[B-Side Podcast] Looking for a job in a down market

August 17, 2020 | 12:08 pm

The latest official labor data showed that the jobless rate shot up to double-digits, as millions of Filipinos became unemployed. The Philippine Statistics Agency reported that as of April 2020, there were around 7.3 million jobless Filipinos.

Jobstreet, an online platform that has around 42,000 listings, saw two million visitors checking out their website from April to June.

If you’re looking for a job, forget those numbers. Career coach Caroline Ceniza-Levine says that the only numbers you should be concerned about are your own, whether in a pandemic or not.

In this episode, Ms. Ceniza-Levine tells multimedia reporter Patricia B. Mirasol that the coronavirus is not the end of your career. She gives practical advice, from tips on how to handle online interviews to the two main skills that you have to be thinking about if you’re looking for a job.

Ms. Ceniza-Levine is a career coach, co-founder of career coaching and consulting company SixFigureStart, and senior contributor at Forbes Magazine. She is no stranger to the rigors of job-seeking and the vagaries of job markets, having worked more than two decades as a recruiter and career coach with professionals from Amazon, Google, McKinsey, and other leading firms.

Takeaways

There is always hiring—even in a down market.

As a job seeker, the only employment numbers that should matter to you are zero or a hundred percent. It’s either you’re employed or you’re not. Job market numbers tend to scare people. Focus instead on numbers that reflect your effectiveness: how much time are you spending on job research? How many callbacks are you receiving? Employers are still hiring, albeit more cautiously.

Negotiate and position yourself for the right roles at the right level. If you’re a good negotiator, employers will be excited to have you on their team because they will want you to negotiate as hard for them as you do for yourself.

Negotiation is a hyperlocal situation. While each case is different, a job seeker would, of course, prefer to negotiate in a hot market where employers are fighting over job applicants.

Regardless of circumstances, there is always room to negotiate. The reality is that when you get a job offer you already have leverage. Your prospective employer’s already invested in you. Start negotiating and putting your best foot forward early in the process, but don’t talk numbers at the get-go; that’s presumptuous. Ask for more in a way that’s confident and polite. If you’re a good negotiator, employers will be excited to have you on their team because they will want you to negotiate as hard for them as you do for yourself.

Resilience and the ability to learn: these are the two skills a job seeker should have.

The ability to bounce back, coupled with an openness to change and a willingness to learn and relearn, are must-have skills, said Ms. Ceniza-Levine. It’s not just about the pandemic. We’re also dealing with pressing issues such as social justice and climate change, as well as rapid advancements in technology that are changing the way economies work.

Recorded remotely on July 29. Produced by Nina M. Diaz, Paolo L. Lopez, and Sam L. Marcelo.

Malaysia detects coronavirus strain that’s 10 times more infectious

August 17, 2020 | 9:37 am

Malaysia has detected a strain of the new coronavirus that’s been found to be 10 times more infectious.

The mutation called D614G was found in at least three of the 45 cases in a cluster that started from a restaurant owner returning from India and breaching his 14-day home quarantine. The man has since been sentenced to five months in prison and fined. The strain was also found in another cluster involving people returning from the Philippines.

The strain could mean that existing studies on vaccines may be incomplete or ineffective against the mutation, said Director-General of Health Noor Hisham Abdullah.

The mutation has become the predominant variant in Europe and the US, with the World Health Organization saying there’s no evidence the strain leads to a more severe disease. A paper published in Cell Press said the mutation is unlikely to have a major impact on the efficacy of vaccines currently being developed.

“People need to be wary and take greater precautions because this strain has now been found in Malaysia,” Noor Hisham wrote in a Facebook post on Sunday. “The people’s cooperation is very needed so that we can together break the chain of infection from any mutation.”

While Malaysia has largely managed to prevent a resurgence of the virus seen elsewhere in the world, the number of new cases found in the country has been picking up. The country confirmed 26 new cases on Saturday, the most since July 28, and added 25 cases on Sunday.

