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Durian growers see top-5 export potential for their crop

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DURIAN has the potential to become a top-five food export for the Philippines, growers said, as the industry undertakes preparations to supply the China trade.

Emmanuel Belviz, president of the Durian Industry Association of Davao City, said that the group is working with the Department of Agriculture (DA) in laying the groundwork for the China export trade, including the preparation of documents and safety protocols.

“I think the Philippines has huge potential in the export market, especially with our Puyat and Duyaya varieties,” he said.

He added that durian could be “one of the country’s top export products in the next five years.”

The Philippines and China sealed an agreement for the export to the mainland of at least 54,000 metric tons of fresh durian, according to the DA.

Mr. Belviz said that the DA should provide more training for farmers to learn how to produce globally competitive durian fruit.

“We need to produce better durian fruit and (improve) food safety, as there are many certifications needed. I hope the association, together with the DA, can help farmers reach that market,” he said.

John Tan, chief executive officer of Eng Seng Food Products, said his company has a target to export 300-500 container vans of durian of the Puyat, Duyaya, and D101 varieties.

According to the DA, its regional field office in Davao is working on a five-year development plan aiming to strengthen technical support, provide inputs such as fertilizer, pesticide, and post-harvest facilities.

Federation of Free Farmers National Manager Raul Q. Montemayor said much needs to be done to improve the durian industry’s competitiveness.

“A lot of things have to be done from production to marketing. We also face competition from Thailand, Vietnam, maybe Indonesia and Malaysia, too. Can we compete? They are ahead of us,” he told BusinessWorld in a Viber message.

He said the Philippines needs to study the long-term prospects for the durian market and prepare for adverse conditions like a possible glut.

The current annual harvest volume of durian is about 75,000 tons, suggesting that the export target could take more than two-thirds of the crop out of the domestic market, he said.

According to Mr. Montemayor, the farmgate price of durian in Davao was P60 per kilo. It retails for about P90 per kilo.

He warned of scenarios like more expensive durian or the reservation of the best-quality durian for the China market.

The farmgate price is expected to fall to P20-P25 per kilo at the peak of the harvest season starting July. — Sheldeen Joy Talavera

Plastics industry seeks review to correct tariff ‘distortions’

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THE plastics industry said it wants a review to correct tariff “distortions” which render it uncompetitive against foreign-made finished products, which pay zero tariffs.

Aaron Timothy Lao, Philippine Plastic Industry Association, Inc. (PPIA) president, said during a Tariff Commission (TC) virtual hearing on Wednesday that the distortions are hindering domestic manufacturers of plastics, preventing them from engaging in local manufacturing because of the tariffs on their imported raw materials.

The PPIA represents small- and medium-sized plastics and plastic product manufacturers.

“We have always encountered the tariff distortion because finished products… are imported at zero duty,” he said, noting that imported raw materials pay 10% duty, Mr. Lao said.

“The industry is suffering (and prevented from) creating jobs and paying taxes to the government,” he added.

Correcting the distortion could serve as a first step in making the industry export-ready, Mr. Lao said.

The hearing on Wednesday is the second of the five to be conducted by the TC in the course of the comprehensive tariff review program (CTRP) for the most-favored nation (MFN) tariff schedule between 2024 and 2028, in compliance with Republic Act No. 10863, or the Customs Modernization and Tariff Act.

The second hearing covers the tariffs on chemicals and chemical products.

Association of Petrochemical Manufacturers of the Philippines Executive Director Homer Maranan also urged the TC to act on the multiple tariff lines for linear low-density polyethylene (LLDPE) imports.

“Because of the multiple lines, there are lines (charged) 10%, other lines 3%. We believe that this presents a loophole where imports can avail of the lower tariff rate, although they are technically the same products as the LLDPE imported at 10%,” Mr. Maranan said.

The TC said it plans to merge some tariff lines for chemicals and chemical products to simplify the nomenclature and facilitate customs implementation.

The next hearing of the TC is on March 24 covering textile, paper, and leather products.

