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House passes bill extending validity of 2021 budget

PHILSTAR

HOUSE LEGISLATORS approved a bill Monday extending the validity of the 2021 national budget in order to avoid disrupting projects intended to support the economic recovery after the coronavirus pandemic.

In a vote of 168-6 with no abstentions, the House approved House Bill 10373 on third and final reading, which if enacted would extend the validity of appropriations under the 2021 General Appropriations Act to Dec. 31, 2022.

Completion, inspection, and payment of infrastructure projects and maintenance and operating expenses are also subject to that deadline.

A counterpart bill has been filed in the Senate and is pending at the committee level.

ACT-CIS Party-list Rep. Eric G. Yap, the author of the bill, said that the pandemic disrupted the government’s operations and delayed the release and issuance of funds to various agencies.

The Department of Budget and Management (DBM) said it had released 97.4% of this year’s P4.5-trillion budget as of the end of October.

The DBM added that government agencies’ cash usage rate as of October was 91%, against 77% a year earlier.

The National Government, local governments and state-owned companies used P3.05 trillion out of the P3.35 trillion worth of notices of cash allocation issued to them during the period.

The economy grew 7.1% year on year in the third quarter, against the revised 12% growth rate posted in the second quarter, after fresh lockdowns were imposed in Metro Manila and surrounding provinces to contain the Delta variant of the coronavirus.

The House approved the proposed P5.024-trillion budget for next year on third and final reading on Sept. 30.

The Senate is hoping to pass its version of the budget measure on third and final reading by this week after ending plenary debate on the measure on Nov. 24.

Congress is under pressure to pass the budget bill by year’s end to avoid a reenacted budget.

President Rodrigo R. Duterte has approved similar legislation that extended the validity of the 2019 and 2020 national budgets. — Russell Louis C. Ku

Legislators, NGOs call for greater protection of reefs vs climate change

PHILSTAR

LEGISLATORS and nongovernment organizations (NGOs) called for stronger laws protecting coral reefs and marine life in response to the worsening impact of climate change.

“Being among the Coral Reef Triangle countries, our government should prioritize coral reef protection and place it and marine ecosystems at the heart of our habitat conservation and protection efforts,” Oceana Vice-President Gloria E. Ramos said in a statement Monday.

Ms. Ramos said coral reefs are at high risk during climate change events as well as from human exploitation, and added that saving them is vital to supporting marine life and sustaining the Philippines’ marine resources. 

One area in need of protection, according to House Deputy Speaker Loren B. Legarda in a virtual forum on Nov. 23, is Panaon Island in Southern Leyte.

“Panaon Island… deserves to be declared a marine protected area and be provided with national protection,” she said.

Ms. Legarda is one of the principal authors of the Expanded National Integrated Protected Areas Systems (ENIPAS) Act of 2017. A reclassification to protected area would allow Panaon Island to access to funding to protect its marine life.

At the forum, Senator Cynthia A. Villar, who is also a principal co-author of the ENIPAS Act, expressed her support for making Panaon Island a marine protected area.

She urged the Department of Environment and Natural Resources, communities on the island, and stakeholders like Oceana to start processing the protected area sustainability assessment get the ball rolling on a marine protected designation.

Oceana said its 21-day expedition to Panaon Island indicated that about 60% of the island’s coral reefs are still standing.

International studies have classified 98% of the Philippines’ coral reefs as threatened and 70% at high or very high risk.

The Philippines is part of the Coral Triangle, which accounts for about 75% of all coral species at 35% of the world’s coral reefs.

The ENIPAS law of 2017 amended the National Integrated Protected Areas System law of 1992 and led to the declaration of 94 more sites as protected areas, bringing the total to 244. — Bianca Angelica D. Añago

Red tide warnings lifted in parts of Eastern Visayas 

PHILSTAR

THE Bureau of Fisheries and Aquatic Resources (BFAR) said it has lifted the red tide warnings on various locations in the Eastern Visayas, specifically Daram Island, Maqueda, Cambatutay, Irong-Irong, and San Pedro Bays, Western Samar; Cancabato Bay, Leyte; and Biliran province.

