CDC researchers see little evidence in-person school drives COVID-19 infection

January 27, 2021 | 4:44 pm

Studies in the United States and abroad found little evidence schools were spreading coronavirus disease 2019 (COVID-19) infections, showing a “path forward” to in-person classes, researchers from the US Centers for Disease Control and Prevention (CDC) said on Tuesday.

The risk of catching COVID-19 in schools and whether to allow in-person learning or stick with online classes has been a hot topic of debate in many countries, including the United States.

While there had been some evidence of in-school transmission, “the preponderance of available evidence from the fall school semester has been reassuring,” the researchers said in an opinion piece on the Journal of the American Medical Association (JAMA) Network.

“As many schools have reopened for in-person instruction in some parts of the US as well as internationally, school-related cases of COVID-19 have been reported, but there has been little evidence that schools have contributed meaningfully to increased community transmission,” the CDC said.

The authors pointed in part to a new CDC study of rural Wisconsin schools, where student mask-wearing was high. COVID-19 incidence in the 17 elementary through high schools was 37% lower than in the wider community, with no infections acquired at school among staff members.

“Given the findings of our data set, with proper precautions such as distancing and wearing face coverings, it seems that adult school staff members are unlikely to contract COVID-19 in the classroom,” study author Amy Falk, from the Aspirus Hospitals and Clinics, said in an e-mailed response.

CDC scientists in JAMA said that closing schools could affect academic progress, mental health, and access to essential services.

They said that mitigation measures such as universal mask use, social distancing, and ventilation were key to avoiding infection.

In the Wisconsin study, just seven of 191 cases (3.7%) identified among 5,530 students and staff members during the period of Aug. 31 to Nov. 29, 2020, were associated with in-school transmission, all in students, researchers reported.

Social distancing was required and mask-wearing was reported at more than 92%. Classes were taught in stable cohorts with both lunch and classes taking place indoors. No systematic COVID-19 screening was conducted in the schools or the community, though, and student mask-wearing was charted by only some teachers, according to the Wisconsin study, published in the CDC’s Morbidity and Mortality Weekly report.

The researchers found widespread virus transmission in the surrounding community during the study period, with 7% to 40% of COVID-19 tests from Wood County showing positive results.

COVID-19 incidence among students and staff members in the study translated into 3,453 cases per 100,000 in schools versus 5,466 per 100,000 in the wider community. — Vishwadha Chander/Reuters

Sing to the sound of a great investment with The Symphony Towers

January 27, 2021 | 4:11 pm

Nothing beats the sound of a great investment. Nothing compares to the mere simplicity and stability that comes with owning the right condominium property, purchased at the right price, in the most opportune time. With various ways to invest in real estate, almost anyone can find an investment strategy that’s a good fit. After all, millionaires are not the only people who know how to do real estate investing. You too can do it.

However, when getting started in real estate investment, you have to be honest about your own abilities, how much money you can invest at the onset, how much time you can spend managing your investment, and to which condominium property you should put your money in.

Moreover, time is of the essence in real estate investing. One of the major considerations in property investment is whether to buy pre-selling or ready for occupancy condo units.

Vista Residences, the condominium arm of the country’s largest homebuilder Vista Land & Lifescapes, Inc. offers pre-selling and ready for occupancy condominium projects in Manila and Quezon City that are strategically located near developed business districts and premier universities.

Whether you are ready to invest or move into a new home, Vista Residences has the right condominium property for you and a sound investment for your future.

This 2021, sing to the sound of a great investment with The Symphony Towers, Vista Residences’ two-tower mixed-use complex located along with Sgt. Esguerra Avenue corner Timog Avenue in Quezon City, which features a central courtyard, lavish landscapes, and a unique interplay of commercial establishments and exclusive residences.

Bringing a whole new groove to the beat of city life, The Symphony Towers lets you enjoy the right balance of comfort and convenience as it sits in the middle of Quezon City, in convenient distance from media giants, within close proximity to various commercial and institutional establishments and just beats away from EDSA and main transport hubs such as the MRT Station.

