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LGUs told to boost programs vs early pregnancies, HIV

POPCOM.GOV.PH

A PHILIPPINE senator called for local government units (LGUs) to double their efforts to curb rampant teenage pregnancy and the rise in cases of human immunodeficiency virus (HIV).

“We have to also focus on getting the parents more involved, not just by meeting them regularly but by really mobilizing them,” Senator Sherwin T. Gatchalian said in a statement.

“When we mobilize the parents, we make them aware of these issues and empower them by educating them on how to talk to their kids.”

Based on data from the local statistics agency, young mothers or very young Filipinos aged 10-14 doubled to 3,342 in 2023 from 1,629 a decade earlier.

The Department of Health said in December HIV cases in the Philippines would likely rise to 215,400 by the end of 2024, citing 4,595 confirmed cases from July to September 2024 alone.

Of the confirmed cases from July to September 2024, 1,301 or 28% had an advanced HIV infection at the time of diagnosis, based on Health department data.

The Senate is in the middle of scrutinizing the Department of Education’s implementation of sexual education amid concerns from conservative quarters. — John Victor D. Ordoñez

Architectural firm wins tax case vs Makati

CTA.JUDICIARY.GOV.PH

THE Court of Tax Appeals (CTA) has ordered the City of Makati to refund over P800,000 in local business taxes to a professional architectural partnership firm, ruling the city had erroneously collected taxes from the company.

The tax court en banc affirmed the ruling of the CTA Special Second Division, saying Casas+ Architects was entitled to a refund of erroneously paid local business taxes because the firm is engaged purely in the practice of architecture and related services.

It found that the firm’s activities fall under the definition of a professional partnership and therefore should not be taxed as a contractor.

“As the Court in Division already found that [Casas+ Architects] is engaged in interior design and landscaping, which are encompassed by the practice of architecture, it ruled that respondent is purely engaged in the practice of profession,” Justice Corazon G. Ferrer-Flores wrote in a 15-page ruling promulgated and publicized on Jan. 27.

In junking Makati’s petition, the tax court ruled the applicable provision for the case was Section 196 of the Local Government Code (LGC), which deals with claims for refunds of erroneously or illegally collected taxes.

The city had argued that Section 195 of the LGC applied, which requires a protest within 60 days of a notice of assessment.

However, the court determined that the city did not issue a formal “notice of assessment” for deficiency taxes but rather billing statements. Thus, Section 195 and its protest requirement did not apply.

The case stemmed from the assessment of Casas+ Architects as a contractor, requiring it to pay the Makati City government P2.5 million in local business taxes from the second quarter of 2014 to the fourth quarter of 2015.

Casas+ Architects filed an administrative claim for a refund on March 15, 2016, within two years of the payment of the local business taxes. The city denied this claim.

It filed a Petition for Review before the regional trial court (RTC), which initially ruled in favor of the architectural firm. However, the RTC later reversed its decision and denied the refund.

Casas+ Architects elevated the case to the CTA, which reversed the RTC decision and ordered a refund of P835,000, representing taxes paid for the third and fourth quarters of 2015.

Makati City then filed a Petition for Review with the CTA En Banc. — Chloe Mari A. Hufana

Gunmen in deadly Cotabato ambush identified

COTABATO CITY — The police now have the names of the gunmen behind the fatal ambush of a Moro farmer, his preschool son, and nephew in Carmen town in Cotabato on Saturday morning.

The victims, Norhan Alim Makulintang, his five-year-old son Norolan Balaitom Makulintang and nephew, Grade 3 pupil Umbra Guiamil Makulintang, were riding a motorcycle together when they were shot with pistols and M16 assault rifles by gunmen positioned along a stretch of a highway in Barangay General Luna in Carmen.

Mr. Makulintang and his son died at the scene while his nephew passed away in a hospital a few hours later.

The slain 29-year-old Mr. Makulintang, a member of the Moro Islamic Liberation Front (MILF), was first identified by his relatives as Norman Makasasa, which is his alias in the MILF.

