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LRT-MRT-Subway Common Station expected to be complete this month

DEPARTMENT OF TRANSPORTATION

THE Transportation department said on Thursday that the Unified Grand Central Station, or Common Station, in North EDSA, Quezon City, is set to be completed this month, before President Rodrigo R. Duterte leaves office.

The construction of the project, which will interconnect Light Rail Transit Line 1 (LRT-1), Manila Metro Rail Transit System Line 3 (MRT-3), Metro Rail Transit Line 7 (MRT-7), and Metro Manila Subway, is currently being “accelerated,” the department said in a statement.

“After eight years of delay, the Common Station is expected to be completed this June with the remainder of the project now in full swing,” it added.

The project features an intermodal integrated system, allowing departing passengers of the Common Station to catch buses, jeepneys, and taxis.

Once completed and opened, the Common Station, which features a 13,700-square meter concourse area, is expected accommodate up to 500,000 passengers daily, the department said.

In January 2017, the government and private companies involved in the project signed a memorandum of agreement after years of deadlock on the matter of the project’s location.

The agreement was signed by Transportation Secretary Arthur P. Tugade; Public Works Secretary Mark A. Villar; Metro Pacific Investments Corp. Chairman Manuel V. Pangilinan; SM Prime Holdings, Inc. Director Hans T. Sy; Ayala Corp. Chief Executive Officer Jaime Zobel de Ayala; and San Miguel Corp. President and Chief Executive Officer Ramon S. Ang.

Under the agreement, the project was built at a compromise site near the original 2009 site in front of SM Annex (North EDSA) and the 2014 location near Ayala-owned TriNoma Mall.

“Within the remaining 15 days of the Duterte administration, more projects across the archipelago will be completed and initiatives to be implemented to achieve unprecedented heights of connectivity and mobility to make the Filipino life more convenient and comfortable,” the Transportation department said. — Arjay L. Balinbin

Angara says PHL debt of P12.7 trillion still ‘reasonable’

PHILSTAR FILE PHOTO

THE PHILIPPINES’ debt of P12.7 trillion is still “reasonable,” a ranking Senator said, in the context of increased global borrowing during the pandemic.

The government was “responsible” in its borrowing, according to Senator Juan Edgardo M. Angara, who chairs the Senate Finance Committee, speaking in an interview with One News on Thursday. He said the administration did a “fair job” as it did not overstep the country’s bounds by borrowing “too much.”

“I think we’re still on the side of reasonable, a little bit over our predicted 60% (of gross domestic product)… but in times of pandemic, the boundaries move as well,” he added, noting that borrowing was inevitable considering the need to provide subsidies and implement stimulus programs.

The debt-to-GDP ratio was 63.5% as of the end of the first quarter, exceeding the 60% threshold considered by multilateral lenders to be manageable for developing economies.

The pre-pandemic level was 39.6% of GDP at the end of 2019.

Finance Secretary Carlos G. Dominguez III has said that the Philippines may need at least 10 years before its debt-to-GDP ratio returns to about 40%.

The senator said that with the right mix of policy and economic incentives for the private sector, recovery is assured and revenue increased.

As the budget grows every year, Mr. Angara said the challenge is to make revenue grow proportionally.

However, Mr. Angara said increasing taxes may not be the solution as the people are still suffering from the after-effects of the pandemic. “You want to grow your economy in this period. You want it to recover,” he said, “and increased taxation might be sending the wrong message during this time.”

Instead, he recommended making adjustments to government spending, noting that Congress will focus on funding essentials during the deliberations for the 2023 General Appropriations Act.

“I think that one way of looking at it is attacking the spending side, but you have to be more judicious I suppose in your expenditure so that those debts can be paid (to bring) public debt (to manageable levels),” Mr. Angara said. The Philippines should spend “on things which really benefit the people and which will pay dividends over the long term, so things like education, health, infrastructure. Those are the things which should not be compromised.”

“What matters more is how you spend that debt and whether it’s sustainable,” he added.

Economic managers target GDP growth of 7-8% this year.

