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Infrastructure stays protected in PHL debt management plan

Workers are seen mixing cement at a construction site in Quezon City, May 19, 2020. — PHILIPPINE STAR/ MICHAEL VARCAS

THE Department of Finance (DoF) said that the government’s plan to manage the national debt calls for its gradual reduction without scaling back the infrastructure spending that will enhance long-term productivity.

The department’s Chief Economist Gil S. Beltran, in an economic bulletin on Saturday, said debt reduction efforts need to be focused on bringing down the debt-to-GDP ratio by narrowing the deficit.

“The current medium-term fiscal program is calibrated such that the deficit gradually narrows down without sacrificing infrastructure spending,” he said.

The DoF is preparing a fiscal consolidation plan to manage the government’s outstanding debt, which grew nearly 20% to P11.73 trillion at the end of 2021. This pushed the debt-to-GDP ratio to 60.5%.

The 2021 deficit was P1.7 trillion, up 21.87%, with the Treasury bureau citing spending growth due to infrastructure investment and pandemic recovery efforts.

“The 2021 deficit is estimated to be around 8.2% of GDP (gross domestic product) and is programmed to fall to 5.1% by 2024,” Mr. Beltran said.

“In contrast, infrastructure spending, (as a share of) GDP, could have reached as much as 5.6% last year, set to increase to 5.9% this year, and settle at 5.4% by 2024.”

Mr. Beltran said continued infrastructure spending is key to attracting investors.

“Cutting infrastructure spending may narrow down the deficit momentarily but will definitely be counter-productive in the long run as far as economic recovery is concerned,” he said.

“Simply put, a half-finished bridge does not cut travel time even by a minute. Infrastructure projects have to be fully completed before they can increase the country’s productive capacity and enhance its growth potential.”

Institute for Leadership, Empowerment, and Democracy Executive Director Zy-za Nadine Suzara said last month that the government should avoid wasteful expenditure and instead focus on funding pandemic-response measures.

She called budget priorities in 2022 “unfairly (weighted towards) infrastructure projects” while P250 billion in projects for education, health, and social services were to be funded via unprogrammed appropriations, which can only be financed from excess or new revenue. — Jenina P. Ibañez

PHL seeking US GSP renewal with duty-free treatment for footwear

PHILSTAR

THE Department of Trade and Industry said it is negotiating for duty-free treatment for Philippine footwear in seeking the renewal of its Generalized System of Preferences (GSP) agreement with the US.

Trade Secretary Ramon M. Lopez said in a webinar over the weekend that “our intention, aside from the renewal, is to be add more sectors that will benefit from the GSP. Just recently, we were able to add travel goods… (which) can now avail of the zero-duty entry into the US market,” Mr. Lopez said.

“Footwear is not yet included in the GSP and that is one sector that we are lobbying to be included and there are other exportable items that we wish to be included,” he added.

The Philippines’ eligibility for US GSP expired at the end of 2020.

Mr. Lopez has said the Philippines is ultimately seeking a free trade agreement with the US.

The US GSP program allowed duty-free entry of more than 5,000 Philippine products in to the US, including electronics and agricultural products.

Separately, Mr. Lopez said he prefers work-from-home (WFH) arrangements to the proposal to adopt a four-day workweek to shield commuters from rising fuel costs accompanying the Russian invasion of Ukraine.

“Frankly, WFH might be even better because you spread the number of hours of work and not lump them into the four days. But just the same, you are still able to work even remotely while you are at home,” Mr. Lopez said.

Mr. Lopez said the information technology-business process outsourcing (IT-BPO) industry should explore more flexible arrangements that do not tie them to working from registered premises.

“For companies that are in ecozones, there is a requirement for them to be physically within the ecozone and that is a different issue altogether. That is the reason why we have been asking them to go back to physically within the zone,” Mr. Lopez said.

“But there are avenues in the future — they can register outside the ecozone system so that they will be more flexible when it comes to adopting a WFH arrangement,” he added.

Recently, the Fiscal Incentives Review Board (FIRB) rejected the proposal of the Philippine Economic Zone Authority to allow IT-BPO firms located within ecozones to extend WFH arrangements until Sept. 12 without losing fiscal incentives and without the required 10% on-site capacity.

According to FIRB, the proposal was rejected since WFH is “only a time-bound temporary measure,” adding that employees should return to work with vaccination rates rising.

