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Maguindanao del Norte residents surrender 20 more combat weapons

COTABATO CITY — The Army collected 20 more combat weapons on Saturday, turned in by Moro villagers in Talitay, Maguindanao del Norte in support of a disarmament program complementing the Mindanao peace process.

Lt. Gen. Antonio G. Nafarrete, commander of the Army’s 6th Infantry Division (ID), told reporters on Monday that assault rifles, bolt-action sniper rifles, pistols, grenade, and rocket launchers were surrendered by residents of Talitay through the intercession of local executives and officials of Army units covering the municipality.

They agreed to turn over their weapons to Lt. Col. Robert F. Betita of the 1st Mechanized Battalion and to the acting commander of the 601st Infantry Brigade, Col. Ricky P. Bunayog, after both officers and barangay leaders in Talitay had explained the intricacies of the Small Arms and Light Weapons (SALW) Program.

Residents of Talitay submitted for 6th ID’s custody of their combat weapons during a symbolic rite at their local government operations center last Saturday.

The SALW Program is being implemented jointly in Central Mindanao by the 6th ID and the office of Presidential Adviser on Peace Reconciliation and Unity Carlito G. Galvez, Jr. — John Felix M. Unson

Palay output target set at 20.46 MMT in 2025

PHILIPPINE STAR/KRIZ JOHN ROSALES

THE Department of Agriculture (DA) said on Monday that it is expecting the harvest of palay (unmilled rice) this year to exceed 20 million metric tons (MMT), with officials seeking to fund a rice productivity program for an additional P10 billion.

In a statement, Agriculture Secretary Francisco P. Tiu Laurel, Jr. said the P10 billion will fund strategies to hit a palay production target of 20.46 MMT this year.

If the target is achieved, it would represent a 6% increase from the 19.3 MMT estimate for 2024 production, and a 1.9% rise from the record 20.06 MMT posted in 2023.

“We’re now hopeful we can do better than 2023,” Mr. Laurel added.

The DA has said that the decline in production in 2024 was due to the dry spell accompanying El Niño, plus further crop damage caused by flooding during the La Niña episode late last year.

Farm damage caused by El Niño stood at P15.3 billion, according to the DA’s final estimate. Damage to rice amounted to P5.93 billion or 38.8% of the total. Lost volume was estimated at 330,717 MT, across 109,481 hectares of farmland.

The DA estimated that agricultural damage due to typhoons Kristine and Leon, which traversed the Philippines in the fourth quarter, at P9.81 billion.

The DA said record rice imports this year driven by weak palay production and the lowering of tariffs on imported rice.

“Production is directly correlated to the volume of imports. Last year, our productivity dropped to 19.3 MMT, (so) our imports shot up to 4.78 MMT,” DA spokesperson Arnel V. de Mesa said.

Tariffs on imported rice were slashed to 15% from the previous 35% until 2028 by Executive Order No. 62.

The DA has tasked the National Food Authority (NFA) to continue its “aggressive” rice procurement program to build up grain reserves.

The goal is for the NFA “to fully stock its warehouses for the first time in years, which is a key development for the country’s rice security,” the DA added.

Mr. Laurel added that the NFA is seeking to procure a minimum of 300,000 MT this year.

NFA procurement for 2024 amounted to 300,000 MT or about 6 million 50-kilogram bags of palay.

“This strategic procurement helped stabilize rice supply despite challenges in local production,” the DA said.

Republic Act No. 12708 or the Agricultural Tariffication Act raised that rice buffer stock requirement of the NFA to 15 days of national consumption from the previous nine days. — Adrian H. Halili

PAGCOR reduces e-games fee to entice illegal operators to go legit

PHILIPPINE STAR/KRIZ JOHN ROSALES

THE Philippine Amusement and Gaming Corp. (PAGCOR) further reduced the fee paid by electronic games (e-games) operators to 30% of revenue to further encourage underground gaming operators to become licensees.

The fee had earlier been reduced to 35% in April.

In a statement, PAGCOR Chairman and Chief Executive Officer Alejandro H. Tengco said that the rate on e-games operated by integrated resorts was also slashed to 25% “to compensate for overhead expenses incurred by bricks-and-mortar operators.”

