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Incentives may encourage online sellers to pay taxes, say experts

BW FILE PHOTO

By Luisa Maria Jacinta C. Jocson, Reporter

THE GOVERNMENT should upgrade its tax system and consider offering incentives to improve the collection of taxes from online sellers, experts said.

Froilyn P. Doyaoen-Pagayatan, tax counsel of Gorriceta Africa Cauton & Saavedra law offices, said tax agencies are already equipped with the statutory basis for collecting taxes from online sellers.

“However, there is a need for the taxing authorities to improve their enforcement of the tax rules on online sellers. Our taxing authorities need to upgrade technological facilities and train their people on how to use technology in the collection of taxes,” she said in an e-mail.

The popularity of online businesses, as well as e-commerce platforms like Shopee and Lazada, grew during the pandemic as lockdowns forced people to stay home. As of 2022, the Trade department estimated there are around two million entities doing business as online sellers.

However, not all online sellers pay proper taxes. This has prompted the Bureau of Internal Revenue (BIR) to look for better ways to collect taxes from online sellers.

“Because taxes are the lifeblood of the government and that most business activities are undertaken online these days, it is a matter of government survival that the digital economy is taxed through an efficient tax system,” Ms. Doyaoen-Pagayatan said.

Richard R. Ibarra, tax director at P&A Grant Thornton, said the government should offer incentives in order to encourage online sellers to register and pay taxes.

“If online sellers register, they can be given a deduction, so they are encouraged to comply. Instead of giving out penalties, let’s find a suitable model,” he said in a phone interview.

Mr. Ibarra said that online platforms should also work as agents of the BIR, noting that the withholding tax system would work best to monitor online sellers.

“That way, the government can identify if the online seller is declaring properly. (The platform) can report on transactions. The online sellers would then be scared if they didn’t properly declare taxes,” he said.

The BIR currently has a number of measures and regulations to monitor collections from online platforms and sellers.

Under the Tax Reform for Acceleration and Inclusion Law, taxpayers engaged in e-commerce are required to use the BIR’s Electronic Invoicing/Receipting System. The system allows taxpayers to issue electronic receipts and invoices, which are then transmitted to the BIR.

As early as 2013, the BIR also issued Revenue Memorandum Circular No. 55, which reiterates that those involved in online businesses, including online shopping and online retailing, must still file and pay for taxes.

Under the same circular, persons who conduct business through online transactions must register their business with the BIR, issue registered invoice and receipts for every sale, and withhold required creditable or expanded withholding tax and remit these to the BIR.

Ms. Doyaoen-Pagayatan also said it is important that the Philippines is aligned with the worldwide efforts to improve taxation of online sellers, “otherwise, other countries could limit trade transactions with the country.”

She cited the Base Erosion and Profit Shifting project led by the Organization for Economic Cooperation and Development (OECD). It aims to promote tax planning strategies used by multinational enterprises that exploit gaps and mismatches in tax rules to avoid paying tax.

Under the project, the OECD also launched a framework that aims to address tax challenges arising from the digitalization economies worldwide.

“With some countries lacking the capability or system to tax online sellers, such as the Philippines, online sellers could shift the revenue for such online sales to such countries, like the Philippines, in order to avoid or minimize taxes. In the process, the efforts of other countries to tax online sellers are undermined,” Ms. Doyaoen-Pagayatan said.

She said the BIR should make tax registration and other processes easier for taxpayers.

“Currently, tax registration and compliance, especially, are still difficult and time consuming that it discourages online businesses from registering and complying for tax purposes,” she said.

The BIR has been ramping up its digitalization efforts after it adopted a 10-year digitalization roadmap in 2019. In December, the agency launched its Online Registration and Update System, which allows taxpayers to fully register with the BIR online.

“The tax system needs to be relaxed, especially in filing tax returns. A quarterly or semi-annual system would help boost compliance,” Mr. Ibarra added.

In 2021, the digital economy contributed P1.87 trillion or 9.6% to the Philippines’ gross domestic product.

Maynilad moves to augment summer water supply

By Ashley Erika O. Jose, Reporter

MAYNILAD Water Services, Inc. has started to implement supply augmentation measures to meet the expected surge in demand this summer, a company official said.

“The water level at Angat Dam is still at a healthy level but given the expected El Niño by the latter half of 2023, Maynilad is concerned that there will be less rainfall to replenish the Angat and Ipo dams,” Maynilad Spokesperson Jennifer C. Rufo told BusinessWorld in a Viber message on Sunday.

Maynilad’s supply augmentation measures include the reactivation of deep wells and the commissioning of modular treatment plants. But these measures are only expected to mitigate the impact of a supply shortage if the dams’ water level continues to decline.

The latest available data from the Metropolitan Waterworks and Sewerage System (MWSS) showed that Angat dam is currently at 204.96 meters, higher than the normal operating level of 192 meters, but lower than 212 meters, which is considered the ideal level to provide an adequate safety margin for supply during dry months.

Angat Dam is the main source of water for Metro Manila, accounting for about 90% of the capital’s potable water.

The west-zone water concessionaire said that it is building a new treatment plant that would bring additional supply starting this year, addressing the possible water supply deficit as population growth continues amid a lack of new water sources.