Under FIRB Resolution 19-21, registered IT-BPO firms are allowed to implement a WFH arrangement up to 90% of their total workforce until March 31 without losing their tax incentives. The measure was adopted to help the industry adjust to the coronavirus disease 2019 (COVID-19) pandemic. — Revin Mikhael D. Ochave

EV industry sees fuel prices boosting demand

By Arjay L. Balinbin, Senior Reporter
and Revin Mikhael D. Ochave, Reporter

RISING FUEL PRICES are expected to raise interest in electric vehicles (EVs) in the Philippines, though the supply of such vehicles remains unpredictable due to global demand for such vehicles as well as disruptions caused by rising prices of key components, industry leaders said.

“Certainly, the current situation (presents) an opportunity for our industry,” Electric Vehicle Association of the Philippines (EVAP) President Edmund A. Araga told BusinessWorld in an e-mail last week.

“EVs as a mode of transportation must be practical and address concerns about the high price of fuel on a weekly basis,” he added.

Philippine Parts Maker Association, Inc. President Ferdinand I. Raquelsantos said in a phone message: “With the increase in fuel prices, it’s normal for people to shift to electric vehicles.”

In other markets the advantages of using EVs are tied to the users’ desire to mitigate climate change, he noted.

Basic Energy Corp. (BEC) said EVs promise considerable savings compared to vehicles that run on fossil fuels.

“For comparison, the energy consumption cost of using an electric vehicle or electric public utility jeepney (EV-PUJ) is roughly 39% (against a) diesel fueled conventional PUJ,” the company said in an e-mail.

“This translates to approximate savings (based on current diesel price level of 70.00 PHP/liter) of 61% when using EV-PUJ,” it added.

“The fact that solar power is the source of charging for EV-PUJs also translates to savings as solar power is around 10% cheaper than grid supply,” BEC added.

The Trade department has said that it is proposing a zero-tariff regime for EV imports to accelerate their adoption.

“One thing we are proposing is to adjust the tariff rate from 30% to zero” to provide a boost to the industry, Trade Secretary Ramon M. Lopez said during a recent virtual forum.

“We need to promote EVs and the way to promote it is to encourage their use. How will you encourage the use of EVs if they are expensive? This is one of the immediate steps that we think can be done,” he noted.

EVAP’s Mr. Araga said, however, that the industry is not guaranteed access to supply of vehicles and components due to increased demand for EVs elsewhere.

“Supply is also uncertain… (the industry may have to consider) alternatives in sourcing their raw materials and other supplies.”

The unreliability of supply may affect EV pricing, Mr. Araga said. “But it’s not that easy to make price adjustments as of this time which may turn off consumers.”

The EV industry is waiting for the establishment of a regulatory framework for the industry, he noted.

“We are awaiting the EVIDA (Electric Vehicle Industry Development Act) to be signed by our President before his term ends and hope that the Comprehensive Roadmap for the Electric Vehicle Industry programs under Department of Energy will prosper.”

Pump prices rose for an 11th straight week on Tuesday last week. Fuel retailers raised gasoline and diesel prices by P7.10 and P13.15 per liter, respectively.

Mr. Raquelsantos said major concerns about the adoption of EVs are range and the availability of charging stations.

“In reality, it’s all how you get educated on what EVs can do.  Most EV’s now have 250 to 450-kilometer range,” he noted.

“People always ask about the availability of charging stations. But home charging is enough. Not unless you go on long trips, and along the way you need to charge. But if you have high-end EVs with 450-km range, you should not worry,” he added.

He also said that “very soon, the market will have to offer EVs because car assemblers will stop producing internal combustion engine (ICE) or conventionally-fueled vehicles.”

“The immediate effect of fuel prices is to limit the use of ICE vehicles. People will shift to other… means of transport. Even public transport (operators will) have to resort to EVs.”

Mr. Raquelsantos also expects electric vehicle prices to fall eventually. “As new technology sinks in, prices of batteries will fall. And when EVIDA gets implemented and proper incentives are put in place, the cost of EVs will fall, whether they are imported but especially if they are locally produced.”

“We see now a lot of orders coming in. With increasing oil prices, there is great interest in switching to EVs. For now, the demand is in market segments (like) passenger cars and commercial vehicles,” Mr. Raquelsantos said.

