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Mindanao rail partial operations target reverts to March 2022

PHILIPPINE STAR/KRIZ JOHN ROSALES

THE Transportation department said it restored its original target of achieving partial operations at the China-funded Mindanao Railway Project to March 2022 from the recently-revised target of October 2022.

“Sa March 2022 meron tayong partial operability (We will have partial operability by March 2022),” Transportation Secretary Arthur P. Tugade said during the ceremonial signing of the project management consultancy contract Wednesday.

Transportation Assistant Secretary for Project Implementation-Mindanao Cluster Eymard D. Eje, who committed to keep the project free of corruption, said: “This project will push through and will deliver what we have promised, what President Rodrigo R. Duterte promised, and what Secretary Arthur Tugade promised.”

The project has been pending for over 50 years, according to Transportation Undersecretary Timothy John R. Batan.

The Mindanao rail project was initially targeted for full operations by June 2023.

In the revised “indicative” timeline provided by Project Manager Clipton J. Solam on Sept. 13, construction work was expected to begin in April 2022.

The government, according to the revised timeline, was hoping to start partial operations in October 2022 and full operations in October 2023.

Mr. Eje had yet to respond to BusinessWorld’s query on the constant revisions to the project timeline.

The railway’s P82.9-billion first phase stretches from the Tagum Station and depot in Davao del Norte to Digos City in Davao del Sur. It will have stations in Carmen, Panabo, Santa Cruz, and three in Davao City, including a sub-depot.

The department said the segment scheduled for partial operations by March 2022 is the one between Tagum and Carmen.

The Mindanao Railway’s P3.08-billion project management consultancy contract was awarded to a consortium composed of China Railway Design Corp. and Guangzhou Wanan Construction Supervision Co., Ltd.

The government is awaiting the shortlist of bidders from China for the design-and-build package. — Arjay L. Balinbin

Keeping up with eFPS tax return updates

In the last four years, two major tax reform measures — the TRAIN Act and the CREATE Act — have been signed into law. TRAIN entered the statute books in December 2017 and CREATE in March 2021. The reforms reduced income tax rates for individuals and corporations.

How ready are we to implement the reforms as soon as they take effect?

One of the significant reforms under the CREATE Act is the retroactive reduction in the corporate income tax rate from 30% to either 25% or 20%, depending on the company’s net taxable income and total assets for the taxable year. Taxpayers needed guidance on how the mid-year retroactive reduction was to be implemented, considering that the CREATE Act was passed near the filing deadline of the 2020 Annual Income Tax Return (AITR) of calendar year taxpayers. Also, for the new tax rates to be applied, the income tax returns must be updated by the Bureau of Internal Revenue (BIR).

OUTDATED RETURNS IN THE eFPS
On April 8, 2021, with a few days left before the April 15 filing deadline, the BIR issued Revenue Memorandum Circular (RMC) 50-2021, laying down the guidelines for the filing and payment of the AITR by non-individual or corporate taxpayers for the taxable year ending July 31, 2020 to June 30, 2021, which were affected by the passing of the CREATE Act. The RMC confirmed the lower/transitory income tax rates that would apply. In addition, the BIR did a good job in making the returns more concise. Unfortunately, the returns were not made available on the eFPS facility. Thus, non-individual taxpayers (whether or not enrolled in the BIR’s Electronic Filing and Payment System) were instructed to use the Offline eBIRForms Package version 7.9 or eBIRForms in filing their AITR. The eBIRForms package includes the updated BIR Forms 1702RT, 1702MX, and 1702EX, with an editing feature on applicable rates according to the transitory tax rates applicable to the taxpayer.

For eFPS filers, the payment process was slightly different. After submitting the returns using the eBIRForms, they were to fill out BIR Form 0605 in the eFPS then proceed to e-payment. In a regular filing and payment scenario, eFPS filers click the “Proceed to Payment” button after the online filing of returns. Convenient, right? Unfortunately, as of this writing, the updated AITRs are still not available in the eFPS. In fact, aside from the AITRs, the latest versions of the revised withholding tax returns, percentage tax, and documentary stamp tax are still not available in the eFPS: 1602Q, 1603Q, 1604-C, 1604-F, 1604-E, 2000, and 2551Q. This is rather disappointing considering that these became available in eBIRForms as early as 2018 and 2019 as part of the implementation of the TRAIN Law.

