Regional court convicts owner of money changer

February 14, 2023 | 12:01 am

THE Regional Trial Court of Batangas City has convicted the owner of a money changer for operating without securing a license from the Bangko Sentral ng Pilipinas (BSP), for which the operator pleaded guilty.

Vility Foreign Exchange Services (Vility) was convicted for violating the Manual of Regulations for Non-Bank Financial Institutions of the BSP as punishable under Republic Act No. 7653 or The New Central Bank Act.

“Based on the charge filed by the BSP, the court found accused Lilian N. Almazan, owner and operator of Vility, guilty beyond reasonable doubt for operating a money-changing service without securing the required Certificate of Registration from the BSP prior to its operations,” the central bank said in a statement.

The owner pleaded guilty as charged and was fined P50,000.

“The BSP protects the interest of the general public by ensuring that its supervised financial institutions are strictly compliant with banking laws and regulations,” the central bank added.

Vility Foreign Exchange Services was earlier barred from registering with the central bank in April 2022. It was based in 111 Evangelista Street corner P. Zamora Street, Poblacion 016, Batangas City.

Money service businesses (MSB) include remittance agents and sub-agents, remittance platform providers, electronic or e-money issuers, as well as money changers or foreign exchange dealers.

Latest BSP data showed there are 7,584 registered MSBs operating in the country.

These firms are seen to serve as financial service access points for unserved and underserved areas.

About 47.8% of MSBs are engaged solely in remittance transfer business, while 38.7% offer remittance, money changing, and foreign exchange dealings. — K.B. Ta-asan

CTA denies condo firm’s P3.19-M VAT refund claim

February 14, 2023 | 12:01 am

THE Court of Tax Appeals (CTA) has denied Pacific Plaza Condominium Corp.’s P3.19-million refund claim of alleged wrongly paid value-added tax (VAT) for failing to prove that it paid the said amount.

In a 21-page decision dated Feb. 10, the CTA Special Second Division said the firm did not provide the appropriate invoices for the third and fourth quarters of 2017 that showed its payment of VAT to the Bureau of Internal Revenue (BIR).

“A perusal of the evidence offered by petitioner shows that it did not adduce evidence to prove the allowable input tax declared in its VAT returns,” according to the ruling penned by Associate Justice Lanee S. Cui-David.

“To reiterate, in a claim for tax refund or credit of erroneously or excessively paid tax, the applicant must prove not only entitlement to the claim but also the fact of erroneous payment to the BIR.”

Under the country’s revenue code, a taxpayer must prove taxes it mistakenly paid through official VAT receipts of its domestic transactions.

The tax tribunal noted that the company did not present receipts that proved its entitlement to input tax credits that it allegedly used to pay the VAT to the BIR.

The firm is a non-stock and non-profit corporation registered with the Securities and Exchange Commission that manages and maintains the Pacific Plaza Condominium project in Makati City.

“Since taxes are the lifeblood of the government, tax laws must be faithfully and strictly implemented,” the court said.

“The taxpayer has the burden to show that it has strictly complied with the conditions for the grant of the tax refund.” — John Victor D. Ordoñez

Auto sales

February 14, 2023 | 12:01 am

VEHICLE SALES in the Philippines surged by 42% in January, driven by strong demand for passenger cars and commercial vehicles. Read the full story.

Pregnant Rihanna lights up Super Bowl stage with ‘Diamonds’

February 14, 2023 | 12:01 am

Rihanna’s FULL Apple Music Super Bowl LVII Halftime Show — A SCREENSHOT of Rihanna’s Super Bowl LVII Halftime Show —YOUTUBE/@NFL

Pop and R&B superstar Rihanna made a grand return to the stage on Sunday, floating high above the Super Bowl field, thrilling the crowd with a fast-paced medley of her hits and revealing that she is pregnant with her second child.

Dressed in a hot pink jumpsuit and baggy coat, Rihanna opened the biggest showcase in music by singing “Bitch Better Have My Money” as she stood, with a noticeably rounded belly, on a platform suspended in the air. She was gradually lowered to the ground as she went through well-known songs from “Only Girl (In the World)” to “Rude Boy” and “Work.”

