MGen expects to surpass RE target ahead of 2030

March 3, 2025 | 12:04 am

MERALCO PowerGen Corp. (MGen), the power generation subsidiary of Manila Electric Co. (Meralco), expects to surpass its 1,500-megawatt (MW) renewable energy (RE) target well before 2030, citing a strong project pipeline.

In the next two years, MGen’s RE portfolio is expected to reach 3,397 MW, a substantial increase from its current net sellable capacity of 334.5 MW, according to the company.

With the anticipated expansion, MGen President and Chief Executive Officer Emmanuel V. Rubio signaled plans to scale up further.

“We’re setting a new target,” he said at Meralco’s briefing last week but did not provide further details.

MGen, through its renewable energy unit MGen Renewable Energy, Inc. (MGreen), expects to add at least 82 megawatts alternating current (MWac) of capacity this year from three solar plants.

MGreen recently energized the 19.8-MW Bongabon Solar Power Project in Nueva Ecija. It is also developing a 50.1-MWac solar plant in Cordon, Isabela, and expanding an existing solar facility in Baras, Rizal, by 12.6 MWac.

By next year, solar projects with a combined capacity of 2,200 MWac are expected to come online, including the 450-MW Lasso Solar Project and Phase 1 of the MTerra Solar Project, which will add 1,750 MWac.

By 2027, MGen expects an additional 750 MWac from Phase 2 of the MTerra Solar Project, further strengthening its portfolio.

For other technologies, MGen is set to deliver an additional 73 MW by 2028 from the expansion of its existing coal-fired power plant in Toledo, Cebu.

With a current net sellable capacity of 800 MW, the company is projected to reach 1,570 MW by 2030 through the gas-fired power projects of its subsidiary, PacificLight Power Pte. Ltd., in Singapore.

As part of its strategic investments in liquefied natural gas (LNG), MGen is expanding its latest portfolio of 2,475 MW with the expected completion of a 432-MW expansion of Excellent Energy Resources, Inc. by 2029.

This follows MGen’s investment in the country’s largest and most expansive LNG facility in partnership with San Miguel Corp. and Aboitiz Power Corp.

In 2024, MGen delivered a total of 15,300 gigawatt-hours of energy, a 7% increase from the previous year.

“As we closed another year of significant strategic growth and operational excellence, MGen remains committed to delivering reliable and sustainable energy solutions. The successful expansion of our conventional and renewable portfolios, alongside major acquisitions and strategic partnerships, strengthens our position as a leader in the power generation industry,” Mr. Rubio said.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

Privatization rules tweaked to encourage unsolicited bids

March 3, 2025 | 12:04 am

THE Department of Finance’s Privatization and Management Office (PMO) said revised rules for auctioning government assets will now allow unsolicited bids, which are deemed better suited to small properties that are accessible to more bidders.

Approved by the Privatization Council (PrC) on Sept. 6, the guidelines were published on the PMO website on Feb. 27 and the Official Gazette on Feb. 24.

“Any interested party may submit an unsolicited proposal that includes the description of the property, price offer, terms of payment and other details necessary to evaluate the proposal,” the guidelines said.

Finance Undersecretary Catherine L. Fong said in January that unsolicited offers are well-suited for the 28,000 titles in the database, which include properties as small as 200 square meters, making the acquisition process attractive to ordinary citizens.

PMO has a P101.01-billion privatization revenue goal for 2025, more than double the P42.12-billion target in the previous year.

The PMO now recognizes four methods of asset disposal — public auction, negotiated sale, unsolicited proposal and government-to-government transactions.

The rules for unsolicited proposals require the offeror — whether an individual or entity — to submit at least 10% of the offer price or the market value of the asset, whichever is higher, as bid security. This bid security can be applied towards the purchase of the asset

The disposition entity (DE) will publish the request for comparative offers to invite others to place bids as well.

Any failure by the winning offeror to follow the terms and conditions set by the PrC will result in the forfeiture of its deposit, with the DE free to proceed to a public action of the asset.

“Present occupants of a residential property may purchase the Asset following the rules under Chapter 3 – Unsolicited Proposal of these Guidelines,” it said.

The guidelines also include the accreditation process of real estate brokers who wish to assist in the sale of properties and their broker’s fee if their services enabled the disposition of an asset.