Nestlé local coffee buying up 27% as NESCAFÉ Plan helps increase yields, incomes of assisted farmers

August 17, 2020 | 9:34 am

Nestlé Philippines reaffirms its commitment to assist thousands of the country’s coffee farmers as its local buying of Robusta coffee beans for this crop year (2019-2020) increased by 27 percent over the previous crop year, higher than originally expected as local crop yields have been better than forecast.

As the biggest local manufacturer in the Philippine coffee industry, Nestlé produces its NESCAFÉ brand at its Cagayan de Oro factory.

Through the NESCAFÉ Plan, Nestlé is engaged in long-term efforts to create a positive impact on the lives of the country’s Robusta coffee farmers by improving their yields and incomes.

Local coffee procurement, consumption in support of coffee farmers

Last year, the company updated the criteria for its local procurement of coffee beans while preserving the quality of its NESCAFÉ brand. NESCAFÉ CLASSIC has one ingredient: green coffee. During its manufacturing process, only green coffee and water are used. With no additional ingredients, NESCAFÉ CLASSIC is 100 percent pure coffee.

Farmers selling coffee beans to Nestlé Philippines have said the new criteria are making it easier for them to sell their produce, and to provide greater volumes to the company. Processing time has been cut down, increasing frequency of delivery. The workload of farmers likewise has been reduced, particularly in harvesting, drying, and sorting produce.

According to Nestlé Philippines Chairman and CEO Kais Marzouki, the company is constantly pursuing efforts to support Filipino coffee farmers who are in need of assistance from various stakeholders, especially consumers. He emphasized that when consumers buy locally manufactured products with raw materials grown in the country, they are in fact helping Filipino coffee farmers.

NESCAFÉ Plan focuses on helping coffee farmers

Driven by a flagship education and training initiative of the NESCAFÉ Plan called Project Coffee+, the yields and incomes of 1,500 beneficiary farmers in Bukidnon and Sultan Kudarat have increased. On average, production by participating farmers has doubled, while incomes have tripled, as independently verified by the Rainforest Alliance.

Nestlé has been supporting Filipino farmers since 2008, providing various forms of technical assistance and trainingonNESCAFÉ Better Farming Practices including Coffee Production Technology Training and modules from the global Common Code for the Coffee Community (4C). The company has trained an average of 7,000Filipino farmers per year since 2012.

“With NESCAFÉ as the biggest domestically produced coffee brand in the Philippines, we are buying as much coffee as we can locally, and are increasing our direct purchasing from farmers and cooperatives. As we help generate livelihood opportunities, we offer a ready market for Robusta coffee farmersbased on world market prices.

“Through all kinds of times, especially during this COVID-19 pandemic, we stand in solidarity with Filipino coffee farmers. We look forward to continuing our partnership with them to uplift lives while improving coffee production in the country, in close cooperation with other stakeholders in the public and private sectors,” Mr. Marzouki said.

Under its Kasambuhay ng Pamilyang Pilipino program which has reached out to one million families impacted by the pandemic, Nestlé Philippines provided Kasambuhay Kits consisting of Nestlé products to 10,000 coffee farmers in Bukidnon and Sultan Kudarat.

Analysts’ expectations on policy rates (Aug. 20)

August 17, 2020 | 12:33 am

THE central bank will likely keep its key policy rate untouched at its policy review on Thursday, a majority of economists polled by BusinessWorld said. Read the full story.

BSP seen to leave key rate untouched

August 17, 2020 | 12:33 am

THE central bank will likely keep its key policy rate untouched at its policy review on Thursday, a majority of economists polled by BusinessWorld said.

Eleven out of 16 economists in the poll expect the Bangko Sentral ng Pilipinas (BSP) to keep its benchmark interest rate steady at the Monetary Board’s fourth policy-setting review this year.

Analysts cited recent signals of a likely pause in easing from BSP Governor Benjamin E. Diokno.

“Steady policy rates in the meantime. This is because the BSP will be inclined to let the last 50 bps (basis point) cut to settle into the system due to lag effects of monetary policy,” Security Bank Corp. Chief Economist Robert Dan J. Roces said, referring to the easing done by the Monetary Board in its June 25 meeting.