He said the Philippine industry can specialize in EVs optimized for short trips, such as compact EVs for city driving.

“I believe the application for short trips is the one we can easily zero in,” Mr. Raquelsantos said.

“Mini-compact EVs are perfect for city driving. For this application, you don’t really need to have charging stations since your home charge is enough to power your trips. If your application is for city driving, home charge will be sufficient,” Mr. Raquelsantos said.

Global Ferronickel Holdings, Inc. President Dante R. Bravo said in a mobile phone message that the proposed zero tariff for EV imports will benefit nickel miners.

“It will benefit us since it might push up nickel ore prices. The idea of zero tariffs on imported EVs is to make EVs more affordable. If that happens, there will be demand for more EVs in the Philippines which will then drive the demand for pure nickel and then, will likely push the nickel ore prices. So that’s how we view the impact of that policy in the medium term,” Mr. Bravo said.

“Over the long term, if we see sustained growth in the use of EVs around the world, this will then provide nickel miners an opportunity to go into value-added processing to produce nickel products that can be used in the production of EV batteries,” he added.

Nissan Philippines President and Managing Director Atsushi Najima said in a recent television interview that the company has received many inquiries about its Leaf EV model.

“Because of this gas price increase recently, we got a lot of inquiries (for the Nissan Leaf),” Mr. Najima said.

Mr. Najima estimated the running costs of EVs are lower because the fewer moving parts ensure that maintenance is minimal.

“The running cost is 10 times cheaper. Maintenance cost is 20 or 30% cheaper than gasoline engine because number of parts is reduced in EVs compared to gasoline engines,” Mr. Najima said.

“Initial purchase cost of electric vehicle is slightly higher but if we think about total ownership costs between electric vehicle and gasoline vehicle, the difference is much (narrower) now,” he added.

PhilHealth tops GOCC subsidy list in 2021

PHILSTAR FILE PHOTO

SUBSIDIES extended to government-owned and -controlled corporations (GOCCs) declined 19% to P184.8 billion in 2021, with the bulk of the total going to the Philippine Health Insurance Corp. (PhilHealth).

PhilHealth in 2021 received P80.9 billion, up 29.8%.

The National Irrigation Administration received P38.3 billion in subsidies, up 13.8%.

Last year’s total declined as subsidies extended to the Land Bank of the Philippines (LANDBANK) fell to P476 million from P23.3 billion a year earlier.

Subsidies to other government corporations, excluding financial institutions and major non-financial government corporations, slipped by 18.9% to P106.6 billion.

The government subsidizes state-run firms to cover operational expenses not supported by their revenue.

In December, subsidies given to GOCCs fell by nearly half year on year to P21.4 billion, down 48.1%.

The National Housing Authority received the most subsidies in December with P8.1 billion.

The National Irrigation Administration got P4.1 billion, PhilHealth P4 billion and Philippine National Railways P1.2 billion.

Other top recipients in December included the National Electrification Administration with P756 million, the Philippine Coconut Authority P705 million and LANDBANK P476 million.

GOCCs that did not receive budget support in December were Small Business Corp., Philippine Postal Corp., the Philippine Fisheries Development Authority, the Philippine Crop Insurance Corp., the Cagayan Economic Zone Authority, the Bases Conversion Development Authority, the Local Water Utilities Administration, the National Food Authority, and the National Home Mortgage Finance Corp.

Subsidies in 2020 had increased 13.6% to P229 billion. — Jenina P. Ibañez

New VAT zero-rating rules and requirements under CREATE

Upon the effectivity of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act on April 11, 2021, a new requirement to support the VAT zero-rating of local purchases of registered business enterprises was introduced.

CREATE required registered business enterprises to prove that their local purchases of goods and services are directly and exclusively used in their registered activities to be accorded 0% VAT rating. Several issuances were subsequently published, which placed many taxpayers in limbo because of the seemingly conflicting provisions related to the VAT zero-rating of local purchases.

Almost a month before the anniversary of CREATE, the Bureau of Internal Revenue (BIR) recently issued Revenue Memorandum Circular (RMC) No. 24-2022, which intends to harmonize and clarify the new VAT zero-rating rules and requirements under CREATE.

