Home Blog Page 498

BSP securities fetch higher yields

YIELDS on the Bangko Sentral ng Pilipinas’ (BSP) short-term bills rose on Friday as demand fell, with both tenors undersubscribed.

The central bank securities fetched bids amounting to P133.598 billion on Friday, lower than the P160-billion offer and the P151.057 billion in tenders for the P190 billion auctioned off in the prior week. The BSP awarded P129.588-billion worth of bills.

Broken down, tenders for the 28-day BSP bills reached P48.253 billion, below the P70-billion offer and the P60.185 billion in bids for the P90 billion placed on the auction block a week ago. The central bank accepted just P44.243 billion in bids on Friday.

Accepted yields ranged from 5.774% to 5.894%, higher than the 5.75% to 5.84% band seen a week earlier. This caused the average rate of the one-month securities to increase by 1.62 basis points (bps) to 5.8119% from 5.7957% previously.

Meanwhile, bids for the 56-day bills amounted to P85.345 billion, also lower than the P90-billion offering and the P90.872 billion in tenders for a P100-billion offer the week prior. The central bank accepted all tenders for the tenor.

Accepted rates for the two-month tenor were from 5.8% to 5.988%, above the 5.785% to 5.929% margin seen a week ago. With this, the average rate of the 56-day securities rose by 3.97 bps to 5.8769% from 5.8372% logged in the prior auction.

The central bank uses the BSP securities and its term deposit facility to mop up excess liquidity in the financial system and to better guide market rates.

The BSP bills were calibrated to not overlap with the Treasury bill and term deposit tenors also being offered weekly.

Data from the central bank showed that around 50% of its market operations are done through the short-term BSP bills.

Short-term instruments offer more stability and predictability, the BSP earlier said. These are also considered “high-quality liquid assets” and grants more flexibility for banks versus term deposits, which are not tradable. — Luisa Maria Jacinta C. Jocson

Parched southern Greece highlights EU water conservation challenges

REUTERS

NAFPLION, Greece — In the Argolida region of southern Greece, water escapes through cracks in an irrigation canal feeding a plain of orange trees. Underground, old pipes lose more than half the water that is pumped through them, officials say.

In summer, when reservoir levels tumble, authorities in the regional capital Nafplion advise residents not to drink the contaminated brackish water that is pumped from backup sources into their homes.

“You can smell the difference in the water, feel the dryness on your clothes,” said Lydia Sarakinioti, a jeweler in Nafplion who uses bottled water even to cook.

This month, the Europen Union (EU) launched a campaign to combat a climate change-driven water crisis that it says already affects 38% of its population. It has given EU countries until next year to assess leakage levels before a legal threshold is imposed.

The program to increase water security is expected to cost hundreds of billions of euros and comes as countries across southern Europe experience more erratic rainfall and hotter temperatures linked to climate change.

The situation in Greece, which lies on Europe’s baking southern frontier, shows just how complex and costly change will be. Last summer and winter were the warmest on record and many places saw no rainfall for months.

Moreover, a crippling 2009-18 debt crisis has led to years of underinvestment. Greece loses around half its drinking water to leaky pipes and theft, government figures show — nearly twice the EU average of 23%. Most maps of its underground pipeline network are either not digitized or do not exist, experts and officials said. 

Greece has spent more than 1.5 billion euros on drinking water infrastructure since 2019, the government said. But Argolida, an agricultural hub that produces roughly a third of Greece’s oranges, shows much more is needed.

“There are many problems, and we are trying to gradually tackle them all,” said Socrates Doris, the head of Nafplion’s municipal drinking water provider. He said that the company was seeking EU funding to help.

Prime Minister Kyriakos Mitsotakis promised to make fixes to Argolida’s water problems when he visited in November, including extending the irrigation network and providing a desalination unit to dissolve salts in water.

Government officials say fundamental fixes are needed first.

“If an area’s network leaks everywhere, what’s the point of buying a new desalination unit or drilling a well?” said Petros Varelidis, the Environment ministry’s secretary general for water resources.

Leakages in some areas reach 80%, he said.

“The needs are a lot bigger than the resources available.”

In Argolida, water scarcity leads to poor water quality.

When the lake feeding Nafplion shrinks, authorities boost it with brackish water from a submarine spring, Anavalos.

Tests commissioned by water authorities from June to November in 2022-24, seen by Reuters, showed higher than permitted levels of chlorides and sodium in those sources, which can affect people with blood pressure or kidney issues.