Mr. Diokno last week said they are not inclined to move sooner on further cuts as the previous ones appear to have not been digested by the market yet. He said the current monetary policy stance may possibly be maintained for the next few quarters, given the initial moves were in anticipation of the scope of the crisis.

The central bank this year has already shaved rates by 175 bps, reducing the overnight reverse repurchase, lending, and deposit rates to record lows of 2.25%, 2.75%, and 1.75%, respectively. The latest easing was fired off on June 25, when the Monetary Board cut rates by 50 bps.

With the record-low overnight reverse repurchase facility at 2.25% and the July inflation of 2.7% leaving the country under a negative real interest rate environment, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said it has become “fundamentally tougher to further cut local policy rates at the moment.”

The direction of the coronavirus disease 2019 (COVID-19) pandemic and its impact on the economy remains the crucial factor for the BSP’s decision this week, said Suhaimi Bin Ilias, chief economist at Maybank Investment Bank.

“We think BSP is also keeping some dry powder for future downside risk to the economy rather than firing all bullets in its arsenal now. At this juncture, public health policy measures are more crucial to contain COVID-19 and help in the lockdown decision,” he said.

The Monetary Board has three more policy-setting meetings left this year, all in the fourth quarter — Oct. 1, Nov. 19, and Dec. 17.

The country plunged into a recession after gross domestic product (GDP) shrank by 16.5% in the second quarter, as the coronavirus pandemic and subsequent lockdowns hampered economic activity.

The government now expects full-year GDP to contract by 5.5%.

Meanwhile, five analysts are betting on a rate cut of around 25-50 bps at this Thursday’s meeting, due to the lag in fiscal response and the wider GDP contraction in the second quarter.

“Despite comments from the BSP governor to the contrary, we expect the central bank to do more to support growth at its meeting this Thursday… Fiscal support has so far been lackluster,” said Alex Holmes, economist at Capital Economics.

Mr. Holmes is expecting a 50-bp cut that will reduce the key policy rate to 1.75%.

The Bayanihan II bill is still being finalized by the Bicameral Conference Committee, which agreed on Friday to allocate P162 billion in funding for the stimulus measure.

A larger P1.3-trillion stimulus measure under the ARISE (Accelerated Recovery and Investments Stimulus for the Economy) bill is still pending at the Senate, but economic managers have said it cannot be funded without new sources of revenue.

Makoto Tsuchiya, economist at Oxford Economics, said the still benign inflation environment also provides a “favorable environment for the BSP to keep monetary policy accommodative.”

“Barring an unexpected shock to inflation, the BSP is likely to loosen monetary policy further through both RRR (reserve requirement ratio) and policy rate cuts in order to provide more support to the economy,” he said, adding the RRR cut will be tricker to predict, given ample liquidity in the system.

The Monetary Board is authorized to reduce RRR by up to 400 bps this year. It has already slashed reserve requirements for big banks by 200 bps in April to 12% and by 100 bps for smaller lenders that brought down RRR for thrift and rural lenders to three percent and two percent, respectively, in July. — Luz Wendy T. Noble

Shorter loan payment moratorium pushed

August 17, 2020 | 12:32 am

LAWMAKERS are being urged to further shorten the proposed grace period on loan payments to 45 days, after the Bicameral Conference Committee working on the Bayanihan to Recover as One Act (Bayanihan II) bill agreed to cap it at 60 days.

Finance Secretary Carlos G. Dominguez III told reporters via Viber that a “maximum of 45 days (grace period) is better.”

For Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno, the two-month debt moratorium under the Bayanihan II is “a second best solution to a complex issue.”

“The first best option is not to mandate a one-size-fits-all moratorium. Leave to the banks the discretion to deal with the individual debtor, with the promise of some relief from BSP,” he told BusinessWorld in a text message on Sunday.

The central bank chief last week warned a one-year debt moratorium under the House version of the Bayanihan II will severely impact the banking industry in terms of liquidity.

“I’ll ask the BSP staff to do a stress test to have an informed analysis of the consequences of the compromise version,” Mr. Diokno said on Sunday.

