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CAB reduces air carrier fuel surcharge for June

Airplanes are seen on the runway at the Ninoy Aquino International Airport. — PHILIPPINE STAR/ MICHAEL VARCAS

THE Civil Aeronautics Board (CAB) said it lowered the passenger fuel surcharge for June to Level 4 from Level 5 in May.

The June decision marks the third consecutive month of lower fuel surcharges, which had been set at Level 6 in April and Level 7 in March.

Level 4 sets the passenger fuel surcharge at between P117 and P342 for domestic flights and P385.70-P2,867.82 for international flights originating from the Philippines.

The current Level 5 sets the passenger surcharge at between P151 and P542 for domestic flights and P498.03-P3,703 for international flights.

Cielo C. Villaluna, spokesperson for Philippine Airline, said: “We acknowledge and will comply with the lowered fuel surcharge matrix that takes effect for next month’s ticket purchases.”

“PAL appreciates our customers’ loyalty and we are committed to continue supporting the nation as its flag carrier,” she added.

Budget carrier AirAsia Philippines said it expects the lowered surcharge to sustain demand for travel as the summer travel season comes to a close.

“The CAB decision to lower applicable fuel surcharge rates for domestic and international flights is expected to be advantageous for guests who may use the additional savings towards other amenities or activities during their trips in the coming months,” the airline said.

AirAsia also said the lowering of fuel surcharges over the past three months has positively affected travel.

Between March and May, the airline booked a 1.57 million seats, equivalent to 75% of pre-pandemic levels.

Steve F. Dailisan, communications and public affairs country head for AirAsia, welcomed the lower surcharge.

“Now that AirAsia Philippines has opened more international destinations, our guests can use the extra savings toward additional baggage allowance for pasalubong and other activities on their travel bucket list,” he said. — Justine Irish D. Tabile

PIDS warns against one-size-fits-all plan for local devolution

PHILIPPINE STAR/ MICHAEL VARCAS

LOCAL government units (LGUs) will have varying starting points when the National Government (NG) devolves some of its functions to them, the Philippine Institute for Development Studies (PIDS) said in warning against an inflexible devolution plan.

A policy of “heterogeneity in capacity” can help LGUs better prepare and acquire needed capacity improvements prior to full devolution, (which) can ensure better implementation, PIDS said in a study.

“For the national agencies, this implies the adoption of an asymmetric decentralization and asymmetrical central policies to accommodate inherent differences across LGU needs and capacities,” it added.

There is also a lack of a “standardized and comprehensive database” for public services and programs due to devolution.

“The collection of a comprehensive list of baseline indicators, especially at the LGU level, can facilitate a proper monitoring and evaluation of the devolution agenda. The institutionalization of quality data collection and monitoring within the LGUs can aid in the evaluation of decentralization impacts over the long run,” it added.

The think tank said the government should also establish a baseline of current functions, services and capacities of government units.

“Hence, any further examination of the current state, capacities and needs of LGUs in relation to the Mandanas devolution transition must be supported by primary data collection of baseline indicators,” it added, referring to the Supreme Court ruling that granted LGUs a larger share of NG income, which led the NG to shed functions in favor of local governments.

It said an evaluation is required of LGU administrative and fiscal capacity, the current quality of existing public services, and baseline outcome indicators at the provincial, city and municipal levels.

PIDS cited a need for capacity development, with an emphasis on additional manpower requirements, training and technical assistance, and orientations from the NG.

“All LGUs also express the need to develop a monitoring and evaluation tool for the devolved functions… stressing the need for collection of data for evaluation,” it added.

The government is looking into delaying the devolution timeline, which was set to be completed by 2024 under Executive Order No. 138. — Luisa Maria Jacinta C. Jocson

BIR calls cigarette, vape sales below floor price a red flag for tax evasion

REUTERS

THE Bureau of Internal Revenue (BIR) said it will consider sellers of tobacco and vaping products that breach the government-determined floor price to be probable tax evaders.