With its 360-degree commanding view of the metro, The Symphony Towers resounds quality, accessibility, value, and ease of cosmopolitan living.

The Symphony Towers also gives you an ensemble of condo spaces where you can discover your sonata of creativity and passion. Each tower has two floors dedicated to offices while the remaining floors are allotted for residences. It offers a variety of studio, one-bedroom, and two-bedroom condo units that provide an ideal layout and square footage options to cater to the different needs and lifestyles of its condo unit owners.

At The Symphony Towers, large balconies create a rich and wonderful link between the outdoor and indoor spaces and can serve as an extra lounging spot with the best view of the city.

As with the rest of Vista Residences condo projects, The Symphony Towers boasts of indoor and outdoor amenities such as a swimming pool, fitness center, function room, lounge, and a roof deck that will surely help you achieve a healthy work-life-balance and enrich your life as you live in harmony with yourself.

In line with Vista Residences’ thrust of providing ultimate comfort and convenience, The Symphony Towers, just like the other Vista Residences condo projects, features an AllDay Convenience Store and Coffee Project in the building.

Waiting to invest can cost you big time. So, start your 2021 by looking upon the New Year with fresh eyes, setting your financial goals, and having a sound investment in mind to achieve your financial freedom. The steps you will take today will create lasting implications for years to come. So, consider making a choice on how to move into the right condo space today.

At The Symphony Towers, you can invest or own your dream condo unit for as low as P165k. Sing to the sound of a great investment this year with The Symphony Towers.

For more information on The Symphony Towers and other Vista Residences projects as well as Vista Land & Lifescapes, Inc’s offerings, visit www.vistaresidences.com.ph & www.vistaland.com.ph, follow @VistaResidencesOfficial or call our Marketing Office at 0908-9148457.

Peru volunteer who received placebo in Sinopharm vaccine trial dies of COVID-19 pneumonia, university says

January 27, 2021 | 3:15 pm

The volunteer received the placebo rather than the vaccine.

LIMA — A volunteer who received the placebo in the local Peruvian trial of a coronavirus vaccine produced by China’s Sinopharm Group Co. Ltd. has died from coronavirus disease 2019 (COVID-19)-related pneumonia, the university carrying out the trial said on Tuesday.

Cayetano Heredia University, which is involved with the study, said on the instructions of the Peruvian health regulator it had unblinded the volunteer’s participation in the trial and determined she had received the placebo rather than the vaccine.

“It is important to stipulate that the death of the participant is not related to the vaccine since she received the placebo, and we will therefore report to the relevant regulatory and ethics bodies and maintain the course of this phase three study,” the university said in a statement.

German Malaga, chief researcher at the Cayetano Heredia University, told Reuters by phone that the deceased volunteer had suffered from diabetes.

Mr. Malaga said the trial investigators had so far issued two doses of either the vaccine or placebo to 12,000 volunteers and were now following their responses.

“It is developing without any setbacks. These things can happen, COVID is a disease that causes deaths,” he said.

“Our message to the volunteers is to take care of themselves because we don’t know if they have the vaccine or the placebo,” he added.

The university said in its statement that the volunteer had received “all the necessary care to treat this disease and her complications” and was “fighting for her life” for more than a week.

“It is a painful loss for which we extend our condolences to her family,” the statement added.

In December, Peru temporarily suspended trials of the Sinopharm COVID-19 vaccine due to a “serious adverse event” that occurred with a volunteer in the study.

In Brazil, clinical trials of China’s Sinovac COVID-19 vaccine were suspended before being allowed to resume late last year due to a study subject’s death that was registered in Sao Paulo as a suicide. — Marco Aquino/Reuters

Working from home is losing its effectiveness, bank execs say

January 27, 2021 | 1:26 pm

Working from home has been surprisingly successful for global banks during the first year of the coronavirus pandemic but is losing its effectiveness, two prominent industry executives said on Tuesday at a virtual meeting of the World Economic Forum.