Nafplion is not alone. In the coastal town of Ermioni, only 8% of the 13,500 residents have permanent access to safe drinking water, according to local authorities’ data submitted to parliament.

Most residents rely on plastic bottled water, which creates its own environmental problems.

“The quality is really bad. It harms electric devices, such as the washing machine,” said resident Evi Leventi, 58.

Outside town, in fields dried by two years of drought, farmers dig up to 300 meters below the surface in search of water. It often comes up too salty because sea water has seeped into depleted underground aquifers.

“Every drop of water is indispensable… We pin our hopes on rainy winters,” said farmer George Mavras. — Reuters

Flu vaccination helps save lives

ETACTICS INC-UNSPLASH

Influenza or flu is one of the most common illnesses in the Philippines. Flu cases are reported in the country throughout the year, but these peak during October to February, which coincide with the cold northeast monsoon season or amihan.

The recent death of Taiwanese actress Barbie Hsu and Chinese actor Liang Youcheng not only shocked the entertainment world, but also underscored the dangers of influenza and its complications. Hsu, 48, succumbed to influenza-induced pneumonia while Liang, 27, died due to influenza complications.

Flu is a contagious respiratory illness caused by influenza viruses. It can cause mild to severe illness, and at times can lead to death. Flu symptoms usually come on suddenly. These include fever or feeling feverish/chills, cough, sore throat, runny or stuffy nose, muscle or body aches, headaches, fatigue, and vomiting and diarrhea (more common in children).

Most people who get sick with flu will recover in a few days to less than two weeks, but some people will develop complications, some of which can be life-threatening and result in death, according to the US Centers for Disease Control and Prevention (CDC).

Moderate complications from flu include sinus and ear infections. Pneumonia is a serious flu complication that can result from either flu virus infection alone or from co-infection of flu virus and bacteria. Pneumonia as a flu complication tends to be more severe and potentially fatal, the American Lung Association warns.

Other possible serious complications triggered by flu can include inflammation of the heart (myocarditis), brain (encephalitis), or muscle tissues (myositis, rhabdomyolysis), and multi-organ failure (e.g., respiratory and kidney failure).

Flu virus infection of the respiratory tract can trigger an extreme inflammatory response in the body and can lead to sepsis, the body’s life-threatening response to infection. Flu can also make chronic medical problems worse. For example, people with asthma may experience asthma attacks while they have flu, and people with chronic heart disease may experience a worsening of this condition triggered by flu.

People at higher risk of developing serious flu-related complications should they get sick include people 65 years and older, people of any age with certain chronic medical conditions (such as asthma, diabetes, or heart disease), pregnant women and children younger than five years, especially those younger than two years old.

Vaccination is the best way to reduce the risk of flu infection and its serious complications, according to the World Health Organization (WHO). The Philippine Society for Microbiology and Infectious Diseases (PSMID) recommends annual flu vaccination for adults, especially those in the high-risk populations. The Pediatric Infectious Disease Society of the Philippines (PIDSP) recommends children ages six months to eight years receiving influenza vaccine for the first time get two doses separated by at least four weeks. Children ages nine to 18 years should receive one dose of the vaccine yearly. Individuals must also speak with their physicians to learn more about getting vaccinated.

Aside from lowering flu infection risk, flu vaccination can also lower a person’s risk of serious illness from the flu and costly hospitalization, as well as avert considerable productivity losses due to work absences.

The CDC recommends actions to protect oneself and others from flu and help stop the spread of germs. For example, avoid close contact with people who are sick. When you are sick, keep your distance from others. If possible, stay home from work, school, and errands when you are sick.

Also, cover your mouth and nose when coughing or sneezing; you can also wear a mask. Wash your hands often to help protect you from germs. If soap and water are not available, use an alcohol-based hand rub. Avoid touching your eyes, nose, or mouth.

One can also take steps for cleaner air to reduce the risk of exposure to viruses. You can improve air quality by bringing in fresh outside air, purifying indoor air, or gathering outdoors if possible.

It is also important to practice good hygiene and other healthy habits. Clean frequently touched surfaces, such as countertops, handrails, and doorknobs regularly. Get adequate sleep, be physically active, manage stress, drink plenty of fluids, and eat nutritious food.

Together with the global health community, the innovative pharmaceutical industry, represented by the International Federation of Pharmaceutical Manufacturers and Associations (IFPMA), works to improve seasonal influenza vaccine coverage and support flu pandemic preparedness for the future.

