupils.

The House basic education culture panel passed an unnumbered substitute bill, that seeks to amend Republic Act (RA) No. 8545, or the Expanded Government Assistance to Students and Teachers in Private Education (E-GATSPE) Act, which also amended RA 6728.

At present, the voucher program covers high school students in private basic education schools, but the new measure seeks to extend the assistance to students at all levels.

“Circumstances and conditions have altered since the law was enacted more than 20 years ago,” Committee chairman and Pasig City Rep. Roman T. Romulo said in the explanatory note of one of its mother bills, House Bill No. 928.

Mr. Romulo noted that enrolment in private schools dropped during the pandemic due to the forbidding costs, forcing public schools to accommodate transferees from private schools.

Under the measure, the student-beneficiaries should only be Filipino citizens.

If enacted into law, the Department of Education (DepEd) must create a system that would allow students and parents to choose their preferred schools from a registry of participating schools, subject to availability of slots.

The DepEd must also establish and maintain a quality assurance system for participating schools based on students’ and schools’ performance, as well as distribution of priority subsidy for poor students. — Beatriz Marie D. Cruz

DBM to release P3-Billion crisis aid

BW FILE PHOTO

THE DEPARTMENT of Budget and Management (DBM) approved the release of P3 billion for individuals and families in crisis situations.

In a press release on Monday, the DBM said this will be allocated for the additional funds of the Assistance to Individuals in Crisis Situation (AICS) program.

“AICS is one of the key services of the Department of Social Welfare and Development (DSWD) that provides medical assistance, burial, transportation, education, food, or financial assistance for other support services or needs of a person or family,” it said.

The release of the Special Allotment Release Order (SARO) and its Notice of Cash Allocation (NCA) was signed on Nov. 16. — Luisa Maria Jacinta C. Jocson

CTA voids AFC’s tax refund claim

THE COURT of Tax Appeals (CTA) has voided transportation and logistics company Arrow Freight Corporation’s (AFC) P33.29-million tax refund claim due to its failure to file a timely motion for reconsideration.

In a 12-page ruling dated Nov. 15, the CTA affirmed its First Division’s Mar. 29, 2022 resolution that dismissed AFC’s tax refund from alleged excess creditable withholding tax (CWT) for the taxable year 2014.

On Aug. 23, 2021, the appellate court directed the Commissioner of Internal Revenue (CIR) to refund P15.59 million, a partial amount of the total claimed tax refund of P33.29 million.

Following this ruling, AFC submitted a petition to the court, but it was subsequently denied. The appellate court emphasized that its August 2021 decision has attained finality and is not subject to further appeal or modification. This is attributed to AFC’s failure to timely file a motion for reconsideration.

“This Court cannot consider AFC’s Petition for Review because its Motion for Reconsideration filed before the Court in Division was filed out of time; thus, it already lost its right to appeal,” according to the ruling penned by Associate Justice Corazon G. Ferrer-Flores.

AFC contended that the date of receipt of the Notice of Decision indicated as Oct. 16, 2021, was manipulated through photo manipulation. The company said they had only received the notice on Nov. 15, 2021, justifying their late filing of a motion.

The CTA said the company has not proven its allegation of forgery with sufficient evidence. — Jomel R. Paguian

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