CROSS-BORDER DOCTRINE NOW ‘INEFFECTUAL AND INOPERATIVE’
Before CREATE, Ecozones and Freeport zones were regarded as foreign territories (by way of legal fiction) under RMC No. 74-99 and RMC No. 7-2007. Under the cross-border doctrine, sales to registered business enterprises located within these Ecozones and Freeport zones could be treated as constructive exports subject to 0% VAT.

However, following the effectivity of CREATE, the cross-border doctrine is no longer applicable. This is because CREATE expressly requires registered export-oriented enterprises to prove the direct and exclusive use of their purchases of goods and services in its registered activities, a departure from the old rule which generally anchored zero-rating of purchases on being economic zone locators.

To add, the availment of VAT zero-rating for registered export-oriented enterprises becomes subject to certain parameters regardless of location (i.e., time-bound as it becomes subject to the conditions and period of availment in Sections 295 and 296 of CREATE) under Section 294(E) and Section 295(D) of the Tax Code, as amended by CREATE.

It now provides that the effective VAT zero-rating will only apply to the sale of goods and services rendered to persons or entities which have direct and indirect tax exemptions pursuant to special laws or international agreements to which the Philippines is a signatory.

Based on these developments under CREATE, investors may now consider reassessing incentives that were previously location-based.

CHANGES TO VAT ZERO-RATING
Since the effectivity of CREATE, the VAT exemption on imports and VAT zero-rating of newly registered and existing registered business enterprises (RBEs) only applied to goods and services that are directly and exclusively used in the registered project or activity of registered export enterprises. The phrase “directly and exclusively used in the registered project or activity of registered export enterprises” was explained under Q&A No. 13 of RMC No. 24-2022 as those raw materials, inventories, supplies, equipment, goods, packaging materials, services, including provision of basic infrastructure, utilities, maintenance, repair and overhaul of equipment, and other expenditures that are directly attributable to the registered project or activity, without which the registered project or activity cannot be carried out.

In the case of common expenses, taxpayers were directed to adopt a method to best allocate goods or services purchased (e.g., the use of separate water and power meters among activities). Otherwise, if the proper allocation could not be determined, then the purchase of such goods will be subject to 12% VAT. The RMC also made it clear that services for administrative purposes, such as legal, accounting and other similar services, are not considered directly attributable to and exclusively used in the registered project or activity.

Previously, a VAT zero-rating certificate was the only document that must be provided by a registered export enterprise to their local suppliers. However, RMC No. 24-2022 introduced additional requirements on top of the VAT zero-rating certificate, such as a photocopy of the export enterprise’s BIR Certificate of Registration, a sworn declaration stating that the goods or services being purchased are to be used directly and exclusively in the registered project, and other documents to corroborate entitlement to the VAT zero-rating.

These documents include but are not limited to duly certified copies of the purchase order, job order or service agreement, sales invoices and/or official receipts, delivery receipts. Registered export enterprises should also expect some changes in the VAT zero-rating certificate that will be issued by its Investment Promotion Agency (IPA), which would now include the applicable goods and services meeting the direct and exclusive use criteria.

Registered export enterprises must strictly observe the abovementioned criteria and documentation in order to prove the VAT zero-rating of its local purchases of goods and services. This means that registered export enterprises may need to factor in additional compliance requirements to avail of the VAT zero-rating and be able to sustain a claim of VAT zero-rating if eventually audited by tax authorities.

The role of tax managers, compliance officers, custodians of records, and the like may have to be expanded as well to ensure that the necessary documentary requirements are secured in a timely manner, compliant with the existing requirements under our tax rules, and would still be available in the event of a tax audit.

EXPORTER TAX TREATMENT BEFORE CREATE
Q&A No. 23 of the same RMC clarified that registered export enterprises existing prior to CREATE continue to enjoy VAT zero-rating on their local purchases until the expiration of their incentives, as specified in the Implementing Rules and Regulations of CREATE. However, the direct and exclusive use criteria must still be met. Otherwise, sellers of goods and services will be required to pass on the 12% VAT to their registered export enterprise customers within the Ecozone.

The RMC further explained that any input VAT passed on for purchases of goods and services not directly and exclusively used in the registered project or activity may no longer be used to apply for a VAT refund. Instead, the RMC presented three options that a registered export enterprise may avail of:

• A VAT-registered taxpayer enjoying an income tax holiday (ITH) may claim the passed-on input VAT as credit against future output VAT liabilities; or

• Accumulate the input VAT credits and claim for VAT refund upon expiration of its VAT registration (i.e., end of ITH and 5% SCIT incentive commences); or

• Charge to cost or expense account if non-VAT registered

Similarly, existing export enterprises which are already under the 5% gross income tax (GIT) and special corporate income tax (SCIT) were required to change their registration status from a VAT-registered entity to non-VAT within two months from the effectivity of RMC No. 24-2022.