It begs the question — what is causing the delay in updating the returns in the eFPS? Specifically, for the AITR, can we expect the BIR to update them in the eFPS for taxpayers reporting for fiscal year July 30, 2021 and beyond, or will the BIR issue another RMC, instructing taxpayers to also use eBIRForms?

Going back to the TRAIN Law implementation, the BIR also issued RMC 36-2021, prescribing the guidelines for the filing of Value-Added Tax (VAT) declarations/returns (BIR Forms 2550M and 2550Q) in relation to the shift from final to a creditable system on the VAT withheld on sales to the government beginning Jan. 1, 2021. As a result of the change, new versions of the VAT declarations/returns need to be developed. However, the BIR has yet to release them in both eFPS and eBIRForms platforms.

In addition, the update on the VAT declarations/returns should also consider the expiration of the amortization requirement for input VAT on capital goods exceeding P1 million. Beginning Jan. 1, 2022, any unamortized input VAT is to be fully recognized outright and may be claimed as an input tax credit against output tax. I expect that the BIR may want to have a separate line item to reflect this change to facilitate verification during tax audits.

PAYMENT OPTIONS FOR eFPS FILERS
One of the reasons why some taxpayers voluntarily opt to enroll in the eFPS is for the convenience and speed of paying with a simple click after filing the return, eliminating the need to physically pay at an Authorized Agent Bank (AAB) or use other payment modes outside the eFPS that require separate fund accounts.

Considering that the BIR is still playing catch-up in terms of updating the returns, it should, at least, consider allowing the same payment process for the other returns that it allowed under RMC 50-2021, i.e., to pay in the eFPS using BIR Form 0605 after filing the relevant return through eBIRForms.

Currently, the various payment options provided under an earlier issuance (RMC 4-2021) does not include the eFPS payment option under RMC 50-2021. According to RMC 4-2021, in case of newly-created tax returns that are not available in the eFPS facility but already accessible in the eBIRForms, the taxpayer must file such returns using the eBIRForms program. Payment should be through any of these channels: 1) over-the-counter payment to AABs; 2) Revenue Collection Officers (RCOs) in areas where there are no AABs; 3) electronic payment to selected banks, which will require the taxpayer to open an account; or 4) mobile payment channels like GCash or PayMaya.

The tax reform programs aim to make the tax system simpler, fairer, and more efficient. While the policy changes introduced by the new legislation achieve this objective, the delay in the eFPS updates, for me, take something away from the full realization of the benefits of these reforms. I hope the government stops playing catch-up soon enough.

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.

 

Christian Grimaldo is a manager with the Tax Services Group of Isla Lipana & Co., the Philippine member firm of the PwC network.

+63 (2) 845-2728

christian.d.grimaldo@pwc.com

Police lied about drug-related deaths, DoJ says

PHILSTAR FILE PHOTO

By Kyle Aristophere T. Atienza, Reporter

PHILIPPINE police had lied about conditions surrounding the deaths of suspects in raids involving President Rodrigo R. Duterte’s war on drugs, the Justice department said on Wednesday.

Drug suspects in 52 cases neither fought back nor resisted arrest, contrary to police claims, with many of the cases lacking witnesses, the agency said in a 21-page report, citing forensic evidence.

A matrix of the cases cited the case of 17-year-old Nave Perry G. Alcantara, who police claimed was shot and killed three times after he fought back.

The Philippine National Police Internal Affairs Service (IAS) had doubted the cops’ claim of self-defense since the kid was standing only a meter from the policeman who shot him, the Department of Justice (DoJ) said.

“Considering the relative positions of the two persons at the time of the alleged shooting, IAS expressed doubt with regard to the police operative’s claim of self-defense,” it said. Police appeared to have used excessive force during the drug raid, it added.

