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WNBA vows to investigate hateful comments at Sky-Fever opener

THE WNBA is investigating allegations of hateful, racial comments made by a fan at the combative season opener between the Chicago Sky and Indiana Fever on Saturday in Indianapolis.

“The WNBA strongly condemns racism, hate, and discrimination in all forms — they have no place in our league or in society,” the league said in a statement on Sunday.

The statements did not indicate who was the target of the remarks, but the Indianapolis Star and other outlets reported that Sky forward Angel Reese was the target of the comments.

Some social media users alleged that the ABC/ESPN broadcast of the game picked up the incident in question. One video showed a male fan — wearing a red replica Caitlin Clark jersey with matching shorts — sitting courtside and making high-pitched noises while Reese shot a free throw with 4:38 left in the third quarter. — Reuters

No mercy for Sinner as Alcaraz storms to Italian Open title

ROME — Carlos Alcaraz had little trouble dismantling Jannik Sinner in the Italian Open final, sealing a 7-6(5) 6-1 victory to snap the world number one’s 26-match winning streak and break the hearts of the home crowd on Sunday.

Alcaraz edged a tense opening set in a tiebreak after he and Sinner traded blows from the baseline on a warm evening in front of a packed Centre Court crowd.

However, from the second set onwards, Alcaraz silenced the home crowd as he completely outplayed Sinner, cruising to victory in their first-ever clash in a Masters 1000 final.

For Sinner, it was particularly disappointing that he could not make it a double celebration for Italy after compatriot Jasmine Paolini won the women’s title a day earlier.

Sinner was playing his first tournament since winning the Australian Open in January and was hoping to become the first Italian man to triumph in Rome since Adriano Panatta in 1976, but he had to settle for second best.

Sinner, who was making his comeback this week after serving a three-month doping ban, thanked his family for their support. — Reuters

Sugar production exceeds 1.782-MMT initial forecast

UNSPLASH

By Kyle Aristophere T. Atienza, Reporter

SUGAR PRODUCTION for crop year 2024-2025 is now expected to come in at 1.837 million metric tons (MMT), with output so far having already exceeded the initial forecast of 1.782 MMT, according to the Sugar Regulatory Administration (SRA).

Currently, sugar produced has hit 1.815 MMT, SRA Administrator Pablo Luis Azcona said in a statement, adding that weak yields have been offset by the increase in cane planted, with farmers betting they will recover their costs based on their assessment of current farmgate prices.

The new projected output is still lower than the actual output of 1.92 MMT in the preceding crop year and will come in just below the US Department of Agriculture’s 1.85-MMT forecast.
Mr. Azcona said the SRA’s initial estimate of 1.782 MMT was based on an assessment of the health of the cane after El Niño.

“We are ending on a positive note, and we can also attribute this to the effort of this administration in helping stabilize prices since 2022,” he said.

He said fair farmgate prices have encouraged farmers to risk replanting their El Niño-damaged crops using new varieties.

Farmers have been hopeful that prices will eventually make up for the very high cost of production, he noted.

“In fact, fair prices are also encouraging new farmers to plant sugarcane.”

The Visayas accounted for 71% of total production, of which Negros Island produced 63% and Panay 6.3%. The remainder was contributed by plantations in Cebu and Leyte. 

Mindanao, which the SRA considers as the next frontier for the sugar industry, is projected to end the crop year with an almost 24% share, with Luzon contributing nearly 5% of the national total.

“We hope next milling, we will get higher tonnage and, most importantly, more sugar per ton of cane (LkgTC),” Mr. Azcona said.

Currently, Mindanao has the highest average in LkgTC yield at 1.74, followed by Negros with 1.65, and Panay and Luzon both at 1.54.

The SRA also cited improved soil conditions, enhanced irrigation methods, and the revision of the sugarcane crop calendar as contributing to the improved estimates.

NFA to add 200,000 MT in rice storage capacity

PHILIPPINE STAR/MIGUEL DE GUZMAN

THE National Food Authority (NFA) said it will augment its storage capacity for rice by 200,000 metric tons (MT) within two years to enable more grain purchases from farmers.

It said it will also need more capacity to supply the government’s P20-per-kilo subsidized rice program.

“We are modernizing. An additional capacity of 200,000 MT will be available in two years’ time,” NFA Administrator Larry del Rosario Lacson told BusinessWorld.