It must be noted, however, that the input VAT charged to cost or expense account may not qualify as a “direct cost” for an export enterprise that is already availing of the 5% GIT or 5% SCIT. In which case, there would be no tax benefit on any input VAT passed on by its local suppliers.

ACTION PLAN MOVING FORWARD
With the effectivity of RMC No. 24-2022, registered export enterprises and their domestic sellers of goods and services must familiarize themselves with the new principles and additional requirements of VAT zero-rating on local purchases.

Given the strict “direct use” requirements, registered export enterprises may consider performing a careful review of their local purchases of goods and services to identify whether or not they meet the criteria. Export enterprises with a more complex business structure (i.e., those with multiple registered activities) and those which incur significant amounts in common expenses may revisit their allocation method among registered and non-registered activities.

Otherwise, without diligent study, a registered export enterprise may face a significant amount of input VAT that it may not be able to recover.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the author and do not necessarily represent the views of SGV & Co.

 

Christiene R. Matic is a director from the Global Compliance and Reporting service line of SGV & Co.

China attack, Russian war spillover belittled

PHOTO FROM PHILIPPINE COAST GUARD

By Alyssa Nicole O. Tan, Reporter

CHINA is unlikely to attack the Philippines over their sea distpue, political analysts said at the weekend, while downplaying the potential of Russia’s war against Ukraine reaching Asia.

“China’s fundamental military doctrine and principle are that China won’t or will never attack any country unless attacked first,” Anna Rosario Malindog-Uy, a political analyst from think tank Philippine BRICS Strategic Studies, said in a Viber message. “China will not attack the Philippines despite differences in the South China Sea. There’s no doubt about it.”

She called the paranoia over a supposed Chinese threat to justify the Philippines’ Mutual Defense Treaty with the United States misleading and deceptive, including the notion of an aggressive Chinese navy prowling in the South China Sea.

The South China Sea, a key global shipping route, is subject to overlapping territorial claims involving China, Brunei, Malaysia, the Philippines, Taiwan and Vietnam.

China’s behavior during the Korean and Vietnam wars showed that it does not take military action unless and until its borders are threatened by invasion, Jay L. Batongbacal, director of the University of the Philippines Institute for Maritime Affairs and Law of the Sea, said in an e-mail.

“It always tries to contain conflicts to bilateral terms and avoid multilateral conflicts,” he added.

“It is for this reason that it does not approve of the military alliances of other countries and views them as sources of insecurity and instability,” he pointed out. “It also makes it less likely that China will attack the Philippines even if there is a Taiwan conflict.”

Mr. Batongbacal also said Russia’s invasion of Ukraine is unlikely to spill over to Asia because “it does not have specific security interests in East and Southeast Asia that would parallel its security interests along its western borders.”

“Unless it means Russia attacking every other country that sided with Ukraine, I do not see any scenario requiring US use of military facilities in the Philippines in connection with the Russia-Ukraine conflict,” he added.

President Rodrigo R. Duterte might open the country’s facilities to the US if the Ukraine-Russia crisis spills over to Asia, Philippine Ambassador to the US Jose Manuel G. Romualdez said last week, citing the country’s “special relationship” with the US.

“Unless it means Russia attacking every other country that sided with Ukraine, I don’t see any scenario requiring US use of military facilities in the Philippines in connection with the Russia-Ukraine conflict,” Mr. Batongbacal said.

Ms. Uy noted that while Chinese fishermen and navy ships have harassed fishers from other countries, these incidents were not new and have been committed by other parties, including the Philippines.

Back in 2017, two Vietnamese fishermen were found dead, while five others were taken into custody after fishing off northwestern Philippines, sparking a night chase where a Vietnamese boat hit a Philippine navy ship and prompting its crew to fire shots.

A similar incident occurred in 2013, when a Philippine coast guard member opened fire and killed a Taiwanese fisherman aboard a boat sailing between northern Philippines and Taiwan. Taiwan sanctioned the Philippines before the row was diplomatically resolved.