“It’s remarkable it’s working as well as it is, but I don’t think it’s sustainable,” said Barclays Chief Executive Jes Staley.

Mary Erdoes, who runs asset and wealth management for JPMorgan Chase & Co, added, “It is fraying. It is hard.”

For employees to focus, Erodes said: “It takes a lot of inner strength and sustainability (without) the energy that you get from being around other people.”

Mr. Staley said: “It will increasingly be a challenge to maintain the culture and collaboration that these large financial institutions seek to have and should have.”

He predicted that more people would come back to offices to work, but with flexibility to work from home.

Ms. Erdoes said executives believed that part of the initial success of working from home was due to adrenalin from having to adapt so quickly.

Now, she said, executives were facing the likelihood that coronavirus disease 2019 (COVID-19) and its variants would persist for a long time.

“The world is going to have to figure out how to adapt,” Ms. Erdoes said.

Mr. Staley also told the event—which is being held virtually this year, rather than in the Swiss ski resort of Davos, due to the coronavirus—that the world economy could experience a boom after the pandemic similar to the “Roaring ’20s” that followed the 1918 flu pandemic. Pent-up demand was widespread and could power growth, he said.

“You could have a robust second half to the year,” Mr. Staley said, followed by an “explosion of demand.” — David Henry and Iain Withers/Reuters

IMF lifts global growth forecast for 2021, still sees ‘exceptional uncertainty’

January 27, 2021 | 12:13 pm

WASHINGTON — The International Monetary Fund (IMF) on Tuesday raised its forecast for global economic growth in 2021 and said the coronavirus-triggered downturn last year—the biggest peacetime contraction since the Great Depression—would be nearly a full percentage point less severe than expected.

The global lender said multiple vaccine approvals and the start of vaccinations in some countries had boosted hopes of an eventual end to the pandemic that has now infected nearly 100 million people and claimed the lives of more than 2.1 million globally.

But it warned that the world economy continued to face “exceptional uncertainty” and new waves of coronavirus disease 2019 (COVID-19) infections and variants posed risks, and global activity would remain well below pre-COVID-19 projections made one year ago.

IMF chief economist Gita Gopinath said the pledge of US President Joseph R. Biden, Jr., to fund the World Health Organization’s COVAX vaccine initiative marked “a very big step” to containing the pandemic and ensuring more equitable distribution of vaccines.

“Much more will be needed, because as we can see, given the mutating virus, that this is not a problem that’s going away anytime soon,” Ms. Gopinath told a news conference.

“There is still a tremendous amount of uncertainty,” she told Reuters in a separate interview. “We know that the health crisis is not over until it’s over everywhere.”

Ms. Gopinath said the global economy could gain $9 trillion between 2020 and 2025 if faster progress could be made in ending the health crisis, and it was clearly in the interest of advanced economies to help poorer countries recover.

“There’s a complete economic sense to do this, and do it right now,” she told Reuters.

The IMF estimates that close to 90 million people are likely to fall below the extreme poverty threshold during 2020–2021, with the pandemic wiping some out $22 trillion in projected output through 2025 and reversing progress made in reducing poverty over the past two decades.

Ms. Gopinath said advanced economies were recovering more quickly, and urged countries with means to continue to offer poorer nations aid, low-interest loans, and debt relief.

“There is still much, much to be done, but we’re certainly at least in positive growth territory this year, as opposed to last year,” she told the news conference.

VACCINE-POWERED UPTICK

In its latest World Economic Outlook, the IMF forecast a 2020 global contraction of 3.5%, an improvement of 0.9 percentage points from the 4.4% slump predicted in October, given stronger-than-expected momentum in the second half of last year.

It predicted global growth of 5.5% in 2021, 0.3 percentage points better than in October, citing expectations of a vaccine-powered uptick later in the year and added policy support in the United States, Japan, and a few other large economies.

It said the US economy, the largest in the world, was expected to grow by 5.1% in 2021, an upward revision of 2 percentage points attributed to carryover from strong momentum in the second half of 2020 and the benefit accruing from about $900 billion in additional fiscal support approved in December.