The CTRP is conducted every five years to adjust the MFN tariff schedule. — Revin Mikhael D. Ochave

ELSE you are not forgotten

Less than a week after the mass “transfer” of Information Technology-business process management firms from the Philippine Economic Zone Authority (PEZA) to the Board of Investments (BoI), following the expiry of the application period on Jan. 31), the BoI and the Bureau of Internal Revenue (BIR) issued circulars to clarify that Ecozone Logistics Service Enterprises (ELSEs) are to be included in the new Strategic Investment Priority Plan (SIPP) but may also be classified as Export Enterprises. This turn of events was brought about by the diligent efforts of PEZA to actively lobby for the industry’s inclusion with the BoI and Fiscal Incentives Review Board (FIRB).

WHAT DO ELSEs DO EXACTLY?
As defined under Revenue Memorandum Circular (RMC) No. 24-2023, an ELSE is a registered business enterprise supplying production-related raw materials and equipment catering exclusively to the requirements of ecozone locators. They provide critical support particularly to export manufacturing companies with their requirements for logistics to facilitate their import and export shipments, sourcing of raw materials, inventory management, just-in-time delivery, localization and process customization.

Prior to the effectivity of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, Ecozones and Freeport zones were, by legal fiction regarded as foreign territory. Thus, following the “cross-border doctrine,” the sale of goods and services by a VAT-registered seller to registered enterprises in these ecozones and freeports were treated as constructive exports subject to zero-percent VAT.

With the passage of CREATE, the VAT exemption on imports and VAT zero rating on local purchases were limited to only: (1) those goods and services directly attributable to and exclusively used in the registered activity of the enterprise; and (2) those goods and services sold to entities that are registered “export enterprises.”

As defined under the Implementing Rules and Regulations of CREATE, an export enterprise refers to any individual, partnership, corporation, Philippine branch of a foreign corporation, or other entity organized and existing under Philippine laws, and registered with an incentive promotion agency to engage in manufacturing, assembling or processing activity, and services such as information technology (IT) and business process outsourcing (BPO), and resulting in the direct export and/or sale of its manufactured, assembled or processed product or IT/BPO services to another registered export enterprise that will form part of the final export product or export service of the latter, of at least 70% of its total production or output.

From the definition, there is nothing which would indicate that ELSEs may also be classified as export enterprises. Thus, although the majority of services rendered by ELSE are provided to export enterprises, they are unable to avail of the VAT zero rating incentive on their local purchases of goods and services. This would have a big impact not only in terms of their cash flow (input VAT on purchases) but also may increase the price of their services. They may also suffer the burden of the administrative costs of filing for an eventual VAT refund with the tax authorities since services rendered by ELSEs to PEZA operators will likewise be VAT zero-rated.

BOI: ‘WE HEARD YOU!’
Given the relentless efforts of PEZA to file position papers with the BoI and the FIRB, the BoI issued Memorandum Circular No. 2023-001 to clarify that Logistics services (warehousing, inventory management and transport of goods except mere trucking and forwarding services) indeed qualify as “activities in support of exporters” under the 2022 SIPP, and thus, are entitled to the VAT zero rating incentive.

In line with the BoI Memorandum Circular, the BIR also issued RMC No. 24-2023 to provide further guidance on the eligibility of ELSEs to utilize the VAT zero rating incentive. For easy reference, I have enumerated some of the key points as follows:

1. To qualify as an export enterprise, at least 70% of the ELSE’s output/services should be provided to another registered export enterprise.

2. Qualified ELSEs should be undertaking both of the following:

a. Establishment of a warehouse storage facility; and

b. Importation or procurement from local sources and/or from other registered enterprises of goods for resale, or for packing/covering (including marking, labeling), cutting or altering to customers’ specifications, mounting and/or packaging into kits or marketable lots thereof for subsequent sale, transfer or disposition for export.

3. Same rules on documentation as enumerated under Q&A No. 32 to 37 of RMC 24-2022 shall be required to avail of the VAT zero rating incentive. Meanwhile, processing of applications for VAT zero-rating are still to be governed by Revenue Memorandum Order No. 7-2006 and any subsequent amendments.