Mr. Lacson said the NFA is currently building more warehouses, acquiring additional equipment, and refurbishing current warehouses.

The Department of Agriculture (DA) has been seeking the restoration of NFA’s power to intervene in the rice market by releasing grain to regulate prices. This power was removed with the passage of the Rice Tariffication Law of 2019.

Prior to the law, the NFA had the power to import and sell rice directly to the public. At present, importing has been reserved for private traders, who need to pay tariffs on their shipments, originally set at 35% on Southeast Asian grain.

President Ferdinand R. Marcos, Jr. reduced the import tariff to 15% from 35% via an executive order issued in June.

The tariffs help support the Rice Competitiveness Enhancement Fund (RCEF), which will be tapped to modernize the rice industry via mechanization, seed, fertilizer, and rice cultivation know-how.

Mr. Lacson said the NFA’s previous power to sell rice to the market “on a regular basis” should be restored to allow it to cycle through the rice stocks held in its warehouses.

The NFA typically buys 4-5% of the rice harvest in the form of palay (unmilled rice). It said the ability to sell to the public will allow it to buy double that, he said.

“Under that system, the 4-5% that we buy will become 10%,” he said, adding that 15% is also possible.

“More consumers and farmers will benefit,” he said.

He noted that restoring the NFA’s powers would mean more savings for the grains agency and keep rice from overstaying in its storage facilities.

“Whether we like it or not, we are a tropical country. We need to maintain the stock,” he said.

Asked to comment on the proposed restoration of NFA powers, former agriculture secretary William D. Dar told BusinessWorld earlier this month that the NFA must have the funding to maintain a buffer stock equivalent to 30 days’ demand.

The 2024 amendments to the Rice Tariffication Law raised the funding for RCEF to P30 billion from P10 billion, and authorized the DA to declare a food security emergency that can trigger the release of NFA stocks.

In such an emergency, the NFA is allowed to sell its stock only to government agencies and local government units.

The DA still has over P9.8 billion available for palay procurement this year, suggesting a capacity to purchase 5 million 50-kilo bags of rice. — Kyle Aristophere T. Atienza

Sari-sari store spending drops in 2024; monthly visits become more frequent

PACKWORKS.IO

MONTHLY SPENDING in small mom-and-pop stores, known as sari-sari stores, fell to P689 in 2024, from the 2023 average of P781, according to tech startup Packworks, which offers apps to help store owners manage their businesses.

“Packworks’ data also showed that while Filipinos on average spent less, they visited sari-sari stores more frequently,” it said. “Last year, its network of stores recorded an average of 18 monthly transactions nationwide, up 16% from 2023,” it added.

It said the practice of tingi — the purchase of the smallest quantities possible — was apparent in the frequent visits, signaling that affordability issues are preventing consumers from buying more than they need at the moment.

“The combination of Filipinos’ smaller basket sizes and more frequent visits to sari-sari stores points to a preference for buying in smaller, more affordable portions — the essence of the tingi economy,” Packworks Chief Data Officer Andoy Montiel said.

“This behavior likely stems from consumers needing to stretch their budget further, even in a lower inflation environment. They might be opting to buy only what they immediately need, rather than larger quantities less frequently to stock up,” he added.

It added that the average monthly basket size has dwindled since Packworks started tracking the indicator in 2022.

“In 2022, the average basket size was P800, which decreased to P781 in 2023 and reached its lowest point last year. This is despite the country hitting a 3.2% year-to-date inflation rate in 2024, the lowest in four years,” it added.

Of the 1 million monthly sales transactions tracked by Packworks, the largest decrease in value was posted by Region I, or the Ilocos Region, where monthly spending fell 31% to P570.

Large declines were also seen in the National Capital Region and Region VIII, or the Eastern Visayas, which posted 28% and 25% declines monthly spending to P702 and P508, respectively.

Regions IV-A (Calabarzon) and IV-B (Mimaropa) recorded the biggest monthly basket sizes of P1,027 and P1,237, respectively. 

Last year, Region I turned in the highest number of monthly transactions at 26, followed by Region IX (Zamboanga Peninsula) with 25 and Region V (Bicol Region) with 20.