Rihanna was surrounded throughout the 13-minute performance by dozens of dancers in baggy white outfits.

It was the 34-year-old Grammy winner’s first stage performance in five years. Her last album, Anti, was released in 2016.

Rihanna’s appearance led social media users to speculate she was expecting another child. The Hollywood Reporter and other media outlets said a representative for the singer confirmed that Rihanna was indeed pregnant.

The singer gave birth to her first child, a boy, with rapper A$AP Rocky in May 2022.

She concluded her Super Bowl set with “Diamonds” as fireworks lit up the sky around the stadium.

Rihanna joined a list of music luminaries who have performed at the Super Bowl, from Lady Gaga to Beyoncé, Prince, Madonna and the Rolling Stones. The telecast usually draws around 100 million viewers in the United States alone.

In the pre-game ceremony, country star Chris Stapleton sang the US national anthem while Oscar-winning CODA star Troy Kotsur performed the song in American Sign Language.

Emmy-winning Abbott Elementary star Sheryl Lee Ralph sang “Lift Every Voice and Sing,” a hymn that has become known as the Black national anthem, accompanied by a choir. — Reuters

Dublin offices just 10% full on Mondays and Fridays — survey

February 14, 2023 | 12:01 am

DUBLIN — Offices in Dublin are on average only 10% full on Mondays and Fridays as employees continue to adopt a hybrid working model a year after Ireland’s last COVID-19 lockdown, a survey of 500 companies in the capital showed.

Hybrid arrangements, where employees go in part of the week, are reshaping businesses that serve office workers across the world, with knock-on effects for commercial real estate demand and service firms reliant on city center footfall.

The Irish research published by property agency Savills and the Dublin Chamber commerce body on Wednesday suggested offices in the main business district have an average occupancy rate of 0%-10% on Mondays and Fridays.

Occupancy rises to between 51%-60% on Tuesdays and Thursdays, and to 61%-70% on Wednesdays. Almost half of the firms surveyed said employees must spend at least two or three days in the office each week.

Despite the lower occupancy — which compared to a week-long rate of 91%-100% pre-pandemic — three quarters of the firms said they have not changed their office footprint, while 17% have decreased it and 7% added more space.

Separate research from real estate group CBRE on Tuesday showed that total office space bought or let last year was 2.5% below the 10-year annual average, leaving a vacancy rate of 11% or 14% including so-called “grey space,” where larger tenants are seeking to sublet parts of their offices. — Reuters

How PSEi member stocks performed — February 13, 2023

February 14, 2023 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Monday, February 13, 2023.

Actress Juliette Binoche honored at Spanish Goya film awards

February 14, 2023 | 12:00 am

SEVILLE — The Spanish film academy’s Goya Awards paid tribute on Saturday to the late Spanish filmmaker Carlos Saura, while French actress Juliette Binoche picked up an international honorary award. Mr. Saura, who died on Friday aged 91, had been due to receive the academy’s honorary Goya Award at the annual ceremony.

It was awarded posthumously, and to applause his widow Eulalia Ramón read out Mr. Saura’s own words, written before his death: “I am sorry I cannot be with you.”

The filmmaker was credited with leading the awakening of Spain’s art cinema after decades of fascist dictatorship under Francisco Franco.

As Bestas, which is Galician for The Beasts and is a tense thriller, won nine accolades including for best film, director, actor and music.

Spanish movie star Penelope Cruz was nominated for best supporting actress for her role in En Los Margenes, a film about housing problems. The category was won by Susi Sanchez for her role in Lullaby. — Reuters

Peso weakens as US inflation, rate hike bets fuel dollar’s rise

February 13, 2023 | 9:00 pm

THE PESO weakened on Monday due to broad dollar strength ahead of the release of the January US consumer price index (CPI) report on Tuesday.