“Maynilad is now building a new water treatment plant in Muntinlupa, which will yield an additional supply of 150 million liters per day (MLD),” Ms. Rufo said, adding that the facility will produce an initial 50 MLD by year-end. She was referring to the Poblacion water treatment plant in Muntinlupa City.

“For the next five years, we plan to build five new water treatment plants, including some that will source raw water from our sewage treatment plants,” she said.

Ms. Rufo said these new water treatment plants will source supply either from new water or used water that will be treated and made potable again.

Maynilad is also planning to source raw water from Kaliwa Dam, which is currently being facilitated by the MWSS.

As of February, MWSS said that the construction of Kaliwa Dam, a crucial dam project that will augment water supply in Metro Manila, is 22% complete. The dam is expected to be completed by the end of 2026, with water supply expected starting in 2027.

MWSS said the Philippine capital’s two water concessionaires, Maynilad and Manila Water Co., Inc., would develop a water treatment plant in Teresa, Rizal once the dam and tunnel are finished.

“That is the latest timeline they have given us so we will construct the necessary treatment plant and conveyance lines to use the expected additional raw water from Kaliwa Dam as it becomes available,” Ms. Rufo said.

Maynilad, a concessionaire of the MWSS, serves the cities of Manila, except portions of San Andres and Sta. Ana. It also operates in Quezon City, Makati, Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas, and Malabon.

It serves the cities of Cavite, Bacoor and Imus, and the towns of Kawit, Noveleta, and Rosario in Cavite province.

Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and 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.

Alternergy, bank fears seen to set tone for IPOs

By Adrian H. Halili

UPCOMING market listings could be influenced by Alternergy Holdings Corp.’s initial public offering (IPO) last Friday along with investor sentiments over the banking crisis abroad, analysts said.

During its market debut, Alternergy shares hit a high of P1.30 per share before closing at P1.28 apiece, unchanged from its set listing price, to raise P1.62 billion.

The renewable energy developer is the first company to hold an IPO this year, offering 1.15 billion in primary common shares with an over-allotment option of 115 million shares.

AP Securities, Inc. Equity Research Analyst Carlos Angelo O. Temporal said in a Viber message that due to circumstances abroad, investors might turn choosy.

“Investors are likely to be selective in the upcoming IPOs, prioritizing growth industries and quick retail plays,” Mr. Temporal said.

He added that investors might prioritize immediate profits to maintain adequate buying power as listed shares are priced at a bargain.

“Cautious sentiments [are] likely to linger due to rising fears of a recession abroad amidst the global banking turmoil. This was confirmed when the [US Federal Reserve] acknowledged the issues and labeled it as a threat to the US economy,” Mr. Temporal said.

Meanwhile, Mercantile Securities Corp. Head Trader Jeff Radley C. See said Alternergy’s performance would set the tone for the next IPOs this year.

In a media briefing on Friday, Alternergy President Gerry P. Magbanua said that the company in for the long run as several projects are slated for completion in the next three to five years.

“We don’t look at it on a day-to-day basis but rather we look at it on a long-term basis because the value of the company is really based on the projects in the next three to five years,” Mr. Magbanua said.

“We hope we could successfully launch all of these projects [within] the timeframe and we’ll see the value of the stock at that point,” he added.

Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said in a Viber message that Alternergy opened below its IPO price as investors were anxious and just wanted to cash out.

“But it did stage a recovery to close flat, back at its IPO price,” he said.

Mr. Arce said Alternergy’s performance was mainly caused by investor sentiments amid issues over global financial stability.

“Though its maiden performance was far from stellar as many would have hoped, there were positives that [Alternergy] gained from its IPO,” Mr. Arce said.

UPCOMING IPOs FOR THE YEAR
Upson International Corp. will be next to hold its IPO on April 3, which could raise up to P1.95 billion for the information technology retailer.

In its final prospectus, the company stated that it plans to sell about 625 million common shares with an over-allotment option of 62.5 million shares. These are priced at P2.40 apiece.

Upson said that it plans to use IPO proceeds to open 250 stores this year within the National Capital Region and key cities in Luzon, Visayas, and Mindanao. Its offer period is slated from March 21 to 27.

Likewise, property developer Ovialand, Inc. has recently submitted for regulatory approval its intention to raise up to P2.22 billion in an IPO to fund ongoing and future real estate projects.

The company stated in a press release that it intends to offer up to 396 million common shares, which include 336 million primary common shares, 24 million secondary common shares, and an over-allotment option of up to 36 million secondary common shares. Its proposed IPO could be offered up to P5.60 per share.

SB Capital Investments Corp. was tapped as the sole issue manager, lead underwriter, and sole book runner for the offering.

Additionally, Razon-led Prime Infrastructure Capital, Inc announced its intention to launch its IPO this year after postponements last year, Reuters reported.

It plans to offer up to 1.93 billion shares, which include an over-allotment option, priced at up to P14.60 per share.

The proposed offering could bring P27.72 billion in proceeds, which the company can use to finance its energy, water, and sustainable fuels businesses.

Bounty Agro Ventures, Inc. has also stated its intention to list later this year to raise up to $400 million to $500 million, Bloomberg reported.

