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Online sellers operating on irregular basis not required to register – DTI

The Department of Trade and Industry (DTI) on Friday clarified online sellers who operate on an “irregular” basis or sell homemade products as a hobby are not required to register.

“If one is just selling intermittently or on an irregular basis or selling homemade stuff as a hobby, it is understood they are not yet in business thus they are not required to register,” Trade and Industry Secretary Ramon M. Lopez said during the virtual hearing of the House Ways and Means Committee.

His remark came after the Bureau of Internal Revenue (BIR) issued a memorandum on June 1 reminding businesses that earn income “through the use of any electronic platforms and media, and other digital means” to register on or before July 31. It also “encouraged” these businesses to voluntarily declare their past transactions and pay taxes on these without any penalty on or before July 31.

In 2013, BIR issued a memorandum reminding businesses that online sales are taxable, but only the 2020 circular imposed a deadline to settle past taxes.

Mr. Lopez said online businesses that generate regular sales, even if such activity is small in size, must be registered.

“Anyway, the annual income below P250,000 is exempted from the income tax according to the BIR ruling,” he added.

Mr. Lopez underscored the importance of registering with the government, saying this is “key to consumer protection.”

“There is greater traceability if online sellers are registered and this increases the trust factor and confidence of online buyers in making the transaction online,” he said.

Lawmakers also urged the BIR to automate filing and payment of taxes, lessen the requirements for registration, and remove the registration fee of P500 to incentivize online businesses to register.

“We are studying that. We are really streamlining the registration process,”BIR Deputy Commissioner Arnel S.D Guballa said. — Genshen L. Espedido

661 new COVID-19 cases brings total to 28,459 says DoH

The Department of Health (DoH) reported an additional 661 new coronavirus disease 2019 (COVID-19) cases on Friday, bringing the tally of positive cases to 28,459.

Those were the numbers as of 4 p.m. Friday, Health Undersecretary Maria Rosario S. Vergeire reported at a briefing.

“Sa total confirmed natin, meron tayong 288 recovered kaya ang recoveries ay 7,378. Sa deaths naman, meron nadagdag na 14, kaya nasa 1,130 deaths na naitala,” she said during the briefing. (Of our total confirmed cases, there are 288 who recovered which makes the total recoveries 7,378. For deaths, there are an additional 14 which makes it 1,130 total deaths recorded.)

Last Thursday’s data release had the total number of COVID-19 cases at 27,779.

Of the 661 additional cases, 460 were “fresh” cases while 201 were “late” cases. “Fresh” cases are test results that were released to a patient within the last three days before the DoH announcement, while “late” cases are test results that were released to a patient four days or more before the DoH announcement.

Ms. Vergeire also warned the public against considering the steroid called dexamethasone as a “miracle” cure for COVID-19 as this is still not yet approved locally as a treatment for the virus. Dexamethasone was seen to improve some severe cases of COVID-19 in trials by researchers in the UK, but more studies and trials are ongoing to confirm this.

“Hindi ito lunas sa COVID-19 at kami nagbibigay ng babala sa unregulated use sa gamot na ito na walang payo o prescription ng doktor (This is not a cure for COVID-19 and we are giving a warning on the unregulated use of this medicine without advice and a prescription from the doctor),” she said.

The Food and Drug Administration on Friday released an advisory which stated that the selling of unregistered dexamethasone, selling of the drug without a prescription, and selling of the drug online are illegal.

Dexamethasone was the “magic pill” President Rodrigo R. Duterte mentioned in a speech earlier this week. Both Ms. Vergeire and his Spokesperson Harry L. Roque denied its effectiveness since it’s seen to treat only a small percentage of severe cases and more studies need to be done. — Gillian M. Cortez

Stimulus packages will come in three tranches — Cayetano

Stimulus packages to help the economy bounce back from the effects of the coronavirus disease 2019 (COVID-19) pandemic will come in three tranches, House Speaker Alan Peter S. Cayetano said Friday.