The BFAR said in its 32nd shellfish bulletin dated Nov. 26 that areas still affected by red tide are Mariveles, Limay, Orion, Pilar, Balanga, Hermosa, Orani, Abucay, and Samal, Bataan; Dauis and Tagbilaran City, Bohol; Guiuan and Matarinao Bay, Eastern Samar; Dumanquillas Bay, Zamboanga del Sur; Baroy, Lanao del Norte; and Lianga Bay, Surigao del Sur.

According to the BFAR, all types of shellfish and Acetes sp. or alamang harvested from areas affected by red tide are unfit for human consumption. Other marine species from such areas can still be eaten with proper handling.

Red tide occurs due to high concentrations of algae in the water. Human consumption of contaminated shellfish may result in paralytic shellfish poisoning, which affects the nervous system.

Typical symptoms of paralytic shellfish poisoning include headache, dizziness, and nausea. Severe cases may cause muscular paralysis and respiratory problems. — Revin Mikhael D. Ochave 

End the year right: Year-end compliance reminders

We’re nearly two years into the pandemic and another year is coming to an end. While businesses are expecting significant improvements in the results of their operations this year, they should also be mindful of various compliance requirements.

Before leaving 2021 behind, businesses must ensure that their taxes are in order and that reporting requirements with the Bureau of Internal Revenue (BIR) and Local Government Units (LGUs) are properly complied with.

BIR REPORTING REQUIREMENTS
Regardless of the accounting period used by the taxpayer, the following withholding tax reporting requirements must be complied with:

• Submission of Annual Withholding Tax Returns (BIR Forms 1604-C, 1604-F, and 1604-E), together with Alphabetical List of Employees/Payees

Every employer or withholding agent/payor required to deduct and withhold taxes on compensation paid to employees is required to submit the Annual Information Return of Income Taxes Withheld on Compensation (BIR Form 1604-C), together with the alphalist of employees, on or before Jan. 31 of the following year. As with BIR Form 1604-C, every withholding agent/payor required to deduct and withhold taxes on income payments subject to final withholding tax is also required to submit an Annual Information Return of Income Payments Subjected to Final Withholding Taxes (BIR Form 1604-F), together with the Alphalist of Payees, on or before Jan. 31 of the following year.

On the other hand, every withholding agent/payor required to deduct and withhold taxes on income payments subject to expanded withholding taxes or making income payments not subject to withholding tax but subject to income tax, is required to file BIR Form 1604-E, together with the Alphalist of Payees on or before March 1 of the following year.

For BIR Form 1604-C, to determine taxable income, non-taxable income, and withholding tax to be reported in the return and alphabetical list of employees, an annualization of compensation paid to the employees must be performed on the last month of employment or in December of the current calendar year. Pursuant to the Supreme Court’s ruling in the case of ING Bank N.V. Manila Branch vs. Commissioner of Internal Revenue (G.R. No. 167679, July 22, 2015), this would include accrued bonuses since the duty to withhold the tax on compensation arises upon its accrual. Hence, it is suggested that employers evaluate the impact of the ruling on their accrued bonuses required to be recognized at year-end in their books of account.

Also, to ensure that all income payments during the year which are required to be subjected to withholding tax on compensation, final, and expanded withholding taxes will be properly captured in the annual return and alphalist, it is suggested that withholding agents do annual compliance checks at the yearend. It must be ensured that income payments as reported in the tax returns can be reconciled with the books of account and other financial records.

A review of all the income payments made to nonresidents during the year must be accomplished. In case of availment of treaty benefits for all types of income, except capital gains, a company must ensure that a request for clarification (RFC)/tax treaty relief applications (TTRA) required by the BIR is filed any time after the close of the taxable year, but not later than the last day of the fourth month following the close of the taxable year. For capital gains, the RFC/TTRA must be filed any time after the transaction but cannot be later than the last day of the fourth month following the close of the taxable year when the income is paid or when the transaction is consummated.

Should there be income payments in 2020 and prior years but no TTRA or Certificate of Residence for Tax Treaty Relief (CORTT) Form was filed therefor, the withholding agent has until Dec. 31, 2021 to file an RFC with complete documentary requirements. Failure to file within the prescribed deadline triggers the provisions of Sections 250 and 255 of the Tax Code. 

