TOURISM Secretary Bernadette Romulo-Puyat looks on as a tourism worker in Camiguin gets vaccinated against COVID-19 in preparation for the sector’s reopening on Oct. 25. The island province in Northern Mindanao is an emerging diving site, home to ASEAN Heritage Park Mt. Timpoong-Hibok-Hibok mountain range, and is most known for its sweet Lanzones fruit. Almost 4,600 workers on the island are employed in the tourism sector.
THE PHILIPPINES will require investment of P5.76 trillion to expand the power supply and allow renewables to make up a larger part of the power mix by 2040, according to the Department of Energy (DoE).
Most of the investment should go to renewable energy (RE) generating facilities, the department said in its latest Philippine Energy Plan (PEP) posted on its website.
The updated plan, which covers the years 2020 to 2040, said the total investment cost will help the Philippines reach its targets under the “clean energy scenario” (CES).
“The CES, being the scenario pursued, indicates the entry of more RE-based technologies with a total capacity addition of 92.3 GW by 2040… The estimated financing requirement is seen (at) P5,762.6 billion,” the DoE said.
Under the CES, the country is expected to achieve a 35% RE share in the power generation mix by 2030 and a 50% share by 2040.
Pursuing the CES will help the country achieve a sustainable power supply over the long term.
According to the PEP, new generating facilities will require the development of new transmission projects which will require investment of at least P348 billion over the next 10 years.
The Energy department said that its latest PEP is the second comprehensive energy blueprint which is compliant with the government’s long-term plan, known as the “Ambisyon Natin 2040.”
“This updated plan, like its predecessor (the 2018-2040 PEP), reiterates the energy sector’s goal to chart a transformative direction towards attaining a clean energy future,” it said. — Angelica Y. Yang
LOANS that will help small enterprises make payroll for 13th month salaries will now be available only to micro enterprises due to lack of funds, according to the Department of Labor and Employment (DoLE).
In a briefing Monday, Labor Secretary Silvestre H. Bello III said the eligibility cutoff is “those with a maximum of 10 workers” who are still struggling financially due to the pandemic in order to qualify for soft loans from the Small Business Corp. (SB Corp.), an arm of the Department of Trade and Industry (DTI).
The initial plan of the DTI, DoLE, Finance Department, and the Employers Confederation of the Philippines was to provide soft loans to micro and small enterprises, but Mr. Bello said SB Corp. can only cater to micro businesses due to its budget of P200 million.
He added that DoLE had initially requested a P60-billion budget for a wage subsidy program, which was not granted due to insufficient funds.
The wage subsidy would have covered 60% of employee salaries to allow employers to keep them at work.
Mr. Bello reiterated that it is illegal for employers to withhold the salaries of unvaccinated employees.
According to Mr. Bello, the “no vaccine, no pay” policy allegedly being practiced by some employers “has no legal basis and is against the Labor Code.”
Article 116 of the Labor Code bars employers from withholding wages “by force, stealth, intimidation, threat, or by any other means whatsoever without the worker’s consent.”
“We are in a democratic country where there is freedom of choice. One cannot force someone to be vaccinated unless there is a law,” Mr. Bello added.
Mr. Bello said the department has as yet not received official complaints against any employer enforcing such a policy.
He urged workers whose salaries were withheld for non-vaccination to “step forward” and identify the employers in order to initiate an investigation. He said whistleblowers will remain anonymous.
Any such practice will trigger a DoLE compliance order against the employer, he said. — Bianca Angelica D. Añago
THE SENATE finance committee expressed skepticism Monday over a request for an additional P7.8 billion by the Technical Education and Skills Development Authority (TESDA), citing its low rate of fund utilization.
TESDA currently has a P14.5-billion proposed budget for 2022 as endorsed by the budget department.
“If you look at the disbursement rate of TESDA in its budget, you will see that out of every P100 allotment, they can only disburse P30.89,” Minority Leader Franklin M. Drilon said at a committee hearing. “The utilization of the budget of TESDA appears to be a challenge.”
“How can we be so confident that they will be able to disburse an additional P7.8 billion, apart from the fact, Mr. Chairman, that I do not know where they will get the additional budget requested,” he added.
As of Sept. 24, Secretary Isidro S. Lapeña noted that the agency’s budget utilization rate was 66% while its disbursement rate was 85%. He added that these metrics could still improve towards the end of the year.
Mr. Drilon asked whether the TESDA estimates include the funds transferred to regional offices, which Mr. Lapeña affirmed.