For winning bids priced at P100 million or less, broker’s fees are set at 5%, while for assets above P100 million but below P500 million the rate is 4%. For assets of P500 million or above, the rate is 3%.

The rules was signed by Finance Secretary Ralph G. Recto, National Economic and Development Authority Secretary Arsenio M. Balisacan, Budget Secretary Amenah F. Pangandaman, Trade Secretary Ma. Christina A. Roque and Justice Secretary Jesus Crispin C. Remulla. — Aubrey Rose A. Inosante

India March temperatures pose risk to wheat crop

March 3, 2025 | 12:03 am

NEW DELHI — India will have above-average temperatures in March across most regions following a warmer February, the weather office forecast on Friday, conditions that could threaten winter-sown crops such as wheat, chickpea and rapeseed.

Both maximum and minimum temperatures will be above average in most areas in March, D.S. Pai, a senior scientist at the state-run India Meteorological Department, told reporters.

India, the world’s second-largest wheat producer, is counting on a bumper harvest in 2025 to avoid expensive imports, after three consecutive years of poor crop yields.

But higher temperatures could cut yields for the fourth straight year, trim overall wheat production and force authorities to lower or remove the 40% import tax to facilitate overseas shipments by private traders to tide over shortages.

Reuters reported Thursday that India was poised to enter the summer season with one of the warmest Marches on record, and above-average temperatures through most of the month threaten to cut yields of the maturing wheat crop.

Heatwave days are expected over most parts of central regions, some adjoining northern areas of southern India and parts of northeastern and eastern regions, Mr. Pai said.

Indian farmers primarily grow wheat in the northern states of Uttar Pradesh, Punjab, Haryana and the central state of Madhya Pradesh.

India was forced to ban wheat exports in 2022 after a sharp rise in temperatures in February and March that year shrivelled the crop.

Indian wheat prices jumped to a record high this month due to dwindling supplies. — Reuters

Milan Fashion Week: Prints and punk at Versace, Prada questions femininity, Emporio Armani focuses on fun, Diesel goes ultra-low

March 3, 2025 | 12:03 am

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MILAN — Versace mixed prints, sharp tailoring, and punk in its latest collection on the catwalk at Milan Fashion Week, as speculation mounted over a possible sale of the Italian luxury label.

Designer Donatella Versace opened the autumn-winter 2025 show held at a Milan tram depot with three puffy creations – including a ball gown – that were adorned in leopard as well as the brand’s house prints. (See the show here: https://tinyurl.com/bdv6ek7e )

A selection of sharp black trouser suits, dresses, and jackets, often with pointy shoulders, came next.

Printed silk shirts or short skirts contrasted with black tops or bottoms. For the men, the shirts were worn with black leather trousers.

Triangular pockets stood out on brightly colored jackets, and there were plenty of slinky dresses for the evening. Accessories included studded gloves and caps that added a punky twist.

“This is a collection of Versace Superheroes,” Donatella Versace said of the show held on Friday night. “Our house codes are recognized all over the world and make us so strong. I love clothes to empower, to give strength and confidence. Everyone should have a little Versace attitude. With this collection I am not following any rules. Only the rules of the Versace DNA.”

Owner Capri Holdings bought Versace in 2018 and it is exploring a possible sale of the brand, according to sources close to the matter.

Fellow Italian fashion group Prada is among the interested parties and has been granted access to Versace’s financial data, a source told Reuters. On Thursday, its designer Miuccia Prada said numerous fashion companies are potentially interested.

Earlier in the week, Italian fashion group Only The Brave (OTB)’s founder Renzo Rosso told Italian newspaper MF that he was interested in buying the brand.

PRADA
Italian luxury label Prada said its womenswear collection at Milan Fashion Week on Thursday aimed to question what femininity is today, how it can be defined. (See the show here: https://tinyurl.com/yckf7eer )

Models walked among metal scaffolds on patterned carpets at Prada’s catwalk show, wearing loose dresses and clothes with raw seams exposed.

Miuccia Prada and Raf Simons called the fall/winter 2025 womenswear “Raw Glamour” in the press notes.

EMPORIO ARMANI
Emporio Armani presented a fall/winter collection dominated by black, with red, green and blue elements. (See the show here: https://tinyurl.com/2s4c7tzk )

Giorgio Armani said he was inspired for his second line by play and fun, themes recalled by the playing cards that recur as details, according to the show press notes.