The IFPMA Influenza Vaccine Supply International Task Force (IFPMA IVS) was established in February 2002 to address the challenges of seasonal and pandemic flu. IFPMA IVS brings together research-based vaccine manufacturers conducting R&D, development, and production to provide safe, effective, high-quality human vaccines and antivirals against seasonal, pre-pandemic, and pandemic flu. In 2019, IVS Task Force vaccine manufacturers distributed 531 million seasonal influenza vaccines worldwide.

Vaccination can help stop seasonal influenza in its tracks — and help prevent at-risk people being hospitalized or suffering complications.

 

Teodoro B. Padilla is the executive director of Pharmaceutical and Healthcare Association of the Philippines which represents the biopharmaceutical medicines and vaccines industry in the country. Its members are in the forefront of research and development efforts for COVID-19 and other diseases that affect Filipinos.

Knight Frank: Manila is 6th most affordable for prime office rent in Q4

In the fourth quarter, the Philippine capital placed sixth as the most affordable city for prime office rent among 23 Asia-Pacific markets, based on the latest edition of the Asia-Pacific Office Highlights by real estate consultancy Knight Frank. On an annual basis, Manila’s occupancy cost fell by 1.1%, compared with the average 1.6% decline of the region.

Knight Frank: Manila is 6<sup>th</sup> most affordable for prime office rent in Q4

How PSEi member stocks performed — February 21, 2025

Here’s a quick glance at how PSEi stocks fared on Friday, February 21, 2025.


Exit from FATF ‘gray list’ may lift Philippine stocks

BW FILE PHOTO

PHILIPPINE STOCKS may advance this week as market sentiment is expected to get a lift from the country’s removal from dirty money watchdog Financial Action Task Force’s (FATF) “gray list” and after the central bank said it would cut banks’ reserve requirement ratios (RRR) next month.

On Friday, the benchmark Philippine Stock Exchange index (PSEi) climbed by 0.51% or 31.41 points to close at 6,098.04, while the broader all shares index dropped by 0.30% or 11.34 points to 3,660.28.

Week on week, the PSEi went up by 0.61% or 36.71 points from its 6,061.33 finish on Feb. 14.

“After dropping back to below 6,000 to open the week, the local bourse managed to recover as the first round of earnings releases started, but gains were capped as caution permeated,” online brokerage 2TradeAsia.com said in a market note.

For this week, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the Philippines’ exit from the FATF’s gray list of jurisdictions under increased monitoring for money laundering risks could boost market sentiment.

The Philippines was on the FATF’s gray list for over three years or since June 2021.

The FATF Plenary and Working Group Meetings took place in Paris, France from Feb. 17 to Feb. 21.

The dirty money watchdog noted the Philippines’ “positive progress in addressing the strategic anti-money laundering and countering the financing of terrorism and proliferation financing deficiencies previously identified during their mutual evaluations.”

Mr. Ricafort added that the Bangko Sentral ng Pilipinas’ (BSP) announcement that it would cut banks’ RRRs further effective next month will also be positive for the market, as this would free up more than P300 billion in liquidity, which could be invested in equities.

On Friday, the BSP said it will reduce the RRR of universal and commercial banks and nonbank financial institutions with quasi-banking functions by 200 basis points (bp) to 5% from 7% effective March 28.

The central bank will also cut the RRR for digital banks by 150 bps to 2.5%, while the ratio for thrift lenders will be slashed by 100 bps to 0%.

The RRR is the portion of reserves that banks must hold onto rather than lending out. When a bank is required to hold a lower reserve ratio, it has more funds to lend to borrowers.

“Both of these developments… would support market sentiment and could increase investor confidence on the country going forward, a welcome development and one of the positive leads that the markets badly need recently, in view of the Trump factor that has weighed on the markets in recent weeks,” Mr. Ricafort said in an e-mail.

He placed the PSEi’s next support at 6,000 and minor resistance at 6,275-6,530.

For its part, 2TradeAsia.com put the market’s immediate support at 6,500 and resistance at 6,300-6,400. — S.J. Talavera

Peso may weaken vs dollar on RRR announcement

BW FILE PHOTO

THE PESO may weaken against the dollar this week after the Bangko Sentral ng Pilipinas (BSP) said it will bring down banks’ reserve requirement ratios (RRR) by March.