The outlook would likely improve further if the US Congress passes a $1.9 trillion relief package proposed by Mr. Biden, Ms. Gopinath said, forecasting a 5% boost over three years if the package is approved by the US Congress.

China’s economy is expected to expand by 8.1% in 2021 and 5.6% in 2022, compared with the October forecasts of 8.2% and 5.8%, respectively, while India’s economy is seen growing 11.5% in 2021, up 2.7 percentage points from the October forecast, after a stronger-than-expected recovery in 2020.

The Fund said countries should continue to support their economies until activity normalized to limit persistent damage from the deep recession of the past year.

Low-income countries would need continued support through grants, low-interest loans, and debt relief, and some countries may require debt restructuring, the IMF said. — Andrea Shalal/Reuters

Cavite cancels award for China Communications’ $10-billion airport project

January 27, 2021 | 11:06 am

MANILA – A Philippine province has cancelled its award of a $10 billion airport deal south of the capital, among the biggest projects involving a Chinese firm under President Rodrigo Duterte who has pursued warmer ties with Beijing since taking office in 2016.

China Communications Construction Co (CCCC) and Philippines company MacroAsia Corp won the auction in 2019 to partner with the Cavite provincial government to upgrade the Sangley airport.

“The notice of selection and award for the Sangley Point International Airport Project issued on 12 February 2020 was cancelled,” MacroAsia told the stock exchange on Wednesday. (https://bit.ly/3cfWZbQ)

Cavite Governor Juanito Victor Remulla told Reuters the consortium’s documentation was “deficient in three or four items”.

“We saw it as a sign they were not fully committed to the project,” Remulla said.

The Cavite government would start new negotiations for a private sector partner to pursue the airport project, he said in a Facebook post.

In December 2019, the CCCC-MacroAsia consortium were the sole bidders for a $10 billion airport just outside the capital, one of two big projects that aim to take pressure off the four terminals of Manila’s notoriously packed international airport.

CCCC was among the Chinese firms blacklisted by the United States in August for their roles in constructing and militarising artificial South China Sea islands.

Remulla said the blacklisting had nothing to do with the cancellation.

China’s CCCC was not immediately available for comment.

MacroAsia’s shares sank as much as 19% to a three-month low in the first 10 minutes of trade following the cancellation. — Reuters

BusinessWorld Insights: C Suite in Digital Transformation

January 27, 2021 | 9:10 am

With the quarantine restrictions still in place due to the coronavirus disease 2019 (COVID-19) pandemic, digitalization is the “now” normal. But what are the constraints that keep management and organizations from maximizing the benefits of going digital? How can a company address these challenges?

Catch the second part of BusinessWorld Insights’ Leadership Series with the topic, “Embracing Digitalization: C-Suite in DigitalTransformation”, with speakers Marivic Españo, chairperson and chief executive officer of P&A Grant Thornton; David Almirol, Jr., CEO and founder of MultiSys; and Gwendolyn Kelley, first vice-president, chief technology officer, head of information technology division of InLife; with moderator Leo Uy, research head of BusinessWorld.

#BUSINESSWORLDINSIGHTS Leadership Series is presented by InLife; with the support of Management Association of the Philippines, British Chamber of Commerce of the Philippines, Bank Marketing Association of the Philippines, Financial Executives Institute of the Philippines, Philippine Association of National Advertisers, Philippine Chamber of Commerce and Industry, and The Philippine STAR.

Slower recovery seen for PHL this year

January 27, 2021 | 12:34 am

By Luz Wendy T. Noble, Reporter

THE Philippines will likely see a slower pace of recovery this year, as the International Monetary Fund (IMF) and a United Nations (UN) think tank trimmed their growth forecasts amid uncertainty over the vaccine rollout and continued restriction measures.

The IMF cut its gross domestic product (GDP) forecast for the Philippines to 6.6% this year, from the initial forecast of 7.4% given in October. The economy is expected to grow by 6.5% in 2022.