Col. Gilbert B. Tuzon, Cotabato provincial police director, told reporters on Sunday that local officials and villagers in Barangay General Luna, an agricultural enclave in Carmen, have positively identified the gunmen who killed Makulintang and the two children.

Mr. Tuzon said local officials have assured to help them build airtight criminal cases against the culprits, whose names he declined to reveal pending the full documentation of the incident, a requisite in prosecuting them for their offense. — John Felix M. Unson

College teacher badly hurt in Basilan gun attack

COTABATO CITY — A college teacher was seriously wounded in another shooting incident in Lamitan City late Saturday, the second in the area in just three days, amid a nationwide election-related gun ban.

The 25-year-old Johnus Flores Lim, who sustained multiple bullet wounds from the attack, is a teacher in the Furigay College Incorporated in Lamitan City. He was immediately brought by barangay emergency responders to the Lamitan City District Hospital for treatment.

Lt. Col. Elmer P. Solon, Lamitan City police chief, told reporters on Sunday that Mr. Lim was seated on his motorcycle parked along a highway in Sitio Baroy in Barangay Sengal when one of two motorcycle-riding men that came close shot him repeatedly with a .45 caliber pistol.

The duo immediately drove away after Mr. Lim fell on the ground, according to witnesses.

City officials have assured the family of Mr. Lim to facilitate his transfer to a more modern hospital in Zamboanga City as recommended by the attending  physician Nurullaji A. Aguil.

Brig. Gen. Romeo J. Macapaz, director of the Police Regional Office-Bangsamoro Autonomous Region, said on Sunday that he had ordered police units in Basilan to intensify their enforcement throughout the province of the nationwide gun ban being imposed since Jan. 12 by the Commission on Elections, meant to ensure peaceful elections in May 2025.

Businessman Abduraza Saidde Madiza, was also killed in an ambush on Thursday night in Barangay Malinis in Lamitan City.

Mr. Madiza was riding his motorcycle, on his way home to Barangay Limook in the north of the city, when he was attacked by gunmen along the route, killing him instantly.

His attackers managed to escape using a getaway motorcycle before responding volunteer community watchmen and barangay officials could reach the scene. — John Felix M. Unson

Infrastructure spending up nearly 55% in Nov.

PHILIPPINE STAR/RUSSELL PALMA

INFRASTRUCTURE spending in November rose 54.6% year on year after flagship projects were expedited, the Department of Budget and Management (DBM) said.

In a disbursement report, the DBM said spending on infrastructure and other capital outlays rose by P31 billion in November to P87.6 billion.

Month on month, infrastructure spending fell 20.36% from P110.0 billion in October.

The DBM said the Department of Public Works and Highways (DPWH) drove spending with its take up of funding for flagship projects.

“Significant disbursements were also made by the DPWH for completed projects and ongoing contracts from the prior year’s budget,” it said.

The DBM also attributed the increased infrastructure spending in November to the capital outlay projects of state universities and colleges.

It also noted the P3.2-billion disbursement for DPWH’s counterpart funding to foreign-assisted projects, specifically for the Light Rail Transit (LRT) Line 1 South (Cavite) Extension Project and LRT Line 2 East Extension Project.

In the first 11 months, infrastructure spending rose 15.5% to P1.18 trillion.

The National Government is “optimistic” it will exceed the infrastructure target for 2024, which was set at P1.472 trillion, equivalent to 5.6% of gross domestic product, the DBM said.

“This should sustain the strong growth of the construction sector and related services or industries and consequently, helped buoy the economic performance last year,” the DBM said.

The National Economic and Development Authority (NEDA) has said that the government completed seven priority infrastructure projects in 2024.

For 2025, it expects 13 infrastructure flagship programs to be completed.

Terry L. Ridon, convenor of think tank InfraWatch, said the November spending increase was due to a more efficient disbursement process and cooperation between the DBM and infrastructure agencies.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the sharp year-on-year increase in infrastructure spending was influenced by the need to push spending before the midterm election spending freeze kicks in.

He said the series of typhoons in the last months of 2024 also unlocked repair or rehabilitation funding.

“In view of the election ban on some infrastructure spending (but there are those exempted) the voters would like to see results in terms of accomplishments of these infrastructure and other government projects,” Mr. Ricafort told BusinessWorld over the weekend.