Mr. Dominguez has said the Philippines needs to grow an average of 6% annually in the next six years to effectively reduce debt. — Alyssa Nicole O. Tan

Power consumers pay only 12% VAT overall, ‘no double taxation’ — DoF

BW FILE PHOTO

THE Department of Finance (DoF) said on Thursday that power consumers pay 12% value-added tax (VAT) only once, following remarks by the head of the Energy Regulatory Commission (ERC) that VAT should only be collected from power distributors.

“There is no double taxation in the electric power industry. Because the EPIRA (the Electric Power Industry Reform Act) Law has unbundled the pricing at each stage of the electricity production, the VAT is imposed separately in each stage of production,” Finance Secretary Carlos G. Dominguez III said in a statement. “But at the end of the day, if you look at the total bill, the entire electricity service is charged 12% VAT on the side of the consumer.”

ERC Chairperson and Chief Executive Officer Agnes VST Devanadera said last month that VAT should only be imposed on distribution utilities, instead of on power generation, transmission, and distribution.

Ms. Devanadera also proposed to remove the 12% VAT imposed on the generation charge.

Mr. Dominguez said that for double taxation to occur, the tax must be imposed twice for the same goods, for the same purpose, by the same taxing authority, and within the same jurisdiction.

Under EPIRA, the pricing of electricity has been unbundled, Mr. Dominguez said.

“With this unbundled pricing mechanism, VAT is imposed on every level of the value chain and not integrated vertically like other sectors,” Mr. Dominguez said. This means that “the VAT paid on the distribution charge only accounts for the value-added in distributing the electricity, and does not include the generation and transmission of power.”

He added that a VAT exemption on electricity is not the solution for reducing power bills.

“If the intention is to unburden consumers, the next administration needs to review the existing policies on power generation pricing,” Mr. Dominguez said, adding that removing the 12% VAT would not translate to a 12% reduction in prices.

He said that VAT-exempt businesses do not charge output VAT, and are unable to recover the VAT they pay on their inputs.

“Thus, this input VAT becomes an additional cost for them, and to recover this, it is passed on to the consumers.”

The DoF said that electricity costs in the Philippines are higher compared to its neighbors in the Association of Southeast Asian Nations (ASEAN), due to the higher cost of power generation.

Manila Electric Co. said last week that power rates will rise in June, with households consuming 200 kilowatt-hours (kWh) getting billed expecting to pay about P80 more. 

It said prices are climbing due to the higher usage of liquid fuel and coal prices that have risen by an average of 23%.

“We cannot afford to give another VAT exemption as this leads to distortionary and less equitable tax systems,” Mr. Dominguez said. “VAT exemption creates discrimination among similar businesses. Thus, it should remain broad-based and allow for few exemptions.”

The DoF also reiterated its opposition to the suspension of excise taxes, maintaining its view that the best way to respond to rising fuel prices is to continue with targeted subsidies to vulnerable sectors.

Ms. Devanadera said last month that the suspension of excise taxes on coal and petroleum would translate into a reduction of overall electricity costs.

The DoF said that suspending the excise tax on petroleum would mean reducing government revenue by P105.9 billion, equivalent to 0.5% of GDP. It added that this would result in higher debt and deficit levels, resulting in a potential rise in interest rates at a time when the economy is still recovering from the pandemic and the war in Ukraine.

“The suspension of excise taxes on petroleum is also extremely regressive and primarily benefits higher-income households,” the DoF said. “We will just be subsidizing the top 10% of Filipino households who consume about 50% of total fuel consumption in 2022. This means that the larger financial benefits of the suspension will not go to the poor, but to higher income households.” — Tobias Jared Tomas

BoI approves registration of P118.5-million chicken project

DA.GOV.PH

THE Board of Investments (BoI) said it approved the registration of a P118.5-million broiler chicken farm in South Cotabato.

In a statement on Thursday, the BoI said it approved the application of RCB Poultry Farm. The project has an annual capacity of 3.36 million kilograms of broiler chicken.

“The operation of the farm is seen as a significant project to ward off the threat of supply disruption should Region 12 (Soccsksargen) and its nearby regions were to be affected by the avian flu… as the localized source of chicken or chicken meat entails less biosecurity risk,” the BoI said.