Packworks said seasoning and recipe mix items, detergent, powdered drinks, hygiene products, cigarettes, and liquor were the most commonly purchased items. — Justine Irish D. Tabile

Congress urged to cap spending via budget modernization bill

PHILSTAR FILE PHOTO

By Kenneth Christiane L. Basilio, Reporter

LEGISLATORS need to pass a budget reform bill that will compel the government to spend responsibly in the face of a deteriorating national debt position, a Congressional think tank said.

In a report, the Congressional Policy and Budget Research Department (CPBRD) cited fiscal vulnerabilities that could worsen if the National Government fails to meet its revenue targets to keep up with increasing national budgets.

It said a Budget Modernization bill should enshrine fiscal responsibility via multi-year spending caps that would force the government to spend “within its means.”

“The NG (National Government) debt has been steadily rising in recent years,” it said in the report.

Debt hit a record P16.7 trillion at the end of March.

“Challenges associated with maintaining debt sustainability, and more generally, fiscal sustainability are compounding over time,” the CPBRD said.

“While the study does not suggest that the Philippines is facing an imminent sovereign debt crisis, it highlights the increasing complexities of managing debt sustainability,” it added.

The government must shift away from crisis-driven budgeting and pandemic-era spending patterns, it said.

Government resources were poured into health services during the pandemic, with economic revival efforts later focused on massive infrastructure spending.

“The elimination of public expenses that had been justified by the lockdowns, for example, will massively improve the fiscal situation,” the CPBRD said. “Pivoting away from the crisis budgeting and spending patterns is thus not only sensible given that the country is several years removed from the pandemic but also wholly viable.”

The think-tank noted that debt as a share of gross domestic product (GDP) has trended upwards due to stimulus-oriented spending, the think-tank said.

The Philippines’ debt as a share of GDP rose to 62% at the end of the first quarter, from 39.6% before the pandemic, according to the CPBRD.

“The most recent increases in the debt-to-GDP ratio can be attributed to the noticeably larger post-pandemic national budgets and their attendant budget deficits,” the CPBRD said.

The Philippines is seeking to bring the ratio down to 60.4% by end-2025, and to 56.9% by 2028.

DTI warns against turning away from multilateral trading system

REUTERS

THE Department of Trade and Industry (DTI) said it is concerned about the potential for increased trade costs brought about by disruptions to long-established multilateral trading systems.

The Philippines backs an “open, rules-based multilateral trading system that upholds fairness, transparency, and inclusivity — crucial to building resilient and inclusive economies,” Trade Secretary Ma. Cristina A. Roque said in a statement on Monday.

“We remain concerned with actions that jeopardize global supply chains, raise trade costs, and erode confidence in the multilateral system,” she added.

At the Asia-Pacific Economic Cooperation (APEC) trade ministers’ meeting on May 15, Ms. Roque said that although emerging technologies hold transformative potential, stronger regional cooperation is needed to address digital challenges.

“Artificial intelligence and emerging technologies offer an unprecedented opportunity to redefine global trade. It is imperative that we create an empowering digital environment, one that is secure, inclusive, and prosperous,” she said.

Ms. Roque cited the need to reform the World Trade Organization’s (WTO) dispute settlement mechanism and to advance agriculture and fisheries subsidies.

“The WTO must remain responsive to evolving global trade realities,” she said.

“It is crucial to engage with a wide range of stakeholders, including businesses, civil society, and the scientific community, to ensure that trade policies are informed by the latest knowledge and best practices,” she added.

In a separate statement, the DTI said it participated in the Association of Southeast Asian Nations (ASEAN)-APEC Ministerial Caucus, where the ministers discussed “regional and national responses to global economic challenges.”

“More than ever, ASEAN must stand united as a stabilizing force and proactive partner in shaping the evolving global order,” Ms. Roque said.

She said the Philippines supports the expansion of the Regional Comprehensive Economic Partnership as the region pursues a “more resilient, competitive, and inclusive ASEAN economy.” — Justine Irish D. Tabile

Clarifications on VAT on digital services

On May 8, the BIR issued Revenue Memorandum Circular (RMC) No. 47-2025 clarifying some issues regarding the value-added tax (VAT) on digital services imposed by Republic Act No. 12023.

Earlier, the BIR issued Revenue Regulations No. 03-2025, which left taxpayers with a lot of questions on how the new tax will be imposed, collected, reported, and paid. Thankfully, the BIR issued the RMC to answer some questions raised by the taxpayers. Here are some clarifications made by the RMC.