“The projected rebound in 2021 and 2022 is primarily driven by a renewed infrastructure investment push and a gradual recovery of the private sector, supported by accommodative monetary policy and global recovery,” IMF Representative to the Philippines Yongzheng Yang said in an e-mail to BusinessWorld.

The IMF’s 2021 GDP estimate is well-within the government’s 6.5-7.5% target growth while the 2022 projection is less optimistic than the 8-10% estimate given by economic managers.

Mr. Yang identified several downside risks to the growth outlook, including the ongoing lockdown restrictions and uncertainty over the government’s COVID-19 vaccination program.

“We expect that social distancing and some forms of restrictions will persist this year,” he said, despite noting the country has already seen a “steady flattening of the infection curve” since September last year.

The Health department reported 1,173 new COVID-19 infections on Tuesday, bringing the total to 516,166, with active cases at 30,357.

“Like in most other countries, vaccination is a gradual process and progress is subject to uncertainty,” he said.

The government is aiming to start immunization next month, with the goal to inoculate 70 million people within the year.

This year, IMF’s Mr. Yang said headline inflation in the Philippines may average 3.1%, which is slower than the 3.2% forecast by the Bangko Sentral ng Pilipinas, but quicker than the 2.6% in 2020. Its forecast of 3% inflation in 2022 is faster than the central bank’s 2.9% projection.

The IMF said ASEAN-5 economies — comprising Indonesia, Malaysia, the Philippines, Thailand, and Vietnam — are projected to grow by 5.2% this year, slower than the previous forecast of 6.2%. On the other hand, the 2022 estimate was upwardly revised to 6% from 5.7%.

“The strength of the recovery is projected to vary significantly across countries, depending on access to medical interventions, effectiveness of policy support, exposure to cross-country spillovers, and structural characteristics entering the crisis,” the IMF said.

WEAK GROWTH
At the same time, the UN Department of Economic and Social Affairs (DESA) said it expects the Philippines to grow by 6.2% this year, lower than its earlier 6.3% forecast.

This after the Philippines likely saw the worst contraction in Southeast Asia in 2020 due to the pandemic.

In its World Economic Situation Prospects 2021 report released on Tuesday, UN DESA said the Philippine GDP likely shrank by 8.8% last year, a reversal from the 6.2% growth forecast it gave in January 2020.

Official GDP data will be released on Thursday. A BusinessWorld poll showed a median 9.5% contraction for the entire 2020.

“While Singapore, Thailand, and Vietnam flattened the curve relatively quickly and with shorter lockdowns, Indonesia, Myanmar and the Philippines are still struggling with high daily levels of new infections. In the latter group, a more prolonged period of limited mobility and weak sentiments will depress consumer spending and private investment, thus constraining the pace of recovery,” it said.

This year, all Southeast Asian economies are expected to post growth, led by Vietnam (7.8%), followed by Malaysia (6.6%), Myanmar (6.5%) and the Philippines.

The UN DESA said the Philippines’ likely 8.8% GDP contraction was the worst economic performance among 11 economies in Southeast Asia in 2020.

The Philippines lagged behind Thailand (-6.6%), Singapore and Timor Leste (-6.5%), Malaysia (-4.8%), Indonesia (-1.6%), and Cambodia (-1.4%). Four countries likely expanded last year, namely Vietnam (3.4%), Myanmar (2.3%), Brunei (1.2%), and Laos (0.5%).

The UN DESA expects headline inflation to ease to an average of 2.1% this year from 2.6% in 2020, and pick up by 2.8% in 2022.

GLOBAL RECOVERY
In its World Economic Outlook Update released on Tuesday, the IMF said global economic activity will remain below the pre-pandemic levels this year, even as recovery gets under way.

For this year, the IMF said the global economy will grow by 5.5%, faster than the 5.2% earlier estimate. The growth forecast for 2022 is kept at 4.2%.