“By lowering our share rates, PAGCOR is creating a more favorable regulatory environment by encouraging unregistered online gaming operators to transition to the legal market,” he added.

Mr. Tengco said that the rate cuts allow operators to keep more funds for marketing and ensure continued growth.

He said the gradual cuts, initiated in 2023, come after e-games surpassed their P100-billion gross gaming revenue (GGR) target as early as September last year.

PAGCOR used to charge 50% of GGR from licensees, which slowed expansion.

“The gradual reduction of share rates has significantly contributed to the growth of the e-games sector, which has become a key driver of gaming industry growth,” Mr. Tengco said.

The regulator said previous cuts increased the number of licensed e-games operators after former unlicensed operators decided to embrace regulation.

To date, PAGCOR has issued 1,188 licenses for on-site and online gaming, up 13.57% from the 1,046 licenses issued in 2023.

The number of accredited gaming service providers has increased to 174 in 2024 from 49 a year earlier.

“We expect this trend to continue, and we are optimistic that the best is yet to come for the e-games sector,” he said. — Aubrey Rose A. Inosante

PHL, Thailand sign 5-year tourism cooperation deal

REUTERS

THE Department of Tourism (DoT) of the Philippines and the Thai Ministry of Tourism and Sports have signed an agreement to help develop cultural and medical tourism in the Philippines.

In a statement on Monday, the DoT said the five-year deal was signed on Jan. 19 in Johor Bahru, Malaysia.

“For the Philippines, this collaboration provides an exciting opportunity to tap into Thailand’s remarkable success in attracting visitors, particularly in areas such as cultural tourism and medical tourism,” Tourism Secretary Ma. Christina G. Frasco said.

“We can benefit from Thailand’s robust arrival numbers, its internationally recognized cultural heritage, and world-class medical services, which will undoubtedly enhance our own tourism offerings,” she added.

Meanwhile, she said Thailand can tap Philippine expertise in dive tourism and English-language training for tourism workers.

The agreement, set to run until 2030, conforms to the agreement of cooperation initially signed by the two countries in 1993.

The two sides have promised to exchange successful strategies in sustainable tourism, cultural heritage tourism, tourism product development, and domestic tourism development.

Both countries will also organize exchanges of officials and delegations for capacity building and exchange of knowledge. — Justine Irish D. Tabile

Small egg producers targeted in livelihood support program

A vendor arranges eggs in boxes at a store along Blumentritt in Manila. — PHILIPPINE STAR/WALTER BOLLOZOS

THE Department of Agriculture (DA) said it set aside P85.19 million to establish a network of egg production facilities for small-scale growers.

In Memorandum Order No. 2, the DA said the program will fund the construction of small-scale egg production facilities as a Livelihood Opportunities and Viable Enterprise project.

“The Chicken Layer Project involves the establishment of small egg production facilities. This project will provide an immediate source of food and livelihood and immediate returns on investment which will redound to food security,” the DA said.

It added that the project will be overseen by regional field offices, in coordination with the Bureau of Animal Industry, the National Livestock Program, the Agricultural Training Institute, and Local Government Units.

The DA’S target market for the program is farmers, community groups, and Farmer Cooperatives and Associations.

The DA said beneficiaries will receive modules, including three-tier battery layer cages, vitamins, medication, disinfectant, 48 ready-to-lay pullets, feed, veterinary supplies, and a shed.

The project has a goal of 11 beneficiaries per province. — Adrian H. Halili

EU ‘green’ regulations to force overhaul of exporter practices

PHILSTAR FILE PHOTO

By Justine Irish D. Tabile, Reporter

THE Philippine Exporters Confederation, Inc. (Philexport) said the European Union’s (EU) Green Deal will require exporters, particularly the coconut industry, to comply with the trading bloc’s policies to remain competitive.

“We had been carrying out info sessions and rendering technical assistance mainly with and through the Department of Trade and Industry — Export Marketing Bureau and the International Trade Centre (ITC) ARISE Plus Philippines program,” Philexport said via Viber.