REGISTERED NRDSPs NEED TO FILE A VAT RETURN
Under the law, for B2B transactions with non-resident digital services providers (NRDSPs), the Philippine business entity is required to withhold and remit the tax to the BIR. It gave the impression that if the NRDSP had purely B2B transactions, it had no reporting requirement. The RMC, however, clarified that even if the NRDSP transaction is purely B2B, the NRDSP is still required to file tax returns and report their B2B transactions to the BIR. Hence, all NRDSPs, regardless of the type of transaction, are required to file the VAT return.

The RMC did not specifically state the frequency and deadline for filing the return. However, in the illustrations, the RMC indicated that NRDSP are to file the Quarterly VAT Form 2550-DS through the VDS Portal. This suggests that the general deadline for filing the quarterly VAT return applies, which is not later than the 25th day following the close of each taxable quarter.

TRANSACTIONS WITH NON-RESIDENT E-MARKETPLACE
The RMC clarified that transactions with nonresident e-marketplaces will follow the general rule. Hence, B2B transactions are also subject to withholding VAT. The Philippine registered business will remit the withheld VAT using BIR Form 1600-VT on the 10th day of the following month.

For B2C transactions, no withholding is required. The non-resident e-marketplace will receive the contract price with the 12% VAT. The VAT will be reported and remitted to the BIR using VAT Form 2550-DS through the VDS Portal.

It was also clarified that e-marketplaces will be subject to VAT only if they have control of the payment. If the sale through the non-resident e-marketplace is paid directly to the account of the non-resident digital service provider, the e-marketplace is not liable to pay VAT. However, the service fee charged by the e-marketplace to the Philippine buyer, if any, is subject to VAT.

INVOICING REQUIREMENTS
The RMC reiterated that there is no prescribed form for the invoice issued by the NRDSP. However, it must contain all the mandatory information (date of transaction, transaction reference number, tax identification number (TIN) of the buyer in a B2B transaction, description of the transaction, and total amount with an indication that such amount includes VAT). The sample invoice showed that VAT is separately indicated. However, if the NRDSP is unable to include the VAT amount on the invoice and the transaction is B2B, it must include a footnote indicating that the Philippine business buyer is responsible for accounting and remitting the 12% VAT.

NO REFUND
If the transaction was initially treated as B2C and later on discovered to be B2B, which resulted in double payment of the VAT to the BIR, the remittance made by the NRDSP for the erroneously paid VAT cannot be refunded. The NRDSP may amend the previously filed BIR Form 2550-DS and reflect the overpayment, which may be carried over to the succeeding quarter/s.

VERIFICATION OF BUYER STATUS
The VAT rules require the NRDSP to verify the status of the buyer to properly classify whether the transaction is B2B or B2C. The RMC states that in addition to requiring the buyer’s TIN, the NRDSP can provide a questionnaire or a tick box on its website for the buyers to confirm whether they are engaged in business or not. The NRDSP may also request a copy of the business registration document, such as the BIR Certificate of Registration (CoR).

COST SHARING AMONG GROUPS
Cost-sharing agreements are a common practice of multinational groups to ensure efficiency and cost savings. If the shared cost for digital services is consumed by a Philippine subsidiary, such service is also subject to VAT even if the payment is through a cost-sharing agreement. The Philippine subsidiary will be responsible for withholding and remitting the VAT as a B2B transaction.

The RMC, however, did not clarify who will be considered the provider of the digital service in this case. The Philippine subsidiary will be directly paying its foreign affiliate, who will later on pay the digital service company. In this case, the BIR should clarify if the Philippine subsidiary will record the transaction as a transaction with its foreign affiliate or with the foreign digital service company.  The clarification is crucial, as it will also identify who will be the entity required to register as the NRDSP.

ADVANCE PAYMENTS
The VAT on NRDSPs will start on June 2. If the contract for 2025 was already paid before June 2 without VAT, the NRDSP is still liable for VAT on the portion of the services from June 2 onwards. In this case, the NRDSP must pay and remit the VAT since the buyer is no longer in control of the payment. For affected NRDSPs, this may affect their margin, as the original transaction did not account for the 12% VAT and there may be no possibility of collecting the VAT from the customer.

ADDITIONAL POINT FOR CLARIFICATION
In RR 03-2025, the BIR laid down the rules for converting forex transactions to pesos. It also stated that all electronic payments and remittances of Philippine taxes are to be in pesos. In such case, NRDSPs need to maintain a peso bank account to be able to make such payments. Hence, there is a need to clarify whether banks will allow the opening of peso bank accounts to allow the NRDSP to be able to settle the taxes.