The local unit closed unchanged at P57.94 per dollar on Friday, Bankers Association of the Philippines data showed.

Week on week, the peso weakened by 11 centavos from its P57.83 finish on Feb. 14.

The dollar was generally weaker early on Friday after US President Donald J. Trump hinted at a possible trade deal with China. Rizal Commercial Banking Corp. Michael L. Ricafort said in a Viber message. The greenback eventually rebounded later in the session.

The peso was initially stronger against the dollar on Friday following Mr. Trump’s comments on China, a trader likewise said, but weakened after the BSP’s announcement of the RRR cuts.

“For [this] week, we may see some spillover peso weakness following the RRR cut announcement, on trade developments, and if the US Federal Reserve continues to send out hawkish signals,” the trader said in a phone interview.

The trader said the peso could move between P57.80 and P58.30 against the dollar this week, while Mr. Ricafort sees it ranging from P57.70 to P58.20.

The BSP on Friday said it will reduce the reserve requirement ratios for universal and commercial banks and nonbank financial institutions with quasi-banking functions by 200 basis points (bps) to 5% from 7% effective March 28.

The RRR for digital banks will be cut by 150 bps to 2.5%, while that for thrift banks will be slashed by 100 bps to 0%.

The central bank last cut banks’ reserve ratios in October 2024.

“The BSP reiterates its long-run goal of enabling banks to channel their funds more effectively toward productive loans and investments. Reducing RRRs will lessen frictions that hinder financial intermediation,” it said.

Meanwhile, the US dollar rose against a broad range of currencies on Friday, partly retracing losses versus the yen as investors consolidated positions ahead of the weekend, looked to more inflation data next week, and kept an eye on tariff headlines, Reuters reported.

In late morning trading, the dollar was last flat on the day against the yen at 149.58 yen. It has fallen in five of the last six weeks, and was down 1.8% on the week.

Also weighing on the dollar was the more-than-expected drop in the US consumer sentiment index to a 15-month low. At the same time, inflation expectations surged as households worried about Mr. Trump’s steep and broad-based tariffs and their impact on their purchasing power.

The dollar index was last up 0.3% at 106.68.

Mr. Trump last week unveiled plans for tariffs on lumber imports, but also said a new trade deal with China was possible. — A.M.C. Sy with Reuters

Green-lane project pipeline hits P4.61 trillion

THE Board of Investments (BoI) said it has endorsed 167 projects valued at P4.614 trillion to the One-Stop Action Center for Strategic Investments for green-lane treatment as of Feb. 18.

Authorized by Executive Order No. 18 in February 2023, green lanes allow expedited processing of permits for investments deemed strategic.

Foreign-invested projects only accounted for P1.652 trillion, reflecting strong interest in strategic projects from domestic investors.

Renewable energy (RE) projects accounted for P4.211 trillion of the green lane-certified projects. These comprise 149 projects.

Investments in RE projects increased after the government allowed full foreign ownership in the industry, which was previously capped at 40%.

“As you can see, most of the green-lane projects we are facilitating are under the RE sector as we are pushing towards the goal of at least 50% in our energy mix that are coming from RE by 2040,” BoI Executive Director Bobby G. Fondevilla said at a British Chamber of Commerce Philippines event last week.

Six digital infrastructure projects worth P352.129 billion were also endorsed for green-lane treatment, while 23 projects related to food security worth P14.368 billion were also certified.

Meanwhile, four manufacturing projects worth P36.905 billion were deemed eligible for green-lane status.

“Most of these projects are still in their pre-development stages, and our team is working together with them in the facilitation of their permits and licenses so that they can achieve their target timelines,” Mr. Fondevilla said.

Meanwhile, the BoI is hoping to launch an investor guidebook by June with a focus on three industries.

“We have a tentative schedule (to release it) by June. It will focus on at least three sectors: pharmaceuticals, digital infrastructure, and RE,” Mr. Fondevilla said.

He said the rules are subject to change because the guidebook was compiled from information on agency websites, some of which may not be updated. — Justine Irish D. Tabile

PEZA expecting Philippines to escape worst of Trump tariffs

RAWPIXEL

THE Philippine Economic Zone Authority (PEZA) said the Philippines may avoid the worst of the Trump tariffs because of its small trade surplus with the US as well as its key role in US regional strategy.

“Being an important country in the geopolitical strategy of the US, I believe that we will be less impacted by the tariffs that have been announced so far,” PEZA Director General Tereso O. Panga told BusinessWorld.