DIESEL
Diesel, renowned for its denim and casual wear, showcased a range of ultra-low-waist jeans and skirts, boucle jackets, and plastic-coated garments against a vivid backdrop of giant graffiti on the second day of the Milan Fashion Week. (See the show here: https://tinyurl.com/yc3busdt )

Models sporting striking all-white or black contact lenses strutted amidst 3.2 kilometers of graffiti-adorned fabrics crafted by some 7,000 artists. The vibrant materials were also draped around human-shaped inflatables at the center of the venue.

Creative director Glenn Martens, who recently took on the same role at Maison Margiela, presented Diesel’s autumn-winter collection dominated by shades of grey. Both Diesel and Maison Margiela are part of the family-owned fashion conglomerate OTB.

Milan Fashion Week, which ran until March 3, is the third stop in the month-long global fashion calendar which also features shows in New York, London and Paris. — Reuters

Surveys: Believe them or not?

March 3, 2025 | 12:03 am

SENATORIAL preference surveys are proliferating these days as May 12 draws near and impeachment issues hover in the minds of politicians. Some survey reports are sending shock waves among the thinking public because candidates over the age of retirement (i.e., aged 69-79) and new aspirant-celebrities with nary any experience in law-making land in the top 12 among the 66 aspirants.

How is a survey done in the first place? In the academe, the survey is the most popular method to use in scientific research or thesis writing. Young people from high school until graduate school are all too familiar with this.

According to 2025 data from the Commission on Elections (Comelec), the total voting population is 68.8 million Filipinos. The survey agencies get sample sizes running from 1,200 to 2,400 of the total voting population, but when reported on the media generalize this as all Filipino voters from the tip of North Luzon to the tail of South Mindanao. With such miniscule sample sizes, the sampling technique should be multi-stage representing Luzon, Visayas, and Mindanao. From these areas, we go to the next stage — identify the 18 regions, then select from among the provinces per region, down to the cities, municipalities and finally the barangays. At the selected barangays (from a total of 42,029 barangays), random sampling of voters could be done.

If relevant demographic variables are factored in, the sampling becomes more rigorous — to include the status of the voter’s registration, age, sex or gender orientation, occupation, income, religious affiliation, education, and socioeconomic class (whether belonging to class A, B, C, D or E). Conducting a scientific survey is meaningful if data disaggregation is made.

However, this entire process will cost millions of pesos and require a huge survey team. Considering all the variables mentioned, the survey sheet will be packed with questions that may consist of three to five pages. This can exhaust the energy of the surveyors and even the respondents. Add to this is complying with research ethics, that is, to get the respondents to sign “confirmed consent” that will establish their willingness to answer the questions.

Not all the picked samples have the time or willingness to participate in surveys. Here comes the temptation to do non-probability convenience sampling or to pick only those willing to answer.

How the questions are phrased is another aspect to look into to ensure objectivity — they should not contain questions leaning towards any candidate. Does the questionnaire cover all the 66 candidates or selected candidates only?

What about candid reactions such as: “Kelan po ang election?,” “Sino ang mga tumatakbo?,” “Hindi ko pa iniisip kasi matagal pa” (When is the election?, Who is running?, I have not thought of it yet as the elections are still far away.) Are these captured in the datasets because these reactions are so interesting that they should be subjected to interpretations too. Extrapolation is another possibility in producing survey reports where statisticians work on existing datasets, utilize regression analysis to add new variables and make election forecasts.

Comelec data shows that 63% of the 2025 voters are Gen Zs and Millennials aged 18 to 44. Getting the pulse of these two generations is significant enough and will fit better in the tiny sample sizes. To quote the classic line of our hero Jose Rizal “ang kabataan ay ang pag-asa ng bayan” (the youth is the hope of the nation). So why not focus on the pag-asa ng bayan? Focusing on these age cohorts may also give us clues about their behaviors: are the noontime, game shows, and teleserye (TV series) the sources of information and entertainment of these young people? Do these age cohorts pin their hopes on retire-able senators despite there being no laws associated with their names, notwithstanding their educational background or lack thereof?