“These kinds of minor skirmishes and conflicts will likely happen from time to time,” Ms. Uy said. “That’s a reality that all parties to the South China Sea dispute are confronted with, including the Philippines.”

“The most important thing is that no serious military confrontations tantamount to war or a major conflict thus far have happened,” she added, citing the importance of a code of conduct to resolve conflict.

Still, Mr. Batongbacal thinks the Mutual Defense Treaty serves as a deterrent to incursions.

“What is more important is to consider the deterrent effect of the alliance against potential incursions,” he said, noting that after the US pulled out of the Philippines in the 1990s, China was emboldened to take Mischief Reef in 1995.

The external defense capacities of the Philippines, he added, have rapidly developed since it began joint exercises with the US military.

Ms. Uy sought a review of the treaty, which she said is “nonmutual” because it favors the Americans.

The treaty is not as enforceable as a federal law in the US because it did not enact a law enforcing it. “It is as if, in the context of the US, the Mutual Defense Treaty is just an executive agreement.”

Mr. Batongbacal does not see the need to change the treaty because “it is broad enough as it is.” “What is required is simply a supplemental and updated understanding of how it is to be implemented in present times in view of the evolution of the threats.”

“If indeed, the Philippines did not get as much out of the alliance before 2010, it was mainly because it did not have a clear idea of what it wanted out of the alliance in the first place,” he said.

Candidates back calls for Marcoses to pay estate tax

EX-PHILIPPINE President Ferdinand E. Marcos and his family at the presidential palace on the day of his 1965 inaugural. — MALACANANG.GOV.PH

PHILIPPINE presidential candidates backed calls at the weekend for the heirs of the late dictator Ferdinand E. Marcos to pay billions of pesos in estate and income taxes.

At a presidential debate organized by the Commission on Elections on Saturday, Manila Mayor Francisco “Isko” M. Domagoso, Vice-President Maria Leonor “Leni” G. Robredo, Senator Panfilo “Ping” M. Lacson and labor leader Leodegario “Ka Leody” de Guzman said the government should go after the family’s unpaid estate tax, which could be used to fund social services amid surging global fuel prices.

The Marcoses owe the government billions of pesos in estate and income taxes, the agency tasked to recover the family’s ill-gotten wealth said last week.

The P23-billion estate tax had ballooned to P203.8 billion due to interests and penalties after the Marcos family refused to pay it, according to Mr. Domagoso’s political party.

In her closing statement at the presidential debate, Ms. Robredo said Filipinos should not elect a leader who does not show up in difficult times. “Let’s not look for someone who does not want to face us,” she said, alluding to ex-Senator Ferdinand “Bongbong” R. Marcos, Jr.

The son and namesake of the late dictator, who has snubbed major presidential debates, did not join Saturday’s Comelec debate.

Civic groups have intensified their campaign against presidential candidacy of Mr. Marcos after the country’s tax bureau confirmed his family’s unpaid taxes.

The dictator stole as much as $10 billion (P522 billion) from the Filipino people, according to government estimates, earning him a Guinness World Record for the “greatest robbery of a government.”

The Presidential Commission on Good Government, created in 1987 to recover ill-gotten wealth of the family and their cronies, has recovered about P171 billion.

During the debate, presidential candidates pitched solutions to address pandemic-induced gaps in the education and labor sectors.

Ms. Robredo reiterated her push to declare an education crisis to make learning curricula more responsive to industry needs. Many young Filipinos struggle to find work despite vacancies due to the dire condition of the country’s educational system, she added.

“We really need to adjust the quality of our education system to prepare our graduates for the job that they want,” she said in Filipino.

“There are plenty of jobs available in the business process outsourcing industry but no one is qualified,” she said. “There are many opportunities in the maritime sector but the skills of people are lacking.”

Ms. Robredo said the government should increase the education budget to 6% from 3% of economic output to.

She also vowed to raise the salaries of teachers and proposed to unburden them from administrative work.

Mr. Domagoso said he would boost farm jobs by including it in the Science, Technology, Engineering and Mathematics curriculum. “We learned from this pandemic that we need to produce our own food and not rely on imports.”

Mr. de Guzman vowed to shorten the probationary period for workers, while Senator and boxing champion Emmanuel “Manny” D. Pacquiao said he would fast-track skill training.