US President Donald Trump last week announced plans to impose tariffs on auto, chip, and pharmaceutical imports over the course of the year.

In particular, Mr. Trump said that he will impose 25% tariffs on automobiles by April 2, with 25% or higher tariffs expected for pharmaceuticals and semiconductors.

“Opportunities will arise where manufacturers in the countries greatly affected by the US tariffs might opt to transfer to the Philippines and locate in PEZA. This is an upside that I am looking at as an advantage for the country due to the US tariff pronouncements,” he said.

“Again, however, it is still opaque as to how much the tariffs will impact the Philippines, and I am quite sure that talks are under way to minimize the impact on the Philippines-US trade,” he added.

Mr. Panga said the Philippine motor vehicle and pharmaceutical industries will not be affected by the tariffs.

“The Philippines is more of an importer of vehicles and a producer for the local market. So, this industry is basically unaffected by the Trump tariffs as we do not export cars to the US,” he said.

“The automobile industry consists of two sectors: motor vehicle assembly and vehicle parts and components manufacturing,” he added.

He said that the Philippines is still in the “developing stage” in terms of setting up pharmaceutical economic zones.

“The primary objective of this is a direct instruction from the President to enable the Philippines to first have a stronger pharmaceutical manufacturing footprint and to lessen the price for the domestic market and increase our citizens’ access to affordable medicines,” he said.

“In effect, the Trump tariff will not impact our pharma industry,” he added.

However, he said that the Philippines’ largest exports are semiconductors, though it remains one of the smaller players in the region in terms of electronics exports to the US.

“Further, there are US policies like the Chips Act where the Philippines has been promised support by the US. These agreements and commitments are still in play and may lessen the impact of Trump 2.0 tariffs on this industry,” he said.

Citing a report by ING, he said that “India and the Philippines are less at risk because these economies are domestically demand-driven and export fewer sophisticated goods that compete directly with the US.” 

He said that PEZA will nevertheless be watching US trade policy closely.

“Higher authorities are in negotiations to soften the blow of these tariffs on the Philippines and PEZA locators. I am quite sure that this will be discussed in the Trade and Investment Framework Agreement consultations between the Philippines and US,” he said.  

“Currently, we are least exposed in terms of bilateral trade imbalances with the US as well as its effect on our gross domestic product,” he added, citing the ING report. —

He said that most of the companies in the Philippines that produce semiconductors are part of a global supply chain supplying Japan, China, South Korea, the US, and ASEAN.

“In 2023, semiconductors and integrated circuits represented 23.3% of our exports to the US,” he added.

Asked to comment, Ateneo School of Government Dean and Economics Professor Philip Arnold P. Tuaño said that the Philippines will also benefit from tariffs imposed on other countries.

“The country may want to establish itself as a key market for inputs into the electronics industry and push US companies to buy more locally made products in order to avoid higher-cost goods from the European Union, China, Mexico and Canada,” he said via e-mail.

“The country is also trying to establish itself as an automotive parts hub in the region and therefore could also market to US car manufacturers the quality of labor and low cost compared to manufacturers in its domestic market,” he added.

The Philippine Statistics Authority reported that the US was the top export destination last year, accounting for $12.12 billion or 16.6% of all exports. — Justine Irish D. Tabile

Right-of-Way Act rules on compensation deemed in force after March 2016

PHILIPPINE STAR/MICHAEL VARCAS

THE Department of Justice (DoJ) has issued a legal opinion that compensation rules set by development partners for persons displaced by foreign-funded projects apply only if the loan agreement was signed prior to the effectivity of the Right-of-Way Act (Republic Act No. 10752).

The opinion was issued to clarify the compensation rules governing projects entered into by the Department of Transportation (DoTr) and entities like the Japan International Cooperation Agency (JICA).

JICA-funded projects must comply with a framework known as the Guidelines for Environmental and Social Consideration, which provides that: “people who must be resettled involuntarily and people whose means of livelihood will be hindered or lost must be sufficiently compensated and supported by project proponents etc. in a timely manner. Prior compensation, at full replacement cost, must be provided as much as possible.” 

The DoJ said that the Right-of-Way Act has its own process for acquiring right-of-way for national infrastructure projects, including rules for negotiated sales and payment schedules for affected property owners.

The Philippine standard for compensating landowners displaced for government projects, according to the Constitution, is fair market value instead of full replacement cost.