Two survey agencies have disclosed that there are commissioned surveys. When a survey is uncommissioned, the agency keeps a list of “subscribers” who can gain access to their complete datasets for a fee. Whether commissioned or uncommissioned, there must be transparency in the methods because the topic is of public concern, of national interest — the future officials of this country who are policymakers and recipients of salaries emanating from people’s taxes.

We in the academe are mandated to do research, following the epistemological philosophy: to know the truth surrounding an issue. Otherwise, surveys are tools for propaganda which we know are part and parcel in battles for power.

Maria Catalina M. Tolentino, PhD is an associate professor at University of the Philippines School of Labor and Industrial Relations. She teaches research methods and was a recipient of professorial chairs and centennial faculty grants.

All about auto insurance

March 3, 2025 | 12:03 am

SF_PAGE2_image1 — Getting peace of mind on the road doesn’t happen by accident. — PHOTO BY KAP MACEDA AGUILA

What to keep in mind when choosing protection

HAPPY MOTORING is all about peace of mind. You must be confident in the car you are driving, that it is reliable enough to get you to where you are going. You need to make sure that the route you are taking will get you there the fastest, safely, and comfortably. Know where you can make pit stops as needed and where to seek help in case of an emergency. Going places seems easy enough but no matter how well prepared you are, there is always the possibility that not everything will go as planned. Speaking of which, do you have an eye on the weather?

Yes, accidents do happen. A Statista report on road traffic incidents in Metro Manila shows that incidents climbed from 77,950 in 2010 to a high of 121,770 in 2019. Mobility restrictions during the COVID-19 pandemic saw this number halved to 65,030 in 2020, but is now back on the rise. In 2023, the number of recorded incidents rose to 85,950; from January to November of 2024, the number stood at 62,720.

This underscores the importance of having proper motor vehicle insurance for when you might figure in any of those road incidents. Whether you’re a new car owner or a seasoned driver, having the right car insurance is essential for financial security and the aforementioned peace of mind. Accidents, theft, and other surprises can happen anytime — making insurance coverage a necessity rather than an option. I don’t mean just the Compulsory Third Party Liability insurance mandated by law. That is certainly not nearly enough to provide you with adequate protection.

A comprehensive insurance plan can include coverage for own damage, theft, acts of God, excess body injury, third-party property damage, and passenger injury. The premium you will be charged will depend on your desired coverage, the age of your vehicle, place of use, and amount of deductibles, among others. “Deductibles” refer to the ascribed minimum portion of repair cost that the owner covers out of pocket. If the repair amount is less than the deductible, the owner shoulders the entire expense; if the repairs exceed the deductible amount, the insurer covers the excess.

It is important to remember, though, that it’s not just the amount of your coverage that counts. I would even say that the reliability of your insurer matters even more. AXA Philippines — a venture of AXA SA of France, First Metro Investment Corp. (FMIC), and GT Capital Holdings (GTCAP) — is one of the country’s leading insurance providers. AXA SA is the fourth largest financial services company by revenue in France and the eighth largest French company. FMIC, on the other hand, is part of the GTCAP group, one of the leading business conglomerates in the Philippines with diversified business interests in banking, automotive, property and utilities. Surely, this partnership offers rock-solid credentials when it comes to assuring peace of mind.

AXA Philippines Officer-in-Charge for Commercial Sales and Chief of Partnerships and Employee Benefits Johanna Janeo emphasizes the importance of choosing a trusted insurance partner. “You want to know that your insurer comes through when you need it to,” she told this writer. Ms. Janeo cited several reasons for motorists to be discerning in their choice of vehicle insurer. “Among others, reliable car insurers should offer financial security and stability, efficient claims processing and customer support, flexible coverage options and regulatory compliance, and consumer protection,” she continued.

A report by Shoppable.ph in 2024 listed other major motor vehicle insurance companies in the Philippines. They include Bank of the Philippine Islands-MS Insurance, Malayan Insurance, and Prudential Insurance, among the larger non-life insurers. But there are others that focus more particularly on automotive insurance as well, such as Standard Insurance, Stronghold Insurance Company, People’s General Insurance, and Commonwealth Insurance. It is always advisable to do some research before deciding on your insurer. It will save you a lot of grief should the time come when you figure in an unfortunate accident.