For income payments which were considered exempt from expanded withholding tax, it must be ensured that documents supporting exemption from withholding tax are secured from the income payees.

• Submission of BIR Form 2316 to Employees/BIR

Employers are required to issue the Certificate of Compensation Payment/Tax Withheld for Compensation Payment With or Without Tax Withheld (BIR Form 2316) to every employee on or before Jan. 31 of the following year.

For employees who are qualified for substituted filing, a copy of BIR Form 2316 must be submitted to the BIR on or before Feb. 28. As clarified in the recently issued Revenue Memorandum Circular No. 117-2021, scanned copies of BIR Form 2316 can be submitted via Universal Storage Bus (USB) memory stick or other similar storage devices in the absence of DVD-Rs. Note that the submission of scanned copies applies to all taxpayers whether registered or not registered with the Large Taxpayers Services (LTS) of the BIR. Manual submission of hard copies is no longer allowed. Hence, employers must ensure that required file naming conventions are followed to avoid invalid submission of certificates.

Note that expatriate employees who are not yet considered residents of the Philippines are not qualified for substituted filing, and therefore, are required to submit their own individual annual income tax returns on or before April 15, 2022.

In addition to the above year-end withholding tax reporting requirements, taxpayers who follow a calendar year are also required to submit their annual books of account with the BIR, as follows:

• Computerized Books of Account (CBA) — taxpayers must submit their computerized books in CD-R, DVD-R, or other optical media formats for the taxable year on or before Jan. 30.

All taxpayers who use CBAs are required to inform and register with the RDO/LT Office where they are registered on the use of CBAs. An Acknowledgement Certificate must be secured from the BIR to avoid the possible imposition of penalties on the use of unregistered CBAs.

• Loose-Leaf Books of Account — taxpayers must submit the bound books of account for the taxable year on or before Jan. 15. An affidavit must also be submitted confirming the type of books, number of pages, and volume number of books submitted.

An annual inventory list must be submitted on or before Jan. 30 of the following year. This covers companies maintaining inventory of stock-in-trade, raw materials, goods in process, supplies and other goods such as manufacturing, wholesaling, distributing/retailing sectors including real estate dealers/developers, and service companies (e.g., construction companies, building contractors, etc.). Note that the data/information contained in the schedules/lists should be reconciled with the amount declared in the financial statements and annual income tax returns.

An annual registration fee (ARF) in the amount of P500 for every head office and/or branch must also be paid on or before Jan. 31.

Finally, companies and taxpayers engaged in business are required to file an Annual Income Tax Return (BIR Form 1701 or 1702) on or before April 15. Attachments such as BIR Form 1709 and Audited Financial Statements (AFS) must be filed on or before April 30 via eAFS or manually.

LGU REPORTING REQUIREMENTS
Regardless of the accounting period used by the business, every taxpayer engaged in business is required to renew a business or mayor’s permit with the LGU where the business operates on or before Jan. 20 each year. Pursuant to the CREATE Act, registered business enterprises that pay 5% tax on gross income earned are exempt from local taxes. However, the exemption does not include fees and charges that may be imposed by LGUs.

The aforementioned reporting requirements may seem numerous and complex. However, adequate planning and periodic tax compliance health checks will help taxpayers leave 2021 behind worry-free.

Let’s Talk Tax is a weekly newspaper column of P&A Grant Thornton that aims to keep the public informed of various developments in taxation. This article is not intended to be a substitute for competent professional advice.

 

Ma. Lourdes Politado-Aclan is a director from the Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

pagrantthornton@ph.gt.com

‘Low risk’ PHL takes precautions against Omicron

PHILSTAR

By Kyle Aristophere T. Atienza, Reporter

THE PHILIPPINES remains at low risk from the coronavirus, health authorities said on Monday, as the country tightens border controls to prevent an outbreak of a new variant first detected in South Africa.