Ahead of the May 12 elections, the Commission on Elections  will ban on public works spending starting March 28, with the freeze running for 45 days.

He said the “timely approval” of spending for more infrastructure projects in the next few months will help accelerate the economy, as will election-related spending by candidates.

Mr. Ridon urges the government to expedite the rollout of infrastructure projects to avoid them being disrupted by the election ban.

“Any delay in implementation means delayed road and bridge repairs and new projects pushed towards the middle or end of the year,” he said. — Aubrey Rose A. Inosante

Retailers see up to 15% revenue growth this year

PHILIPPINE STAR/RUSSELL A. PALMA

By Justine Irish D. Tabile, Reporter

RETAILERS are expected to book up to 15% in revenue growth this year to around P5.4 trillion, driven by healthy remittances and a growing population, the Philippine Retailers Association (PRA) said.

“We are forecasting a 10-15% increase for 2025 for the retail industry from both in-store and online retail transactions in the Philippines,” PRA President Roberto S. Claudio told reporters last week.

In 2024, the industry is estimated to have generated P4.7 trillion in revenue.

“People are out, shopping malls are full, and the traffic is back, which means people are shopping, so we are looking forward to 2025 to be a banner year,” he said.

“There are so many infrastructure projects that will be completed. Overseas Filipino worker (OFW) remittances continue to go up. Population continues to grow. So there are many factors that will contribute to the growth of retail, especially with the advent of online channels,” he added.

He said that the industry still wants the government to include goods sold online to be subject to value-added tax (VAT).

In October, President Ferdinand R. Marcos, Jr. signed into law Republic Act No. 12023, which amended the National Revenue Code of 1997 and imposed a 12% VAT on foreign digital service providers.

“In the implementing rules and regulations (IRR), there’s a provision that digital goods are not included but only intangible ones like Netflix and Disney (which are) services,” Mr. Claudio said.

“With the advent of e-commerce … you will not be subject to tax if the consignee is an individual and not a store. It is not covered by tax. That is what we are asking for because it is a big thing,” he added.

Sporting goods retailer Quorum International, Inc., which operates the Toby’s Sports chain, said it is budgeting P100 million to open four more stores this year.

“For Toby’s, we continue to grow. We now have 75 stores. We are planning to open three or four more stores before the end of 2025,” according to Mr. Claudio, founder and chairman of Quorum.

“Of the 75 stores, 24 are franchised. The rest are company-owned. So, we will continue with that. And then we’re growing online. Tobys.com is already contributing the equivalent of 10 stores,” he added.

The company has three formats: Toby’s Sports, Runnr, and Urban Athletics. The plan is to open three more Toby’s Sports and one Urban Athletics store.

“We don’t have locations yet… we’re planning to (open a store at) the airport. That will be our first store in an airport,” he said.

He said the plan to open an airport store is driven by the rehabilitation of the Manila International Airport and the recently signed law granting VAT refunds to non-resident tourists.

“We expect the tourist market to be a very big component, so we’re going to position ourselves then to tap the foreign tourists,” he added.

The P100-million budget “includes fit-out, inventory, and staffing. We are now focused on outside Metro Manila,” he added.

He said that the IRR for the VAT refund law is expected to be done by the end of February, with the implementation of the VAT refund scheme expected to be smooth.

“Part of the provision of the bill is to contract an international service provider that is used to giving refunds. So they already have a standard form, a standard system of collecting,” he said.

“Everything will be done electronically… So you get your refund either on a credit card or via an e-wallet. We are proposing not to issue cash refunds, which is hard and can be abused or subject to corruption,” he added.

He said the organization is proposing that services be included in the VAT refund scheme.

“We’re looking at it. We’re trying to recommend that it should be included. Because South Korea and Thailand are giving out VAT refunds for cosmetic procedures,” he added.

$500-M World Bank loan for PHL safer school infra faces delay

Students walk inside the campus of a high school in Quezon City, April 18, 2024. — REUTERS

THE Philippines’ $500-million loan to support the rehabilitation of schools affected by natural calamities has yet to take effect despite the loan deal being signed in November, the World Bank said.