A car buyer is free to choose any insurer. Often, however, auto dealers have preferred partners. The Toyota Insure Program (TIP), for example, works with a select basket of insurance companies that include AXA Philippines, Malayan, Standard, Stronghold and People’s. These insurers are selected based on standards of service that meet customer expectations. Ms. Janeo maintained, “There are good reasons to get your insurance directly from your auto dealer. Among others, you enjoy the benefits of a convenient and hassle-free process — akin to a one-stop shop — and you also have access to a seamless after-sales support for claims and repairs.”

Ms. Janeo also offers some tips to make the claims process easier. “If you make sure to document everything, coordinate with authorities, know your policy details, report claims promptly and stay contactable, filing an insurance claim should be hassle-free,” she explained.

But what excites Ms. Janeo even more are the new products that AXA is rolling out. In line with promoting road safety and rewarding responsible drivers, AXA Philippines and Toyota Motor Philippines (TMP) offer Connected Toyota Insure (CTI) — the first Pay-How-You-Drive car insurance product in the country. Available under the Toyota Insure Program, this innovative policy is designed to help drivers save on insurance premiums based on their driving behavior.

Through Toyota’s myToyota Connect, a connected device in your car tracks driving scores, monitoring habits such as acceleration, braking, and cornering. Safer driving can result in lower renewal premiums, while riskier behavior may limit access to discounts. Beyond cost savings, CTI provides peace of mind with 24/7 claims assistance, access to quality repair at Toyota dealers, and exclusive AXA Motor Club perks.

Car insurance is more than just a legal requirement. It’s an investment in safety, financial security, and overall driving peace of mind. By choosing a reliable insurance provider and exploring innovative solutions, drivers can enjoy comprehensive protection and rewards for safe driving habits.

HMO industry swings to profit in 2024

March 3, 2025 | 12:03 am

IC-Insurance-Commission — PHILSTAR FILE PHOTO

THE HEALTH maintenance organization (HMO) industry returned to profitability in 2024 amid higher revenues, data from the Insurance Commission (IC) showed.

The sector’s net income stood at P979.8 million as of end-2024, a turnaround from the P4.27-billion net loss in 2023, according to IC data based on the unaudited financial statements submitted by 28 companies.

“This is explained by the higher increase in the sector’s total revenue compared to its total expenses,” Insurance Commissioner Reynaldo A. Regalado said in a statement on Friday.

Total revenues increased by 20.12% to P79.37 billion from P66.08 billion driven mainly by a 18.42% growth in membership fees to P75.62 billion — making up 95.3% of the total.

Meanwhile, total expenses rose by 11.44% to P78.39 billion from P70.35 billion as healthcare benefits and claims paid grew 10.08% to P61.06 billion.

“We also noted from the submissions, that the HMO sector’s total assets, total invested assets, total equity, total capital stock, and total liabilities upswung across the board during the quarter under review,” Mr. Regalado said.

Total assets expanded by 23.85% to P75.13 billion at end-2024 from P60.66 billion.

“The 21.38% increase in cash equivalents, a marked 273.08% rise in deposit to healthcare providers (net), and a 27.51% increase in membership fees receivable (net) contributed to this growth,” the IC said.

Total invested assets, which comprised 23.77% of total assets, increased by 0.92% to P17.86 billion on higher cash equivalents and government securities.

Meanwhile, total liabilities climbed by 26.44% to P63.73 billion amid increases in membership fee and claims reserves.

Total equity rose by 11.14% to P11.4 billion last year from P10.25 billion.

HMOs’ total capital stock went up by 4.43% year on year to P9.18 billion.

PRE-NEED INDUSTRY
Meanwhile, the pre-need industry saw its net income jump by 146.93% last year despite lower plan sales, separate IC data showed.

The sector’s combined net income rose to P5.15 billion in 2024 from P2.09 billion in 2023, IC data from the unaudited financial statements of 16 companies showed.

“The increase was largely driven by the 68.04% spike in the total income earned from investments in trust funds and a 120.23% surge in other income,” Mr. Regalado said.

Meanwhile, premium income inched down by 0.38% to P22.64 billion from P22.73 billion as only eight out of 17 companies reported increases in premiums collected.

Pre-need plans sold decreased by 6.61% to 699,621 in 2024 from 749,154.

This, as sales of life or memorial plans went down by 6.67% to 698,791. This made up 99.88% of the total plans sold by the pre-need sector.