“Any seller offering below these floor prices is not paying their proper taxes. They are illegal traders. Their warehouses and stores will be raided. The BIR will file criminal cases against these illegal tobacco and vape traders,” it said in a statement on Thursday.

The BIR this month set a new floor price for cigarettes, heated tobacco, vaporized nicotine and non-nicotine products.

The adjusted floor price is as follows: cigarettes at P114.6 per pack and P1,146 per ream; heated tobacco products P120.4 per pack; a pod of nicotine salt P200 per 2 milliliters (ml) and P354.97 per 4 ml; a bottle of classic nicotine P179.2 for 10 ml and P403.2 for 30 ml.

Selling below floor price commands penalties of as much as P500,000 and up to six years’ imprisonment.

In December, the BIR filed a P1.2 billion tax evasion complaint against illegal vape traders. — Luisa Maria Jacinta C. Jocson

House legislators file magna carta for BPO workers bill

THE House Makabayan Coalition has filed a measure aimed at ensuring the welfare of business process outsourcing (BPO) workers.

House Bill No. 8189, or the proposed BPO Workers Welfare & Protection Bill, seeks to “set standards for fair labor practices and extend additional benefits to BPO employees, including protection against job insecurity, a standard national entry-level wage (based on the family living wage), and the right to medical benefits upon employment,” Kabataan Party-list Representative Raoul Danniel A. Manuel said in a statement.

BPO workers currently do not enjoy security of tenure and are placed on “floating status” when clients pull out, “which means they are still employed with no pay for as long as six months,” according to Mr. Manuel.

He added that BPOs follow a “systematic attrition scheme” in which workers are “managed out” if unable to keep up with performance metrics.

BPO workers are also discouraged from joining unions and face harassment if they choose to participate.

Alongside Mr. Manuel, Deputy Minority Leader and ACT Teachers’ Party-list Rep. France L. Castro and Assistant Minority Leader and Gabriela Party-list Rep. Arlene D. Brosas were listed as authors of the bill.

The BPO Industry Employees Network (BIEN) called for the immediate passage of the bill.

In a statement, BIEN said BPO employees suffer from unstable working conditions, “race-to-the-bottom” wages, lack of security of tenure, threats to the exercise of workers’ rights, health and safety risks and hazards, and other exploitative and oppressive practices.

BPOs have “kept the economy afloat” during the pandemic lockdowns, BIEN said. “Despite our sacrifices, we’ve been exposed to oppressive, exploitative, and inhumane work conditions,” it added.

BIEN also called on the government to support improved wages, safe working conditions, and freedom of association in the industry.

The Philippines has the second largest BPO industry in the world, generating estimated revenue of $33 billion in 2022 from a workforce of 1.6 million, according to BIEN. — Beatriz Marie D. Cruz

Gov’t spending slowdown seen boosting fiscal consolidation

PHILIPPINE STAR/MIGUEL DE GUZMAN

THE pace of fiscal consolidation is expected to improve as the Philippines reins in government spending, Oxford Economics said.

In a research briefing, Oxford Economics said it “expects lower spending to contribute to improving fiscal balance.”

The budget deficit narrowed 14.51% to P270.9 billion in the first quarter, as spending slipped and revenues rose.

In March, the budget shortfall widened by 12.04% to P210.3 billion.

This year, the government has set a budget deficit ceiling of P1.499 trillion, equivalent to 6.1% of gross domestic product (GDP).

Oxford Economics said that the pace of fiscal consolidation will also depend on economic conditions.

“Although most economies are making efforts to bring down government debt levels, they will not find it easy against the current background of higher interest rates and slowing growth,” it said.

The Bangko Sentral ng Pilipinas (BSP) on Thursday paused its tightening cycle, keeping its key rate at 6.25%. It had hiked borrowing costs by 425 basis points since May 2022.

Inflation stood at 6.6% in April, bringing the four-month average to 7.9%. This was still above the BSP’s 6% full-year forecast and 2-4% target range.