The suspect’s hands later tested negative for gunpowder nitrates, the DoJ said, citing paraffin tests. One of the policemen at the raid faced a 60-day suspension, while the complaint against the other got dismissed.

Among the many victims who allegedly retaliated and fired at policemen was Clark G. Nardo, whose body did not undergo paraffin or ballistics tests. He suffered multiple gunshot wounds.

“There is nothing in the records that would support the police operatives’ claim that the suspect fired at them,” the DoJ said. “No paraffin or ballistics tests, as well as cross-matching of the weapon allegedly recovered from the subject, were conducted.”

The DoJ matrix showed that in most cases, erring cops only got a slap on the wrist, having faced demotion or suspension.

The police officer who killed Crispin Vedaño, who was shot two times in the back, only faced a six-month suspension.

“Paraffin tests showed that both hands of the suspect were negative for gunpowder nitrates,” according to the DoJ. “The police operative did not present any documents to show that there was a legitimate buy-bust operation.”

Just like in other incidents, no autopsy report was submitted in the case of Mr. Vedaño, the DoJ said.

These cases were just an overview of the tens of thousands of deaths — according to the United Nations — committed in the drug war of Mr. Duterte, who in 2018 said extrajudicial murders had happened under his government.

Many of the victims were from the Calabarzon and Caraga region, with only two cases in the National Capital Region and none from Bulacan province, where so-called one-time big-time operations were conducted by police, Karapatan Secretary-General Cristina E. Palabay said in a Facebook statement.

“Cases involve incidents from 2016 to 2020, indicating continuing occurrences during the pandemic,” she added.

The matrix was released to inform the families of the dead suspects that the cops involved could face criminal liabilities. It also urged witnesses to come forward.

“The review of just 52 cases barely scratches the surface and is grossly insufficient and inconsistent with the government’s commitments under international law to provide an effective review of cases involving alleged extralegal killings,” the Free Legal Assistance Group (FLAG) said in a statement.

“It does not provide useful information to assist in making the offenders accountable, nor does it provide comfort or solace to the families of the victims of those killed in the name of the Duterte administration’s so-called war on drugs,” it added.

The Philippine Commission on Human Rights has said the state was violating human rights for abetting police abuses.

Mr. Duterte told the UN General Assembly in a taped video that anyone found to have “acted beyond bounds” in his campaign against illegal drugs would be held accountable. He also appeared to brush off an International Criminal Court (ICC) investigation.

The tough-talking leader said he had ordered a review of the conduct of the campaign, and the Justice department was looking at the files of drug dealers.

Mr. Duterte’s speech to the UN General Assembly came days after the ICC allowed an investigation into alleged “crimes against humanity” in connection with his war on drugs that has killed thousands.

He said his government was working with the UN Human Rights Council to look into the cases.

Senator Ronald M. Dela Rosa, Mr. Duterte’s former police chief who enforced the anti-illegal drug campaign, on Tuesday said he would block any investigation attempts — if he becomes president next year — by the ICC.

He said he would allow ICC investigators to visit the Philippines to “observe” but not to investigate.

An investigation by the Hague-based tribunal would be a slap in the face for Philippine courts that are still functioning, he added.

The ICC has ordered an investigation of Mr. Duterte’s crackdown on illegal drugs that has killed thousands, as it found “reasonable basis” that crimes against humanity might have been committed.

DoH logs fewer than usual virus cases due to technical issues

PHILIPPINE STAR/ MICHAEL VARCAS

THE DEPARTMENT of Health (DoJ) reported fewer than the usual coronavirus infections and deaths on Wednesday, again citing technical issues.

It posted 3,656 new coronavirus infections, bringing the total to 2.74 million. The death toll rose to 40,977 after five more patients died, while recoveries increased by 228 to 2.63 million, it said in a bulletin.

There were 67,061 active cases, 77.9% of which were mild, 6.8% did not show symptoms, 4.6% were severe, 8.69% were moderate and 2% were critical.