The BoI said that the project will use modern methods to grow poultry at reduced cost in feed, water, and energy.

It added that the project was endorsed by the Department of Agriculture (DA).

Trade Secretary Ramon M. Lopez called the project “innovative.”

According to the BoI, the operator will enter into a contract growing agreement with a large food corporation, reducing the need to import chicken at a time of massive disruption in the global supply of food.

It added that the approved project will raise Soccsksargen’s chicken production by up to 2.71%.

 “Chicken meat is… the second most-consumed meat-type after pork, based on the Supply Utilization Accounts of the Philippine Statistics Authority on Livestock and Poultry,” the BoI said.

“While there is no expected shortage of chicken meat this year, according to the DA, local production needs to reach at least 1.34 million metric tons to achieve at least 90% self-sufficiency,” it added. — Revin Mikhael D. Ochave

Maynilad customers to receive rebates on March-June water bills

MAYNILAD Water Services, Inc. customers in selected areas of Metro Manila will receive minor corrections in their water bills in the form of rebates, after Maynilad implemented tax rates that diverged from the approved rates.

These include customers in the Business Areas of Muntinlupa-Las Piñas, Malabon-Valenzuela, and Quezon City, according to the Metropolitan Waterworks and Sewerage System Regulatory Office (MWSS RO).

In March, the MWSS RO recommended the approval of a petition of Maynilad to collect taxes from customers after the grant of a legislative franchise to Maynilad. 

The tax collections include a 2% national franchise tax and local franchise taxes (LFT) charged by local government units, which are reflected in the statements of account of Maynilad customers. 

“Upon monitoring and evaluation of the rates being implemented by Maynilad in its Service Areas, it has come to the attention of the MWSS RO that Maynilad has been charging customers in the aforementioned Business Areas the actual LFT rates of the relevant local government units instead of the rates approved,” the regulatory office said.

The MWSS RO said that it recognizes that Maynilad implemented these rates in “good faith” as the rates that it previously used were outdated. 

“Nevertheless, the concessionaire implemented such rates without prior recommendation by the MWSS RO and subsequent approval of the MWSS Board of Trustees, which are part of the procedural requirements as provided under relevant laws,” the MWSS said.

The regulator said it directed Maynilad to return the collections to bring all charges in line with approved levels. The rebates will be reflected in billing for March to June. — Luisa Maria Jacinta C. Jocson

PHL backs continued freeze on some e-commerce duties

REUTERS

THE PHILIPPINES declared its support for extending a moratorium on customs duties imposed on media goods ordered via electronic commerce (e-commerce).

In a statement on Thursday, Trade Assistant Secretary Allan B. Gepty said during the 12th World Trade Organization (WTO) Ministerial Conference that e-commerce is crucial to the post-pandemic recovery.

“There is a need to maintain a stable and predictable digital trading environment not only for big businesses but especially for micro, small, and medium enterprises (MSMEs) and women entrepreneurs to boost economic growth,” Mr. Gepty said.

The Philippines also noted that e-commerce helps integrate MSMEs into the global value chain and facilitates cross-border trade in goods and services.

The Philippines co-sponsored a draft Ministerial Decision aiming to strengthen the WTO’s e-commerce work program, which “will have significant impact on members, including developing and least developed countries,” Mr. Gepty said.

Separately, Trade Undersecretary Ceferino S. Rodolfo said an advantage of a stable and predictable online environment is that it would help boost the Philippines’ position as an innovation hub and an attractive location for hyperscale data centers.

“The Philippines has a robust e-commerce industry and to boost the same, the government has released the e-commerce roadmap 2022 to create an integrated ecosystem that would become the foundation of all industries’ developments, long-term employment, and inclusive growth throughout the country,” the DTI said.  

WTO members agreed on the moratorium in 1998 but it was never made permanent and legally binding. It has been renewed several times during Ministerial Conferences. It affects products such as photographic film, cinematographic film, printed matter, music, media, software, and video games.