The country had an average of 896 cases daily from November 23 to 29, 34% lower than the 1,353 daily cases from Nov. 16 to 22, Alethea de Guzman, director of the Health department’s epidemiology bureau, said at a virtual news briefing.

“Nationally we are at a low risk case classification with a negative two week growth rate at -45% and we now have an average daily attack rate at 1.02 cases for every 100,000 individuals,” Ms. de Guzman said.

She said the utilization rate of the country’s health system was also at a low-risk classification.

The percentage of critical cases among confirmed admissions has plateaued “while the percentage of severe cases has started to decline starting end-October,” Ms. de Guzman said.

Health authorities on Monday reported 665 new infections — the lowest daily tally since July last year — bringing the total to 2.83 million.

The death toll hit 48,501 after 141 more patients died, while recoveries increased by 993 to 2.77 million, it said.

There were 16,289 active cases, 48.1% of which were mild, 6% were asymptomatic, 15.6% were severe, 23.82% were moderate, and 6.6% were critical.

It said 27% of intensive care units nationwide were occupied. The rate for the capital region Metro Manila was also 27%.

The Health department said 10 duplicates were removed from the tally, eight of which were reclassified as recoveries and one was relisted as a death.

The agency said 129 recoveries were reclassified as deaths. It added that 87 cases “were found to have tested negative and have been removed from the total case count.”

Two laboratories did not operate on Nov. 27, while three laboratories failed to submit data.

The Philippines has already suspended inbound flights from South Africa, Botswana, Namibia, Zimbabwe, Lesotho, Eswatini, Mozambique, Austria, Czech Republic, Hungary, The Netherlands, Switzerland, Belgium, and Italy over the Omicron variant, which authorities said has a large number of mutations. The travel ban will take effect until mid-December.

The government has also suspended a plan to welcome fully vaccinated foreign travelers who are eligible for a visa-on-entry from Dec. 1-15.

Only countries with local transmission of the new variant would be placed under the Philippine government’s red list for travel, acting Presidential Spokesman Karlo Alexei B. Nograles told a televised news briefing.

He made the clarification amid concerns about the non-inclusion of Hong Kong in the red list despite the detection of the Omicron variant there.

If an Omicron case in a country is considered “imported” and there is no local transmission, a Philippine pandemic task force has the option to retain the status of that country, Mr. Nograles said. The task force could “override” the policy if the surveillance and the genome sequencing efforts of that particular country are not competent enough, he added.

“We are actively monitoring any and all events happening in all countries, territories, and jurisdictions around the world,” he said.

Joshua L. San Pedro, a medical doctor who co-convened the Coalition for People’s Right to Health, has been urging the government to boost the country’s testing capacity and increase funding for containment measures to protect Filipinos from a potential outbreak of the new variant.

The Health department has yet to reach its ideal testing capacity, with only about 30,000 daily tests done in recent weeks, he told BusinessWorld on Sunday. Twenty-nine provinces still lack an accredited testing laboratory, while three more provinces do not have a public lab, he added.

Omicron could pose a greater threat than the Delta variant, which has been causing surges worldwide, according to the World Health Organization. “This variant has a large number of mutations, some of which are concerning,” it said on its website.

VACCINATION
Also on Monday, the Philippines began an ambitious three-day campaign to vaccinate nine million people against the coronavirus.

Pandemic authorities originally aimed to inject 15 million shots during the vaccination campaign that runs from Nov. 29 to Dec. 1.

Still, the target could be a record in a country that had struggled to inoculate its people due to vaccine hesitancy, supply issues, and various logistical hurdles.

“This is our single biggest push to fast-track vaccination and reach target of 70% population protection nationwide,” President Rodrigo R. Duterte said at a vaccination event inside a shopping mall in Antipolo City.

He said the country expects to fully vaccinate a total of 54 million Filipinos by the end of the year.

“We also aim to inoculate 80 percent of the population of minors aged 12 to 17 years and complete the booster shots for those belonging to A1, A2 and A3 sectors,” Mr. Duterte said, referring to healthcare workers, senior citizens, and persons with comorbidity.

Meanwhile, vaccine czar Carlito G. Galvez, Jr. said essential workers and indigents may also get booster shots starting Dec. 8.