The clarifications provided by the RMC are indeed much needed. As this is the first time that the Philippines will impose VAT on nonresident digital services providers, implementation issues are expected. Taxpayers are expected to have lots of questions given the permutations of business models adopted by NRDSPs, which may not be easily identifiable in the various scenarios covered by the BIR. Fortunately, the BIR has addressed a lot of those issues in the RMC. Constant coordination between the BIR and the taxpayers will ease the implementation as we near the June 2 start date. And for those affected, it will be all systems go whether they are ready or not.

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.

 

Eleanor Lucas Roque is a principal of the Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

business.development@ph.gt.com

Comelec proclaims 59 party-list reps in fastest turnaround time since 2010

COMMISSION on Elections Chairman George Erwin M. Garcia at the proclamation rites for the 59 winning party-list groups at the Manila Hotel Tent City on Monday. — PHILIPPINE STAR/EDD GUMBAN

By Chloe Mari A. Hufana, Reporter

THE Commission on Elections (Comelec) on Monday proclaimed 59 party-list representatives seven days after the May 12 midterm elections, in the fastest turnaround time since automated polls were fully implemented in the Philippines in 2010.

Sixty-three seats were initially allotted for party-list members, spread across 53 winning groups, according to the official count posted on the Comelec website. But the proclamation of three seats for Duterte Youth and a seat for Bagong Henerasyon Party-list was suspended due to their pending disqualification lawsuits.

The frontrunner in the party-list race was Akbayan Citizens’ Action Party, which got 2.78 million votes or 6.66% of the 41.66 million total votes cast for party-lists.

They will have three seats at the House of Representatives led by their first nominee, human rights lawyer Jose Manuel Tadeo “Chel” I. Diokno.

The group’s second nominee is incumbent congressman Percival V. Cendaña, followed by Moro leader Dadah Kiram Ismula.

The group was saved in the 19th Congress after the Supreme Court affirmed the cancellation of the An Waray party-list’s registration and proclaimed Akbayan as the winner of the last of the 63 party-list seats in the 2022 elections.

The party was almost delisted after failing to win seats in 2019.

Duterte Youth got 2.37 million votes or 5.59% of the total, allowing it to have three seats in the chamber. The group will be represented by its three nominees — incumbent Drixie Mae S. Cardema, Berlin B. Lingwa and Ron Godfrey W. Bawalan.

Majority of the 63 incoming party-list representatives in the 20th Congress do not represent the poor and underrepresented sectors, election watchdog Kontra Daya said in a statement.

Based on Kontra Daya’s data set of party-list groups released in February 2025, 38 incoming party-list representatives (60%) were flagged as belonging to political dynasties, big business or have military or police ties.

“Aside from these, the party-list groups to which they belong have party-list nominees with pending corruption cases, have dubious advocacies or have limited or no information,” it said.

“Let us exert public pressure on the 20th Congress to push for the passage of the anti-dynasty law and the amendment to the party-list law to make the latter truly representative of the marginalized and the underrepresented,” said Danilo Arao, convenor of Kontra Daya, said in the statement. “The rich and powerful’s hijacking of the party-list system should stop.”

The Comelec en banc suspended the proclamation of Duterte Youth and Bagong Henerasyon due to pending cases, Comelec Chairman George Erwin M. Garcia said during proclamation rites at the Manila Hotel Tent City.

“Considering the serious allegations raised in the above petitions which involve grave violation of election laws, the National Board of Canvassers resolved to suspend the proclamation of Duterte Youth and Bagong Henerasyon, until the speedy and judicious resolution of the petitions filed before the Clerk of the Commission,” he said.

In a Facebook post, Duterte Youth said it would appeal the suspension before the Supreme Court.

“This is definitely a grave abuse of discretion, to hold back the choice of millions of Filipinos,” it said. It also denied allegations that its registration is void.

In their original 2019 petition, the plaintiffs argued that Duterte Youth’s registration is void for failing to comply with publication and public hearing requirements.

Ducielle S. Cardema was sworn in as the party-list’s representative in 2020 and was later succeeded by the current representative after the group secured another win in 2022.

In March, the petitioners renewed their call for the Comelec to resolve the petition.