“The project is yet to become effective, pending the signing of the memorandum of agreement between Department of Education and Department of Public Works and Highways, and the Legal Opinion to be issued by Department of Justice,” according to a loan document uploaded on the World Bank website on Jan. 30.

The Infrastructure for Safer and Resilient Schools project was signed on Nov. 4 following approval on June 28, 2024.

According to the bank, the loan was initially supposed to be effective on Sept. 30 and with a mid-term review due on June 1, 2027. The loan will close on Dec. 31, 2029. — Aubrey Rose A. Inosante

Tobacco exports seen growing with FTAs, removal of non-tariff barriers

BW FILE PHOTO

THE PHILIPPINES will need to leverage free trade agreements (FTAs) and address non-tariff barriers to help grow the tobacco industry, the Department of Trade and Industry (DTI) said.

At the International Tobacco Agricultural Summit, Bureau of International Trade Relations Director Marie Sherylyn D. Aquia said FTAs will play a crucial role in strengthening the industry by improving market access.

“FTAs also support legitimate trade and enhanced trade cooperation. FTAs also secure preferential tariffs and clear rules, which can improve the competitiveness of the industry,” she said last week.

“However, it is important to note that global trends are increasingly focused on public health considerations, which may impact the tobacco trade,” she added.

She also cited the need for separate international cooperation efforts to address illicit trade issues.

According to the DTI, the non-tariff barriers faced by the industry include stringent packaging and labeling requirements, import restrictions and quotas, excise taxes and price controls, as well as technical barriers to trade and environmental regulations.

“These measures, while often aimed at public health concerns, can create challenges for our Philippine tobacco exporters,” she said.

Meanwhile, she said that the markets with growth potential for Philippine tobacco exports include Japan, Switzerland, Norway, Iceland, and the South Korea.

“We do have free trade agreements with all of these countries, but of course, we aim to continue to improve market access for our exports of goods and services,” she said.

“By leveraging FTAs and addressing the non-tariff barriers through various international engagements, the Philippines can continue to enhance its tobacco industry’s position in the global market while navigating the evolving regulatory landscape,” she added.

Exports of unmanufactured tobacco declined 14.2% to 17.8 million kilograms in 2024 and fell 6.5% by value to $94.59 million, according to the National Tobacco Administration. — Justine Irish D. Tabile

Power co-ops oppose expansion of Davao Light franchise area

BW FILE PHOTO

THE Philippine Rural Electric Cooperatives Association (Philreca) expressed its opposition to legislation expanding the franchise area of Davao Light and Power Co., Inc. (DLPC).

In a statement over the weekend, Philreca said Senate Bill (SB) No. 2888 will “effectively take over” the franchise area of Northern Davao Electric Cooperative, Inc. (Nordeco).

“This blatant disregard for the contributions and sacrifices of electric cooperatives over the decades is not only unjust but is also posing a serious threat to the long-term welfare of our member-consumer-owners and the integrity of rural electrification in the Philippines,” Philreca said.

SB 2888 seeks to expand DLPC’s coverage area to include Tagum City, Samal Island, and the municipalities of Asuncion, Kapalong, New Corella, San Isidro and Talaingod, in Davao del Norte, as well as the municipality of Maco in Davao de Oro.

The group said that the bill sets a “dangerous precedent” for the industry.

“If private for-profit companies are freely granted franchises at the expense of electric cooperatives, this will accelerate the outright takeover of the entire power distribution sector, leaving consumers vulnerable to profit-driven interests,” it said.

“Electric cooperatives were established with a mission to provide service, not profit. Unlike private for-profit companies, they reinvest revenue into system improvements, expansion, and service reliability,” it added.

Philreca also questioned the absence of provisions tasking DLPC with electrifying all unserved areas and lowering system losses.

Nordeco, which serves parts of Davao de Oro and Davao del Norte, was established to provide electricity to urban and remote areas, according to its website. Its franchise area is adjacent to Davao Oriental Electric Cooperative, Inc. to the west, Agusan del Sur Electric Cooperative, Inc. to the north, and DLPC to the east.