The country is currently giving out additional shots to health workers, seniors, and seriously ill people.

More than 174,000 individuals have so far received top-up shots, Mr. Galvez said.

The Philippines has “more than enough” supply of vaccines to give people additional doses, he said. “We want to make use of these vaccines in the soonest possible time.”

Robredo inks deal with union leaders on labor agenda

OVP PHOTO RELEASE

VICE PRESIDENT Maria Leonor “Leni” G. Robredo signed a covenant with labor groups on Monday to ensure the passage of a security of tenure bill in Congress should she win the presidency in the May 2022 elections.

Under the accord, Ms. Robredo and representatives from several labor groups that are backing her presidential bid agreed to push for reforms that will ensure job security for workers in both the private and public sectors and eliminate labor contractualization.

They also pledged to roll out a public employment program that “would provide guaranteed jobs for those who are unemployed, guaranteed incomes for those unable to work and wage subsidies to preserve jobs when needed.”

The covenant recognizes the “need to increase the meager wages of employees and strive to bring the minimum wage closer to a living wage for all types of workers.”

It also pushes for the creation of climate jobs and employment based on just transition from the current fossil fuel-centered economy to renewable energy or low-carbon economy.

The labor vision also promotes the political rights of workers, including the right to strike and collectively bargain.

Senatorial candidate Jose Sonny G. Matula, president of the Federation of Free Workers and spokesman for the pro-Robredo labor alliance, presented the covenant during the signing event.

Mr. Matula is among Ms. Robredo’s senate slate of 12, which includes former allies of President Rodrigo R. Duterte.

In 2019, Mr. Duterte vetoed a security of tenure bill that would have ruled out forms of labor contracting in the country.

Think tank IBON Foundation has called the administration’s job creation record “the worst in the six administrations and 35 years after the Marcos dictatorship,” with yearly average of 313,000 jobs created in 2017 to 2019 and an average of 2.6 million jobs lost in 2020.

Also on Monday, Ms. Robredo said that she will give the agriculture sector at least P116 billion in the first year of her presidency.

“We won’t just look at the total budget but we would also consider its distribution,” said told a presidential forum in Filipino. “We’re going to see if the distribution of the entire budget is fair.”

The Vice President also vowed to review the country’s agriculture budget, focus on resilient sub-sectors, and invest in climate-resilient crops. — Kyle Aristophere T. Atienza

15 presidential candidates, 12 for VP in May 2022 polls, Comelec estimates 

THERE could be 15 presidential candidates and 12 for vice president in the May 2022 elections, with the final list scheduled to be out by Dec. 15, Commission on Elections (Comelec) Spokesperson James B. Jimenez said on Monday.  

The poll body has so far moved to declare as nuisance candidates 82 of the 97 that registered for the country’s top post.  

Two of 28 candidates for vice president have already been declared as nuisance, and 108 out of 174 senatorial candidates.   

Meanwhile, Mr. Jimenez said renewed restrictions prompted by the new Omicron coronavirus variant may cause delays in poll preparations, but he discounted the possibility that next year’s national and local elections will be canceled.   

“It’s unlikely that the nationwide elections will be canceled,” he said, adding that delays can be expected for some areas if coronavirus cases rise or circumstances such as an infection among election officers occur. — Alyssa Nicole O. Tan 

Number-coding scheme for private vehicles, light truck ban in Metro Manila back this week  

PHILIPPINE STAR/ MICHAEL VARCAS

IMPLEMENTATION of the number coding scheme, which is intended to reduce the number of vehicles in Metro Manila roads during rush hour, will be resumed this week for private vehicles.  

“The number coding scheme will be implemented any day this week during rush hour in the afternoon, 5 p.m. until 8 p.m.,” said Metropolitan Manila Development Authority Chairman Benhur C. Abalos in a statement on Monday.   

Public utility vehicles, Transportation Network Vehicle Services (TNVS), motorcycles, garbage trucks, fuel trucks, and motor vehicles carrying essential and perishable goods are exempted from the program.   

Mr. Abalos said stickers will be issued to registered TNVS units for easy identification by enforcers. “We are in coordination with the TNVS on the implementation of rules and regulations regarding this concern.”   