Meanwhile, Citicore Renewable Energy Corp. stated in February that it was also planning to go public this year to fund $4 billion in solar power projects over the next five years.

Earlier in the year, the Philippine Stock Exchange said that it was targeting 14 IPOs this year, 11 of which are said to be companies and real estate investment trusts or REITs that will list on the main board and three on the small, medium, and emerging board.

Philippine wedding proposal company offers new helicopter package

M PROPOSALS MANILA

FILIPINO men are romantic, a trait that makes M Proposals Manila’s services a perfect match when they propose to their perfect matches. And to help keep the romance going, the company that specializes in providing services for wedding proposals, has added two new packages to its lineup this month: Proposal in a Box and Proposal in the Sky.

The Proposal in a Box is a ready-to-go package that allows the client to propose at any time and any location. It includes a bottle of sparkling wine, a box for the engagement ring (to be clear, the customer has to provide the ring), and guidelines for the actual proposal.

Meanwhile, the Proposal in the Sky option offers a 30-minute helicopter ride around Metro Manila, with rates starting at P80,000. A “Will You Marry Me” banner awaits the couple returning from the ride, with an option to use the helicopter hangar for a photo shoot.

The company’s most popular package among Filipinos, thus far, is the Private Cinema Proposal, which features a video about the client’s love story that is shown on a movie screen.

FILIPINOS ARE ROMANTICS
Based on the work she’s done helping them with their wedding proposals, Filipino men are romantic, said the company’s founder, Carmela Denise A. Alcordo. “Even those on a budget tend to really make an effort to make the proposal special,” she said.

“They don’t do it to show off,” she said in a March 23 phone call. “Most of my clients say, ‘Let’s be private.’”

The Philippine-based company also does customized proposals.

“The company’s signature process involves a virtual heart-to-heart conversation, asking signature questions, and curating a proposal idea that perfectly matches their relationship’s dynamic,” Ms. Alcordo said in an e-mail to BusinessWorld.

She founded the proposal planning company in 2017 when she noticed that “a lot of men are in need of help with their proposals.”

“They don’t know how to start. Discovering me is like a lightbulb moment to them. The spark in their faces [as they talk about their ideas] never gets old,” she said.

“I saw the niche, grabbed the opportunity, and the rest is history,” she told BusinessWorld.

M Proposals Manila thrived during the pandemic because most clients preferred intimate experiences anyway, Ms. Alcordo said.

“The company has evolved its services to cater to clients’ needs during the pandemic…,” she added. “During the pandemic and until now, we only do virtual meetings.”

Preliminary data from October 2022 showed that there were 286,555 registered marriages in the Philippines between January to September 2022.

In 2021, 356,839 marriages were registered in the country, an increase of 48.2% from the previous year, per the Philippine Statistics Authority. — Patricia Mirasol

CTA sets aside MRT operator’s P9.7-B taxes

CTA.JUDICIARY.GOV.PH

THE Court of Tax Appeals (CTA) has granted Metro Rail Transit Corp.’s (MRTC) refund claim worth P9.69 billion allegedly representing its deficiency taxes for the fiscal year 2012.

In a 16-page decision on March 23, the CTA Special Third Division said the tax agents that audited the firm were not authorized through a letter of authority (LoA).

“An LoA is a jurisdictional requirement of a valid audit and therefore a valid assessment,” according to the ruling penned by Associate Justice Maria Rowena Modesto-San Pedro.

“The resulting tax assessments are consequently null and void and the same bears no valid fruit.”

The Bureau of Internal Revenue’s (BIR) assessment covered MRTC’s alleged deficiencies of income tax, improperly accumulated earnings tax, expanded withholding tax, withholding tax on compensation, and documentary stamp tax inclusive of interests and penalties.

The petitioner is the firm tasked to build, lease, and maintain the Metro Rail Transit Line 3 (MRT-3). It also has an agreement with the Department of Transportation to manage phase 1 of the Light Rail Transit System (LRT) Line 3.

Under the country’s revenue code, only the commissioner of internal revenue (CIR) or his duly authorized representative may authorize an examination of a taxpayer’s tax liabilities. Revenue officers can only conduct audits and assessments through an LoA issued by the CIR.

Citing Supreme Court jurisprudence, the CTA said an LoA must be issued to afford taxpayers due process during the assessment process.

It said the revenue officers that conducted the audit were only authorized through a memorandum of assignment, which the court said is not a substitute for an LoA.

“To reiterate, the absence of an LoA is fatal to the validity of the respondent’s (CIR) deficiency assessment against the petitioner (MRTC) and the memorandum of assignment issued to the petitioner is not equivalent to an LoA,” the tribunal said.

“Being a void assessment, no valid fruit can be derived therefrom.” — John Victor D. Ordoñez

Revenge traveling? Don’t forget your skincare!

By Zsarlene B. Chua

Beauty Review
Hello Glow Ultralight Matte Sunscreen SPF 30 PA+++
Hello Glow 3-in-1 Lifting Serum

MANY people are saying that after having been stuck indoors for the last three years of lockdowns, 2023 is the year of revenge travel with more and more people going out and exploring the new spots or coming back to old favorites.