The industry’s combined assets expanded by 8.12% to P164.71 billion on higher investments in trust funds, which made up 84.79% of total assets.

Meanwhile, liabilities rose by 5.89% to P136.73 billion from P129.12 billion.

“Notably, seven out of eight companies that recorded asset growth likewise experienced a rise in liabilities,” the IC said.

The sector’s net worth increased by 20.54% to P27.98 billion from P23.22 billion.

Total capital stock declined by 4.63% year on year to P3.91 billion in 2024 from P4.1 billion the year prior. — AMCS

Mineral production up 1.28% by value in 2024 led by gold

March 3, 2025 | 12:03 am

THE value of the mining industry’s metallic mineral production rose 1.28% to P252.9 billion in 2024, driven by gold, according to the Mines and Geosciences Bureau (MGB).

Gold accounted for nearly half of the total at P126.36 billion, which was up 19% from the 2023 total.

The value of raw nickel ore fell 15% to P56.67 billion in 2024, the MGB said.

It said the value of mixed nickel-cobalt sulfide fell 21% to P37.37 billion.

The MGB said copper output was valued at P27.24 billion, up from P25.41 billion in 2023; silver at P2.91 billion from P1.86 billion previously; and chromite at P1.75 billion from P1.51 billion.

The growth of Philippine mineral output lagged gross domestic product growth of 5.6% in 2024, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

“This could have been weighed down by mostly softer economic data in China, the world’s second biggest economy and the world’s biggest importer of oil, metals, and other major commodities,” he said via Messenger chat.

He said gold was propelled by record world prices, which rose 27% in 2024 after a 13.1% rise in 2023.

Meanwhile, Mr. Ricafort said the 15% decline in the value of raw nickel ore was due to the decline of global prices to a four-year low.

Nickel prices declined 7.9% in 2024. — Kyle Aristophere T. Atienza

CTA cancels P48-M tax on Smart

March 3, 2025 | 12:03 am

THE COURT of Tax Appeals (CTA) has ruled in favor of Smart Communications, Inc., canceling over P48 million in local franchise taxes assessed by the province of Cagayan for the years 2011–2015, citing an expired demand letter and lack of territorial jurisdiction.

“All told, petitioner’s (Smart) insistence on its local franchise tax exemption is untenable. However, as discussed hereunder, respondent’s (Cagayan) local franchise tax assessment must still fail,” the 13-page ruling, made public on Feb. 27, stated.

“The local franchise tax assessment for the year 2011 has already prescribed,” Associate Justice Maria Rowena Modesto-San Pedro wrote.

The tribunal canceled P48,587,497.20 in local franchise taxes for the period.

In granting Smart’s petition, the CTA’s Second Division cited Section 166 of the Local Government Code (LGC), which states that unless otherwise provided, all local taxes, fees, and charges shall accrue on Jan. 1 each year.

Section 167 further provides that unless otherwise specified, all local taxes, fees, and charges must be paid within the first 20 days of January or each subsequent quarter, as applicable.

Meanwhile, Section 194 of the LGC sets a five-year prescriptive period for assessing local taxes, fees, or charges from the date they become due. After this period, no administrative or judicial action for collection may be initiated.

“The same is replicated in Section 133 of the Cagayan Revenue Code. Respondent thus only had five years from the date the tax became due within which to assess the same,” the ruling noted.

As the 2011 local franchise tax became due on Jan. 20, 2011, under Section 167 of the LGC, the Cagayan provincial government had until Jan. 20, 2016, to assess it.

However, Smart received the demand letter only on May 13, 2016, by which time the province’s authority to assess the 2011 local franchise tax had expired.

The tribunal also voided the province’s tax assessment, ruling that Cagayan failed to examine Smart’s books of accounts and other records.

Moreover, it found that the province was not authorized to use the presumed Level Income Assessment Approach as the basis for computing the tax.

In granting Smart’s plea, the tax court also ruled that the company’s franchise operations were outside Cagayan’s territorial jurisdiction since its gross receipts were recorded in Tuguegarao City.

“Respondent is not authorized to impose local franchise tax outside its territorial jurisdiction,” it said.