Meanwhile, Mr. Abalos said the implementation of the uniform light truck ban along EDSA and Shaw Boulevard will also resume within this week, but under a modified system using the number-coding scheme.   

Light trucks refer to motor vehicles, whether for commercial use or not, with a gross capacity weight of up to 4,500 kilograms and/or having six or more tires, and a payload area that is either enclosed or open.   

Based on the motor vehicle plate endings, light trucks will be prohibited to ply EDSA between Magallanes in Makati City and North Avenue in Quezon City, both northbound and southbound, from 5:00 a.m. to 9:00 p.m.    

Both the coding scheme and modified light truck ban will be in effect, after publication on the Official Gazette, on weekdays. The regulations are automatically lifted during holidays. — MSJ 

IPOPHL to combat spread of fake pharmaceutical products  

THE INTELLECTUAL Property Office of the Philippines (IPOPHL) seeks to fight the spread of counterfeit medicines and pharmaceutical products in the market through a partnership with non-profit organization Pharmaceutical Security Institute (PSI).  

In a statement on Monday, IPOPHL said it signed a memorandum of understanding with PSI on Nov. 18 to address the challenge of delivering safe medicines and ensuring integrity across the pharmaceutical supply chain.    

PSI is a United States-based organization involved in sharing information on the counterfeiting of pharmaceuticals and prompting enforcement actions through local authorities.    

“This synergy with PSI will help us better protect the value of intellectual property that is meant for our country’s economic gain and, of course, protect our consumers, especially where fake products involved can harm health and cost a life,” IPOPHL Director Rowel S. Barba said.    

According to IPOPHL, the agreement will provide the framework for training, awareness, and exchange of information regarding the sale, supply, and consumption of counterfeit medicines and pharmaceutical products.    

PSI President and Chief Executive Officer Todd Ratcliffe said counterfeiting has seen a shift in the past years from lifestyle drugs like weight loss steroids to live saving drugs such as cancer medications.    

“We encourage our members to call us at the very beginning of a case to see if we know something (and) 50% of the time, we have a positive fit on our database,” Mr. Ratcliffe said.    

He said all PSI members are mandated to share information, cooperate with law enforcement regulators, and protect public health. — Revin Mikhael D. Ochave  

Energy dep’t denounces lawyers’ ‘thoughtless’ meddling in Malampaya issue  

THE ENERGY department on Monday denounced the Integrated Bar of the Philippines (IBP) for what it called a “thoughtless” involvement in the Malampaya issue. 

“It is unfortunate for the IBP to issue a sweeping statement against the Malampaya transaction without first checking the facts and applicable laws,” it said in a statement, days after the lawyers’ group asked the Department of Energy (DoE) to scrap the Malampaya sale to Udenna Energy Corp.  

“The DoE and its officials have been unduly maligned. And the IBP’s ‘thoughtless’ involvement, allowing itself to be used by unscrupulous interest groups, greatly disappoints,” it added.  

Last week, the IBP urged the department to cancel the sale of a 45% stake in the Malampaya project to Udenna Energy Corp. in 2019 and to delay the final approval of another 45% sale from sale this year.  

“While the Senate investigation is ongoing, (we) call on the DoE to rescind its approval of (Chevron Malampaya LLC’s) transfer of its 45% interest in Malampaya to Udenna subsidiary UC Malampaya (Pte Ltd.), and to hold in abeyance its approval of Shell Philippines Exploration BV’s (SPEx) transfer of its 45% to another Udenna subsidiary, Malampaya Energy XP,” the IBP said in a statement on Nov. 24.  

The IBP echoed the allegations of senators and interest groups that Udenna is financially and technically incapable of operating the exploration, and that such incompetence opens the possibility of inviting foreign parties with interests that are hostile to the Philippines, a move they said will be a threat to the country’s strategic energy resources.  

The Senate Committee on Energy has been reviewing the Malampaya transactions since last year.  