“We hope to increase the competitiveness of the products affected by these EU policies, with particular interest in coconut and coco-based products that are not listed in the EU Deforestation Regulation (EUDR),” it added.

According to Philexport, the main exports to the EU in 2023 were office and telecommunications equipment, machinery, food products, and optical and photographic instruments.

“Most of these products may be indirectly or directly in the Carbon Border Adjustment Mechanism (CBAM) coverage,” it added.

Citing ITC Green and Inclusive Value Chains Section Associate Expert Michaela Summerer, Philexport said that the Green Deal consists of more than 50 policies, initiatives and legislative proposals in support of climate neutrality.

These include the EUDR; CBAM; and the Ecodesign for Sustainable Products Regulation (ESPR).

The EUDR prohibits the export of commodities to the EU unless they are not the product of deforestation and have been produced in accordance with the “green” legislation of the country of origin.

These include cattle, cocoa, coffee, oil palm, rubber, soy, wood, and selected derived products like chocolate, leather, and furniture.

Companies are obliged to ensure compliance with EUDR rules, which include the provision of geolocation data and a declaration filed with the EU’s Deforestation Diligence Registry.

Meanwhile, CBAM imposes a carbon tax on imported goods in high-emission industry based on the carbon intensity of production. 

Ms. Summerer said that of the industries affected by CBAM, like steel, cement, aluminum, fertilizer, and electricity, the Philippines exported $22.5 million to the EU.

CBAM requires exporters to the EU to calculate the carbon emissions of their products, report their carbon content, and pay a fee based on the difference between their country’s carbon price and the EU’s.

The ESPR is a legislative framework setting design requirements for energy-related products, including household appliances, heating and cooling products, consumer electronics and lighting, textiles, furniture, building materials, and packaging.

“ESPR covers an array of product categories, including many products under Harmonized System (HS) Chapters 84 and 85, which combined are the largest exports of the Philippines to the EU, equaling $6.1 billion in 2023,” Ms. Summerer said.

She said exporters need to understand their obligation to prepare for and comply with the EU Green Deal policies.

“Proactive action is needed. Suppliers to the EU market may be indirectly affected by the EU Green Deal policies, i.e., they might not have the reporting obligation under the respective legislation yet will be asked by their buyers for relevant documentation and evidence,” she said.

Senate passes bill giving PSALM five more years of corporate life

THE SENATE approved on third and final reading on Monday a bill extending the corporate life of the Power Sector Assets and Liabilities Management Corp. (PSALM) for five years, ahead of its original expiration date of June 2026.

In a 20-0-0 vote, the chamber passed Senate Bill No. 2837, which would allow PSALM to continue managing the government’s energy assets.

The five years “provide PSALM sufficient time to settle existing obligations,” Senator Mark A. Villar, who sponsored the measure, said after the bill’s approval.

“This will also enable PSALM to commence asset and management plans for several significant independent power producer facilities and real estate assets.”

PSALM was created under the Republic Act No. 9136, or the Electric Power Industry Reform Act of 2001, to lead the privatization of generation and transmission assets of the National Power Corp. and the National Transmission Corp.

Its corporate life was originally due to expire in June 2026. Should PSALM be dissolved, all of its assets and liabilities revert to the National Government.

Assets held by PSALM include the 796.64-megawatt Caliraya-Botocan-Kalayaan hydroelectric power plant complex in Laguna.

Finance Secretary Ralph G. Recto in March 2024 backed the measure, saying PSALM still has many debts and assets that need to be disposed of. — John Victor D. Ordoñez

Warning issued against unauthorized John Hay sales

CAMPJOHNHAY.PH

THE Bases Conversion and Development Authority (BCDA) warned the public on Monday against individuals selling hotel units at the Manor and Forest Lodge in Camp John Hay.

In a social media post, the BCDA said it received reports that some individuals claiming rights to units at The Manor and Forest Lodge are selling their rights, even after the Supreme Court ruled that the properties are to be turned over to the government.

“The public is advised not to transact with individuals or parties who are without official authorization and purporting to have a contractual relationship with the BCDA,” it said.