“With all due respect, I think this is a wrong practice. This is a misleading presentation of your ability to utilize the budget granted to you by Congress,” Mr. Drilon said, noting that it should not be considered “utilization” when funds are only transferred.
“It’s not really being utilized, it’s more of obligated,” Senator Emmanuel Joel J. Villanueva said at the hearing. “Now, there’s a difference between utilization and disbursement.”
The committee asked the agency to report utilization rates in the regions.
Senator Sherwin T. Gatchalian said the agency has P6.2 billion in unspent funds over the remainder of the year, and expressed concern that spending will be arbitrary just to meet disbursement targets.
“We don’t want to force you to spend for the sake of spending,” he told the hearing. “What’s important is we have a plan on how to spend it judiciously, as well as (an idea of) the real demands of the market.”
Mr. Lapeña noted that some of the remaining funds will be used to procure tool kits for its scholars, and advanced procurement is also being carried out for future needs.
Mr. Gatchalian told TESDA to become more demand-driven in its planning and expressed disappointment over the agency’s “poor planning” and “inefficient” fiscal management. — Alyssa Nicole O. Tan
THE BOARD of Investments (BoI) has approved a P548.7-million project of Irradiation Solutions, Inc. (ISI) for an irradiation facility in Tanay, Rizal, serving the farm produce sector.
The company qualified for incentives as a new operator of essential services under Republic Act No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act and the 2020 Investment Priorities Plan as a qualified operator of an activity that will help ease the impact of the pandemic.
The BoI said in a statement Monday that the facility will use electron-beam technology to irradiate produce. It is expected to begin operations by June 2023 and employ up to 43 staff.
“The target customers and clients of this project will importers, exporters and traders. The project will earn its revenue through irradiation treatment fees (on the basis of) pesos per dry weight depending on (the) required dose on kilogray units,” the BoI said.
ISI’s facility has a capacity of 25,000 metric tons (MT) annually, and is set to augment the country’s electron-beam irradiation capacity.
“At present, the only electron-beam irradiation facility of the country is owned/operated by the Department of Science and Technology-Philippine Nuclear Research Institute (DoST-PNRI) with a maximum annual capacity of only around 440 MT,” the BoI said.
According to the BoI, irradiation is a processing and preservation method that exposes food and other products to ionizing radiation such as gamma rays, x-rays, or accelerated electrons from electron beam machines.
It added that products undergoing irradiation do not become radioactive due to low energy levels used.
“This technology is responsible for the reduction of microbes or decontamination (among spices, herbs, cosmetic raw materials), quarantine treatment (fruits and vegetables), elimination of pathogens (frozen/chilled meat), sprout inhibition (onions, garlic, potatoes) and sterilization (in medical devices, packaging, bone grafts),” BoI said.
“One advantage of this technology is that products can be treated in its final package form; hence, the products will no longer be opened in the facility before and after the irradiation treatment,” it added.
BoI Managing Head Ceferino S. Rodolfo said the project is compliant with the government’s pandemic response, particularly in creating food resilience by adopting technology to limit postharvest losses and prolonging the shelf life of agricultural products.
“It will also promote much-needed additional economic activity throughout the agriculture value chain through increased quality of production as well as enabling local products to be of export quality and thus be able to access wider international markets,” Mr. Rodolfo said. — Revin Mikhael D. Ochave
THE PHILIPPINES needs to reform its consumer protection laws in order to offer better protections during the pandemic, according to an ASEAN panel studying individual countries’ regulations.
David Kintanar Rosario, a country expert on the ASEAN peer review team, said in a virtual briefing Monday that the pandemic fast-tracked the shift to a digital economy, where protections need to be upgraded.
“Entering 2020, no one could have foreseen that the world would be in a standstill… there have to be rules and regulations to specifically protect consumers in these online markets,” Mr. Rosario said.
“The rise in online transactions has also led to an increase in unregistered sellers. Unregistered sellers are not only problematic… because (they call) into question the legitimacy of buying and selling online,” he added.
According to the Department of Trade and Industry (DTI), the Philippines is the first country in ASEAN that volunteered to undergo a peer review on consumer protection.
The peer review team had representatives from Malaysia, Vietnam and the ASEAN Secretariat, with support from the Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH, and regional and country experts.
Mr. Rosario said redundancy in regulatory authority needs to be cleared up.
“You cannot have different government agencies investigating the same item. It may need to be streamlined to promote better efficiency,” Mr. Rosario said.