“Faithful compliance to the Loan Agreement and the Environmental Guidelines prior to the date of effectivity of R.A. No. 10752 or before 25 March 2016, should be upheld as valid,” according to the DoJ opinion.

Major JICA-funded projects currently include the North-South Commuter Railway (NSCR), which is co-financed by the Asian Development Bank, the loan agreement for which was signed in 2023.

The P873-billion NSCR is a 147-kilometer NSCR that will connect Malolos, Bulacan with Clark International Airport, and Tutuban, Manila with Calamba, Laguna. It will have 35 stations and three depots.

The Department of Finance and JICA recently signed the third tranche of the loan agreement worth 150 billion yen (around P57 billion) for the first phase of the Metro Manila Subway Project.

The Department of Transportation was contacted for comment but would not speak for attribution. — Ashley Erika O. Jose

Import permit process for non-sugar sweeteners to be streamlined

PHILIPPINE STAR/MIGUEL DE GUZMAN

THE Sugar Regulatory Administration (SRA) said it will revise the rules for importing sugar alternatives which will reduce red tape, later facilitated further by the use of an online portal.

The streamlining follows consultations with users, which surfaced concerns over bureaucratic inefficiencies. Users had lobbied against plans to impose new import clearance fees for some non-sugar sweeteners.

“We listened to their concerns. Their most basic concern is delay, red tape,” Administrator Pablo Luis S. Azcona told reporters at the SRA Research Facility in La Carlota, Negros Occidental.

Mr. Azcona told BusinessWorld during a visit to a sugar mill that it takes three to five working days for the SRA to issue import clearances.

“We will include in the sugar order that if the SRA still has no response after five working days, the application is deemed approved,” he said.

He said the SRA is set to issue the order in March.

The SRA in late January decided to postpone the effectivity of Sugar Order (SO) No. 6, which sought to impose a P60 per metric ton clearance fee on imported sweeteners covered by tariff codes 1701, 1702 and 1704.

These include sucrose, lactose, glucose, maltose, maple syrup, honey and caramel, and flavored syrups.

Food and beverage manufacturers, industry associations and chambers of commerce have cited the order’s potential impact on confectionery and beverage prices.

They also called on the SRA to conduct a Regulatory Impact Assessment before any policy changes, and urged it to adopt the Anti-Red Tape Authority’s ease of doing business framework, which sets timelines for approving permits based on the complexity of the transaction, and deems as approved those applications for which processing exceeds the prescribed timelines.

Mr. Azcona said the new rules will allow prospective importers to present a sales invoice from the supplier to kick off the application process.

The SRA will also require a soft copy of the bill of lading or the contract between a carrier and a shipper to issue the import clearance, he added.

“Since our import clearances is on a per bill of lading basis, sometimes there is a delay in the BL. It takes a few days for the BL to come out. So, we agreed. They can apply using their invoices first,” he said.

The idea is to “get the process going,” he added. “And then finalize once the BL is there.”

Mr. Azcona said the SRA is in the process of developing an online portal for importers.

He did not comment on whether the proposed fee will still be imposed.

Consultations are expected to conclude in time for the new rules to go into force by March. — Kyle Aristophere T. Atienza

BIR collects over P4B after ‘ghost receipts’ crackdown

BW FILE PHOTO

MORE THAN P4 billion has been collected from issuers of so-called “ghost receipts,” with further assessments and prosecutions ongoing, the Bureau of Internal Revenue (BIR) said.

“We have collected more than P4 billion for 2024,” BIR Commissioner Romeo D. Lumagui, Jr. told reporters on Thursday from users of such receipts, whose issuers are non-existent corporations, facilitating the evasion of value-added tax.

He said collections are expected to at least double as prosecutions make their way through the courts.

In 2023, the BIR estimated up to P370 billion in foregone revenue due to the use of ghost receipts.

Mr. Lumagui said the challenges include locating violators.

Separately, Mr. Lumagui estimated up to P40 billion in foregone revenue due to the illicit cigarette trade last year.

“Recently, our raid in Bulacan and Valenzuela (resulted in) a criminal case — that’s P8.5 billion,” he said.

On Feb. 24, the BIR is set to destroy all the illicit cigarettes seized nationwide in Porac, Pampanga.

The BIR collected P130.91 billion in tobacco excise taxes in the first 11 months of 2024, well behind the pace needed to hit the year’s target of P185.34 billion. — Aubrey Rose A. Inosante