Upon comparison with the BoI Memorandum Circular, however, one would note that the BoI did not require ELSEs to engage in both activities at the same time. The BoI anchored its definition on PEZA Board Resolution No. 97-366, which allows ELSEs to conduct either of the above activities or a combination of both. Hopefully the BIR will issue a clarification to resolve the apparent misalignment.

With the classification of ELSEs as export enterprises by virtue of carrying out “activities in support of exporters” under the 2022 SIPP, I also wonder if the same treatment can be extended to other ecozone locators in similar situations, such as ecozone developers, utilities and environmental management facilities which were still not included in the SIPP. Hopefully both the BoI and BIR would also issue a similar clarification for these entities soon since they also provide critical support to direct exporters, and their classification, similar to ELSEs, will have a significant impact on their operations.

Nevertheless, considering the various changes in tax rules/guidelines brought on by new tax laws (e.g., TRAIN, CREATE) and new initiatives (e.g., digitalization), I am ecstatic that our regulators were able to provide clarity on this issue. This development, at the very least, is proof that every industry, not only the major ones, will be heard and not merely “forgotten” until the clamor eventually dies down.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

 

Steven Lloyd Co is a manager at the Tax Services department of Isla Lipana & Co., the Philippine member firm of the PwC network.

+63 (2) 8845-2728

steven.lloyd.co@pwc.com

Marcos tells army to prepare for contingencies as last defense line

PCO

By Kyle Aristophere T. Atienza, Reporter

PRESIDENT Ferdinand R. Marcos, Jr. on Wednesday asked the Philippine Army to boost relations with its foreign counterparts, highlighting the importance of international ties amid common security challenges.

External security threats to the Philippine have become more complex and unpredictable, the president said at the army’s 126th anniversary celebration.

“Continue to improve your relations with your counterparts overseas,” he told the troops. “Common security challenges necessitate a more concerted approach among like-minded nations.”

“Share information, learn from the best practices in the region to make our military better,” he added. 

His remarks come amid increasing Chinese assertiveness in Philippine-claimed areas in the South China Sea.

Local foreign policy think tanks and experts have been urging the Philippine government to partner with as many countries as possible to deter China’s expansive activities at sea.

In February, the Philippines gave the United States access to four more military bases under their 2014 Enhanced Defense Cooperation Agreement (EDCA) — a move that has angered Beijing.

Lawmakers critical of Washington have also questioned the real intent of the EDCA expansion, fearing that the Philippines would be used as a staging ground for US military activities in the region.

Aside from the South China Sea dispute, the Indo-Pacific region has also been beset by tensions between China and the US over self-ruled Taiwan.

“To the army leadership, I am aware that the emerging threat to our territory and our emphasis on addressing this threat requires adjustments in our strategies,” Mr. Marcos said. “But I am confident that the Philippine Army, which has more than a century of experience, will be able to rise up to the task as it has always done.”

The Philippine leader said the army should always be fully prepared for any contingencies, “especially considering you are the country’s last line of defense against any external security threat.” “Be vigilant against elements that will undermine our hard-earned peace, our hard-earned stability,” he added.

“Working with like-minded states will ensure the country’s territorial integrity and national sovereignty, while also contributing to a rules-based international order,” Victor Andres C. Manhit, president of think tank Stratbase ADR, said in a Facebook Messenger chat.

“As we continue to pursue cooperation, we must always remain guided by our national interests, which include protecting our maritime rights, territorial integrity and the Filipino people,” he added.

‘DROP IN THE BUCKET’
Meanwhile, Mr. Marcos told reporters on the sidelines of the army event the four new EDCA sites would be scattered around the country.

“There are some in the north, there are some around Palawan, there are some further south,” he said. “There are various locations.”

The government would announce the specific locations soon, he said.

A former military official said last year the US had sought access to bases on the northern land mass of Luzon, the closest part of the Philippines to Taiwan, and on the island of Palawan, facing the disputed Spratlys Islands in the South China Sea.

Some foreign policy experts have urged the Marcos government to seek bigger compensation from the US for the risks that the EDCA expansion entails.