The economy grew by 6.4% in the first quarter, its slowest growth rate in two years.

Oxford Economics also noted the need to bring down debt levels.

Outstanding government debt stood at a record P13.86 trillion at the end of March, bringing the latest debt-to-GDP ratio to 61%.

This is higher than the 60.9% seen at the end of December and the 60% threshold considered manageable by multilateral lenders for developing economies.

Citing the International Monetary Fund, Oxford Economics said that the effectiveness of fiscal consolidation in reducing debt will also depend on economic growth and inflation.

“Higher growth can boost nominal GDP, which in turn lowers the fiscal debt to GDP ratio. More generally, higher economic growth means higher government revenue, which itself reduces the fiscal deficit,” it said.

“High inflation also has the same impact on nominal terms, but its effect on the fiscal situation largely depends on where inflation is coming from. If it is driven by higher demand and therefore higher GDP, then it could help the fiscal balance. But if it’s from supply-push inflation, as has been the case over the last year or so, then the impact is unlikely to be clear-cut, as an increase in costs generally has adverse effects on economies,” it added. — Luisa Maria Jacinta C. Jocson

Biofertilizer program seen up and running by Q4

DA.GOV.PH

THE Department of Agriculture (DA) said it hopes to achieve sufficient scale with biofertilizer by October or November.

“In October-November, the program will start with large-scale promotion of biofertilizer,” Agriculture Undersecretary Leocadio S. Sebastian told a Laging Handa briefing.

Mr. Sebastian said biofertilizer will help the Philippines weather any price volatility in inorganic fertilizer, which commanded P3,000 per bag last year following the Russia-Ukraine war.

According to the Fertilizer and Pesticide Authority, the price of prilled urea and granular urea between May 8 and 12 was P1,970.42 and P1,758.10 per 50-kilogram bag, respectively.

In a memorandum order dated April 27, Mr. Sebastian issued the implementing guidelines for the distribution of biofertilizer. The guidelines seek to achieve savings of P2,000 by replacing at least two bags of inorganic urea (P4,000) with one bag of biofertilizer (P2,000).

The Palace has said that President Ferdinand R. Marcos, Jr., who is also the Secretary of Agriculture, wants to increase the use of biofertilizer to reduce dependence on imports.

Biofertilizer is enriched with microorganisms typically using raw material like crop residue or animal manure.

Mr. Sebastian said that the continued use of “synthetic fertilizer” has resulted in poor soil health and lower rice production and called biofertilizer a means to achieve “balanced fertilization.”

“Synthetic (fertilizer) can only give nitrogen, potassium, and phosphorus… we are not able to apply micronutrients and macronutrients,” he said.

“The quality of soil will eventually improve over time (with biofertilizer). We’re going into a more sustainable, eco-friendly, climate-friendly rice production in the Philippines in that kind of technology,” he added.

Mr. Sebastian said the DA will provide vouchers to farmers next year allowing them to choose their preferred biofertilizer. — Sheldeen Joy Talavera

Quality for Trade Platform expected to drive SME growth

GENEVA-BASED International Trade Centre (ITC) and ARISE Plus Philippines said they will launch the Quality for Trade Platform geared towards opening up export opportunities for small and medium enterprises (SMEs).

Joshua Olson, associate management and program analyst of ITC, an arm of the World Trade Organization and the United Nations, said many businesses don’t know basic information about exporting.

“With this platform, we can grow this body of expertise… (potential exporters) can come to one place to find institutional expertise or services that can be provided,” Mr. Olson said.

The platform will have four tools called Quality Compass, Quality Connect, Quality Insights, and Quality Success.

“We have four tools that serve a distinct purpose, but also connect very relevantly to the other tools in an integrated way,” he said.

Quality Compass, Mr. Olson said, collates the scattered information related to export requirements, standards, and market preferences in one tool.

“The information is out there… But it’s not necessarily tailored toward SMEs; it’s not in a format where I can find everything I need to know about this particular product in a structured and guided way,” he said.