Section 137 of the LGC allows provinces to impose a franchise tax at a rate not exceeding 50% of 1% of the gross annual receipts for the preceding calendar year, based on income earned or realized within their territorial jurisdiction.

However, Article 266(b) of the LGC’s implementing rules and regulations prohibits provinces from imposing franchise taxes on businesses operating within any city in their jurisdiction.

“The LGC does not expressly provide guidelines for determining the situs of a local franchise tax,” the ruling noted.

Nonetheless, the tax tribunal cited Section 150(a) of the LGC, which states that businesses with branches or sales outlets—such as manufacturers, wholesalers, contractors, and financial institutions—must record sales at the branch where the transaction occurs. The corresponding tax should be paid to the municipality where that branch is located.

“In this case, it is undisputed that petitioner’s gross receipts are recorded in Tuguegarao City. As such, pursuant to Article 266(b) of the LGC IRR, petitioner’s gross receipts are already outside respondent’s territorial jurisdiction,” it said.

The case originated when the province of Cagayan argued that Smart was liable for local franchise tax under Section 137 of the LGC and Section 2G.02 of the Cagayan Revenue Code of 2005, asserting that Smart conducted business throughout the province.

The province also contended that the franchise tax was abolished by the Expanded Value-Added Tax (E-VAT) Law.

Smart, however, maintained that the province’s right to assess the 2011 local franchise tax had prescribed.

It further invoked its exemption from local taxes under its legislative franchise, Republic Act No. 7294, which includes an “in lieu of all taxes” clause.

Additionally, Smart cited the equality clause of the Public Telecommunications Policy Act, arguing that it should receive the same tax privileges as other telecommunications companies.

The company also challenged the validity of the tax assessment, asserting that its gross receipts were recorded in Tuguegarao City, which falls outside Cagayan’s jurisdiction.

Finally, Smart argued that the assessment was flawed due to the absence of an examination of its books of accounts and other records, and that the province’s tax computation lacked legal and factual bases.

A regional trial court initially dismissed Smart’s appeal but later ruled on the merits, ultimately denying the company’s claims. Smart then elevated the case to the tax court.

Smart is the wireless subsidiary of PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Chloe Mari A. Hufana

NCR retail price growth cools to three-month low

March 3, 2025 | 12:02 am

RETAIL PRICE growth of general goods in the National Capital Region (NCR) were at their lowest level in three months in January, the Philippine Statistics Authority (PSA) said in a report.

Citing preliminary data, the PSA said price growth in Metro Manila as measured by the general retail price index (GRPI) slowed 1.4% year on year in January from the 1.5% posted in December.

This was also significantly slower than the year-earlier rate of 2.5%.

The January indicator was the weakest reading since October’s 1.3%. It was level with the pace set in November.

“The primary contributor to the deceleration of the annual growth rate of GRPI in NCR was the slower annual increase recorded in the index of manufactured goods classified chiefly by materials at 1.1% during the month from 1.5% in December 2024,” the PSA said.

The manufactured-goods sub-index accounted for 16% of GRPI growth.

Growth in the heavily-weighted price sub-index for food cooled to 1.8%, from 1.9%.

Slower price growth was also seen in beverages and tobacco (3.8% from 3.9%), crude materials, inedible except fuels (0.6% from 0.7%), chemicals, including animal and vegetable oils and fats (2.2% from 2.5%), and miscellaneous manufactured articles (1.1% from 1.4%).

The growth in the sub-index for mineral fuels, lubricants and related materials was 0.9%, a reversal of December’s 0.3% drop.

The sub-index for machinery and transport equipment was unchanged at 0.2% growth.

According to the PSA, the GRPI is used as a deflator in the National Accounts, particularly in the retail trade sector, and serves as a basis for forecasting. — Pierce Oel A. Montalvo

Japan trade delegation seeks out opportunities in supply-chain integration

March 3, 2025 | 12:02 am

A JAPANESE delegation has inquired about investment opportunities in integrating supply chains for Philippine industry, the Department of Trade and Industry (DTI) said.

In a statement, the DTI said that a business and investment mission from Okayama in Western Japan visited the Philippines on Feb. 9-13.

“The delegation aimed to explore investment opportunities and bolster supply chain integration within the Philippine industrial ecosystem,” the DTI said.

“It comprised top executives from Okayama-based companies spanning manufacturing, education, software development, property management, steel processing, banking and finance, and the automotive sector,” it added.