“Washington can provide and marshal investments from allies and partners such as Taiwan, Japan, Korea, Australia and Europe to compensate Philippine provinces hosting EDCA and offset possible losses from Chinese investments,” Lucio Blanco Pitlo III, a research fellow at the Asia-Pacific Pathways to Progress Foundation, told BusinessWorld.

He said the possibility of the Philippines getting dragged into the China-Taiwan conflict due to the EDCA expansion is a “serious risk that Manila has to bear in mind.”

While it might not alleviate the risk, a bigger reward from the US could lighten the opposition to EDCA especially from frontline provinces, the analyst said, citing concerns of some local officials who fear that the EDCA expansion might drive away Chinese investments.

Other countries where the US is trying to renew military access like the central Pacific island states of Palau, Marshall Islands and Federated States of Micronesia are “negotiating hard,” according to Mr. Pitlo.

He cited the case of Marshall Islands, which hosts the Ronald Reagan Ballistic Missile Defense Test Site at the US Army Garrison-Kwajalein Atoll and is rumored to get about $4 billion for the 20-year extension of its Compact of Free Association Agreement with the US.

So far, what is being reported on EDCA is an $82-million outlay for the existing five original locations — a drop in the bucket compared with what tiny Pacific atoll nations will be getting, he added.

Senator backs proposal to strip Pagcor of role as state casino operator

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THE HEAD of the Senate committee on public services on Wednesday backed a proposal to strip the Philippine Amusement and Gaming Corp. (Pagcor) of its role as an operator of state-owned casinos and making it function as a regulator.

“It’s high time for Pagcor to break up its dual role as operator and regulator of the gaming sector,”  Senator Mary Grace Poe-Llamanzares said in a statement.

“Pagcor can train its sights to guarantee a level playing field among industry players, prevent illegal activities and ensure the people’s welfare is protected from potential social harm,” she added.

Pagcor Chairman and Chief Executive Officer Alejandro H. Tengco on Tuesday said they were seriously considering to focus solely on regulating gaming operations, citing a plan to create a regulatory framework for online poker and enhancing slot machine operations.

The agency is also looking at destroying outdated gaming merchandise and equipment and creating and updating regulatory manuals.

It is also tying up with other agencies including the Justice and Interior and Local Government departments, as well as the police and National Bureau of Investigation to better combat illegal gambling.

“While there is no disputing the fact that the government needs revenues, generating and maximizing profits are better left to a separate agency, if not the private sector,” Ms. Poe said.

Pagcor expects to generate about P80 billion ($1.47 billion) from the sale of its 41 casinos.

The Philippines’ gross gaming revenue hit P214.3 billion in 2022, up from P113.1 billion in 2021, according to Pagcor data.  

The proposal seeks to resolve the state company’s conflicting functions that the senator said have resulted in its failure to do due diligence in the operations of Philippine offshore gaming companies and electronic cockfighting.

Lawmakers have sought to ban mostly Chinese gaming companies that operate online casinos, which proliferated during the term of ex-President Rodrigo R. Duterte, saying these have become breeding grounds for illegal activities including kidnapping and money laundering.

Lawmakers have also flagged Pagcor’s failure to regulate them and stem abductions involving mostly Chinese workers in the Philippines. — Alyssa Nicole O. Tan

Philippine Senate to investigate delays in processing of social security claims of SSS members

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A SENATOR has filed a resolution seeking to investigate delays in the processing of claims from members of the stated-owned Social Security System (SSS).

These delays have caused financial difficulties on the part of retirees, Senator Rafael “Raffy” T. Tulfo said in Senate Resolution 544.

“It is the responsibility of the Senate to ensure that government agencies such as the SSS are efficient in providing services to the public, especially to its members who have contributed to the system,” he said.

The inquiry will look into the cause of delays and measures being taken by the SSS to address these. 

It will also tackle possible reforms to speed up the release of benefits, including the use of digital technology and automation.

Senators will also probe the need for additional funding and manpower, as well as the possible establishment of a monitoring system that will track the progress of claims.