Businessman Faisal Mangondato said the government should boost production subsidies for farmers and help them make untended land productive. 

Former Cabinet official Ernesto C. Abella said he would focus on primary and secondary education and ensure the mastery of reading, writing and mathematics to address learning gaps worsened by two years of remote learning.

Mr. Lacson said the entire country should be placed under the lowest virus alert level to restore lost jobs. “We should put the whole country under Alert Level 1 so all employees can go back to work.”

He said only 12 of 118 projects were fully accomplished under President Rodrigo R. Duterte’s Build, Build, Build program, which heavily relied on foreign funding.

He also expressed concern over the country’s rising debt. “It’s time to shift from Build, Build, Build to public-private partnerships,’ he said.

Mr. Pacquiao, who praised the Build, Build, Build project, vowed to continue building houses nationwide. He also promised to develop southern Philippines. “That’s the only way to solve the chaos there.”

In a statement at the weekend, Mr. Marcos said his response to “hateful speeches” has always been to maintain a “dignified silence.“ — Kyle Aristophere T. Atienza

PHL inks labor agreement with Yukon, Canada

THE PHILIPPINES has sealed a labor cooperation agreement with the government of Yukon, Canada.

The Department of Labor and Employment (DoLE) said in a press release that the agreement, signed on March 18, aims to facilitate the deployment of Filipino workers under a nominee program, which is driven by employers looking to fill critical vacancies unoccupied by Canadians or permanent residents.

The agreement, which will be implemented by the Philippine Overseas Employment Administration and Yukon’s Department of Economic Development, bars employers and their agents, including immigration consultants, from charging fees for recruitment services and selection.

“The Memorandum of Understanding that we are signing today not only strengthens our bilateral labor relations but will also enhance our cooperation in the protection, recruitment and deployment of Filipino workers in Yukon,” Labor Secretary Silvestre H. Bello III said during the signing ceremony.

There are about 5,000 Filipinos in Yukon, most of them have already become permanent residents or Canadian citizens, according to DoLE. — Kyle Aristophere T. Atienza

Solon offers to mediate between gov’t, BPO firms on mandatory on-site work

INDUSTRY.GOV.PH

A LEGISLATOR is planning to meet this month with business process outsourcing (BPO) firms and tax officials to assist in forging a compromise over the Fiscal Incentives Review Board’s (FIRB) recent order to stop work-from-home arrangements by April.

“I think the compromise is, okay, on-site work is back, but arrangements can be made for those who went home to the provinces, are immunocompromised, or have special conditions that prevent them from working on-site,” Albay Rep. Jose Maria Clemente S. Salceda, chair of the House Ways and Means Committee, said in a statement on Friday.

“I want unified guidelines from the FIRB, the Department of Labor and Employment (DOLE), and the Philippine Economic Zone Authority (PEZA) about what arrangements can be made.”

Mr. Salceda said he also wants to gauge the tax leakage that the FIRB is concerned about.

“Some BPO firms may be saving a lot of money from not having to rent spaces or pay utilities,” Mr. Salceda said. “And that could be skewing the cost-benefit analysis for tax incentives, meaning we are getting less economic activities for the same tax perks.”

Nonetheless, BPO companies, he said, could adopt internal arrangements since DoLE has said workers cannot be fired for not reporting on-site if they are able to deliver output.

He also expressed support to the National Economic and Development Authority’s (NEDA) proposal of having a four-day work week such that BPO employees could work on-site for four days and work from home on other days.

At the height of the coronavirus pandemic, the government issued a policy that allows BPO companies to get tax incentives even if 90% of their employees are working from home. — Jaspearl Emerald G. Tan

Robredo open to nuclear power source but rejects Bataan plant revival

VP LENI MEDIA BUREAU

PRESIDENTIAL candidate Vice President Maria Leonor “Leni” G. Robredo is open to the adoption of nuclear energy as a power source for the Philippines, but rejected the reopening the mothballed 620-megawatt Bataan Nuclear Power Plant (BNPP), citing safety concerns.

“We will never revive it because it was not even continued in the first place due to several reasons, so we will not revive its operations ever,” Ms. Robredo told the media after the first presidential debate hosted by the Commission on Elections (COMELEC) on Saturday night.

Discussions on the possibility of reopening the decommissioned $2.2-billion BNPP recently emerged after President Rodrigo R. Duterte signed on Feb. 28 an executive order allowing the inclusion of nuclear power into the country’s energy mix as the government moves to abandon coal.