“The BCDA reminds the public that the state-run corporation has now regained control of The Manor and Forest Lodge,” it added.

The BCDA recovered Camp John Hay after the Supreme Court issued a final resolution allowing the recovery of the 247-hectare property leased to CJH Development Corp. (CJH DevCo).

The order covered land and improvements, whether they were held by CJH DevCo and its subsidiaries or affiliates or occupied by other parties claiming rights to them.

“The BCDA calls on individuals or parties claiming rights to hotel units to respect the rule of law and the government’s ownership of the properties,” the BCDA said.

The BCDA has tapped Landco Pacific Corp. to be the interim manager of the Manor and Forest Lodge, for one year, extendable to two. 

A subsidiary of Metro Pacific Investments Corp., Landco Pacific will assist the BCDA in transitioning the properties to a new private partner to be awarded for long-term lease and management. — Justine Irish D. Tabile

BSP seeking to expand share of youth holding bank accounts from current 27%

DRAZEN ZIGIC-FREEPIK

THE Bangko Sentral ng Pilipinas (BSP) said it is seeking to raise the level of financial inclusion for young people from the current 27% of 15 to 19-year-olds holding bank accounts.

The central bank launched on Monday the Youth Financial Inclusion Initiative (YFI), a component of the National Strategy for Financial Inclusion 2022-2028.

A recent report by the ASEAN+3 Macroeconomic Research Office estimated a Philippine median age of 24.5 years in 2021, the second-youngest population in the region.

“(The 15-19 cohort) is 31 million strong. That is nearly one-third of our population.  With this strength in numbers, you can influence the economy in ways that are both significant and lasting,” BSP Deputy Governor Bernadette Romulo-Puyat said.

“You are the most tech-savvy generation. You know how to turn likes and shares into movements. And that is exactly the kind of creativity we need,” she added.

The YFI initiative covers account onboarding, financial education and consumer protection, advocacy, policy and regulatory support, and stakeholder engagement.

“However, what truly makes the YFI Initiative stand out is its advocacy component. This is where your voices and ideas take center stage,” BSP Managing Director Charina B. De Vera-Yap said at the launch.

“Through programs like the Youth Ambassador Program and Hackathon, you will have the opportunity to dive into exciting activities focused on digital finance and financial health,” she said. — Luisa Maria Jacinta C. Jocson

Building permit approvals fall in November

PHILSTAR FILE PHOTO

APPROVED building permits fell 2.7% year on year in November to 12,050, the Philippine Statistics Authority (PSA) reported on Monday.

In November, approved building projects were issued to construct 3.16 million square meters (sq.m.) of floor area, down 21.6% from a year earlier.

Approved permits represented projects valued at P42.48 billion, down 8.4% year on year.

Permits for residential projects accounted for 62.3% of the total and were down 7.8% at 7,513 approvals.

These projects were valued at P17.60 billion with a floor area of 1.41 million sq.m.

Single homes accounted for 88.6% of all residential projects. Such permits fell 1.8% year on year to 6,656 approvals.

Meanwhile, non-residential permits accounted for 23%, and were valued at P21.01 billion, down 9.3% year on year.

Approved commercial construction permits grew 10.7% and were valued at P13.80 billion.

Permits for agricultural projects fell 20% to 64.

Building permits for institutional works rose 14.4% to 509, while industrial project approvals were up 10.9% at 214.

Permits for additions to existing structures rose 4.9% to 448 in November, while alteration and repair permits increased by 2.6% to 1,037.

Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) accounted for 25.2% of approved construction projects, followed by Central Luzon (11.53%) and the Central Visayas (11.47%).

The PSA said construction statistics are compiled from the copies of original application forms of approved building permits, as well as from demolition and fencing permits collected monthly by the agency’s field personnel from the offices of local building officials. — Lourdes O. Pilar

NCR retail price growth eases to four-year low

PHILIPPINE STAR/RUSSELL A. PALMA

RETAIL price growth of general goods in the National Capital Region (NCR) eased in 2024, the weakest reading in four years, the Philippine Statistics Authority (PSA) reported.