The findings would help the Senate formulate measures to ensure members of the state pension fund receive benefits on time, Mr. Tulfo said. — Alyssa Nicole O. Tan

Bangsamoro Parliament bill seeks incentives for halal ventures 

DHSUD

A BILL that will give incentives to halal ventures in the Bangsamoro region in southern Philippines has been filed in the autonomous areas Parliament.  

Member of Parliament Ali B. Sangki, who introduced Bill No. 183 or the Bangsamoro Halal Investment and Incentive Code Act, said establishing a halal-friendly investment policy will help the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) become a bigger player in the global halal industry and boost the local economy.   

Incentivizing halal-oriented businesses could boost BARMMs bid for a share of the world halal market, which is estimated to be worth more than $ 4 trillion, Mr. Sangki said in a statement.    

The proposed law covers investments in the manufacturing and services sectors, halal economic zones, value chain facilities, banking and finance, educational and technological hubs, agriculture and fishery, and tourism.  

Incentives include pioneer status privileges, tax breaks, and port duty exemptions, among others.   

The Bangsamoro Board of Investment will administer the incentive scheme.   

As for the 11 million Filipino Muslims in the country, the surge in halal-producing industries in the region will provide a steady source of supply of essential halal commodities, giving Muslims opportunities to fulfill their religious obligations related to the stringent requirements for food consumption,Mr. Sangki said.  

RAMADAN
Meanwhile, the Bangsamoro transition government has modified the work schedule for public service workers in the region during this years observance of the holy month of Ramadan that starts March 23.  

Muslim employees and officials who will practice fasting can have flexible working hours from 7:30 a.m. to 3:30 p.m., based on a memorandum circular issued by the Office of the Chief Minister on Tuesday.   

This is in accordance with Presidential Decree No. 322 and Civil Service Commission Resolution No. 81-1277 dated 13 November 1981,the regional government said in a statement on Wednesday.   

Chief Minister Ahod B. Ebrahim called on the Bangsamoro community to fast with the objectives set out in Islamic beliefs and tradition.  

Let us deeply dedicate ourselves to purifying our intentions, fostering the highest level of discipline, and emanating generosity and mercy in observance of this significant spiritual journey,he said. MSJ

Australia provides P98.7M in support of PHL educational reform 

PHILIPPINE STAR/ WALTER BOLLOZOS

THE AUSTRALIAN government, in partnership with the private sector-led Philippine Business for Education (PBEd), is providing P98.7 million in support of educational reform initiatives.  

Australia believes that quality education is key to a prosperous and productive nation. We have been a longstanding partner to the Philippines and strong supporter of its education reform goals,Australian Ambassador to the Philippines Hae Kyong Yu said in a statement on Wednesday.  

In this new phase of our partnership with PBEd, we will support the Philippines to achieve an education system that provides the skills and knowledge needed for future jobs,she added.  

PBed is a non-profit organization founded and driven by the countrys top business leaders.    

Under the partnership, the Australian government and PBEd will work on four focus areas: senior high school curriculum improvement, industry involvement in skills development, improving teacher quality, and enhancing education data collection and assessments.  

Australias support aims to help improve the quality of education and develop the skills of future workers,it said. This is a crucial effort at a time when the number of jobless Filipinos has increased amidst rapid changes to technology and types of future jobs available for young people.”  

Unemployment rose to a four-month high of 4.8% in January from the 4.3% in December as temporary holiday jobs were discontinued, the Philippine Statistics Authority said.   

This is equivalent to 2.37 million jobless Filipinos in January, against the 2.22 million in December.  

PBEd and the Assessment, Curriculum and Technology Research Centre will work together to support the plans of the Department of Education (DepEd) on reviewing and revising the K to 12 curriculum.   

With the support of Australia, PBEd also plans to establish more sector skills councils, which conduct labor market studies, to better align the skills of workers with the demands of industry.  

To improve teacher quality, the Australia-supported Research Centre for Teacher Quality will develop the competencies of teachers and school leaders in curriculum development and instruction, expand career progression for teachers, and strengthen the Teacher Education Council that looks into pre-service teacher education reforms.  