The office of Senator Juan Edgardo M. Angara said the 60-day grace period approved by the joint panel on Friday “will cover everything, including credit card bills.”

Business groups were pushing for the Senate version of Bayanihan II, which provides for a 30-day grace period for loan payments.

Management Association of the Philippines (MAP) President Francisco “Francis” E. Lim said the 60-day grace period on loan payments is “a good compromise… provided that it is a one-time and non-extendible payment moratorium.”

Mr. Lim said the moratorium should not include payments to insurance and pre-need companies as this could hinder their ability to service claims amid the pandemic.

Chamber of Thrift Banks Executive Director Suzanne I. Felix said the industry will abide by the Bayanihan II’s provision on a loan moratorium.

“The option lies with the borrower to either repay the loan during this moratorium as per the actual due dates or avail the benefit of the moratorium,” she said in an e-mailed response to BusinessWorld.

On Friday, the Bankers Association of the Philippines (BAP) said it supports a 30-day grace period for areas under an enhanced community quarantine (ECQ) and modified ECQ. Metro Manila and nearby provinces are currently under MECQ until Aug. 18.

The Bicameral Conference Committee is currently working to reconcile the House and Senate versions of the Bayanihan II, which forms part of the overall stimulus plan to recover from the crisis brought by the coronavirus disease 2019 (COVID-19) .

FUNDING
Meanwhile, the Senate agreed to raise the funding allocation under Bayanihan II to P162 billion, following the House’s version.

“Nagkakasundo ang dalawang panig na siguro aabot tayo sa P162 billion. Pumapayag ang Senado na itaas ang total budget ng Bayanihan II sa P162 billion (Both sides agreed that we might need up to P162 billion. The Senate is amenable to increase the total budget of the Bayanihan II to P162 billion),” Senate Minority Leader Franlin M. Drilon said in a radio interview.

In its version, the Senate provided for a P140-billion standby fund, consistent with the Department of Finance’s stimulus plan.

Mr. Drilon, who is part of the bicameral panel, said they have agreed to allocate P10 billion for COVID-19 polymerase chain reaction testing, P15 billion for a cash-for-work program, and P17 billion for employees in affected small businesses.

Another P17 billion will be allocated to help the agriculture sector, and P10 billion each for transportation and tourism. Mr. Drilon said the panel has yet to settle whether the tourism assistance will go to infrastructure or as direct aid to businesses.

Meanwhile, the final version of the proposed Bayanihan II will determine if there is a need for the House to pass other measures for the banking industry.

The House version of Bayanihan II, in particular, incorporated key features of the bills on Financial Institution Strategic Transfer (FIST) and Government Financial Institutions Unified Initiatives to Distressed Enterprises for Economic Recovery (GUIDE).

“Kung maipasa sa Bayanihan, hindi na ’yan i-endorse (If passed under the Bayanihan, it will no longer be endorsed),” Quirino Rep. Junie E. Cua, who chairs the House Committee on Banks and Financial Intermediaries, said over the telephone on Sunday.

Mr. Cua, who is also a member of the bicameral panel, noted that if the joint panel decides against adopting these provisions under the Bayanihan II, then the pending FIST and GUIDE bills will be revived.

The GUIDE bill is awaiting plenary sponsorship after hurdling the House Committees on Banks, Ways and Means and Defeat COVID-19. The FIST bill, meanwhile, has already been approved by the House.

The FIST bill will allow banks to transfer bad loans to asset management companies, intended to unburden the banking system and encourage lending activities.

The GUIDE bill will increase the maximum loan guarantee coverage per borrower to benefit micro, small and medium enterprises affected by the pandemic.

The Senate version of the two bills are pending at the committee level. — Luz Wendy T. Noble, Beatrice M. Laforga and Charmaine A. Tadalan

Domestic trade of goods plunges in Q1 — PSA

August 17, 2020 | 12:31 am

DOMESTIC TRADE showed a steep decline in the first three months of 2020. — PHILIPPINE STAR/ EDD GUMBAN

By Michelle Anne P. Soliman

DOMESTIC TRADE sharply fell in the first quarter, the Philippine Statistics Authority (PSA) reported.