The 12th WTO Ministerial Conference was held from June 12 to 15 in Geneva. — Revin Mikhael D. Ochave 

Metro far from COVID threshold for Alert Level 2

PHILIPPINE STAR/ MIGUEL ANTONIO DE GUZMAN

By Kyle Aristophere T. Atienza, Reporter

PHILIPPINE STAR/ MIGUEL ANTONIO DE GUZMAN

THE GOVERNMENT is unlikely to tighten the lockdown in the Philippine capital and nearby cities this month despite rising coronavirus infections, researchers from the country’s premier university said on Thursday. 

Daily infections could only go as high as 500 in the capital region by end-June, while cases nationwide could hit 2,000 — far below the 6,000 threshold that would spur a higher alert level, OCTA Research fellow Fredegusto P. David told One News Channel.

“It is farfetched for nationwide cases to hit 6,000 per day, but we are monitoring them because the trajectory can change,” he added.

He said the virus reproduction and positivity rates — 1.56 and 3.3% — in Metro Manila have yet to increase significantly.

Mr. David said the health use rate in Metro Manila was still low at 23.%.

The capital region has been under Alert Level 1 — the most relaxed in a five-tier system — since March after a drop in daily coronavirus infections. An inter-agency task force has recommended to extend this until June 30.

The OCTA fellow traced the recent increase in infections to new Omicron subvariants and the waning immunity among vaccinated Filipinos, among other things.

Most people admitted to private hospitals suffer from non-coronavirus conditions, Private Hospitals Association of the Philippines President Jose Rene de Grano told a televised news briefing. Member hospitals have yet to see a significant increase in COVID-19 admissions, he added.

“The hospital utilization rate for COVID-19 patients among our members is not that high yet,” he said. “Our non-COVID admissions have been increasing.”

He said sick people have started visiting hospitals amid relaxed quarantine restrictions. Mr. De Grano said about 600 member hospitals would have a hard time dealing with a potential infection surge if they can’t boost their nursing staff.

About half of their nurses have left, he said. “If we would be able to double the present number, that would be enough.”

Mr. De Grano said majority of their members have yet to receive state-funded allowance for health workers and support staff. “That’s what saddens our healthcare workers.”

“The Department of Health always says ‘It’s already OK, we’ve released it,’” he said. “The Department of Budget and Management says the P7.9 billion had been released, but where is it?” “The majority of our hospitals have not received their One COVID-19 Allowance up to now.”

Meanwhile, Mr. De Grano said the deployment cap for Filipino health workers should be lowered to 5,000 from 7,000 yearly.

He noted that 11,000 nurses passed the licensure exams in 2021 and 6,000 more this year. “More or less, we can gauge how many health workers we can allow out of the country.”

President-elect Ferdinand R. Marcos, Jr. has yet to lay down his pandemic recovery plan and has not named his Health chief.

Mr. De Grano said they have endorsed former Health Undersecretary Teodoro J. Herbosa for the post. 

Mr. Herbosa was a Health undersecretary from 2010 to 2015. He also served as executive vice-president of the University of the Philippines from 2017 to 2021.

Meanwhile, the Philippine Chamber of Commerce and Industry (PCCI) said talks about raising the alert level in Metro Manila was premature.

“If we stick to our basis of the severity of the infection, it is really regarding the flattening of the curve,” PCCI President George T. Barcelon told BusinessWorld Live on One News channel. “We’re far from it.”

The Health department should remind people to be careful instead warning of a potential lockdown, which will hurt the economy, he added. — with Revin Mikhael D. Ochave

DILG talking to its lawyers on ‘rogue’ LGUs that violate pandemic rules

SHOPPERS are seen in Divisoria, Manila. — PHILIPPINE STAR/ RUSSELL PALMA

THE DEPARTMENT of Interior and Local Government (DILG) on Thursday said it was consulting with its lawyers on how to stop local governments from going against the National Government’s pandemic policies.

“We are consulting our legal team about our next move to ensure this practice would end since this should really not be the case,”  Interior Secretary Eduardo M. Año told ABS-CBN Teleradyo.

The agency on Monday said it would consider asking Cebu Governor Gwendolyn F. Garcia to explain her policy of making face masks optional outdoors, which contradicts the guidelines of the country’s pandemic task force.