PBEd will also help DepEd improve the Australia-supported initiative, the Enhanced Basic Education Information System and Learner Information System, which serves as the primary source of Philippine education data on students, teachers, and schools.  

Nation-building starts with quality education,PBEd Executive Director Justine B. Raagas said.   

An integrated approach to education reforms, starting from elementary school, is crucial for a seamless and foundational building block for a productive future workforce.Alyssa Nicole O. Tan

Rep. Teves considers returning after Marcos’ security assurance

SCREENGRAB FROM REP TEVES FACEBOOK PAGE
SCREENGRAB FROM REP TEVES FACEBOOK PAGE

NEGROS Oriental Rep. Arnolfo A. Teves, Jr., who has been linked to criminal activities and been absent from the House without authorization, has hinted that he is ready to return to the country after President Ferdinand R. Marcos, Jr. gave assurance that he will be provided with ample government security.   

In a video posted on his Facebook page on Wednesday afternoon, Mr. Teves said in Filipino, If it is already you (the president) whos asking me to go home, it will be harder to say no because you have more authority to give me protection.  

Mr. Marcos, in an interview earlier on Wednesday, debunked the lawmakers claim that he was being linked to the recent killing of Negros Oriental Governor Roel R. Degamo due to his ties to e-sabong or online cockfighting. 

The real issue is the killing of Gov. Degamo. We already had a problem with e-sabong before. But thats not what this is about,Mr. Marcos said in mixed English and Filipino.  

This is about the killing of Governor Degamo. Pure and simple.”  

Authorities said at least two arrested suspects in Mr. Degamos killing have tagged Mr. Teves as the mastermind.  

Mr. Marcos urged Mr. Teves to come home and face the criminal cases against him lest the government be forced to move without any discussions with him.  

Mr. Teves has denied involvement in the crime and cited threats against him and his family for refusing to return to the country.   

However, he was recently charged with murder complaints over three killings in 2019.   

The Philippine National Police (PNP) on Wednesday said it is looking into possible death threats against Mr. Teves and his family.

“We are currently validating if there are legitimate death threats against Congressman Teves and his family, which is why we urge him to let us know if he has received any of these,” PNP spokesperson Colonel Jean S. Fajardo told a televised briefing. 

“We are ready to ensure his security once he returns to the Philippines.”  

Ms. Fajardo added that the PNP Criminal Investigation and Detection Group (CIDG) is also looking into allegations of officers planting evidence in Mr. Teves’ properties during a recent raid for firearms.  

She said the police team followed operational procedures and that the raid was based on a search warrant.  

“If people have questions and allegations on police operations, they must present them through the legal process and the PNP CIDG is ready to answer these questions,” Ms. Fajardo said in FIlipino.  

MORE OPTIONS
My only advice to Cong. Teves is that as time goes by, your situation will become harder. If you come home earlier, there will be more options for you,Mr. Marcos said. But if you come back too late the government would be forced we will have to move without any discussions with him.  

The Philippine leader reassured the lawmaker that the government would provide all kinds of securityfor him.   

After all, hes rich, and he has a private jet, so just land wherever you want to, even in the air force base where he will be surrounded by soldiers,the president said.  

Meanwhile, the House of Representatives unanimously voted on Wednesday to sanction Mr. Teves with a 60-day suspension for his continued absence.  

The House ethics committee initially gave Mr. Teves five days to explain his whereabouts and another 24 hours to physically appear in Congress after his travel clearance expired on March 9. — Beatriz Marie D. Cruz, Kyle Aristophere T. Atienza, and John Victor D. Ordonez

DILG says 10 suspects in Degamo slay in police custody 

@HOUSEOFREPSPH

TEN suspects in the murder of Negros Orientals governor and 26 other victims are now under police custody, the Department of the Interior and Local Government (DILG) said on Monday.   

At a livestreamed news briefing, Interior Secretary Benjamin C. Abalos, Jr. said the suspects have voluntarily offered to provide relevant testimonies on the late Negros Oriental Governor Roel R. Degamo’s murder.  