According to preliminary data, the total value of domestic trade declined by 42.7% to P125.31 billion in the three months of 2020 from P218.53 billion a year earlier.

In terms of volume, domestic trade stood at 4.38 million tons, 33.9% less than the 6.62 million tons registered in the same period last year.

Machinery and transport equipment accounted for 35.9% of total value, down 32% year on year at P44.94 billion.

Meanwhile, food and live animals accounted for 36.6% of domestic volume, and increased by 11.6% to 1.60 million tons. Despite this, its value dropped by 42.6% to P29.62 billion.

Double-digit declines in value were also posted by six other commodity groups led by miscellaneous manufactured articles (-70.4%); beverages and tobacco (-61.2%); and chemical and related products not elsewhere classified in the Philippine Standard Commodity Classification (PSCC, -54.1%).

Commodities and transactions “not elsewhere classified in the PSCC” registered a 9.4% decline in trade value.

Western Visayas was the top source of commodities with outflows amounting to P27.92 billion. It recorded a domestic trade surplus of P9.27 billion during the quarter.

Meanwhile, Northern Mindanao was the top destination of commodities with total inflows reaching P36.38 billion, bringing the region’s domestic trade deficit to P24.84 billion in the three months to March.

“The… year-on-year decline in the volume… and value of domestic trade in the first quarter of 2020 may be largely attributed to the supply chain disruptions locally and with the rest of the world at the height of unprecedented lockdowns since the final two weeks of the first quarter which resulted in the sharp reduction in economic activities,” said Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort in an e-mail.

Global supply chains were disrupted by the coronavirus pandemic in the first quarter. In the Philippines, the government placed Luzon under a strict lockdown in an effort to curb the spread of the virus.

Mr. Ricafort said domestic trade may have likely performed worse in the second quarter given the grim economic data released for the period such as factory output, international trade, remittances, and the gross domestic product.

“[T]he worst in domestic trade may have also been posted in [the second quarter] as consistent with the other economic data,” he said.

The economist said domestic trade may pick up in the second half due to loosening lockdowns in many areas. However, he noted the stricter “modified enhanced community quarantine (MECQ)” that were reimposed in Metro Manila and nearby areas this month “could lead to some soft patch” in domestic trade.

“The expected easing (of lockdowns in) Metro Manila and in nearby areas would result in further reopening of the economy and would lead to better prospects of economic recovery/pick up in the coming months, including domestic trade,” Mr. Ricafort said.

Metro Manila and nearby provinces remain under MECQ until Aug. 18. President Rodrigo R. Duterte is expected to announce the new community quarantine classification for Metro Manila on Monday.

Oil groups dismiss refinery closure’s impact

August 17, 2020 | 12:07 am

By Adam J. Ang

THE upcoming closure of one of the country’s biggest fuel refineries will not affect pump prices, industry officials said, but they still see a need to monitor whether the conversion of the facility to a full import terminal will have an immediate impact.

Their views come after listed oil company Pilipinas Shell Petroleum Corp. announced on Thursday the permanent shutdown of its 110,000-barrel-per-day (bpd) Tabangao refinery in Batangas, citing the crash in regional refining margins. It has been closed since May 24.

The Department of Energy-Oil Industry Management Bureau (DoE-OIMB) sees no possible change in the oil retailer’s fuel prices as the local industry, in general, adheres to the price movements in the benchmark Mean of Platts Singapore (MOPS).

“We are largely dictated by the movement in international price for the effect on pump price, even when they are using product[s] from refiner[ies] to be competitive with other direct importers in the market,” Rino E. Abad, the bureau’s director, told BusinessWorld.

“So, I expect that there will be no change of approach when Shell uses imported [fuel]; still, they will be guided by the movement of MOPS,” he added.

Fernando L. Martinez, chief executive officer of independent oil player Eastern Petroleum Corp., also does not see an impact on the prices of petroleum products in the country.

“I don’t see any effect on local pricing as we all use MOPS as the common price reference points,” he said.