Citing preliminary data, the PSA said growth in the general retail price index (GRPI) in Metro Manila slowed to 1.8% in 2024, well below the year-earlier 4.5%.

The 2024 reading was the weakest since the 1.2% posted in 2020.

“The primary contributor to the downtrend in the annual average growth rate of GRPI was the slower annual average increase recorded in the index of food at 2.4% in 2024 from 8.2% in the previous year,” the PSA said in its report.

Other commodity groups that posted weaker year-on-year growth were beverages and tobacco (3.5% from 5.9%); crude materials, inedible except fuels (1.0% from 4.8%); chemicals, including animal and vegetable oils and fats (2.4% from 3.2%); manufactured goods classified chiefly by materials (1.3% from 2.7%); machinery and transport equipment (0.5% from 1.4%); and miscellaneous manufactured articles (1.4% from 1.7%).

In December, GRPI growth in Metro Manila picked up to 1.5% year on year in December from 1.4% in November. It was lower than the 2.9% a year earlier.

The December reading was the highest since the 1.9% posted in July. — Pierce Oel A. Montalvo

Real property valuation reform

On Dec. 10, the Department of Finance approved and issued the Implementing Rules and Regulations (IRR) of Republic Act No. 12001, otherwise known as the Real Property Valuation and Assessment Reform Act (RPVARA). RPVARA seeks to promote just, equitable, and nationally consistent real property valuation based on international standards, adopting market value as a single base for real property valuation for tax assessment and other transactions. It also aims to promote fiscal autonomy by enhancing the local government units’ (LGUs) capacity to generate revenue from real property and foster transparency and innovation through the provision of a comprehensive and up-to-date electronic database of all real property transactions.

Real property is one of the most valuable and reliable assets a person can own. Not only does it provide financial security, but it also protects a person’s purchasing power from inflation due to the general tendency of real property to appreciate over time. Real property also provides the opportunity to create a legacy by passing it on to future generations. Evidently, the recent implementation of the RPVARA will have an impact on the value of a person’s real property. The recent signing of the IRR affords us the opportunity to look more deeply into the IRR. Below are the salient provisions of the law and IRR.

SALIENT PROVISIONS
​A.​Role of the BLGF and the creation of the Real Property Valuation Service (RPVS)

The RPVARA designates the Bureau of Local Government Finance (BLGF) as the primary agency to implement the law. To accommodate the expanded functions and responsibilities of the BLGF, the RPVARA reorganized the BLGF and created the RPVS within the organizational structure of the BLGF. It also created the Central Consultative Committee that will serve as the forum on matters pertaining to the setting and adoption of international valuation standards and other related concerns on real property valuation. The BLGF will have the following main functions under the RPVARA:

​i.​Development and maintenance of the Philippine Valuation Standards (PVS);

​ii.​ Review and implementation of the SMVs;

​iii.​ Provide leadership and policy direction to LGUs on real property valuation for taxation; and

​iv.​ Develop and maintain an electronic database of real property transactions.

​B. Establishment of a Single Valuation Base through the development of the PVS and SMV

The RPVARA and its IRR seek to reform the methods in which real property values are determined. The current system uses multiple valuation bases, which often results in confusion in determining the tax base for real property taxes. To address this issue, the RPVARA provides for a single valuation base for taxation and benchmarking purposes.

The RPVARA tasks the BLGF with developing, maintaining, and implementing the Philippine Valuation Standards (PVS) to govern the valuation of real property in the country. The PVS conforms with international valuation standards and principles and will be subject to review every three years or as often as necessary. The IRR further emphasizes that the PVS must ensure uniform application across all LGUs.

Also, the PVS will serve as the guide and basis for the assessors to create the Schedule of Market Values (SMVs) for the various classes of real property located within their respective LGUs. The assessors will be given two years from the implementation of RPVARA to update their respective SMVs, subject to general revision every three years thereafter.

The proposed SMV is to be published at least two weeks prior to the two mandatory public consultations. Thereafter, the proposed SMVs will be submitted to the BLGF Regional Office for review. Should the proposed SMV be acceptable to the BLGF Regional Office, it will endorse the SMV to the head of the BLGF, which, if compliant with the latest PVS, will be subsequently certified by the Secretary of Finance. Otherwise, SMVs will be remanded to the assessors for revision to ensure conformity with the latest PVS.