DLPC is the country’s third largest electric distribution utility in terms of customers and annual kilowatt-hour sales. It holds a legislative franchise to build, operate and maintain a power system in Davao City, Panabo City and the municipalities of Carmen, Dujali and Santo Tomas in Davao del Norte for 25 years or until September 2025.

The franchise term was extended for another 25 years or until September 2050 by Republic Act No. 11515. — Sheldeen Joy Talavera

Int’l volleyball tourney hosting seen boosting growth in tourism, retail

REUTERS

By Beatriz Marie D. Cruz, Reporter

THE hosting of international sporting events is expected to unlock growth opportunities for the tourism and retail industries sectors, analysts said.

“Business in the Philippines should understand that sports is important for their business. It promotes their product well, and it gives them a good brand image because volleyball is a family and entertainment (sport),” Philippine National Volleyball Federation (PNVF) President Ramon Suzara said in a briefing last week.

The Philippines will be hosting the 2025 FIVB Volleyball Men’s World Championship between Sept. 12 and 28. Games will be held at the SM Mall of Asia Arena in Pasay City and the Smart Araneta Coliseum in Quezon City.

The tournament is held every two years, following the new streamlined elite calendar to identify which teams qualify for the Olympics. 

A total of 32 national teams will join the tournament — the Philippines, Iran, Egypt, Tunisia, the US, Cuba, Portugal, Colombia, Slovenia, Germany, Bulgaria, Chile, Brazil, Serbia, Czechia, China, Poland, the Netherlands, Qatar, Romania, France, Argentina, Finland, South Korea, Italy, Ukraine, Belgium, Algeria, Japan, Canada, Turkey, and Libya.

“We expect to have P500 million and up of income (from the tournament)” he told reporters.

The 2022 Volleyball World Championships attracted 426,000 spectators, with the economic impact for host countries Poland and Slovenia estimated at 39.4 million euros, including accommodations, travel, food & beverage, retail, and tourism.

Around 57% of Volleyball World Championship fans identify as high-income earners, and about 54% of tourists said they are likely to return for future tournaments.

The Philippine sports market is estimated at $158.1 million (around P9.24 billion) this year, according to German online data platform Statista.

To run the event, PNVF is looking to raise at least P1 billion from the private sector, Mr. Suzara said.

Hosting international sporting events will help increase spending in the local retail and hospitality sectors, according to property consultancy Colliers Philippines.

“The hosting should also enable the country to see a spike in foreign tourists and domestic travelers during the (third quarter),” Colliers Philippines Associate Director Joey Roi Bondoc said in an e-mail.

“With the events lasting more than two weeks, this should entice foreign tourists to stay longer in hotels and spend more,” Mr. Bondoc added.

Hotels are also expected to improve their food offerings and facilities to cater to athletes and tourists, Mr. Suzara said.

The event is expected to increase retail spending, especially with the recently implemented value-added tax refund for international tourists, said Philippine Retailers Association President Roberto S. Claudio.

Both the government and the private sector must work to ensure the seamless entry of foreign visitors. This would entice more global organizations to stage high-profile events in the Philippines, Mr. Bondoc said.

“This is crucial especially as the Philippines is being positioned as a meetings, incentives, conferences, exhibitions (MICE) hub in Asia. Eventually, more high-profile events should entice private developers to build more MICE facilities and hotels in key destinations across the Philippines.”

Leonardo A. Lanzona, an economics professor at the Ateneo De Manila, said a developing country like the Philippines must ensure sufficient funding to ensure that hosting international sporting events does not result in significant losses.

He noted that the 1976 Montreal Olympics left the hosts with $1.6 billion Canadian dollars in debt, causing long-term financial strain for the country.

“To keep this from happening, the country needs to develop detailed and realistic budgets that account for all potential costs, including infrastructure, security, and operational expenses,” Mr. Lanzona said via Messenger.

Additional funding sought for banana industry

DA

THE Department of Agriculture (DA) said that it is looking for additional funding to support banana production, which continues to be impacted by plant diseases.