The local currency closed at P54.76 versus the greenback on Monday, declining by 34 centavos from Friday’s P54.42 finish, Bankers Association of the Philippines data showed.

The peso opened Monday’s trading session stronger at P54.50 per dollar, which was also its intraday best. Its weakest showing was at P54.87 against the greenback.

Dollars traded went down to $955.85 million on Monday from $1.248 billion on Friday.

The peso declined against the dollar as the greenback neared five-week highs amid inflation and rate hike bets, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

A trader also said the dollar was “generally strong” ahead of the release of the US CPI report.

“Also, the usual mid-month corporate demand helped the dollar,” the trader added.

The dollar edged toward a five-week high versus major peers on Monday as the Japanese yen slid and investors increased bets on the US Federal Reserve keeping monetary policy tight for longer, Reuters reported.

The dollar rose 0.7% to 132.48 yen as traders reassessed their expectations of the policy stance of the likely new Japanese central bank governor, who is due to be officially announced on Tuesday.

The euro and pound were both steady on the day against the dollar, with the European common currency at $1.0685 and sterling at $1.206, leaving the dollar index, which tracks the US currency against six major peers, at 103.61.

The index reached 103.8 in early trade. A break past 103.9 would have taken it to the highest since early January.

A strong reading from the US CPI data would drive expectations of tighter monetary policy from the Federal Reserve, likely sending the dollar higher.

Much stronger than expected US jobs data released at the start of February suggests the economy is performing strongly, meaning there is less danger for the Fed in keeping rates elevated.

The US central bank hiked its fed funds rate by 25 basis points (bps) to a range between 4.5% and 4.75% at its Jan. 31 to Feb. 1 meeting. This brought cumulative increases since March 2022 to 450 bps.

The Fed’s next policy review is on March 21-22.

For Tuesday, Mr. Ricafort expects the peso to trade between P54.65 and P54.85 per dollar, while the trader sees it moving from P54.50 to P55. — A.M.C. Sy with Reuters

Shares drop in cautious trade before BSP, US CPI

February 13, 2023 | 9:00 pm

STOCKS declined on Monday as investors remained cautious ahead of the Bangko Sentral ng Pilipinas’ (BSP) policy meeting and the release of US inflation data this week.

The benchmark Philippine Stock Exchange index (PSEi) went down by 38.03 points or 0.55% to close at 6,838.76 on Monday, while the broader all shares index shed 10.21 points or 0.27% to end at 3,642.96.

“Philippine shares were sold to start the week as investors will keep their focus on the policy-setting meeting on Feb. 16. So far, economists are split as to whether the BSP (Bangko Sentral ng Pilipinas) will rate the benchmark rates at a slower pace,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

The BSP is widely expected to raise benchmark interest rates at its meeting on Thursday after headline inflation hit a 14-year high in January.

A BusinessWorld poll last week showed 17 out of 18 analysts see the Monetary Board hiking borrowing costs at its first meeting of the year. Nine analysts see a 50-basis-point (bp) hike, while eight anticipate a 25-bp increase.

The central bank raised borrowing costs by 350 bps in 2022, bringing its policy rate to 5.5%.

“The local bourse fell as investors await the meeting of the BSP as well as the US inflation rate that could influence the decision of the Federal Reserve on interest rates,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

“Stocks moved lower as investors stayed on the sidelines ahead of the release of the critical US inflation data. Market participants turned cautious as consensus estimates expect month-on-month US consumer prices to rise significantly,” AB Capital Securities, Inc. Vice-President Jovis L. Vistan said in a Viber message.

The January US consumer price index (CPI) is scheduled to be released on Feb. 14.

The US central bank raised the fed funds rate by 25 bps to 4.5 and 4.75% range at its Jan. 31 to Feb. 1 meeting.

Back home, sectoral indices were split on Monday. Holding firms went down by 80.78 points or 1.21% to 6,563.87; property lost 15.45 points or 0.51% to end at 2,983.82; and services declined by 6.89 points or 0.40% to 1,716.85.