The agency said 20 duplicates had been removed from the tally, 16 of which were reclassified as recoveries, while five recoveries were reclassified as deaths.

Two other cases were relisted as recoveries, DoH said.

“The low number of reported recoveries and deaths today are due to technical issues,” the agency said in a statement. Additional recoveries and deaths would be reflected reports in the coming days, it added.

DoH said 53% of Metro Manila’s intensive care units had been occupied, while the national rate was 59%.

The presidential palace on Tuesday said the government would expand a new coronavirus alert level system first tested in the capital region into other parts of the country starting Oct. 20.

An inter-agency task force put Batangas, Quezon Province including Lucena City under Alert Level 2. Also under the same alert level are Bohol, Cebu City, Lapu-Lapu City, Mandaue City and Cebu Province in central Philippines and Davao De Oro, Davao Del Sur and Davao Oriental in Mindanao.

Cavite, Laguna, Rizal, Siquijor, Davao City and Davao del Norte would be under Alert Level 3, under which theaters would be allowed to operate. The capacity of allowed businesses would also be increased.

Negros Oriental and Davao Occidental will be under Alert Level 4, which bans theaters, amusement parks and playgrounds, karaoke bars, live voice or wind-pipe performances and contact sports establishments.

The country’s pandemic task force placed Metro Manila under Alert Level 3 from Oct. 16 to 30. — Kyle Aristophere T. Atienza

Duterte hits Senate for threat to cut Executive budget

PCOO.GOV.PH

PHILIPPINE President Rodrigo R. Duterte on Tuesday night slammed senators for threatening to cut the 2022 budgets of agencies.

“You threaten the budget of different agencies of the Executive because the officials refuse to attend your hearings,” he said in a taped Cabinet meeting. “They threaten to paralyze the government.”

Last month, the House of Representatives passed on third and final reading its version of the P5.024-trillion national budget for next year.

The Senate has yet to approve the budget bill, which they are examining after state audit reports showing deficiencies in the use of public funds by some agencies.

Mr. Duterte dared senators to slash the budgets of executive departments. “Reduce the budget of the Office of the President to zero, go ahead,” he said, while threatening to block the release of funds to agencies once the national budget is approved.

“Will your funds reach you without going through me? What if I don’t release them? Tit for tat,” he said.

The tough-talking leader has barred Cabinet officials from attending the Senate blue ribbon committee’s hearing probing questionable state pandemic deals.

Mr. Duterte has denied corruption in pandemic-related contracts, including those bagged by Pharmally Pharmaceutical Corp.

The President earlier said the country’s pandemic response was being hampered by the Senate investigation. — Kyle Aristophere T. Atienza

Price freeze sought on basic goods as oil prices continue to increase   

PHILIPPINE STAR/ MICHAEL VARCAS

LAWMAKERS from the progressive Makabayan bloc have called for a price freeze on basic goods as oil prices continue to increase for the eighth consecutive week due to increasing global oil prices.  

The party-list representatives, led by Gabriela Rep. Arlene D. Brosas, filed House Resolution 2310 on Tuesday urging the national government to address the impact of soaring oil prices to commodities.  

“The nonstop oil price hikes are setting off an adverse domino effect on the price of basic goods and services at a time when majority of Filipino families are suffering from the economic fallout of a prolonged pandemic,” they said in the resolution.  

Local oil firms on Monday raised gasoline prices by P1.8 per liter (/L), and increased diesel and kerosene prices by P1.5/L and P1.3/L, respectively.  

The lawmakers said the price freeze on basic goods can be justified through President Rodrigo R. Duterte’s Proclamation No. 1218 signed last month extending the period of state of calamity until Sept. 12, 2022 due to the coronavirus pandemic.  

Republic Act 7851 or the Price Act provides for the automatic imposition of a price freeze on basic necessities for 60 days when there is a declaration of a state of calamity.    

“President Rodrigo Duterte has not taken any decisive action to curb the rising oil prices and the consequent price hikes of basic commodities, and has instead shamelessly engaged in politicking and attacks against political opponents,” the Makabayan solons said.  