Anthony A. Abad, a country expert of the peer review team, called for a review of Republic Act No. 7394 or the Consumer Act and other laws in order to upgrade consumer protection.
Mr. Abad added that rules governing product inspection and warranties are needed.
“A large portion of transactions are in digital form. Digital transactions should not be outside the purview of existing law. It must not be outside of the reach of regulators,” Mr. Abad said.
Trade Secretary Ramon M. Lopez said the DTI is addressing the changing environment.
“Being the first country in ASEAN to have volunteered to undergo this peer review, the Philippines and the Filipino consumer stand to benefit from the enforcement of high-level principles on consumer protection. — Revin Mikhael D. Ochave
ALSONS POWER Group said its 14.5-megawatt (MW) Siguil hydroelectric power plant in Maasim, Sarangani is on track to begin commercial operations next year, noting that construction has proceeded on schedule.
In a statement Monday, Alsons Power said that it is currently developing the P14.5-billion run-of-river project’s power house which will contain the hydropower turbine, generator set, control room, and offices for administration, operations and maintenance.
The Siguil hydro plant intends to supply clean power to “key areas” in the South.
Alsons Power, Mindanao’s first private-sector power generator, operates four power generation facilities with a total capacity of 468 MW.
The group plans to develop at least seven more run-of-river hydro projects in the region.
Alsons Power is an arm of the Alcantara Group and the listed Alsons Consolidated Resources, Inc. — Angelica Y. Yang
AGRICULTURAL LOSSES caused by severe tropical storm Maring (international name: Kompasu) increased to P2.14 billion from the prior estimate of P1.87 billion, according to the Department of Agriculture (DA).
The DA said in a bulletin early Monday that Maring affected 76,442 farmers and fisherfolk and 85,744 hectares of agricultural land in the Cordillera Administrative Region, Ilocos Region, Cagayan Valley, Central Luzon, Mimaropa, Bicol Region, the Western Visayas, and Soccsksargen.
Maring also caused the loss of 101,818 metric tons (MT) worth of output of rice, corn, high-value crops, livestock, poultry, and fisheries. Losses and damage were also reported by irrigation and agricultural facilities.
Rice losses were valued at P1.5 billion across 74,460 hectares of farmland. The lost volume estimate was 83,719 MT.
Damage to high-value crops was P199.4 million, including 9,200 MT of assorted vegetables and fruit trees. Some 2,689 hectares of agricultural land were affected.
Corn losses totaled P148.2 million, or 8,899 MT in volume terms across 8,595 hectares of farmland.
Fisheries damage amounted to P110.1 million while livestock and poultry losses were estimated at P84.8 million.
Damage to irrigation and agricultural facilities totaled P140.6 million, including diversion dams, small water irrigation projects, communal irrigation systems, check dams, nurseries, demo farms, and farm to market roads. — Revin Mikhael D. Ochave
The IATF adjusted the COVID-19 alert levels of certain areas such as that of the National Capital Region, where the alert level is now at 3. Through a resolution, the authorities relaxed quarantine restrictions over the coming days to provide more mobility to people in certain trades. According to the 2021 Asian Development Outlook update, the Philippine economy is recovering and rebounding at a growth rate of 11.8% from the second quarter due to the government’s expansionary fiscal policy, which it resorted to in order to fund the pandemic response, vaccination, and infrastructure projects. From these economic indicators, businesses and investors may expect that the Philippines to get back on track soon.
The government needs to attract investors to the Philippines, and one handy tool for doing so is the Ease of Doing Business Act. As such, government agencies and some Local Government Units (LGUs) are currently introducing virtual registration processes for new businesses. The Securities and Exchange Commission (SEC) has online portals which corporations, partnerships, and other entities can use to register in various platforms such as the Company Registration System (CRS) for foreign corporations and partnerships and the Electronic Simplified Processing of Application for Registration of Company (ESPARC) for domestic stock and non-stock corporations, as well as One Person Corporations. These registration pathways offer electronic application platforms in which applicants can provide company information and upload documents. These platforms generate simplified Articles of Incorporation, By-Laws, cover letters, and licenses to do business in the Philippines. Payments can be made online through another platform created by the SEC. A sole proprietor the person may register business names online through the Department of Trade and Industry’s (DTI) New Business Registration System, which processes applications, payments, and certifications.