Meanwhile, mining and oil added 48.91 points or 0.42% to close at 11,467.02; industrials went up by 19.51 points or 0.19% to 9,870.96; and financials gained 0.88 point or 0.04% to 1,831.99.

Value turnover went up to P6.60 billion on Monday with 1.01 billion shares changing hands from the P5.92 billion with 824.88 million issues traded on Friday.

Advancers outnumbered decliners, 101 versus 99, while 39 names closed unchanged.

Net foreign selling went up to P373 million on Monday from P24.26 million on Friday.

AB Capital’s Mr. Vistan placed the PSEi’s support at 6,800 and resistance at 7,000. — Ashley Erika O. Jose

P28.9-B fund to help LGUs build capacity for devolution

February 13, 2023 | 8:31 pm

San_Nicolas_Barangay_Health_Center — BARANGAY HEALTH CENTER in San Nicolas, Iriga City

THE Department of Budget and Management (DBM) said the P28.9-billion Local Government Support Fund will be deployed for capacity-building projects ahead of the imminent devolution of National Government (NG) services.

“We will formulate capacity-building training, and seminars for our LGUs (local government units) to help them — so that by the time we have full devolution, they can stand on their own feet,” Budget Secretary Amenah F. Pangandaman said.

The LGUs will be aided in operations about to be shed by the National Government, such as procurement, project planning and identification, and implementation, she added.

“The Department of Finance’s Bureau of Local Government Finance may also provide guidance on how LGUs may use their budgets,” she said.

LGUs are to be given more responsibility for operating services formerly undertaken by the National Government after receiving a larger share of National Government revenue. The DBM has said that LGUs’ share of NG revenue this year amounts to P820.3 billion, representing 40% of the NG’s revenue three years prior.

The Supreme Court, in its Mandanas ruling, had determined that LGUs are entitled to a 40% share of all NG revenue. Before the ruling, the NG interpreted the Local Government Code narrowly, disbursing 40% of “internal revenue” to the provinces, cities, municipalities, and barangays, effectively defining the pool of funds to be allocated as the collections of the Bureau of Internal Revenue. Before the Mandanas ruling, this payout was known as the “Internal Revenue Allotment” (IRA).

The Mandanas ruling resulted in the renaming of the IRA to the National Tax Allocation, reflecting the LGUs’ entitlement to 40% of all NG revenue, including the collections of the Bureau of Customs, among others.

Of the other parties to be tapped for capacity-building, Ms. Pangandaman added: “We are also partnered with the Department of Interior and Local Government (DILG) and the Development Academy of the Philippines. There are a lot of groups and departments that will help and hopefully, before 2027, we are able to capacitate (the LGUs).”

In January, the DBM’s National Budget Call for the 2024 spending plan highlighted the importance of funding capacity-building programs for LGUs.

The 2024 budget call signaled encouragement for regional programs to bring disadvantaged and laggard LGUs to a position where they can handle devolution.

“The DBM is here to provide guidance to LGUs who are planning their respective projects. We also have the Philippine Development Plan, (which) we’re hoping (LGUs) will follow” to align their projects with national priorities, Ms. Pangandaman said.

Late in his term, former President Rodrigo R. Duterte signed Executive Order No. 138, transferring some basic services to LGUs by 2024 in response to the larger share of NG revenue going to LGUs.

In November, the DBM delayed the devolution of some NG functions to 2027 from 2024. — Keisha B. Ta-asan

PSALM offers co-ops 90 MW in uncommitted capacity

February 13, 2023 | 8:30 pm

THE Power Sector Assets and Liabilities Management Corp. (PSALM) told a House committee that it can make available to Luzon electric cooperatives 90 megawatts (MW) worth of uncontracted power.

PSALM, a government-owned and -controlled corporation, told the chamber’s energy committee that it can supply the cooperatives during peak demand hours, which is when energy supply is tightest.

Emelina S. Blanco, representing PSALM, said at the hearing on Monday that the 90 MW can be supplied by the company to electric cooperatives “upon their request.”