“This is where the quality compass tool comes in. It’s really about simplifying the complexity,” he added.

Quality Connect provides a network of quality expertise.

“The second part of all of this is, now that I know what these requirements are, who can help me build towards compliance? Who are the people (and) institutions that can help me?” Mr. Olson said.

“The idea is that an SME can go to this tool and find the information on their product and then follow that up with finding the expertise that can help them comply with that particular requirement,” he added.

ITC aims to build a comprehensive service provider directory of institutions within the Philippines composed of testing laboratories, certification bodies and accreditation bodies.

“The Quality Insights tool serves as a resource library for learning more about quality-related topics,” Mr. Olson said, describing it as a “repository for browsing different, more generic quality topics, finding information on practical guides or quality related technical materials.”

The Quality Success tool allows quality champions to inspire readers with past successes.

“These are the stories from people who managed to overcome a particular quality-related hurdle,” Mr. Olson said.

The tool will remain under development and additional features and information will be added over time, Mr. Olson said. — Justine Irish D. Tabile

Gilas Pilipinas shifts its focus to FIBA World Cup buildup

SBP

DONE with the challenging gold-retrieval in the recent Southeast Asian Games (SEAG) in Cambodia, Gilas Pilipinas redirects its full focus and resources on the buildup for the biggest battle ahead, the FIBA World Cup.

The next three to four months will be crucial as the 40th-ranked Nationals intend to be well-equipped come Aug. 25 against their tough Group A opponents, world No. 10 Italy, No. 23 the Dominican Republic and No. 41 Angola.

In the pipeline are training camps and tuneup matches overseas. Arrangements are being made to hold camp in Lithuania and play a possible pocket tournament and in the US to face US NCAA Division 1 teams.

The intention is to make the 2023 group a better team than the legendary bunch that gave high-profile opponents a run for their money in the 2014 worlds in Spain.

“I think if we come in with the game that we brought in 2014, it’s not gonna be enough. We have to be much, much better. And I hope that from now to then, we can find a way to really become a much better team,” Gilas coach Chot Reyes said.

“We’re not picking the best talent, we’re picking the best team. We are putting a ‘best team’ together. We’re not putting together a group of superstars. We want to pick the best team possible,” he added.

If the Gilas “Redeem Team” in the SEAG encountered manpower problems with stalwarts like June Mar Fajardo, Scottie Thompson, Japeth Aguilar, Jamie Malonzo and the B-League boys out due to injuries or other commitments, Mr. Reyes expects all hands on deck for the WC.

That includes Fil-Am NBA stat Jordan Clarkson, who has committed to train with the Gilas 5, as well as Japan-based regulars like Kai Sotto, Dwight Ramos and the Ravena brothers, Kiefer and Thirdy.

“There’s no problem sa World Cup. There’s a lot of players naman who are available because all of the tournaments all over the world are going to be on hold,” Mr. Reyes said.

“There’s not going to be conflict with any tournaments anywhere. So it’s really a matter now of sitting down with the coaching staff and putting the team together,” he said. The SEAG redemption tour was the last stop before Gilas goes full blast on the World Cup (WC) endeavor.

While the success in Cambodia won’t mean much in the WC gearup, the program could use some feel-good stuff going to the most important tournament.

“Not too much (affect) in the overall scheme of things because this (SEAG squad) is a very different team from the World Cup team, except, you know, just at least we get a reprieve from the people, at least I get some of a reprieve from the people,” said Mr. Reyes. — Olmin Leyba

Filipinas draw Australia, Taipei and Iran in Group A in OQT

PFF

THE FILIPINAS brace for a tough campaign in the second round of the Asian Football Confederation (AFC) Women’s Football Olympic Qualifying Tournament (OQT) with Tokyo Games fourth-placer Australia and old rival Chinese-Taipei in their group.

The 49th-ranked Filipinas drew the No. 10 Matildas, No. 37 Chinese Taipei and No. 67 Iran as groupmates in Group A after yesterday’s draw in Kuala Lumpur.