When we talk about planning vacations, the budget, destinations, and time comes to mind. But while this writer is by no means a travel expert, one of the things I’ve learned in my own adventures is it’s also important to pack your skincare products with you, because skin and sun damage can happen even when you’re having fun.

So, for those who are looking for convenient, budget-friendly, and travel-friendly skincare products, here are a couple of recommendations.

(NOTE: My skin is normal to dry.)

HELLO GLOW ULTRALIGHT MATTE SUNSCREEN SPF 30 PA+++ (P300/50G)
Hello Glow is a local skincare brand from the Ever Bilena Cosmetics company. The brand claims to have “clean beauty” products — the term is used to describe cosmetics and skincare products that are free from potentially harmful chemicals like parabens, phthalates, sulfates, and synthetic fragrances.

One of the products from their line that I’ve tried is their Ultralight Matte Sunscreen that contains Centella Asiatica (to calm and soothe the skin), Hexylresorcinol (a brightening product), Niacinamide (an anti-aging agent), and ceramides (which help in restoring the skin barrier), as its active ingredients. Plus, for the oily to combination skin girls out there, it’s also mattifying and has oil control properties.

There are a lot of sunscreen brands out there but what caught my eye was its packaging — it comes in a sachet with a twist top. While this makes it incredibly convenient to tote around in one’s toiletry bag or handbag for reapplication, it does bother me a bit that I’m using a sachet, though I could reason that it’s not single use and therefore less harmful to the environment.

But do I like it for more beyond its convenience? Yes — it’s a sunscreen gel so I don’t get that white cast I get from other sunscreens. But it is SPF30 which isn’t usually enough protection for me. Luckily, Hello Glow has another sunscreen with SPF50 and which has hyaluronic acid as one of its active ingredients, but I haven’t tried it yet.

I also like how the back of the product lists the ingredients prominently, which is great for people who are particular about the ingredients in their skincare products or someone who is just starting out on their skincare journey. Will I be a repeat user? Maybe, but I guess I’ll try the SPF50 version once I’m done with my current sachet.

HELLO GLOW 3-IN-1 LIFTING SERUM (P160/20G)
Hello Glow is apparently really fond of putting skincare products in sachets and their 3-in-1 Lifting Serum is no different. As mentioned before, I’m not that bothered by the packaging because it’s not technically single-use but I understand some people may not feel as I do.

Again, the beauty of this packaging is that it’s handy and convenient. Both the sunscreen and serum became mainstays in my own travel toiletry bag and I do enjoy using them.

The serum contains Seaberry Extract, Apple Extract, and Pomegranate Extract that are said to “instantly tighten the face while hydrating it for a more youthful and glowing skin. The product is also said to help improve fine lines and wrinkles. All of this information is indicated in the packaging, which is really helpful.

Now, since it’s a “clean” beauty product, the serum does not have any fragrance (neither does the sunscreen) which I appreciate as I find myself drawn to non-fragranced products more and more.

Since I’m nearing 30, anti-aging has become a priority for me and this 3-in-1 serum promises a lot of the things I’m looking for. I’m currently on my second sachet, with each sachet lasting for about a month when used once daily (though the product recommendation is using it twice daily).

In the past two months that I’ve used this serum, I have not broken out and do see a little bit more glow in my skin. It’s also incredibly lightweight, making it perfect for those don’t like heavier formulations. With its affordable price, it’s a good option for those starting out on their skincare journey or for those who are looking for effective, budget-friendly serums.

Will I use it again? I am using it right now and I do enjoy the experience since it’s quickly absorbed and has prevented major breakouts which I usually experience during my travels.

I was in Tagaytay a month ago, and the cold, the wind, and overall dry air usually wreaks havoc on my skin. I’d normally get dry spots, pimples, and wind burn. But I do feel that by using this serum, a good moisturizer, and sunscreen, I was able to return from that trip with my skin unscathed. I was thankful for that.

Hello Glow is available in Shopee, Lazada, and Watsons Stores.

 

Zsarlene B. Chua is a former BusinessWorld lifestyle reporter who is now in the public relations industry. She has no clients in the beauty industry.

EV6 and you shall find the value in electric?

The Kia EV6 GT Line has a claimed range exceeding 500 kilometers on a full charge. — PHOTO BY KAP MACEDA AGUILA

Ayala-led Kia PHL certainly thinks so, and points to the conglomerate’s aligned efforts to make the shift to electric easier

THE ELECTRIC VEHICLE (EV) floodgates have veritably opened locally. The trickle of EVs of models previously available in the Philippine market has swelled into a stream of releases across many brands. In some cases, new players are jumping straight to EV — foregoing the generally more accepted hybrid format that still employs the traditional internal combustion engine (ICE), albeit in a reduced capacity.

That’s the case with Kia Philippines, which now formally joins the ranks of the electrified marques here with the formal launch of the Kia EV6 last week. Motoring media got to test the good-looking crossover (yes, it’s actually billed as one) earlier in the year, and we also now know the cost of the electric vehicle.

The asking price of P3.788 million, which already factors in government relief in terms of duties and such, also comes with a five-year/160,000-km warranty for the vehicle, eight-year warranty on the battery system, five years of free preventive maintenance service, and five years of free 24/7 roadside assistance.