“Much remains to be done on the health and economic policy fronts to limit persistent damage from the severe contraction of 2020 and ensure sustained recovery,” it said. — with Beatrice M. Laforga

Manila falls in 2021 list of top real estate investment destinations

January 27, 2021 | 12:33 am

MANILA dropped two spots to 19^th in a ranking of city investment prospects in the Asia-Pacific for 2021, a joint report from the Urban Land Institute (ULI) and PricewaterhouseCoopers (PwC) said. Read the full story.

Manila’s appeal as property investment site declines

January 27, 2021 | 12:33 am

Manila dropped two spots to 19th in a ranking of city investment prospects in the Asia Pacific for 2021, the joint report from the Urban Land Institute and PricewaterhouseCoopers showed. — PHILIPPINE STAR/MIGUEL ANTONIO N. DE GUZMAN

MANILA dropped two spots to 19^th in a ranking of city investment prospects in the Asia-Pacific for 2021, a joint report from the Urban Land Institute (ULI) and PricewaterhouseCoopers (PwC) said.

The 2021 Emerging Trends in Real Estate report released on Tuesday said that Manila’s prospects as a real estate investment destination have dropped over recent years. The Philippine capital ranked as high as third in 2017, then dropped to 18^th a year after.

Ranking 19^th out of 22 cities in the region, Manila was classified as having “fair” investment prospects this year.

ULI said Manila had fallen in the rankings due to “Southeast Asia’s reputation as a high-risk play in times of global recession.”

Topping the list this year are Singapore, Tokyo, and Sydney.

Overall scores in 2021 are not too different from the previous year, ULI said, likely due to the cities’ effective pandemic containment measures, and profitable investment opportunities.

Real estate investors said their top concerns for this year include the impact of the pandemic on property values, economic growth, trade or geopolitical tensions, and vacancy rates.

In the ULI report, Manila ranked 13^th in the city development prospects ranking and 20^th among cities most likely to see rental growth this year.

ULI said that there are lower scores overall for city development as developers weather “questionable” demand during a region-wide recession.

Future office demand, it added, will be decentralized to reduce commutes, which means satellite cities like Clark could signal some real estate growth in the Philippines.

“The Philippines is a good example of this, with moves afoot to establish new satellite cities, such as Clark, on the periphery of Manila, as a way to relieve the demographic stress,” ULI said.

ULI Philippines Chairwoman Jean Jacquelyn de Castro noted the decline in the country’s investment prospects ranking over recent years.

“Building back investor confidence will require stakeholders to work closely with the government to improve the attractiveness of Philippine real estate as an investment class,” she said.

Real estate services firm Santos Knight Frank Chairman and Chief Executive Officer Rick M. Santos said that the Philippines can have real estate opportunities in logistics, data centers, and industrial sectors.

“With megatrends such as e-commerce growth, decentralization outside Metro Manila, and continued outsourcing and BPO (business process outsourcing) expansion in the Philippines, we expect to see a soft rebound in the real estate market as the economy gradually recovers,” he said. — Jenina P. Ibañez

Typhoons likely hurt farm output growth

January 27, 2021 | 12:32 am

By Revin Mikhael D. Ochave, Reporter

THE agriculture sector’s growth likely slowed in the fourth quarter, after a string of strong typhoons devastated rice-producing areas.

Glenn B. Gregorio, director of the Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), said the agriculture sector will post 0.58% growth in the fourth quarter, slower than the 0.7% growth in the third quarter. However, this will be a slight improvement from the 0.1% drop in farm output in the fourth quarter of 2019.

Mr. Gregorio said the crops subsector is seen to grow by 3.66%, while the fisheries subsector is estimated to rise by 1.69%.

“However, comparable to the previous quarters, the livestock and poultry sectors are estimated to experience negative growth rates at -6.37% and -3.45%, respectively,” Mr. Gregorio said.

Several typhoons, namely, Quinta, Rolly, Ulysses and Vicky, swept through the country in the last three months of 2020. Data from the Department of Agriculture showed the combined crop damage caused by Quinta and Rolly reached P8.46 billion, while losses from Ulysses amounted to P6.72 billion, and damage from Vicky totaled P129.8 million.