Mr. Año said police would arrest people who violate health protocols approved by President Rodrigo R. Duterte.

“The most important thing here is the health and well-being of our citizens,” he said. “We are still under a state of calamity, which will remain in effect until September 2022.”

DILG earlier said it would not recognize the optional face mask policy and would follow the national guidelines set by Mr. Duterte.

Ms. Garcia told the ABS-CBN News Channel on Monday there was no legal basis to arrest people who did not wear face masks outdoors.

She said the country’s pandemic task force should respect the autonomy of local governments, adding that forcing people to wear face masks outside is unimplementable.

“We do not want to set a precedent for other local government units,” Mr. Año said in a separate statement. “We are still in a pandemic and more transmissible variants are still arising, hence, we must abide by the minimum public health protocols, including wearing face masks in order to finally defeat this pandemic.”

Justice Secretary Menardo I. Guevarra earlier said guidelines and resolutions issued by the national pandemic task force and approved by Mr. Duterte should prevail.

Under the 1987 Constitution, the president exercises general supervision over local government units. — John Victor D. Ordoñez

Quality of life of 3 of 10 Filipinos worsened — SWS

PHILIPPINE STAR/ MICHAEL VARCAS

THREE of 10 Filipinos said their quality of life had worsened in the past 12 months, according to a Social Weather Stations (SWS) poll.

In a statement posted on its website, SWS said 34% of adult Filipinos said they were worse off (losers), 32% said it got better (gainers), while another 34% said it was the same (unchanged).

This resulted in a net gainer score of -2% (gainers minus losers) in the April poll that SWS classified as fair.

The April net gainer score was 14 points up from the mediocre -16 in December, but still 20 points below the pre-pandemic level of the very high +18 in December 2019.

The poll question has been fielded 144 times since April 1983. The net gainer score was generally negative until 2015, when it rose to positive numbers until the coronavirus pandemic started, SWS said.

“It has since trended back upwards but still has not reached the positive range,” it added.

SWS interviewed 1,440 adults on April 19 to 27  for the poll, which had an error margin of ±2.6 points. — Norman P. Aquino

PHL wins seat in UN continental shelf commission with NAMRIA’s Carandang as rep

NAMRIA.GOV.PH

THE PHILIPPINES has won a seat in an international commission tasked to facilitate the implementation of the United Nations Convention on the Law of the Sea (UNCLOS) concerning the outer limits of a state’s continental shelf.  

The country will hold the position in the Commission on the Limits of the Continental Shelf (CLCS) from 2023 to 2028, according to a tweet by the Philippine Mission to the UN.  

With 113 votes from 164 state parties, the Philippines reached the required majority after four rounds of voting during the 32nd UNCLOS meeting held in New York on Wednesday.  

The Philippines competed with eight other candidates under the Asia-Pacific Group. 

“To the countries that voted for the candidate of the Philippines which is the only one that studies to fight and win, on the merits, the rights of countries with continental shelfs, I thank you,” Foreign Affairs Secretary Teodoro L. Locsin, Jr. said in a tweet on Thursday.  

He said this was “yet another victory” as it was “the end of cartelized choices in a universal institution.”   

“This is not a job but a mission.” 

Efren P. Carandang, deputy administrator of the National Mapping and Resource Information Authority (NAMRIA), will be representing the Philippines at the CLCS.   

Mr. Locsin described Mr. Carandang as “the Philippines’ foremost authority on the technical intricacies of the law of the sea, which is to say that he is one of the very best in the world.”  

He has served in NAMRIA and its precursor agency for 38 years.  

He was also part of the Philippine delegation that successfully submitted the relevant charts and coordinates of the outer limits of the Philippines’ continental shelf with the International Seabed Authority. 

This is the first time that the Philippines, an archipelagic state, will serve in the commission.   

Permanent Representative of the Philippines to the UN Enrique A. Manalo has said that “the Philippine candidature to the CLCS is a demonstration of our consistent adherence to international law-based regime in maritime governance and the peaceful use of the world’s seas and oceans.”   