“To the remaining suspects at large, we keep repeating our call for you to surrender,” he said in Filipino “You should think about surrendering since many have already done so.”  

Mr. Abalos noted that nine of the suspects were ex-military officers while one was a military trainee.  

Justice Secretary Jesus Crispin C. Remulla told the same briefing that authorities will determine the mastermind in the coming days.  

“Its just a matter of time,” he said. “We will identify the mastermind.” 

“We’re getting the details out, hopefully by Saturday we will be done questioning the suspects,” he said.  

The Justice chief said nine of the 10 suspects in custody directly participated in the March 4 shooting at Mr. Degamos residential compound, where eight others, including two village leaders, were killed, while 15 were wounded.  

Four suspects were initially arrested, two of whom tagged Negros Oriental Rep. Arnolfo ArnieA. Teves, Jr. as the mastermind behind the governors killing.  

Mr. Teves has denied the allegation. John Victor D. Ordoñez

LTO sets cap on driving school rates 

THE LAND Transportation Office (LTO) has set maximum rates on fees that private driving schools can charge.  

Since last year, the agencys technical working group held a series of meetings and consultations with the different driving schoolsassociations and stakeholders which led to the prescribed maximum rates that we are going to implement,LTO chief Jose Arturo Tugade said in a press release on Wednesday.   

The rates were computed to make sure that driving institutions still get a fair return of investments and at the same time make it affordable to the public,he added.   

The regulator said the new rates will be under the Omnibus Guidelines on the Accreditation, Supervision, and Control of Driving Institutions, and the Standardization of Driver and Conductor’s Education.   

The guidelines allow a maximum rate of P1,000 for theoretical driving courses (TDC), P2,500 for practical driving courses (PDC) with license codes A and A1, and P4,000 for license codes B, B1, and B2.   

Accredited driving institutions will also be required to hold the mandatory 15-hour TDC in two days. The first seven hours shall be held on the first day and the remaining eight hours on the second day.  

PDCs, on the other hand, shall not be less than eight hours per drivers license code applied for.  

For light and heavy vehicles, the required PDC should last for at least two days, while the eight-hour PDC for motorcycles can be completed in a day.  

The guidelines also require driving institutions to enroll the details of their clients as well as the certificate of course completion to the LTO system. Justine Irish DP. Tabile

Seized sugar to be rolled out in Kadiwa stores by April for P70/kg 

BOC

THE DEPARTMENT of Agriculture (DA) on Wednesday said it is targeting to sell the 4,000 metric tons of smuggled sugar seized by authorities, possibly for P70 per kilo (/kg), by April in state-subsidized stores known as Kadiwa.  

In a radio interview, DA Spokesperson Kristine Y. Evangelista said the department is now finalizing the implementing rules and regulations for the distribution of the illegally imported sugar.   

She said they aim to cater to the most vulnerable sectorbased on data consumption within Metro Manila and other areas.   

There are about 500 Kadiwa stores nationwide, according to an earlier statement from the Presidential Communications Office.   

The P70 per kilo rate was recommended by the Sugar Regulatory Administration, Ms. Evangelista said, but this is still being evaluated.    

They have to take into consideration how much local sugar is. We are also monitoring the mill side so as of now, recommendation is at P70 per kilo,she said.  

Ms. Evangelista also said the DA is looking into the possibility of selling other confiscated smuggled agricultural goods as this is the best way as of nowto help bring affordable agricultural commodities to consumers.   

DA Assistant Secretary Rex C. Estoperez, in a media briefing, said the proposed mechanics for the sales of smuggled agricultural goods exclude perishable products.   

Unlike other agricultural commodities, those perishables such as carrots and onions are easier to be infested,he said. 

Meanwhile, farmersgroup Kilusang Magbubukid ng Pilipinas (KMP) said putting seized goods in the market does not address the problem of rampant smuggling.  

What the President must do is to suppress smuggling, not to legalize the selling of smuggled sugar and other agricultural products,said KMP Danilo H. Ramos in a statement in Filipino. Sheldeen Joy Talavera

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