“We will accommodate the request of the electric cooperatives in Luzon, so we can wholly provide the available uncontracted capacity in Luzon to those electric cooperatives. We will just have to get the necessary documentation as well as approvals from our board,” Ms. Blanco said.

Ms. Blanco added that cooperatives must submit a letter of intent to initiate the request.

“We are providing the requested capacity… but we cannot provide them more than that… we’re just basing our supply agreements on what the electric co-ops request,” Ms. Blanco told the panel.

PHILRECA Party-list Representative Presley C. De Jesus said PSALM’s offer will help make the island’s supply-demand balance more favorable.

The energy committee was evaluating House Resolution No. 235, calling for an investigation into rising generation costs, a contributory factor to increased electricity rates.

The 90 MW represents PSALM capacity not yet tied to power supply agreements. “That is our available capacity during peak hours that… (have) no customers consuming it,” Ms. Blanco told BusinessWorld. “We really encourage (power co-ops) to send a request,” she said.

PSALM manages government power assets and liabilities formerly held by the National Power Corp. as authorized by the Electric Power Industry Reform Act of 2001 (EPIRA). The restructured post-EPIRA Napocor is mainly tasked with supplying power to rural areas. — Beatriz Marie D. Cruz

PHL, EFTA partners working to improve trade deal utilization

February 13, 2023 | 8:30 pm

THE Philippines said it and the European Free Trade Association (EFTA) are working to improve utilization of their free trade agreement (FTA), which were 31% for the Philippines and 30% for the four-member EFTA bloc in 2020.

In a statement on Monday, the Department of Trade and Industry (DTI) said the decision to tap the trade deal more extensively was arrived at during the inaugural joint committee meeting on Jan. 10.

The EFTA consists of Switzerland, Norway, Liechtenstein, and Iceland.

The FTA was signed in April 2016 and came into force for the Philippines, Norway, Liechtenstein, and Switzerland in June 2018. The trade deal took effect in Iceland in January 2020.

“Over the 5 years of implementation, both sides have confirmed that the FTA is working well and has no critical implementation issues to date,” the DTI said.

“Both sides are determined to further improve their respective utilization rates,” it added.

The FTA with the four non-European Union countries was intended to tap non-traditional markets with high growth potential for trade and investment.

“This agreement facilitates increased market access, reduction of non-tariff barriers, trade and sustainable development, and protection of intellectual property rights among others, which we see as crucial for the Philippine economy,” Trade Secretary Alfredo E. Pascual said.

The DTI said total trade between the Philippines and EFTA was $953.58 million in 2021, against $821.81 million in 2020 and $821.41 million in 2019.

It added that the Philippines had a trade surplus with EFTA of $129.89 million in 2021, widening from the $101.49 million posted in 2020 and the $47.12 million reported in 2019.

The DTI valued the Philippine agricultural and industrial products entering the EFTA zone tariff-free at €24.84 million in 2020. These products include tuna, desiccated coconut, fruit and nuts, processed food and food preparations, malt products, vacuum cleaners, new pneumatic tires, and hairdressing apparatus.

“The Philippine market does not compete and is complementary in nature to the EFTA market. As such, the Philippines was able to secure duty-free market access for all industrial and fisheries exports to EFTA and significant concessions on major agricultural products through the FTA,” Trade Undersecretary Ceferino S. Rodolfo said.

The DTI said that EFTA countries also helped increase foreign direct investment (FDI) entering the Philippines, adding that more FDI is expected following recent economic reforms such as the opening up of renewable energy projects to 100% foreign ownership.

“From 2018 to the third quarter of 2022, investment promotion agencies approved Swiss investments totaled P1.40 billion (or $25.865 million) in the following sectors: manufacturing, real estate activities, administrative and support activities,” the DTI said.

“From 2018 to the second quarter of 2022, investments from Norway, Iceland, and Liechtenstein also amounted to P229.4 million (or $4.23 million) in the financial and insurance industries, and the manufacturing, administrative, transportation, and storage sectors,” it added. — Revin Mikhael D. Ochave