Tingog Party-list will also have three spots in the chamber after coming in at No. 3 with 1.82 million votes or 4.36% of the total.

The party-list of Speaker Ferdinand Martin G. Romualdez will be composed of his son, Andrew Julian K. Romualdez, incumbent Jude A. Acidre and Happy K. Calatrava.

Meanwhile, with two seats, Pagtibayin at Palaguin ang Pangkabuhayang Pilipino (4Ps) had 1.47 million votes or 3.51%. The group will be represented by incumbent Marcelino C. Libanan and Jonathan Clement M. Abalos II.

It was followed by Anti-Crime and Terrorism Community Involvement and Support Partylist with 1.24 million votes or 2.97%. Edvic G. Yap and Jocelyn P. Tulfo, wife of Senator Rafael T. Tulfo, will represent the group.

Ako Bicol got 1.07 million votes or 2.57% and will be represented by incumbent Elizaldy S. Co and Alfredo A. Garbin.

The party-list system in the Philippines was established to ensure sectoral representation in the House, providing marginalized and underrepresented groups a voice in the legislative process. — with Kenneth Christiane L. Basilio

Philippines to expand rice program to more regions

Workers load sacks of flour in a delivery truck in Manila, July 11, 2022. — PHILIPPINE STAR/ MIGUEL DE GUZMAN

By Chloe Mari A. Hufana, Reporter

THE Philippine government will expand its subsidized rice program to more provinces in the Visayas and Mindanao starting in July, as it expects long queues for the P20-per-kilo staple, the country’s top agriculture official said on Monday.

The second phase of the rollout will start in July and with phase three will follow in September, completing the program’s implementation across southern Philippines, Agriculture Secretary Francisco P. Tiu Laurel, Jr., told a news briefing at the presidential palace.

“[We will implement] three phases under what we call a shared subsidy,” he said in Filipino. “As for the Kadiwa program, there are 34 Kadiwa outlets serving the vulnerable sector. By next month, that number will increase to 55.”

The Department of Agriculture (DA) has sold more than 12,000 sacks of rice at P20 per kilo in Cebu alone, he said.

The first phase was implemented in Negros Oriental, Samar, Eastern Samar, Negros Occidental, Northern Samar, Leyte, Bohol, Antique, Cebu, Iloilo, Capiz, Biliran, Southern Leyte, Guimaras, Siquijor, Aklan and Mindoro.

The second phase will cover Zamboanga del Norte, Basilan, Cotabato City, Tawi-Tawi, Maguindanao del Sur, Maguindanao, Davao Oriental, Sorsogon and Maguindanao del Norte starting in July.

Phase three, beginning in September, will cover Sultan Kudarat, Lanao del Norte, Catanduanes, Agusan del Sur, Sarangani and Dinagat Islands.

These provinces have the highest poverty incidence, based on a 2023 report by the Philippine Statistics Authority (PSA) that the DA uses to determine priority areas for the program.

Mr. Tiu Laurel said they are working with newly elected local government officials to streamline distribution and ensure continued access to subsidized rice. The long-term goal is to institutionalize the program through 2028, he added.

“What we’re discussing now is just the formula; we already have an idea of how much it will cost, but the hardest part to determine is that this can’t be for all Filipinos,” he said in Filipino. “Naturally, the rich shouldn’t be included in this kind of program.”

“In general, the idea is to serve around 15 million families,” he said. “If each family has five or four members, that’s about 60 million people. The quantity per month is still being determined.”

Despite recent declines in food inflation, affordability remains a concern for many Filipinos. Food inflation at the national level eased to 0.7% in April 2025 from 2.3% in March and 6.3% a year earlier, according to the PSA.

The slowdown was mainly driven by a sharper year-on-year decline in the rice index, which dropped 10.9% in April compared with a 7.7% decrease a month earlier.

President Ferdinand R. Marcos, Jr., made the P20-per-kilo rice a centerpiece of his 2022 presidential campaign, aiming to reduce the cost of the country’s staple food through subsidies, improved local production and more efficient distribution.

The program, implemented through the DA and Kadiwa initiative, seeks to make affordable rice available to low-income families while stimulating agricultural productivity.