“[The refinery’s closure] will probably not push MOPS prices higher, as Shell’s share of the local market likely is not that big to influence fuel prices,” consumer group Laban Konsyumer, Inc. said in a position paper.

The country’s oil players base their product prices on MOPS, which shows the daily average of trading transactions of diesel and gasoline.

The Philippine unit of Royal Dutch Shell will not leave Tabangao as its facility there will be converted into what it described as a “world-class” import facility, so it can continue to supply the fuel needs in Luzon.

Laban Konsyumer said such a move should be studied, especially its impact on local supply and prices.

“There must be an in-depth study into the shift from (running a) refinery to (becoming a full) importer,” said Victorio Mario A. Dimagiba, the group’s president.

“We hope consumers are still protected, as well as their welfare, in terms of prices, as Shell will continue to fill in their market share through the importation of refined products,” he said, citing the impact of foreign exchange movements on the prices of imported fuels.

The group urged the Energy department to ensure that the refinery shutdown will not lead to fuel prices distortion and give Pilipinas Shell “undue” advantage on pricing over independent oil traders, importers and consumers.

“There must be close watch if there is any advantage for Shell as an importer now of finished fuels on the matter of pricing, especially on weekly adjustments of similar amounts versus [competitors], including Petron, and the consumers,” Mr. Dimagiba said.

Presently, fuel supply in the country remains sufficient, Energy Secretary Alfonso G. Cusi said. The refinery’s closure “will not affect” supply, he said.

While Pilipinas Shell is closing its refinery, Ramon S. Ang’s Petron Corp. plans to reopen its 180,000-bpd Bataan refinery on Sept. 1 after the facility went on a maintenance shutdown since May 5.

In the first week of August, MOPS gasoline prices went up by $0.70 per barrel, while MOPS diesel declined by $0.60 per barrel. These were reflected in the Philippines’ pump price adjustments last week with gasoline increasing P0.25 per liter and diesel decreasing P0.20 a liter.

SEC probes brokers over failed REIT trade

August 17, 2020 | 12:06 am

THE Securities and Exchange Commission (SEC) is investigating cases of failed trading of real estate investment trust (REIT) shares which started last week.

The corporate regulator over the weekend said it received complaints from investors who failed to trade shares for Ayala-led AREIT, Inc.’s securities due to their brokers’ alleged failure to secure permission to deal in the transaction.

Particularly, it pointed out COL Financial Group, Inc. for supposedly failing to secure necessary permits to deal in AREIT’s offering.

The SEC is also confirming reports about another broker whose clients experienced the same issue.

In a notice to clients, COL Financial said there had been a “misunderstanding” on the status of its requirements submitted to the Philippine Stock Exchange (PSE) to be permitted for trading AREIT’s securities on its platform. It has yet to receive the bourse’s review, certification and approval, it added.

“Unfortunately, this can take up to sometime next week at the earliest. This means that COL clients will still be unable to buy or sell AREIT shares through our platform in the following days,” it said.

Another brokerage, Abacus Securities Corp., which runs MyTrade Philippines, also explained to its clients that their share orders got rejected because of “miscoordination” between the company, its platform providers and regulators. The issue, though, has already been resolved, it claimed.

“As a gesture of commitment to you, we will honor the rejected orders at the price where it should have been done,” it said.

The trading mishap was a “black eye” for the country’s capital markets, Ismael G. Cruz, president of the Philippine Brokers & Dealers Association, told Finance Secretary Carlos G. Dominguez III. He relayed to the Finance chief a copy of the notices, which were shared with reporters.

“I have been in contact with the SEC and fully support their investigation on this issue,” Mr. Dominguez said.

The SEC said its Markets and Securities Regulation Department is on top of the issue.

“Rest assured that the Commission shall take appropriate actions toward the resolution of the matter at the soonest time possible in the interest of the investing public,” it said.

The SEC reminded trading participants to fulfill a list of requirements to become eligible REIT securities traders with the PSE, complying with its amended REIT Listing Rules.

It also noted the PSE’s Broker Eligibility Guidelines to Trading REIT Securities which states that investors must record their securities ownership under a Name-on-Central-Depository (NoCD) arrangement.