The Department of Energy has earlier asked Congress to amend the oil deregulation law in order for the government to intervene in sudden prolonged hikes in retail prices and require the unbundling of retail product costs.   

Energy Secretary Alfonso G. Cusi said in a letter that the consecutive increases in oil prices is attributed to a sudden surge in global demand as countries resume more economic activities, slowed production, stockpiling ahead of winter season, and international sanctions on oil-rich nations such as Iran and Venezuela. — Russell Louis C. Ku 

Senator pushes gov’t to source at least P5B to continue transport service contracting program 

PHILIPPINE STAR/ MICHAEL VARCAS

A SENATOR on Wednesday pushed the government to pull together at least P5 billion to continue the transport service contracting program for the benefit of both public utility vehicle (PUV) drivers and commuters amid rising fuel costs.  

Senator Ana Theresia “Risa” N. Hontiveros-Baraquel noted that there is still P3 billion in unreleased funds allocated for the transport sector under the pandemic response law.  

“It is also necessary to find additional funds that can match the allocation for service contracting found in Bayanihan II that was only wasted,” she said in Filipino. “Drivers need to be paid on time and enough for this system to be of benefit.”  

Meanwhile, the Transportation department denied on Wednesday the allegation that its attached agency, the Philippine National Railways (PNR), had procured “overpriced” pandemic-related items from Pharmally Pharmaceutical Corp.  

Ms. Hontiveros told the Senate blue ribbon committee hearing Tuesday that PNR paid rates that were above its price catalogue. 

The Transport department, in a statement, said the emergency procurement of critical items for the use of its personnel had no irregularities. “PNR is most ready to present or submit the necessary documentary proofs of its small value procurement, such as relevant market studies or canvasses at that time, as needed.” — Alyssa Nicole O. Tan 

DoH requests release of additional P2.7B for healthcare workers 

PHILIPPINE STAR/MICHAEL VARCAS

THE HEALTH department has requested the release of another P2.7 billion for the payment of special risk allowances due to 119,353 healthcare workers. 

Health Assistant Secretary Maylene M. Beltran said they have already asked the Budget department for the fund, which will cover additional personnel as requested by various healthcare facilities.  

“The list comes from our operating units. Some or most of them are directly or indirectly catering to the COVID patients,” Ms. Beltran told the Senate budget hearing on Wednesday. 

During the hearing, Senators inquired if the additional workers included staff in non-COVID wards, to which Ms. Beltran said that some “utility workers, non-medical and allied medical personnel” were included, but not all have been added to the list.  

Latest government data show 456,013 healthcare workers, or 87% of the total eligible, have received their special risk allowance. — Alyssa Nicole O. Tan 

UK gov’t, UNICEF to help Bangsamoro gov’t address COVID-19 vaccine hesitancy, refusal 

BASILAN PROVINCIAL GOVT.

THE UNITED Kingdom (UK) government and the United Nations Children’s Fund (UNICEF) will be assisting the Bangsamoro region in a program to address hesitancy and refusal to get coronavirus vaccines.  

In a statement on Wednesday, the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) government said the partnership with the UK and UNICEF will involve the Ministry of Health, Bangsamoro Information Office, and the information offices in the island provinces of Basilan, Sulu and Tawi-Tawi.  

The program will focus on expanding the dissemination of correct information on vaccines, training local health teams on behavior change communication, and mobilizing stronger support from local governments.   

“The fight against COVID-19 (coronavirus disease 2019) is far from over, especially with the emergence of new variants. Through the renewed partnership with UNICEF and the UK government, we are confident that we will be able to address misinformation concerns,” BARMM Chief Minister Ahod B. Ebrahim said.   

The UK and UNICEF previously assisted the BARMM in its coronavirus emergency response under a program that ran from Aug. 2020 to March 2021.  

“This time, we will be working closely with the Ministry of Health to focus on COVID vaccination. We all know that refusal and hesitancy are really major issues,” UNICEF Chief Field Officer for Mindanao Andrew Morris said.   