What you get is a 4.695-meter-long five-seater, motivated by a 77-kWh lithium-ion-battery-powered permanent magnet synchronous motor putting out 229ps and 350Nm. Kia reports that its range is an Environmental Protection-Agency-confirmed 528 kilometers per full charge for the rear-wheel-driven variant. You can use the supplied 11-kW AC charger to juice up the EV6 overnight via a Type 2 port — getting from 10% to 100% in seven hours, 20 minutes. Using DC, the 10%-80% job gets done in 73 minutes (via 50-kW charger), and a mere 18 minutes using a 350-kW charger. And Kia boasts that the EV6 has a V2L (vehicle-to-load) capability — allowing it supply up to 3.6kW of power. A huge coffee machine was incessantly serving up espresso-based drinks as it was hooked up to an EV6 at the Makati venue of the launch. You can put the vehicle to use as an auxiliary power supply during power outages or during camping trips.

In an exclusive interview with “Velocity,” AC Motors Automobile Group President Antonio “Toti” Zara III said that Kia Philippines opted to bring in the 4×2, and not the 4×4, precisely for its long range. “You’ll need to charge maybe only once a week. I live in Alabang and I hold office in BGC. I’d travel maybe 50 kilometers in a day. I charge it at home Saturdays using a 7-kW charger; I don’t have anxiety about the range,” he reported. “We know that there’s range anxiety (for people looking at EVs). Ayala is also building charging infrastructure, and that’s very strategic.”

Kia Philippines said that the battery system is situated low to the ground and on the floor, and is enclosed and “resistant to large water splashes.” Its casing also earns an IPP6 international rating — a rating usually used for “electrical enclosures with plastic hinges and waterproof gaskets.” To further assuage concerns amid flooding, the EV6 also gets a water-sensing system — which will automatically shut the system off “in the unlikely event of water intrusion.”

“It is truly our honor to introduce this latest innovation by Kia: A sustainable car with zero emissions, and a step toward Kia’s ambitious yet important transition into a future mobility solutions brand,” said Kia Philippines President Manny Aligada. “Our one true message to the public aims to open their eyes to the reality and potential of fully electric vehicles, and that Kia Philippines is here to make EV ownership convenient, worry-free, and enjoyable.”

To this point, Ayala Corp. President and CEO Bong Consing explained in his speech at the launch, “It’s consistent with everything we’re trying to achieve in the area of climate change and sustainability. We believe our ecosystem is built to launch and distribute electric cars. We manufacture the chargers (through) IMI (Integrated Micro-Electronics, Inc.), we place the charging stations in our commercial and residential estates around the country through Ayala Land. Then we sell electric vehicles via Kia, and we’re prepared to finance them via BPI. There are very few groups that can push electric vehicles the way we are pushing them.”

The executive emphasized, “We are committed to help decarbonize the Philippines.”

For Kia Philippines, the EV6 now encapsulates its part in the vision of the Ayala Group. It is the first car based on the Korean company’s “dedicated new platform for battery electric vehicles (BEVs),” and it comes with a portfolio of international recognitions including the 2022 iF Design Award, 2022 Red Dot Award, 2022 European Car of the Year, and US Car of the Year.

The commitment to being a “green” vehicle extends to the choice of materials used within. The EV6 seats are covered in vegan leather, while the interior panels are made from recycled PET (polyethylene terephthalate). With a 2,900-mm wheelbase, the EV6 is said to approximate the cabin space of midsize SUVs.

Nonetheless, its squat profile suggests a sportier vehicle, akin to a fastback. It’s designed to be “modern, sleek, and aerodynamic,” said Kia, and lower coefficient of drag also ultimately aids in achieving the longer range. The EV6 can get from a standstill to 100kph in 7.3 seconds in Sport mode.

The EV6 has been given a five-star rating by the Euro NCAP, and its suite of safety features include Forward Collision-Avoidance Assist with Junction Turning Detection, Blind Spot Detection and Monitor, Rear Cross-Traffic Collision-Avoidance Assist, Lane Keeping and Following Assist Technology, Smart Cruise Control with Stop and Go, Safe Exit Assist, and 360-View Monitor.

And just like other electric vehicles, the EV6 has fewer moving parts compared to its internal combustion engine (ICE)-powered counterparts. Owners don’t have to worry about changing oil, other lubricants, and oil filters. The result? Expect “to spend about P25,000 for five years in maintaining an EV6, versus P110,000 maintenance for a similar-sized ICE car over five years,” stated Kia.

The EV6 — available in five color options: Moonscape, Snow White Pearl, Runway Red, Yacht Blue, and Aurora Black Pearl — will roll out “eventually” to all 42 Kia dealers nationwide. If you’re looking to get yours now, head on over to Kia New Manila in Quezon City, Kia Alabang in Muntinlupa, Kia Sto. Tomas in Batangas, South Luzon, and Kia Pampanga in North Luzon.

For more information, visit kia.com, follow Kia Philippines on Facebook and Instagram, and subscribe to its YouTube channel.

“This is not going to be the last EV release. This is only the beginning. There’s going to be an EV race. We’re joining that race, and this is just the tip of the iceberg for Kia and Ayala,” concluded Mr. Zara with a smile.