Moreover, registered salesmen are mandated to undergo training before they are permitted to deal in REITs.

On Thursday, AREIT, the country’s first REIT, debuted in the local bourse.

It offers a portfolio of three office buildings in Makati City: the 24-storey commercial building Solaris One, mixed-use development Ayala North Exchange and the five-storey commercial office McKinley Exchange. — Adam J. Ang

Tax appeals court denies Petron’s P219-M refund

August 17, 2020 | 12:05 am

THE Court of Tax Appeals denied for lack of merit the petition of Petron Corp. seeking to reverse the ruling that denied its claim for refund over taxes worth P219.15 million for the importation of alkylate.

In a 21-page decision dated July 22, the court, sitting en banc, affirmed the December 2018 decision and April 2019 resolution of its special second division, saying Petron is not entitled to refund as the tax was not erroneously collected.

It cited the special second division’s ruling that alkylate first undergoes the process of distillation, subjecting the product to excise tax.

“Petitioner then is not entitled to the refund of excise tax paid inasmuch as the same was not erroneously or illegally collected,” it said.

The court said that the raw materials for alkylate are derived from petroleum and the said raw materials are products of distillation.

“[I]t cannot be denied that alkylate is also a product of distillation similar to naphtha and regular gasoline,” the court ruled.

The Tax Code does not qualify whether an item subject to excise tax is a primary or secondary product of distillation, it said.

Section 148(e) of the Tax Code says naphtha, regular gasoline and other similar products of distillation, a physical process where different components of chemicals are separated, should be levied with excise tax.

Petron claimed a refund for the excise tax it paid from September 2012 to December 2012 worth P148.55 million, and from February to July 2013 worth P70.61 million.

Petron said that Section 148 of the Tax Code did not state that alkylate is subject to excise tax and said the court stretched the coverage of the law to include the item as product of distillation, making it similar to naphtha and regular gasoline.

It also contended that the law only aims to tax motor fuels only once as a finished product and imposing excise tax on imported alkylate is equal to taxing it twice.

The tax appeals court ruled that the claim of Petron that the Tax Code did not mention excise tax imposition on alkylate and the division’s stretched coverage of the provision that the item is a product of distillation “are clearly bereft of merit.”

The court denied the claim of double taxation, citing a similar case involving Petron that imported alkylate is taxed only once upon importation. It also said that the use of alkylate as a blending component on raw material to produce another product is a different matter. — Vann Marlo M. Villegas

‘Blooming’ during the pandemic

August 17, 2020 | 12:04 am

FIVE MONTHS into quarantine, people have more or less settled in the new normal — staying at home or working outside while taking the necessary measures to protect themselves. This also means that more people are taking self-care seriously, even if it’s just to lessen the stress of living in such a volatile world.

Two beauty brands, Avon and Nivea, have taken steps to promote self-care as they encourage women (or men, or anyone, really) to live life “in full bloom,” with both announcing two lines with floral motifs and/or ingredients.

AVON FLORAL WONDERLAND
“The new Floral Wonderland collection is the latest manifestation of our work for women empowerment which Avon has always stood for,” Anna Garces, director of marketing at Avon Philippines, said during the launch on Aug. 4 via Zoom.

The Floral Wonderland lipstick collection is a limited edition collection featuring six of Avon’s most popular colors in matte finish inside floral packaging: Floral Fuschia, a vivid mid-tone pink with blue undertones; Ruby Rose Red, a classic rose-burgundy; Midnight Orchid, a deep bruised plum; Dainty Coral, a red with hints of burnt apricot; Red Poppy, a bright true red; and Nude Petals, a stripped neutral brown.

Ms. Garces said the collection not only allows women who purchase it to “live life in full bloom” but also helps Avon representatives as each purchase, whether through a representative or online, benefits the representatives.

Aside from launching the collection, the direct-selling company also introduced the newest face of the Floral Wonderland collection, actress Bea Alonzo.

“From her career as an actress, screenwriter, entrepreneur, to her current mission as a philanthropist, she never lets anything — not hardship, heartbreak, not even a pandemic, get in her way of accomplishing her dreams,” Anna Fernandez-Llamas, Avon Philippines’ head of beauty, said in a statement.