​C. Usage of SMV

The property values stated in the SMVs will be used by the government for the following purposes as provided for by the RPVARA and expounded upon by its IRR:

​i.​ As a basis for the general revision of the assessment and property classification by the local assessor;

​ii. ​As a basis for the determination of real property-related taxes;

​iii. ​As a basis for the computation of internal revenue taxes (Income Tax / Capital Gains Tax) for real property transactions;

​iv. As a benchmark for the appraisal of real property for purposes of public land disposition, land development for housing, township and infrastructure, and mortgage to secure the performance of obligations, among others;

​v.​ As a benchmark for the appraisal of real property for purposes of letter-offer in negotiated sale and the payment of just compensation in expropriation cases.

​D. Regular SMV updates and penal provisions

Another issue encountered in our current system of valuation is the outdated zonal and market valuations. Currently, up to 60% of LGUs have outdated property valuations. In order to address this issue, one of the main features of the RPVARA is the three-year review. It should, however, be noted that this feature is not particularly novel to the RPVARA since the regular update of property values is likewise a requirement under the Local Government Code (LGC). Nonetheless, in order to ensure that SMVs are updated every three years, the RPVARA has opted to impose penalties on government employees and officials who fail to comply with its provisions. Should an LGU fail to conduct its general revision of the SMV every three years, the offending government official is subject to a fine equivalent to one to six months of his basic salary or by suspension from government service for not more than 1 year. Through these penal provisions, it is the hope that the LGUs are compelled to comply with the SMV revisions.

​E. ​Electronic database of all real property transactions

In order to assist LGUs, the RPVARA has likewise required the development of a Real Property Information System (RPIS), an electronic database of the sale, exchange, lease, mortgage, donation, transfer, and all other real property transactions and declarations. The electronic database will be developed by the BLGF in collaboration with LGUs and the Department of Information and Communications Technology (DICT). In conjunction with this, the RPVARA likewise requires all LGUs to automate their real property tax administration operations. Once implemented, it should, in theory, be easier for the LGU to continually revise its SMVs.

​F.​ Cap of 6% on Real Property Tax hikes

In order to avoid potential issues arising from the sudden spike in the value of real properties, the RPVARA imposes a cap of 6% on the increase of real property taxes in the first year of effectivity of the SMV. This would deter speculation on housing, among others.

Furthermore, the RPVARA likewise authorizes the LGUs to enact an ordinance imposing a cap on the increase in real property taxes for succeeding years, thereby giving the LGUs the opportunity to adjust the cap in a manner more suited to local economic circumstances.

​G. Amnesty

Finally, one last important feature of the RPVARA is the grant of amnesty for the penalties, surcharges, and interests from all unpaid real property taxes. The amnesty may be availed of by the delinquent property owner within two 2 years from the effectivity of the RPVARA or until July 5, 2026, and the delinquent real property owner has the option of one-time payment or installment payments of delinquent real property taxes.

Note, however, the amnesty program under the RPVAR Act does not extend to the following properties: delinquent real properties that have been disposed of at public auction to satisfy real property tax delinquencies, real properties with tax delinquencies that are being paid pursuant to a compromise agreement and real properties that are the subject of pending cases in court for real property tax delinquencies.

The RPVARA and its IRR offer various benefits aimed at improving the property valuation system. Through the establishment of the PVS, the RPVARA has ensured that property valuation nationwide is consistent, fair, and transparent, which in turn reduces subjectivity and potential bias in assessments. By providing a more accurate valuation of real property, the RPVARA has improved the capacity of the LGUs to generate taxes, thereby promoting their fiscal autonomy. Finally, due to increased trust in the government’s valuation of property, private property owners will have the capacity to unlock the true value of their assets and therefore price their commercial transactions accordingly.

 

Nolan Redji D. Domingo is an associate of the Tax Advisory & Compliance Practice Area of P&A Grant Thornton.

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