Agriculture Secretary Francisco P. Tiu Laurel, Jr. said that the DA is seeking the support of Congress to obtain the funding.

“That would definitely help. That’s part of the proposal that we will give,” Mr. Laurel told reporters.

The banana industry has continued to deal with plant diseases like the Fusarium wilt or Panama disease, as well as Black Sigatoka.

He added that smallholder farmers have found it difficult to deal with the plant diseases, prompting about half to stop producing. He said small farms account for about 40% of the industry.

According to the Pilipino Banana Growers and Exporters Association, only 1,000 hectares out of the 89,000 hectares of land available for banana cultivation continued to be operational.

Fusarium wilt is a soil-borne fungal disease that blocks the banana plant’s vascular system and deprives it of minerals, nutrients, and moisture. Affected plants turn yellow and die.

The Tropical Race 4 (TR4) strain of fusarium wilt was first detected in Davao City in 2009 and continues to threaten the Cavendish banana, the main export variety.

Black Sigatoka is also a fungal disease that affects banana leaves, causing them to turn black and die.

On the other hand, he said corporate plantations have been able to cope with the fungal diseases.

“They have protocols in case of infestation. There are certain things that they do, like cutting immediately, to treating the soil, replanting, and adding tea tree oil to prevent the disease,” Mr. Laurel added.

He said smallhold farmers could receive training in disease containment from the DA’s High Value Crop office.

“We have to train the smallholder farmers, and they can apply the techniques of the corporate farmers to return to the industry,” he added.

The Philippines has recently fallen to fourth place among the top banana exporters, as the industry continues to deal with TR4, according to the Food and Agriculture Organization.

According to preliminary data, exports of Philippine bananas dropped to 2.28 million metric tons in 2024. — Adrian H. Halili

Exporters awaiting renewal of US GSP privileges

REUTERS

PHILIPPINE EXPORTS of hard goods and garments are expected to post flat growth this year to about $900 million if the US does not reauthorize its trade preference program, according to the Philippine Exporters Confederation, Inc. (Philexport).

Philexport Trustee for Textile, Yarn, and Fabric Sector Robert Young said that the industry is hoping for the reauthorization of the US Generalized System of Preferences (GSP) and starting the negotiations for a free trade agreement (FTA) with the US.

“(If the GSP is not reauthorized), we will just be flat; we will just survive. In garments, (export sales) could go even lower because we cannot supply buyers with the required quantity due to prices,” according to Mr. Young, who is also the president of the Foreign Buyers Association of the Philippines (FOBAP).

“Everything is a waiting game because of (turnover of leadership to President Donald) Trump,” he added.

According to Mr. Young, the revival of the US GSP program can increase exports, especially for hard goods, by 5-10% this year.

The Philippines was a beneficiary of the US GSP, which allowed duty-free entry of over 3,000 Philippine products into the US market. The program expired on Dec. 31, 2020.

Meanwhile, Mr. Young also considers the prospects for a Philippines-US FTA to be slim.

“That’s for us a long shot. I don’t know if the FTA can be granted by the Trump administration, although our Department of Trade and Industry is strongly lobbying right now,” he said.

“Trade Undersecretary Ceferino Rodolfo has announced that they are trying very, very hard (for a bilateral FTA), so that is good news because, you know, the orders are there,” he added.

The US accounts for 90% of the country’s total exports of hard goods and garments, while ASEAN and the European Union account for the remaining 10%.

Mr. Young said association members have received new orders for hard goods worth $2 million from retail stores in the US and Europe.

“These goods include bread baskets, hampers, fruit baskets, and houseware made from vegetable fibers like abaca, sinamay, and tikog (a native reed),” he said.

“More buyers still prefer natural fibers like abaca for their tableware (for example),” he added.

To meet demand, he said that FOBAP and Philexport tapped producers of indigenous fibers in the Eastern Visayas, who will be trained in product quality specifications to qualify them as exporter suppliers.

“This way, we can solve the skills gap and the quality problem,” he added.

The livelihood training program, which is targeted to start late this month or by next month, is expected to benefit around 250 weavers. — Justine Irish D. Tabile

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