Within 30 days of registration, the new business entity must register and secure a Tax Identification Number (TIN) from the Bureau of Internal Revenue (BIR). The BIR has introduced “NewBizReg,” an alternative option in which applicants can submit the scanned copies of documents online through BIR e-mail addresses for registration and which requires the same documents for onsite registration. By attaching the BIR application form, SEC or DTI documents, tax type questionnaire, sample receipts and invoices, and other required documents through the e-mail address that the BIR may provide, the application for registration of a newly established business may be processed online through e-mail. There is a registration fee and documentary stamp taxes to be paid. Thereafter, a Certificate of Registration may be secured.
At the local government level, some cities and municipalities are now considering online applications, including Quezon City through its QC-eServices, Manila through GoManila, San Juan City through Makabagong San Juan, and other LGUs which use similar virtual platforms. The required documents for registration may vary for each LGU. It is recommended to visit your LGU office for the list of requirements and forms, including how much business tax and permit fees need to be paid. The initial business tax for new entities is usually tied to the level of capitalization. In various revenue ordinances, the rate of initial business tax and permit fees in various cities and municipalities may be different. This is due to the decentralization and autonomy of LGUs in the Philippines.
Despite varying requirements and procedures, the Department of Interior and Local Government (DILG) encourages the public to note the LGU’s compliance with the Ease of Doing Business Act in registering businesses. To comply with these guidelines, most LGUs have introduced the Business One-Stop System (BOSS) in order to streamline the requirements and procedures for registration and other local service needs.
Despite the effects of the pandemic, the economy is poised to bounce back. The authorities continue to find solutions and improve procedures to provide the private sector an environment that fosters improved trade, opportunities for growth, and returns on investment. As the Philippine Constitution provides: “The State recognizes the indispensable role of the private sector, encourages private enterprise, and provides incentives to needed investments.” The government is improving policies to encourage the private sector to establish businesses for trade and employment and usher in investment to grow the economy. We are still feeling the effects of the pandemic but as long as we find new solutions and continue to see improvement, we making progress and may soon be back on track.
Let’s Talk Tax is a weekly newspaper column of P&A Grant Thornton that aims to keep the public informed of various developments in taxation. This article is not intended to be a substitute for competent professional advice.
Mark Ebenezer A. Bernardo is an associate of Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.
By Michael Angelo S. Murillo, Senior Reporter
WHILE they are happy to be back in the Philippine Basketball Association (PBA) finals, the TnT Tropang Giga recognize that it is only half of the battle and that there is still work to be done to realize their championship goals.
The Tropang Giga secured the last PBA Philippine Cup finals ticket on Sunday after defeating the San Miguel Beermen, 97-79, in their Game Seven semifinal rubber match at the Don Honorio Ventura State University (DHVSU) Gym in Bacolor, Pampanga.
With great resolve, TnT bucked early struggles and when it got its collective groove was just not to be stopped in its push for a finals berth.
It was a total team effort on both ends for the Tropang Giga in the Game Seven win, led by Roger Pogoy, who shot his way out of a slump in the previous game to tally 27 points on 10-of-19 shooting.
Rookie Mikey Williams also stepped up big for his team, chalking up all-around numbers of 20 points, eight rebounds and six assists while big men Troy Rosario and Kelly Williams had double-doubles of 12 points and 12 rebounds and 11 and 10, respectively.
With the finals berth in the bag, TnT is now focusing on the next phase of completing the goals it has set at the start of the season.
“We’re fortunate to be back in the finals,” said TnT coach Chot Reyes, whose wards were a losing finalist in last year’s Philippine Cup finals although under the stewardship of another coach.
“Well, we’re happy, but we know that there’s still a huge job in front of us,” he added.
Waiting for TnT in the finals are the equally motivated Magnolia Pambansang Manok Hotshots, who eliminated the Meralco Bolts in their own best-of-seven semifinal series, 4-2.
“We are relieved to have moved past San Miguel. But there’s also the feeling of, you know, that we are still far from over, that the job is only half done. But at least we’re here. Now, we have to figure out how to play and compete against this tough Magnolia squad,” Mr. Reyes said.
The multi-titled coach went on to say that important for them in the finals is to get better and instill that kind of mindset of not settling for where they are at the moment in their development under his watch.
“Being in the finals is great. I think that’s the objective of every coach in the league. But when I accepted the job, we’re looking at the long game. We’re trying to build a [winning] culture,” said Mr. Reyes, who made his PBA coaching return this season after a decade of being away to seek other pursuits.
TnT is seeking its eighth PBA title in franchise history and first since winning the 2015 Commissioner’s Cup.
Game One of the best-of-seven PBA Philippine Cup finals between TnT and Magnolia is set for Wednesday with the official time expected to be announced by the league on Tuesday.