The games will be played in Australia in October with Alen Stajcic’s charges needing to top the group or finish as the best runner-up across the three groups to move forward to the third and final round.

The Filipinas will face two teams they previously encountered in last year’s AFC Women’s Asian Cup in India.

The Pinay booters sustained a 0-4 blanking from the Aussies, Mr. Stajcic’s former team, in the group stage. But they went on to advance to the quarterfinals and score a famous 4-3 victory in penalty shootout over the Taiwanese for a trip to the semis and a historic ticket to the 2023 FIFA Women’s World Cup.

The other groups in the OQT feature China, South Korea, Thailand and North Korea in Group B, and Japan, Vietnam, Uzbekistan and India in Group C.

The four survivors of the second round will play in a pair of two-leg matchups in Round 3 with the victors taking the two slots allotted for Asia in Paris 2024. — Olmin Leyba

Meralco Bolts acquire big man Norberto Torres from ROS

NORBERTO TORRES — PBA IMAGES

MERALCO yesterday acquired big man Norberto Torres from Rain or Shine (ROS) in Luigi Trillo’s first move since assuming head coaching chores.

Mr. Trillo, who got his appointment a week ago, let go of forward Mac Belo to get the rights to Mr. Torres, who is expected to beef up the Bolts’ frontline led by Raymond Almazan and Cliff Hodge.

Mr. Belo joins an ROS side on a rebuilding phase under coach Yeng Guiao, hoping to find his mark after riding the bench for most of his two-year stint with Meralco.

The one-on-one swap gained the approval of the PBA Commissioner’s Office yesterday.

The Meralco Bolts are continuing their search for a maiden title in the PBA with former assistant Mr. Trillo now at the helm, Nenad Vucinic as active consultant and former coach Norman Black as consultant.

Veteran Reynel Hugnatan is also coming in as part of the coaching staff after retiring at the end of Season 47.

Meralco has been to the PBA Governors’ Cup finals four times, losing to Ginebra each time. Last season, the Bolts reached the semifinals of the first and third conferences but missed the playoffs of the middle tournament. — Olmin Leyba

Butler, Heat topple Celtics to steal Game 1 of East finals

JIMMY Butler played a solid all-around game with 35 points, seven assists, six steals and five rebounds to lead the Miami Heat to a 123-116 victory over the host Boston Celtics on Wednesday night in Game 1 of the Eastern Conference finals.

Bam Adebayo recorded 20 points, eight rebounds and five assists as the Heat recovered from a 13-point, second-quarter deficit. Kyle Lowry, Caleb Martin, Max Strus and Gabe Vincent all scored 15 points apiece for Miami.

Jayson Tatum had 30 points and seven rebounds and Jaylen Brown added 22 points, nine rebounds and five assists for Boston. Malcolm Brogdon scored 19 points, Robert Williams III had 14 points and seven rebounds and Marcus Smart registered 13 points and 11 assists for the Celtics.

Game 2 of the best-of-seven series is Friday night in Boston.

The Heat led 114-105 after Mr. Butler’s basket with 5:33 remaining before the Celtics scored the next five points. Mr. Martin halted a Miami scoring drought of 3:23 by burying a 3-pointer to make it 117-110 with 2:10 to go. Mr. Butler then made a 3-pointer that went in and out and back in to make it a 10-point game with 1:03 left and the Heat closed it out.

Miami shot 54.1 percent from the field, including 16 of 31 from 3-point range.

Boston made 51.9 percent of its shots and was 10 of 29 from behind the arc. Derrick White added 11 points for the Celtics.

Miami trailed 66-57 at halftime before outscoring Boston 46-25 in the third quarter to take a 12-point advantage.

The Celtics led 71-59 after Smart’s 3-pointer 65 seconds into the period before the Heat’s explosion began.

Miami used a 13-1 burst to tie the score. The Heat later went on an 10-2 push to move ahead 86-80 on a 3-pointer by Strus with 4:25 left in the period.