The business mission participated in networking events and site visits to economic zones (ecozones) in Manila, Cavite, and Cebu.

“These activities provided Japanese executives with firsthand insights into the Philippine market, enabling them to assess investment prospects and connect with key stakeholders from the government and private sector,” the DTI said.

“The delegation also engaged with senior officials from the Japanese Embassy in Manila and the Philippine Economic Zone Authority (PEZA) for an in-depth briefing on the country’s economic zones, incentive programs, and key investment opportunities,” it added.

Board of Investments Managing Head Ceferino S. Rodolfo welcomed the delegation, noting the Philippines’ strong commitment “to fostering a competitive and investor-friendly business environment.”

“The Philippines provides a dynamic economic landscape, compelling incentives, and strategic advantages that make it an ideal partner for Japanese enterprises looking to expand in Southeast Asia,” Mr. Rodolfo said.

PEZA Director General Tereso O. Panga said that Japanese firms have been the top ecozone investors for nearly three decades.

“With over 800 Japanese firms contributing P589 billion in investments and generating more than 300,000 direct jobs, we remain confident that this mission will further bolster our collaboration and attract more high-value manufacturing investments to the Philippines,” he said.

The Japanese delegation visited Nakashima Philippines Corp. and JPN, Inc. at the Cavite Economic Zone and Tsuneishi Heavy Industry in Balamban, Cebu.

“The visit aimed to explore opportunities for supply chain integration with the global shipbuilder (Tsuneishi) and assess additional prospects within the West Cebu Industrial Park,” the DTI said.

“It further underscored the Philippines’ thriving shipbuilding industry and its vast potential to attract increased Japanese investment in industrial estates offering world-class infrastructure and investor-friendly regulatory frameworks,” it added. — Justine Irish D. Tabile

US will spend up to $1B to combat bird flu

March 3, 2025 | 12:02 am

WASHINGTON — The US will invest up to $1 billion to combat the spread of bird flu, as well as increase imports of eggs in an effort to drive down high prices, Agriculture Secretary Brooke Rollins said.

A three-year bird flu outbreak in US poultry has killed 166 million chickens since 2022, according to the US Department of Agriculture (USDA) data.

The virus has also infected nearly 1,000 dairy herds and almost 70 people, including one who died, since early 2024.

The USDA will spend up to $500 million to provide free biosecurity audits to farms and $400 million to increase payment rates to farmers who need to kill their chickens due to bird flu, Ms. Rollins said at a conference of state agriculture officials.

In a Wednesday Wall Street Journal column, Ms. Rollins said some of the money will come from cuts to USDA spending by Elon Musk’s Department of Government Efficiency. But on a call with reporters later in the day, Ms. Rollins’ chief of staff, Kailee Tkacz Buller, said the money was coming from the USDA’s Commodity Credit Corp., a discretionary pool of funding available to the secretary.

The agency did not immediately clarify the discrepancy.

The USDA is exploring vaccines for chickens but is not yet authorizing their use, Ms. Rollins said. The poultry industry is divided on whether to vaccinate chickens because of potential trade implications.

“It could be a solution, but to push that out now and require it, we’re just not ready,” Ms. Rollins said of vaccines when speaking to reporters at the White House on Wednesday.

Some industry groups expressed relief that the agency did not move to require vaccines, said Rick Phillips, director of poultry professional services veterinarians for drugmaker Boehringer Ingelheim, who was on the call.

“There was a little bit of a sigh that they didn’t move fast on certain things like immediately going to vaccination until we better understand the nature of what we’re dealing with,” he said.

The administration plans to increase imports and decrease exports of eggs to boost domestic supply and combat record high egg prices, Ms. Rollins said. Turkey has said it will export 15,000 tons of eggs to the US through July.

This year, Turkey is expected to supply about 420 million eggs to the US, up from about 70 million normally, Ms. Buller said.

Egg prices have nearly doubled since last year. Scant supply is leading some consumers to “panic buy,” said Virginia Tech economist Jadrian Wooten in an e-mail.

In May, the administration of President Joseph Biden allocated more than $800 million to combat bird flu in livestock. About $450 million of that money is still available, a USDA official said Tuesday at the National Association of State Departments of Agriculture conference. — Reuters