Ministry of Health Director-General Amirel Usman said the region’s full vaccination rate is currently only 10% of the more than 2.4 million eligible population  

“For our fully vaccinated individuals, we only have 10%. So our efforts are way (behind) and it’s not even half of the 70% (target for herd immunity). We have enough supply of vaccine right now but we face several challenges,” Mr. Usman said.  

Apart from hesitancy and refusal to receive the jab, the region is also faced with brand preference for the vaccine, rural health units that do not have doctors, late reports due to internet connectivity problems, lack of manpower for data management, and misinformation.  

“In this several months partnership project, we will have an extra focus on the islands because it is very diverse with multiple languages. So there is a need for extra communication efforts there,” Mr. Morris said. — MSJ 

Napocor brings power to 1,200 households in Eastern Samar 

NAPOCOR.GOV.PH

THE NATIONAL Power Corp. (Napocor) said it has brought energy supply to remote communities across Eastern Samar, so far covering 1,200 households.  

“Recently, we have opened facilities in Cagusu-an, Habag, Inapulangan in Guiuan, and Hilabaan and Tikling in Dolores,” Napocor Vice President for Small Power Utilities Group (SPUG) Larry I. Sabellina said in an emailed statement on Wednesday. 

In March this year, the government entity switched on its diesel power plants in Casuguran. 

Mr. Sabellina added that Suluan, Sta. Monica and Tarnate are “scheduled for energization” by yearend. 

Napocor said the agricultural sector stands to benefit from the presence of SPUG’s facilities in off-grid areas. 

Under the Electric Power Industry Reform Act of 2001, Napocor is required to bring power to areas not connected to the grid. The entity operates SPUG plants in 189 municipalities across the country. — Angelica Y. Yang 

TPB to launch tour routes for motorbike enthusiasts 

TPB/ANGEL ERAN

THE TOURISM Promotions Board (TPB) is launching a campaign to encourage motorcycle enthusiasts to go on road trips and take routes that feature the country’s tourist attractions.     

“We are pushing our boundaries to come up with even more safe and creative ways to set the tourism industry and all those who depend on its path to recovery, TPB Chief Operating Officer Maria Anthonette Velasco-Allones said in a statement Tuesday.   

The Philippine Motorcycle Tourism Program will be officially launched on Nov. 19 with a hybrid webinar promoting the Philippines as “a fun and safe destination” and highlighting road safety during travel.  

A motorbike ride, with around 250 participants, will then be held on Nov. 20-21, starting at Rizal Park in Manila. The journey will cover the five provinces of Calabarzon — Cavite, Laguna, Batangas, Rizal, and Quezon.  

The motorcycle tourism program, Ms. Allones said, “showcases interesting culture and heritage sites, shops, restaurants, and other tourism products all over the country that Filipinos can discover themselves on two wheels.”  

In line with the program, the tourism agency is also supporting three riders’ events:  

• Motorbike Tour in Tarlac and Nueva Ecija on Oct. 21-22 organized by Department of Tourism’s Central Luzon office  

• Halal Foods Rediscovery Motorcycle Ride, which will highlight the promotion of halal food and establishments  

• 10th Mindanao Freedom Ride on Nov. 5-12 spearheaded by Norminring Motorbikes. 

171 more Filipinos repatriated from Macau  

ANOTHER 171 overseas Filipinos in Macau were repatriated on Tuesday, bringing the total from the country to 4,757 since the start of the coronavirus pandemic in March last year.  

“The repatriation program will continue as long as regular commercial flights to the Philippines have yet to resume,” Philippine Consul General to Macau Porfirio M. Mayo, Jr. said in Filipino in a statement.  

He also assured that the consulate continues to work towards the inclusion of Macau in the “green list” of jurisdictions under the government’s classifications for countries.  

Under the latest guidelines, fully-vaccinated passengers arriving from countries in the green list are no longer required to undergo facility-based quarantine, subject to presentation of a negative RT-PCR test taken within 72 hours prior to departure from the port of origin. — Alyssa Nicole O. Tan