Senator Ana Theresia “Risa” N. Hontiveros filed a resolution last week urging the Senate Blue Ribbon Committee to investigate the acquisition of the stakes in Service Contract 38 (SC 38), the resource block that covers areas in the West Philippine Sea including the Malampaya gas field.  

Three citizens have also filed a criminal complaint before the Ombudsman against Energy Secretary Afredo G. Cusi, Udenna Energy Corp.’s Dennis A. Uy, and other officials involved in the controversial deal.  

On Monday, another lawyers’ group lambasted the DoE and the questionable Malampaya transaction. 

“What the DoE itself calls the backbone of the country’s power generation mix, is now in the hands of an untested and unknown authority,” the Philippine Bar Association (PBA) said in a statement.  

The DoE said it will respond to any allegation against it in the proper forum and in due time. — Marielle C. Lucenio 

Marine scientist says research activities a means to assert PHL claim in South China Sea 

MSI.UPD.EDU.PH

CONDUCTING scientific research is a way to assert the Philippines’ territorial integrity in the South China Sea, according to a marine scientist, following a recent incident of Chinese aggression within the Philippines’ exclusive economic zone in the disputed waters.    

“There are other ways on how to assert our rights and our claims in the West Philippine Sea aside from militarization,” Associate Professor and Deputy Director of the University of the Philippines Marine Science Institute Deo Florence L. Onda told DZMM TeleRadyo on Sunday.   

“Because marine scientific research is protected under UNCLOS, we can also send more scientists to do research claiming that these are ours.”  

The United Nations Convention on the Law of the Sea (UNCLOS) is an international treaty, adopted and signed in 1982, which defines coastal and maritime boundaries to regulate seabed exploration not within territorial claims and to distribute revenue from regulated exploration.  

China has already established three research stations in the disputed waterway, Mr. Onda said, which in effect strengthened their claim. At the same time, Chinese coast guards hinder and chase after Philippine academic vessels.  

“During our Pag-asa expedition, there were areas that we could not reach because the Chinese Coast Guard kept following us,” Mr. Onda, who takes part in several marine research voyages in the disputed sea, said.  

He added that some of their previous expeditions were also canceled due to “security threats.”  

Nonetheless, he assured that Filipino researchers are working together with the government to further activities in the resource-rich South China Sea. — Alyssa Nicole O. Tan

Bill on higher senior citizen discount for utility bills hurdles House committee 

PHILIPPINE STAR/MIGUEL DE GUZMAN

A COMMITTEE in the House of the Representatives approved on Monday a bill that would increase the discount granted to senior citizens on monthly electricity and water consumption fees to 10% from the current 5% as well as provide exemption from value added tax (VAT).    

The House Ways and Means Committee passed an unnumbered substitute bill to House Bills 1903 and 3040, which would amend Republic Act 9994 or the Expanded Senior Citizens’ Act of 2010.  

Under the proposed measure, the discount can only be availed if monthly consumption does not exceed 150 kilowatt hours and 30 cubic meters of water.  

It will apply on a per household basis, regardless of the number of senior resident.  

Baguio City Rep. Mark O. Go said the measure would help senior citizens in informal sectors who are not covered by pensions and healthcare benefits.  

“It remains a fact that this sector of society is having difficulties to keep up with the relatively rapid economic growth where prices of medicines, healthcare, basic goods, and commodities, and house utilities are constantly increasing through time,” he said in the bill’s explanatory note.  

However, Department of Finance Division Chief Lyonel T. Tanganco raised concerns that the provisions of the bill could be abused by some households.  

“We’re concerned that the proposal may result in tax leakages, abuses, and more complicated tax administration. One possible leakage is when households continue to enjoy the proposed benefit even if the declared senior citizen under whom utilities is registered is no longer living,” he said. 

He added that the measure would be inconsistent with the objectives of the Tax Reform for Acceleration and Inclusion (TRAIN) Law to improve the efficiency of VAT through additional exemptions.  

Mr. Tanganco highlighted the importance of collecting VAT revenues from senior citizens in order for the government to invest on social services.  

A Senate counterpart bill, which would extend the 5% discount on the first 150 kilowatt hours of electricity and 50 cubic meters of water, is pending at the committee level. — Russell Louis C. Ku