RLC expects to maintain take-up of residences

Robinsons Land Corp. (RLC) is expecting this year’s take-up of residential units to be as strong as last year’s record despite geopolitical risks and interest rate hikes.

“Last year was actually a record year for Robinsons Land, just speaking for the Residences, it was our highest take-up ever in history. This speaks well about the reopening of the economy, the confidence of people not just in the company but in the industry as a whole,” said John Richard B. Sotelo, senior vice-president and business unit general manager of RLC Residences, said in a media briefing last week.

“We expect it, cautiously, to be as strong this year. Obviously, there are some risks and headwinds, geopolitical risks and interest rates going up, but I think at the basic level the demand is still there,” he added.

Mr. Sotelo said developers working with the government also helped in securing the growth of the property market along with the move by its partners to take a “slow and responsible approach to not overbuild in certain areas, diversify, and go across all spectrums.”

Meanwhile, Mr. Sotelo said he expects the effect of rising interest rates to be felt more in the second half of 2023.

“So far, we are not seeing the full impact of rising interest rates yet, I’m sure we will feel it maybe in the second half of the year but not enough, I believe, that would drastically slow down the market,” he added.

According to Mr. Sotelo, the slowdown resulting from the rise in interest rates might be offset by market demand and the sector’s strength.

“But currently with what has been happening, we don’t think it’s going to substantially impact,” he said.

However, he added property companies would need to manage their portfolio and spending as expenses continue to go up.

Meanwhile, Mr. Sotelo said RLC Residences would continue building up its core market as it tries to have more offerings in other segments.

“Obviously, we are seeing faster growth in certain segments. One of them would be the premium luxury segment and we are trying to have offerings at that level but we will continue to build our core, so we will continue to have offerings at the mid to mid-high segments,” he said.

Mid to mid-high segments consist of product offerings with price points starting from P5 million, said Mr. Sotelo. — Justine Irish D. Tabile

Style (03/27/23)

COS launches white T-shirt capsule collection

COS revisits the iconic white T-shirt with details from the atelier and more sustainably sourced materials. Presenting a nine-piece capsule, the brand explores the elements that form the foundations of the perfect tee, reinventing them through refined design details and distorted garment construction — pleating, deconstructing, and decorating. Focusing on contemporary silhouettes and ergonomic fits, a crew-neck style is crafted from smooth organic cotton-jersey, its oversized shape accentuated by drop-shoulders and elbow length sleeves. Versatile and ideal for layering or wearing solo, a signature shrunken-fit, ribbed-neck T-shirt remains a cornerstone of COS’ collections, while relaxed silhouettes are effortlessly understated. This season COS introduces Circulose, a material recycled from discarded textiles in a process powered by 100% renewable energy. A Circulose blend is used in four of the capsule collection’s T-shirt designs including a cropped silhouette, an oversized style with a functional pocket detail, and a classic tee with a tie-back that offers a more personalized fit. Available in additional colors, the COS White T-shirt collection will be in-store and online at cos.com throughout the Spring/Summer season.

Uniqlo celebrates Women’s Month

IN CELEBRATION of International Women’s Month, Japanese global apparel retailer Uniqlo launched LifeWear for Her, which focuses on supporting women through comfortable innerwear fit for any age, size, and lifestyle. This includes making the complete LifeWear for Her lineup available in all Uniqlo stores nationwide and an exclusive event on March 29 at the UNIQLO Manila Flagship Store. Among the items in the LifeWear for Her lineup are the AIRism Absorbent Sanitary Shorts (P790) which are lightweight, comfortable, and can absorb up to 20 ml of moisture quickly, plus the crotch panel has two wings for use with sanitary napkins; and Uniqlo’s original 3D Hold Wireless Bra (P1,290) which is now available in more cup sizes for an improved fit. Meanwhile, the Making Herstory with LifeWear event is an exclusive intimate gathering where women can come together to speak their minds, empower one another, and forge new connections and friendships. Customers interested in attending the event can check out the Uniqlo Facebook page (facebook.com/uniqlo.ph) and look for the Making Herstory with LifeWear post to know more.

Neutrogena’s new and improved Hydro Boost Water Gel

WITH the coming of summer, it’s time to reset skincare regimens by adopting lightweight, yet potent and hydrating products to protect skin from dryness, aging, and sun damage. With this in mind, Neutrogena has released its new and improved Hydro Boost range. Tested by dermatologists, Neutrogena’s Hydro Boost product range is a cult favorite all over the world. The full range is formulated with hyaluronic acid that hydrates the skin to combat the dryness brought by external aggressors like summer heat. This year, the beauty brand is introducing its new generation of the Neutrogena Hydro Boost Water Gel, a lightweight moisturizer packed with hyaluronic acid. Suitable for daily use, this lightweight moisturizer boosts the skin’s hydration and helps retain moisture. Its formulation is packed with 20% more hyaluronic acid (vs. previous formulation) that gives five times more hydration. The new Hydro Boost Water Gel comes in two sizes — 15 ml and 50 ml that retails for P356 and P1,012 respectively. Before heading out in the sun, apply Neutrogena Ultrasheer Dry Touch SPF50 after the Hydro Boost Water Gel for UVA and UVB protection. It is a non-greasy sunscreen that offers broad protection from the sun. The products are available at Watson’s stores and online at Neutrogena’s official Shopee or Lazada stores.