Ms. Robredo said if she wins in the May 9 elections, she will allow the construction of nuclear power plants that are backed by a thorough safety study.

The vice president, however, stressed that she would push more for renewable energy sources in line with the country’s commitment to curb carbon emissions from fossil fuels.

“And for me, we should be moving towards renewable energy sources already since we have committed to the COP26 that by 2050, we will be carbon neutral,” she said.

COP26 is the 26th United Nations Climate Change Conference held in Glasgow in October last year wherein the Philippines was one of the 40 countries that endorsed the move to veer away from coal, the dirtiest fossil fuel.

In 2020, the Philippines’ power mix consisted of 57% coal, 21% renewable energy, 19% natural gas, and 2% oil-based.

“Admittedly, nuclear power is cleaner compared with fossil fuel, it is contentious especially because a lot of people are scared for its safety. That’s our main concern,” Ms. Robredo said.

Attempts to reopen the BNPP during previous administrations to address power supply issues were hampered by safety concerns, specifically its location which is said to be along an active fault line and flawed design on safe disposal of highly radioactive nuclear wastes.

Energy Undersecretary Gerardo D. Erguiza, Jr. earlier said if allowed by the succeeding administration, the country can build a traditional nuclear power plant as early as 2027. Other nuclear power plants with small modular reactors, which are being eyed for off-grid areas, can be built as soon as the regulatory framework is in place.

The late President Corazon C. Aquino ordered the shut down of the BNPP in 1986, two years after it was completed, due to safety and corruption issues during its construction under the administration of the late strongman Ferdinand E. Marcos, Sr.

Mr. Marcos’ only son and namesake Ferdinand R. Marcos Jr. is running for president in the coming elections. — Marielle C. Lucenio

Senator says online cockfighting brings more social harm than financial good

PHILSTAR FILE PHOTO

THE SOCIAL costs of online cockfighting outweigh its revenue gains, said an opposition senator on Sunday, calling out the President’s refusal to order a stop in operations.

“There is no reason to allow e-sabong (electronic sabong, the Filipino word for cockfighting) to continue to operate if it brings more harm than good. The government should not be prioritizing the huge profits from gambling. Instead, what should be explained to people is its negative effects, especially to the youth,” Senator Leila M. de Lima said in a mix of English and Filipino in a statement.

“We can always recover economic losses by other means or sources, but the social costs and harm done to our youth’s psyche are irreversible,” she added.

President Rodrigo R. Duterte last week rejected calls to suspend online cockfighting operations in the country, saying the popular game is a major source of income for the government.

The Philippine Amusement and Gaming Corp., which regulates the online game, collected about P3.69 billion from the operations of eight e-sabong licensees from April to December last year, according to the agency’s chair, Andrea D. Domingo

Ms. De Lima argued that the legalization of gambling and e-sabong has only strengthened the network of gambling lords and their influence over national and local politics, and has been linked to prostitution, human trafficking, money laundering, and kidnapping, among other crimes.

“The government’s revenue can never match a ruined future, especially for the youth,” she said. — Alyssa Nicole O. Tan

Biodiversity park to rise in Quezon City

BMB.GOV.PH

THE DEPARTMENT of Environment and Natural Resources (DENR) has signed a memorandum of agreement with the Quezon City government and Metro Pacific Investments Corp. (MPIC) for the development of an urban biodiversity park in New Manila, Quezon City.

“While our focus is largely directed at managing natural ecosystems through the establishment of protected areas, we also need to address the importance of enhancing our urban ecosystems to be able to provide a quality and livable environment for urban dwellers,” DENR Acting Secretary Jim O. Sampulna said in a statement.

The project will develop and sustainably manage Madison Park, which will be renamed Gabay Kalikasan Park.

It also intends to “encourage the business sector’s support in creating green urban communities at the city and barangay or village level.”

The park is under the DENR’s Urban Biodiversity Program, which seeks to promote urban biodiversity and green spaces, ensure ecological integrity and clean and healthy environment.

The DENR aims to increase green spaces by 2028 in the highly-urbanized cities of Quezon, Caloocan and Manila in the capital region, Cebu in central Philippines, and Davao in the southern island of Mindanao. — Luisa Maria Jacinta C. Jocson

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