“The outer limits established through this process become the fixed boundaries between the seabed areas within national jurisdictions and the international seabed areas, which are reserved for common heritage,” the Permanent Mission of the Republic of the Philippines to the UN said in an earlier statement. — Alyssa Nicole O. Tan

Justice chief, anti-communist task force lock horns over red-tagging practices 

PHILIPPINE STAR/ MICHAEL VARCAS

THE GOVERNMENT’S anti-communist task force on Thursday hit Justice Secretary Menardo I. Guevara for standing up against communist tagging practices in the Philippines.   

Lorraine Marie T. Badoy, the task force’s spokesperson, said they “do not agree” with Mr. Guevarra’s statement that identifying members of the Maoist movement would endanger people’s lives.  

“What has grievously endangered our people is all those decades the government [has] reneged on its sacred duty, looked the other way, and refused to identify” supposed members of the Communist Party of the Philippines (CPP) and its armed and political wings, Ms. Badoy said in a statement. 

Several complaints have been filed before the Ombudsman against Ms. Badoy for allegedly using her position to spread fake news and tagging groups and personalities as reds or terrorists without basis.    

“There is nothing — nothing — that can stop us from ending what ought to have ended a very long time ago had we had a President like Rodrigo Roa Duterte,” she said, citing Mr. Duterte’s creation of the anti-communist task force. 

Mr. Guevara, who sits as a member of the task force chaired by Mr. Duterte, said complaints should be filed instead of tagging activists as communists  

“If you have evidence against them, follow the necessary legal action,” he told a virtual forum. “Stop labeling them, do whatever is necessary to prosecute them.”  

“You are endangering certain people if you do not have sufficient evidence,” he added. 

“It is possible that these individuals will become targets when they are just being vocal about their political views.” 

The Philippine government decriminalized membership in the CPP and similar associations through a law signed by former President Fidel V. Ramos in 1992. 

Mr. Duterte, however, issued a proclamation in December 2017 declaring the CPP and its armed unit, the New People’s Army, as terrorist groups.  

After signing the proclamation, he directed then Justice Secretary Vitaliano N. Aguirre II through a memorandum to file a petition with the appropriate regional trial court to legally classify the CPP and the NPA as terrorist groups under a human security act that has been updated in 2020, based on a report published by state-run Philippine News Agency. — Kyle Aristophere T. Atienza 

Legarda eyes expansion of MSME support programs to remote areas, indigenous communities 

DTI.GOV.PH

SENATOR-ELECT Lorna Regina “Loren” B. Legarda wants to expand the delivery of support programs for micro, small, and medium enterprises (MSMEs) to remote areas and communities that create indigenous products.     

“I have witnessed the untapped possibilities of millions of Filipinos: weavers, entrepreneurs, indigenous communities, and cultural creatives. There is so much potential for growth in our rural areas,” Ms. Legarda said during a Policy Research Office’s webinar on Thursday. 

“Seeing that MSMEs are the lifeblood of our local economy, we need to broaden its reach: extend its benefits to the countryside, and spur economic activity in other sectors, especially those sectors that can preserve culture and the environment,” she said  

She cited that 99.5% of all businesses in the country are MSMEs. According to data from the Department of Trade and Industry, 21% of these businesses are located in the capital region. 

The top five industries in the country are wholesale and retail trade, food service, automotive parts, manufacturing, service industries and insurance, which account for about 83.8% of the total number of MSME establishments.  

“We need to expand our reach to include local entrepreneurs and indigenous communities, and ensure that everyone benefits from government programs such as the MSME Law,” she said. 

Local authorities should also delve deeper on the needs of local entrepreneurs and indigenous communities so that the right kind of assistance can be provided, she added. 

“Let us continue to expand the scope of our assistance, especially those in areas with high poverty incidence,” she said. “Our laws and regulations should make access easier and not more tedious or burdensome for them.” 

Ms. Legarda also called for the promotion of more “green skills” and enterprises.  

“I would like to encourage our people to engage in agriculture, forestry, horticulture, environmental information technology, creative industries and other careers that contribute to environmental preservation,” she said. — Alyssa Nicole O. Tan 

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