Ito Kish, Rajo Laurel collaborate on homeware

BONDED by their love to create, couturier Rajo Laurel announced a collaboration with renowned interior designer Ito Kish for the “Ito Kish x Rajo Laurel Collaboration series 2023-24,” a tablescape exclusives that make for beautiful dining settings. The collection is now available in store and online at ITOKISH.com.

Ever Bilena holds 40th anniversary sale

THIS year, Ever Bilena, the affordable cosmetics brand, is celebrating its 40-year milestone in a big way with the Ever Bilena Anniversary Sale promo which is ongoing until March 31. The sale is being held at all SM Beauty Department Store, and Watsons outlets nationwide. With the promo, when a customer buys an Ever Bilena makeup product at a regular price, they will get their second item for only P40. Meanwhile, Ever Bilena also has promo offers on Lazada, Shopee, and TikTok with products on sale for 40% off.

‘Now is the time to start transitioning’

AC Motors President for Automobiles Antonio ‘Toti’ Zara III — PHOTO FROM AC MOTORS

AC Motors Automobile Group President Antonio ‘Toti’ Zara III predicts a big jump in EV ownership

Interview by Kap Maceda Aguila

VELOCITY: What sort of external factors did you see in the local context that gave you the confidence to release your first EV here?

TOTI ZARA: We’re more than ready. What stimulated it was the approval of President Marcos of the zero tariff on electric vehicles. But even before, we originally had an advantage because under the free-trade agreement, we were able to bring this in at five percent. That’s why prior to the Philippine International Motor Show (last Sept. 5) we were saying it would be less than P4 million. Others were bringing it at 30%.

Weren’t you concerned about the dollar exchange rate then?

We were concerned but with the signing, we have been able to lower the pricing even more than we originally expected. Why now? This signing of President Marcos will trigger an EV race, and it will stimulate EV demand. Ayala as a group is fast expanding its EV ecosystem.

The group has a 2050 vision right?

Yes, that we’ll be carbon net zero by 2050. It’s inevitable that we transform not only our organization, but our products as part of the auto industry. We have no choice. Thailand has declared that its industry will be comprised of 50% EVs by 2030, Indonesia one million EVs by 2030, Korea, three million EVs by 2030, China 100% EVs by 2035. All our neighbors are going into EVs, and we’re more than 80% CBU. Even our CKDs are from these countries. We have no choice.

Now is the time to really start transitioning, and it will trigger this buildup in the ecosystem. In our studies, the total cost of ownership of the cheapest EV prior to the January signing of President Marcos was about P3 million over five years, including maintenance and energy cost. The equivalent cost of the cheapest, most popular (ICE-powered) sedan is about P2.5 million.

With the 30% waiver on import duty, the total cost of ownership swings. The cost of ownership goes down to P2.5 million.

So you’re saying there’s parity now?

There is. Before, it was 20% more expensive. Now that you have a 30% duty waiver, it swings the total cost. It’s now our job as car brands to market that proposition — and I think it’s easy to market. Here’s more: We studied private ownership. Imagine if it’s a public utility vehicle whose milage is 10 times higher. Can you imagine the impact to total cost of ownership? Never mind that — to emissions as well. It will be 10 times more environment-friendly compared to a private-use EV.

While pure EVs are possibly the end-goal of all brands, some are going the hybrid route first. At its present state, of course, our charging infrastructure in the country leaves much to be desired. Therefore, some are saying that the more realistic products to put out there would be hybrids. Kia is going straight to electric. What are you seeing on the ground aside from the incentives available for EVs? Are we ready to make that jump straight to EVs?

Two things. We’re not discounting HEVs (hybrid electric vehicles). We haven’t made announcements just yet but Kia, as a global company, has announced (the targeted sales) of two million eco-friendly vehicles (a year by 2030). Of these, 1.2 million will be BEVs. We’ll be playing in the HEV segment, and you can already see that in other markets. We have that option, and that’s a card we’d like to play at the right time.

Can we say that the arrival of Kia HEVs into the country is imminent?

I wouldn’t use the word “imminent.” We cannot define the global strategy of Kia. Are we asking our customers to jump to EV? I think that as a technology leader, we want to make a statement. The EV6 is about the new essence of the Kia brand. Kia is no longer the value proposition Filipinos used to know. The spirit of the EV6 is in every Kia that we sell.

MIAA readies next phase of terminal assignments

THE Manila International Airport Authority (MIAA)will begin the second phase of its schedule and terminal assignment rationalization (STAR) program in April as part of its plan to make Terminal 2 of Ninoy Aquino International Airport an all-domestic facility.

“With this move, we expect a significant increase in Terminal 2’s capacity from 7.5 million to 10 million passengers a year — 20% to 25% more than its current rate,” said MIAA General Manager Cesar M. Chiong.

Under the program, all international flights will be reassigned to Terminals 1 and 3, which have a wider selection of food and retail stores for duty-free shopping.