Mr. Butler’s 3-pointer made it 95-87 with 1:56 left and Strus capped the quarter’s 17-of-26 shooting performance with a 3-pointer with 7.6 seconds remaining as Miami took a 103-91 lead into the final stanza.

Boston fought back with the initial seven points of the fourth quarter to move within five but couldn’t catch the Heat.

Mr. Tatum scored 18 first-half points. The score was tied at 47 before the Celtics went on a 15-2 run to open up a 13-point lead with 2:08 left in the second quarter.

Mr. Butler scored 15 points and Mr. Lowry had 13 in the first half for the Heat. — Reuters

Manchester City outclass Real Madrid to reach Champions League final

MANCHESTER, England — This time Manchester City left nothing to chance as they demolished Real Madrid 4-0 to march into the Champions League final for the second time in three seasons with a 5-1 aggregate victory at a raucous Etihad Stadium on Wednesday.

A semi-final delicately poised after an electrifying 1-1 draw in the Bernabeu turned into a rout as Pep Guardiola’s City slickers dispatched the Spanish giants with consummate ease.

Bernardo Silva’s first-half double gave City control and the hosts took gleeful revenge for last season’s heartbreaking semi-final loss to the 14-time champions with Manuel Akanji credited with City’s third and Julian Alvarez adding a forth.

With Inter Milan in the final, City will be favorites to deliver the trophy Abu Dhabi’s Sheikh Mansour has craved since buying the club in 2008, having lost to Chelsea in the final two years ago.

City are unbeaten in 26 home Champions League games and that run was never in danger once Portuguese midfielder Mr. Silva whipped a shot past Thibaut Courtois in the 23rd minute and then headed his side’s second in the 37th.

The second half became a formality as holders Real, bidding to win the trophy for a sixth time in 10 seasons, were powerless to stop a relentless Manchester City side closing in on a treble.

Carlo Ancelotti’s record 191st game in charge of a Champions League team became a night to forget for the wily Italian who, for once in his illustrious career, had nothing up his sleeve.

City launched 69 attacks, according to UEFA data, and but for some incredible saves by Real keeper Thibaut Courtois, they would have run up a much bigger score.

Expectancy and tension hung heavy in the air before kickoff inside City’s fortress, even more so as the clash was billed as a de-facto final with Inter, in their first final for 13 years despite a mediocre Serie A season, awaiting the winners.

There was also the pain of last season when Manchester City led 5-3 on aggregate in the 89th minute of the second leg of the semi-final in the Bernabeu, only to lose 6-5 on aggregate.

Just as in the Spanish capital last week, City took an early stranglehold and Courtois rescued his side twice in the opening 20 minutes with saves from Erling Haaland headers, the first a little lucky, the second miraculous.

City’s breakthrough was not long coming though as Mr. Silva whipped a left-footed shot past Mr. Courtois — City’s eighth goal attempt in the opening 23 minutes.

It took Real Madrid half an hour to mount an attack and even then, City’s Kyle Walker won a sprint race with Vinicius Jr. to snuff out the danger. Toni Kroos then unleashed a dipping right-foot shot against the crossbar with Ederson getting a touch.

But Mr. Silva made sure City reached halftime with one foot in the final, reacting quickest to loop a header into the net after Ilkay Gundogan’s shot was saved.

Real needed some magic to give themselves any hope and it almost arrived six minutes after halftime when David Alaba’s dipping free kick was acrobatically saved by Mr. Ederson. Mr. Courtois did his best to keep Mr. Ancelotti’s side in the tie with yet another save from Mr. Haaland as the Norwegian was left waiting for his 53rd goal of an incredible season.

But any thoughts of a repeat of last year’s comeback were banished when Kevin De Bruyne’s whipped free kick glanced off Akanji and Eder Militao and into the net. Mr. Alvarez, on for Mr. Haaland, put the icing on the cake on a memorable night for City when he stroked a first-time shot into the bottom corner in stoppage time. — Reuters

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