“As we know, we passed the ARISE and the CURES, which are both stimulus bills, but ang debate ngayon (the debate now) is whether how much ang pwedeng i-raise (can be raised) for that and how ire-raise (to raise it), meaning uutangin ba ‘to (will we borrow) or will we continue looking sa budget na pwedeng gamitin (at the budget that we can use). So, initially [the consensus we are coming to is]… is we’ll do it in three tranches,” he told reporters at a press conference in Camp Aguinaldo which was streamed live on Facebook.

Passed on third and final reading in the lower chamber, the ARISE bill, or the Accelerated Recovery and Investments Stimulus for the Economy of the Philippines, seeks to address the effects of the pandemic through a P1.3-trillion economic stimulus package.

Also passed on third reading was the CURES bill, or the COVID-19 Unemployment Reduction Economic Stimulus Act of 2020, which seeks to allocate P1.5 trillion for infrastructure projects to stimulate the economy.

Mr. Cayetano said that the three tranches will come first from the proposed Bayanihan II law, then the proposed economic stimulus packages, and lastly, a fund allotted in the 2021 national budget.

The proposed Bayanihan II Law is a supplemental measure to the Bayanihan to Heal as One Act (Republic Act 11469) which provides various forms of relief during the public health crisis, including an emergency subsidy to displaced workers, cash-for-work programs, and programs to mitigate the virus, among others.

The measure failed to pass on third and final reading in both chambers of Congress before it adjourned sine die on June 6.

The House Speaker added that the Bayanihan II law will involve some P100 billion to P200 billion in stimulus to help banks “come out with loans” and improve the capability of the Department of Labor and Employment and the Department of Social and Welfare Development to assist those who are unemployed.

Mr. Cayetano did not mention the amount for the two remaining tranches and when these will be implemented.

He said that Congress will be meeting with the officials from the Department of Finance this weekend to “iron out” the details of the proposed Bayanihan II Law.

“I can tell you now that the House is asking Malacañang not to peg the budget at the 2020 level. Dapat taasan ng konti kasi kailangan ng stimulus (It should be raised a bit because the stimulus is needed),” Mr. Cayetano said. — Genshen L. Espedido

Court junks De Lima’s petition to join Senate proceedings online

A regional trial court has rejected Senator Leila M. De Lima’s petition to join Senate proceedings via teleconferencing from her cell in Camp Crame.

“Allowing De Lima to participate in the Senate sessions, committee hearings and meetings via teleconferencing from within her place of detention is no different from allowing her to attend there physically. Allowing her to do so today would be tantamount to allowing her to participate even after the state of public health emergency,” Presiding Judge Liezel A. Aquiatan said in a six-paged decision dated June 17.

Ms. De Lima argued that she is “not a convicted prisoner, that she continues to enjoy the presumption of innocence, that she has no civil interdiction, and that she fully possessed all her civil and political rights… to perform the mandate given to her by Filipino people.”

The court dismissed the senator’s argument, saying that the “presumption of innocence does not carry with it the full enjoyment of civil and political rights.”

The Senate has shifted to “hybrid” sessions and committee hearings due to the lockdown triggered by the coronavirus pandemic.

Ms. De Lima has been detained since 2017, accused of having been involved in the narcotics trade inside the national penitentiary during her stint as Justice Secretary. — Genshen L. Espedido

DPWH says BBB deadlines stay

The Department of Public Works and Highways (DPWH) said it won’t adjust its deadlines for big ticket projects under the Build, Build, Build program even as the country endures the ongoing coronavirus disease 2019 (COVID-19) pandemic.

In a briefing on Friday, DPWH Secretary Mark A. Villar said, “All the major DPWH projects are continuous and you can expect the deadlines will not change.”

The COVID-19 crisis put a halt to most economic activity after President Rodrigo R. Duterte first imposed a Luzon-wide lockdown back in March 17. Metro Manila was placed under a strict lockdown called enhanced community quarantine (ECQ) for over two months before it transitioned to a less stringent “modified enhanced community quarantine” (MECQ) in mid-May.

Public and private construction were only allowed to resume under MECQ and in areas under the next two more relaxed quarantine levels: general community quarantine (GCQ) and modified GCQ.

Mr. Villar said the delay caused by the ECQ wasn’t long, adding “Sa tingin ko sa mga Build, Build, Build projects, makakahabol kami sa deadline (I think with the Build, Build, Build projects, we can catch up with the deadline).”