The MIAA expects the program to improve its manpower deployment in Terminals 1 and 3 which will allow the regulator to assist the customs, immigration, and quarantine offices.

Starting April 16, Jetstar Japan, Jetstar Asia, Scoot, China Southern Airlines, and Starlux Airlines will be transferred to Terminal 3.

Philippine Airlines to and from Singapore, Ho Chi Minh, Hanoi, and Phnom Penh will be moved to Terminal 1 starting April 16, while all of its international flights are expected to be moved to Terminal 1 by June 16.

On June 1, flights of Ethiopian Airlines and Jeju Air will be transferred to Terminal 3.

“While the MIAA works on further expanding the capacity of Terminal 2, domestic operations of Cebu Pacific will remain in Terminals 3 and 4 for the meantime,” the MIAA said.

The third phase of the program will cover the transfer of all domestic flights of AirAsia Philippines to Terminal 2 starting July 1.

“The STAR program is a well-studied undertaking. We met with affected airlines and stakeholders to make sure they come up with their readiness plan as part of these changes. We advised them to get in touch with their affected passengers so they can inform them of the new terminal assignments,” said Mr. Chiong.

The MIAA is requesting the passengers’ understanding of the minor inconveniences they may encounter during the transition even as it plans to make it seamless. — Justine Irish D. Tabile

Looming El Niño highlights need for additional support to irrigation

DEPARTMENT OF AGRICULTURE HANDOUT

By Patricia B. Mirasol, Reporter

AGRICULTURE officials said the expected El Niño will require the government to step in with more support for irrigation.

The Department of Agriculture’s (DA) Field Programs Operational Planning Division cited in a March 16 statement “an increased likelihood” of a transition to El Niño in the July-September period.

El Niño is a climate pattern caused by the unusual warming of surface waters in the eastern tropical Pacific Ocean. The resulting dry spell occurs at irregular intervals every two to seven years.

WATER MANAGEMENT
Preparing for El Niño requires a long-term approach, according to Elias Jose M. Inciong, president of the United Broiler Raisers Association, which consists of small- and medium-scale poultry producers.

“You can’t solve it when it’s already there,” he said via Viber. The government has to provide funding for wells, especially for farmers that rely on river water, he added.

“Kasi kung ang river ay tuyo na or mababa na ang tubig (If the river has gone dry), you cannot pump water from it,” he said.

Elpidio B. Flores, a farmer from Mangatarem, Pangasinan, said that while the government funds irrigation, not everyone is given support.

“Nagbibigay sila sa ibang bayan. Dito sa amin wala e (They give irrigation support to some towns, but not to ours),” he said by phone.

“Malayo sa ilog lugar namin (Our town is far from the river),” he said.

“Sa 100 na nagsasaka dito, 40 lang ang nagtatanim (For every hundred farmers in our area, only 40 plant in the dry season),” Mr. Flores added. “’Yung 60 naghihintay ng tag-ulan (The other 60 wait for the rainy season).”

Roy S. Kempis, a retired Pampanga State Agricultural University professor, said the situation calls for a robust law on water rights.

“The DA and NIA (National Irrigation Administration) should consider it,” he said.

Such a law should serve to grant equal access to water for “farms and farmers far from the source of irrigation water, channeled from dams,” he said via Viber.

He said such laws and regulations should have teeth to deter those who would divert irrigation water away from rightful users.

Both Mr. Kempis and Mr. Inciong called for more water infrastructure.

“(These) dam and canal distributions will be for potable and irrigation water consistent with environmental concerns and the greater good (and) not just (to satisfy) a few noisy and belligerent activists or advocates,” Mr. Kempis said.

He added that the construction of these new water sources should be pursued rationally with “national and international funding.”

Mr. Inciong called for urban residents to harvest rainwater and use the stored water for non-drinking requirements like washing cars. This relieves the pressure to supply dam water to urban centers.

“What’s been happening in the past several years is that farmers give way to urban populations,” he told BusinessWorld. “Hindi na lang sila magtatanim (They choose not to plant).”

More water is needed for urban centers, so dams like Magat and Angat can be utilized for irrigation, he added.

PREPARATION MEASURES
In the poultry industry, Mr. Inciong said, one of the ways farmers prepare for El Niño is to tap deep wells, which he called the first redundancy.

 “If your generator sets are down, you rely on that,” he added. “Water storage should be good for one to two days, so in case of repairs, you should be okay.”

Mr. Flores, the Pangasinan farmer, said he hopes for government assistance in the form of fuel subsidies.

“Wala kaming gaanong kakayahan bumili ng krudo para sa makina… Madaliang lunas ang krudo. (We don’t have the means to buy diesel fuel for our machines. Diesel is the immediate solution),” he said.

Fuel subsidies, he told BusinessWorld, should be in place to help farmers in time for the expected rains in May.

In March 2022, the DA rolled out a P500-million fuel discount program for farmers and fisherfolk.

Mr. Flores hopes to wean himself from reliance on diesel-fueled equipment by having access to solar pumps.

“Kailangan ng solar pumps. Kung may financing sana ng gobyerno sa solar, kahit hulug-hulugan namin (We need solar pumps. If the government had a financing program, we’d be willing to pay by installment),” Mr. Flores added.

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