Ms. Alonzo established the I Am Hope organization which supports frontliners, helps women to have livelihood, and underprivileged kids get an education. The organization was created during the strict lockdown which was announced in March and lasted until May.

“The quarantine actually allowed me to realize that I have a bigger purpose,” Ms. Alonzo said during the event.

The Floral Wonderland collection can be purchased through an Avon representative or online via Avonshop.ph. Each lipstick is priced at P349 each or get any two colors for P399.

NIVEA BLOOMING PINK
In a similar vein, Nivea’s new Blooming Pink range is all about helping “Filipinas [bloom] confidently and beautifully so you can face a better tomorrow,” according to a release.

The range includes lotions, micellar cleansers, foam cleansers, and a deo essence. Most of the products in the range include Hokkaido Rose extract or oils, said to contain “36 times more antioxidants for clean and glowing skin.”

“Above all else, Nivea puts caring as its utmost priority. Hence, the Nivea Blooming Pink Range was born — for healthy, beautiful, glowing skin you can easily achieve at home,” Jamie Sanico-Sy Ching, Beiersdorf Philippines, Inc. marketing director, said at the Aug. 7 digital launch event.

Beiersdorf is the manufacturer of Nivea.

Nivea’s new range includes the Fair & Glow Whip Foam (P179 for 100 ml) and the Fair & Glow MicellAir Cleanser with 0% Alcohol (P179 for 200 ml). Both cleansers can be used during a double cleanse routine with the micellar cleanser removing makeup and the foam used to remove any other residue.

Nivea also has the Healthy Glow Cooling UV lotion (P249 for 200 ml). The lotion contains lotus extract, licorice extract, for that “instant cool” feeling, Vitamin C, and “added UV protection” for even-toned skin. Another variant, the Dewy Sakura (P199 for 200 ml), includes jojoba and argan oils and is scented with cherry blossoms and rose.

Finally, the range also has a Whitening Deo Essence with 0% Alcohol which comes in either Hokkaido Rose or Sakura (both priced at P114 for 50 ml). The deodorants are said to give 48-hour protection from sweat and odor and contain natural ingredients like licorice and Vitamin E to whiten underarms.

The new Nivea products are available online via Lazada or Shopee and at physical stores nationwide. — Zsarlene B. Chua

Airspeed online delivery platform SpeedFood readies nationwide expansion

August 17, 2020 | 12:04 am

SPEEDFOOD, the online takeaway and delivery platform of express courier company Airspeed Philippines, Inc., will soon be available in Clark, Cebu and Davao, as it targets to serve more restaurants that are now transitioning to the takeout-only model amid the pandemic crisis.

“We are planning to come up with locations outside Metro Manila in two or three weeks. We will be in Cebu, Clark and Davao,” Airspeed Chairperson and President Rosemarie P. Rafael told BusinessWorld in a phone interview on Aug. 13.

SpeedFood, an online multi-service platform developed by Airspeed for restaurants, is currently available in 12 locations in Metro Manila, including Megamall, SM Southmall, SM San Lazaro, SM Aura, Podium and some in North EDSA, Mandaluyong, Fairview, Masinag and Makati.

Ms. Rafael said Airspeed started operating SpeedFood in May, “as it saw the need to serve” customers, especially the food sector, amid the coronavirus pandemic.

“SpeedFood started during the lockdown. Around that time, we saw the need for a food delivery that’s different from present aggregators. We came up with a platform and an app that we introduced to the merchants, to restaurants because dine-in restaurants don’t have any experience in food delivery. So we presented the technology that will do the backend for them and the delivery and ordering platform,” she said.

“The merchants are our clients. So when the customers call in, the merchants call us to schedule the delivery,” she added.

SpeedFood explained on its website that the customer may also place an order through the restaurant’s website, if available. The restaurant will then make a delivery booking via SpeedFood’s platform.

SpeedFood said its platform enables restaurants to cater to more customers and increase their revenue. — Arjay L. Balinbin

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