US Coast Guard ship docks at Palawan port, holds drills with PHL Coast Guard

(L-R) US AMBASSADOR MaryKay L. Carlson, US Coast Guard (USCG) Cutter Stratton Commanding Officer Captain Brian Krautler and Philippine Coast Guard Commandant Admiral Ronnie Gil Gavan stand before the USCGC Stratton at the Puerto Princesa Port. — US EMBASSY

A US Coast Guard (USCG) ship has made a port call at a major Philippine island facing the South China Sea, where its crew held drills with the Philippine Coast Guard (PCG) to improve interoperability amid tensions in the disputed waterway.

The USCG Cutter Stratton had been docked at the port of Puerto Princesa City in the western province of Palawan since May 16 and was set to leave on Monday, the US Embassy in Manila said in an e-mailed statement.

“During the visit, the US Coast Guard Cutter Stratton crew participated in a series of engagements with the Philippine Coast Guard aimed at strengthening their bilateral partnership and promoting interoperability,” it said. “These activities included technical consultations on operational best practices.”

The USCGC Stratton is a 418-foot cutter operating in the US 7th Fleet area of operations alongside regional allies and partners. The vessel has an unmanned aerial system and small boats that are deployed for various law enforcement and rescue operations.

“This is the sixth USCG cutter exchange with the PCG since 2019 — a testament to the strength of our bond and the enduring value of our alliance,” US Ambassador to the Philippines MaryKay L. Carson said in the statement.

“These engagements are a priority as they enhance our interoperability and deepen the trust that defines our maritime partnership,” she added.

The Philippines and US would perform maritime law enforcement, search and rescue and marine environmental protection drills in the Sulu Sea before they head to Japan for a trilateral maritime exercise, the US Embassy said.

The PCG first held joint exercises with the US and Japan in June 2023 in the waters off Bataan province near the South China Sea. They conducted search and rescue exercises, maneuvering drills and maritime law enforcement training that year.

PCG Commandant Admiral Ronnie Gil L. Gavan earlier told BusinessWorld the Philippines plans to hold joint maritime drills with the US and Japan, as Manila seeks to contest Beijing’s overarching claims in the South China Sea.

The USCG ship deployment in the Pacific comes amid increased Chinese assertiveness in the waterway, a key shipping lane where $3 trillion worth of shipborne trade passes through annually.

China lays sovereignty to nearly the entire South China Sea based on a 1940s nine-dash line map that overlaps with the Philippines’ exclusive economic zone. It has deployed an armada of vessels despite a United Nations-backed court ruling in 2016 that voided its claim for being illegal.

Like the Philippines, Japan has been embroiled in a dispute with China over the Senkaku Islands, which lies close to key shipping lanes and is believed to be rich in marine resources. — Kenneth Christiane L. Basilio

Senator wants harmonized tax rates on vapes

PHILIPPINE STAR/ RUSSELL PALMA

A SENATOR on Monday said that tax rates for vape and nicotine products should not be lowered in an attempt to curb smuggling, recommending instead that its taxes be harmonized.

The government should also look at stepping up enforcement against illegal vapes by incentivizing law enforcement agencies to boost seizures and tapping local governments to combat smuggled goods more effectively, Senator Sherwin T. Gatchalian told the Senate ways and means panel.

“The solution to curb illicit trade will not come from the reduction of taxes. It will come from strengthening our enforcement,” said Mr. Gatchalian, who heads the Senate tax committee.

“Part of our recommendations is to impose a single tax rate on vapor products, meaning free-base and nicotine salt, and also impose ad valorem on vaping devices,” he added.

The Senate tax panel met on Monday to discuss a proposal that seeks to implement an alternating scheme that will impose a 2% rate every even-numbered year, and 4% every odd-numbered year. The measure passed the House of Representatives in February.

Lawmakers who advocated for its approval argued that shifting to an alternating 2% and 4% tax hike from the current flat 5% annual increase would encourage vape smugglers to register with the government instead.

“We will come up with a single tax rate on vapor products and impose an ad valorem tax on devices so that we can curb the increase or hopefully eliminate the increase in the use of vape products,” Mr. Gatchalian said.

About 80% of all vape products currently available in the market are either illegally manufactured or smuggled into the country, Glenn Marvin See, vice-president of vape company Aerogin Consumer Electronics Trading Corp. told the Senate tax panel.

Leveling the tax rates of free-base and salt nicotine products would harm legal vape shops, he added.

“It’s going to wipe out our sales, because as it is right now, we’re having a hard time competing with illicit products,” said Mr. See. — Kenneth Christiane L. Basilio

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