In a mobile phone message, Roy S. Kempis, a professor at Pampanga State Agricultural University, said the agriculture sector’s slow growth in the fourth quarter was due to the massive flooding that damaged crops and other farm produce.

“The growth of the agricultural sector in the fourth quarter of 2020 is slower than the third quarter of 2020, and is seen to improve 0.25% to 0.75%,” Mr. Kempis said.

Mr. Kempis said increased food consumption during the holiday season might have a positive effect for the farm sector, but is not enough to offset the typhoons’ damage.

“With recovery still ongoing in Luzon in the fourth quarter and then the weather disturbances in Visayas and Mindanao, the last quarter of 2020 could not be better than the third quarter,” he added.

In an e-mail interview, former Agriculture Undersecretary and current Bangko Sentral ng Pilipinas (BSP) Monetary Board member V. Bruce J. Tolentino said historical data show about 90% of typhoon damage takes place from July to December, with November being the most affected.

“The quarterly numbers are the result of artificially dividing the seasonal performance of crops. Most of the movements in these numbers are due to price fluctuations,” Mr. Tolentino said.

Rolando T. Dy, executive director of Center for Food and Agri-Business of University of Asia and the Pacific (UA&P), expected the farm sector to have declined by 2% in the October to December period.

“Typhoons and floods are setbacks for crops, while hogs are afflicted with African Swine Fever (ASF). I see the sector posting -2% for the fourth quarter,” Mr. Dy said in a mobile phone message.

During a virtual briefing on Tuesday, Agriculture Secretary William D. Dar said they are hopeful that the PSA’s result will turn out positive.

The Philippine Statistics Authority (PSA) is scheduled to release agricultural production data today.

Mr. Dar previously said he is hoping that the agriculture sector could grow by 1.5% by the end of 2020, lower than the previous 2% target.

According to PSA data, the farm sector accounts for about a tenth of the country’s gross domestic product (GDP) and around a quarter of the national workforce.

BIR collected P7.2 billion from POGOs in 2020

January 27, 2021 | 12:31 am

THE Bureau of Internal Revenue (BIR) collected P7.18 billion in taxes from Philippine Offshore Gaming Operators (POGOs) last year, even as some offshore companies reportedly left due to the tighter tax rules.

In a statement, BIR Commissioner Caesar R. Dulay said taxes from POGOs were 12% higher than the collection in 2019, although he did not provide the exact figure.

In 2018, the BIR collected P2.8 billion in taxes from POGOs.

BIR Deputy Commissioner for Operations Arnel SD. Guballa attributed the higher POGO tax collections last year compared with 2019 to the additional revenues generated through the 5% franchise tax.

“The increase in tax collection in taxable year 2020 over 2019 is primarily due to the compliance in the payment of franchise tax by some POGO Licensees, which was made a prerequisite for the issuance of a BIR clearance to allow them to resume partial operations during the ECQ (enhanced community quarantine) periods,” Mr. Guballa said in a text message on Tuesday.

The government began its campaign against tax-dodging POGOs and their service providers in 2019. It set deadlines for POGOs to secure Tax Identification Numbers (TINs) for their employees and remit withholding taxes.

In 2020, the BIR started collecting a 5% franchise tax after Republic Act 11494 or the Bayanihan to Recover as One Act (Bayanihan II) changed the basis of the tax rate to gross bets amid alleged cheating when computing their net winnings.

Earlier this month, the Supreme Court issued a temporary restraining order (TRO) against the BIR, preventing it from collecting the franchise tax after 14 licensed POGOs questioned the new tax.

The BIR’s total collections reached P1.94 trillion last year, down 11% year on year but 15% higher than the P1.69-trillion revised target.

“It’s the first time that BIR went above its goal by 15%. The last time the BIR hit its goal was in 2001 and 2003, that was 17 years ago,” said Mr. Dulay in the statement. — B.M.Laforga