The series will be played at the DHVSU Gym after the PBA reconsidered its earlier plans to bring back the action in the finals to Metro Manila after quarantine restrictions in the area were scaled down.
THE new season of the Chooks-to-Go Pilipinas 3×3 kicks off on Wednesday at the Laus Events Center in San Fernando, Pampanga.
A one-day invitational tournament, the event marks the return of the country’s first professional 3×3 league after a year of inactivity because of the prevailing conditions with the coronavirus disease 2019 (COVID-19) pandemic.
The last time the league held a tournament was in October last year at the Inspire Sports Academy in Calamba, Laguna.
The 2021 Chooks-to-Go Pilipinas 3×3 Invitational is done in partnership with TM and is still committed to promoting the domestic 3×3 basketball scene and talents.
“It’s about time 3×3 basketball returns,” said league owner Ronald Mascariñas.
“The pandemic has really affected our goal of garnering valuable FIBA 3×3 points for the country in our dream of qualifying for the 2024 Paris Olympics,” added the staunch sports supporter, whose group has been instrumental in the past years for Philippine squads to compete and earn points in FIBA-sanctioned 3×3 tournaments.
Twelve teams will see action in the tournament, namely: HeiHei Manila, Pacquiao Coffee Bacolod, BRT Sumisip Basilan, Homegrown Grains Bocaue, AMACOR Mandaluyong, RBR Cabiao Nueva Ecija, Pasig Kingpins, Adam Esli Pasay, MNL Kingpin Quezon City, Essen Immunoboost Sarangani, Zamboanga Valientes, and ARQ Builders Cebu.
International Basketball Federation (FIBA) 3×3 World Tour format will be in effect with the teams pooled in groups of three. The top two teams in each group will advance to the knockout playoffs on the same day.
Teams are allowed to tap foreign reinforcements as well.
The champion team will take home P100,000. The second and third place finishers will receive P50,000 and P20,000, respectively.
To ensure the health and safety of all participants, the league held a briefing for teams last weekend where the protocols that need to be observed and other particulars were discussed.
“We’re ready to hold the event and we have reviewed the rules of FIBA 3×3,” said league technical head Hector Villanueva.
The tournament is regulated by the Games and Amusements Board and endorsed by FIBA 3×3 as well as supported by Gatorade, Chooks!, Uling Roasters, and Adobo Connection. — Michael Angelo S. Murillo
CAMERON Norrie battled back to defeat Nikoloz Basilashvili (3-6, 6-4, 6-1) in the Indian Wells final on Sunday, becoming the first British man to win the Masters 1000 tournament.
It appeared an upset was in the works when the hard-hitting Basilashvili quickly took the first set, but Norrie regrouped in the second, breaking the Georgian at love to force a decider.
In the third set, the left-handed Norrie broke early and saved three break points to take a 3-0 lead as unforced errors began to pile up for Basilashvili under the lights in the Southern California desert.
Norrie sealed the biggest win of his career when Basilashvili sent a forehand long on championship point.
“What can I say? Obviously, I’m so happy. It’s my biggest title so I can’t really describe it right now,” said Norrie, who was playing in his sixth final of his breakout year.
Britain’s Andy Murray, Tim Henman and Greg Rusedski have all played in the men’s finals at Indian Wells, but finished runner-up.
The 26-year-old Norrie, born in South Africa to a Scottish father and Welsh mother, won his first ATP singles title at Mexico’s Los Cabos Open in July.
Norrie has shown steady improvement all year and expertly executed his strategy of forcing Basilashvili into long rallies in the final, giving himself the opportunity to dictate points from the baseline.
He congratulated Basilashvili on his outstanding tournament, where the 29-year-old stunned world number three Stefanos Tsitsipas in the quarterfinals and American Taylor Fritz in the semis.
“I’m sorry it went my way. You deserved it just as much as I did,” Norrie said.
“Well done to you and your team on a great week.”
Basilashvili said he was disappointed in the outcome, but looked forward to returning to the event, which is sometimes referred to as the fifth major.
The tournament was not held last year due to the coronavirus disease 2019 (COVID-19) pandemic and was pushed from March to October this year because of the global health crisis.
It will return to its regular March date on the sports calendar next year.
“I was hoping to get a title, but it’s okay,” Basilashvili said.
“I will move on and I hope that I’ll come back here in March and play better tennis.”
Norrie’s breakthrough win comes on the heels of British teenager Emma Raducanu’s stunning triumph at the US Open last month. — Reuters