Mr. Villar had earlier expressed his optimism that the COVID-19 crisis would not hinder ongoing infrastructure works, adding that even with last year’s delay in the passage of the 2019 National Budget they were able to accomplish projects on time.

The government laid out rules for resuming construction work amid COVID-19 concerns such as strict observation of, and compliance with, minimum health standards on the work site, and regular monitoring of the workers’ health. — Gillian M. Cortez

P1.9-B released for typhoon affected farmers, fisherfolk, and ASF-affected hog raisers

THE DEPARTMENT of Agriculture (DA) said that it has released P1.9 billion from its quick response fund (QRF) to help farmers and fisherfolk affected by recent calamities and hog raisers whose business was damaged by the African Swine Fever (ASF).

In a statement, Agriculture Secretary William D. Dar said a big chunk of the department’s quick response fund went to indemnify ASF-affected hog raisers in 2019 and early 2020, and farmers and fisherfolk whose crops and equipment were damaged by typhoons and the Taal Volcano eruption.

“Through our regional field offices, funds from the agency’s quick response budget were used to help affected farmers, fishers, and hog raisers to recover from their losses and start anew,” the DA said.

In a report submitted to Mr. Dar, DA Field Operations Services Director Roy M. Abaya said that P733 million was given to ASF-affected hog raisers, P567 million to farmers and fisherfolk affected by Typhoons Tisoy, Ursula, and Ambo, and P463 million worth of technical assistance and farm and fishery inputs to those disrupted by the Taal Volcano eruption.

Other assistance given under the P1.9 billion quick response budget include the P150 million allotted to control and contain the Fall Army Worm corn infestation, and P28.4 million to assist drought-affected farmers in Region 2.

“Using the QRF, we were able to respond immediately to help affected farmers and fisherfolk recover and bounce back from adversities caused by natural calamities,” Mr. Dar said.

Mr. Dar urged DA regional executive directors to be proactive to soften the effect of natural disasters on farmers, fishers, and their families.

“Learning from our experience under the COVID-19 regime, we must always remain vigilant on the challenges that threaten our food security, be it natural or man-made. Hence, we will vigorously work on further boosting domestic food production and the entire value chain, in general,” Mr. Dar said. — Revin Mikhael D. Ochave

Angkas showcases protective shield for passenger safety

Angkas, the motorcycle taxi-hailing platform, has developed a protective shield that separates the motorcycle driver and the pillion passenger, which could help prevent the transmission of the coronavirus disease 2019 (COVID-19) between them.

While it acknowledges that riding pillion, also called back-riding, is a “clear violation” of the physical distancing protocols imposed to stem the spread of the COVID-19 pandemic, Angkas is batting for the resumption of its service as an aid to workers returning to work at a time when most forms of public transport are still not allowed.

“Gusto nating mapayagan [ang back-riding] (We want back-riding to be allowed) with the assurance that we’re able to do this safely,” George I. Royeca, chief transport advocate of Angkas, told reporters in a virtual briefing hosted by Samahang Plaridel on Friday.

Mr. Royeca presented a model of its protective shield which serves as a barrier between rider and passenger. The shield is made of high-density plastic that is both light-weight and malleable. It is worn by the rider and has handles at the lower portion that the passenger can hold on to.

“We came up with this proposal not to pressure the government to allow us to operate, but to give them options of measures that are focused on safety,” said Mr. Royeca.

“There is really a strong public clamor for us to allow once again the operation of ride-sharing and motorcycle-taxis, not only for the riders… but most especially to the commuting public, sa mga working class natin (for our working class),” Quezon City 2nd District Representative Precious Hipolito Castelo said during the forum.

After the pilot study on motorcycle-taxi operations ended in April, she appealed to the government’s inter-agency task force on emerging infectious diseases (IATF-EID) to permit some back-riding operations upon the gradual resumption of public transportation with the easing of community quarantine.

The lawmaker, who is also a member of the House’s transportation committee, proposed that once motorcycle-taxi services are allowed, riders must first undergo COVID-19 testing.

“Dapat ang ating mga riders, na-test sila, at least rapid or PCR, at dapat negative po sila sa COVID,” she said. (Our riders should get tested, at least through rapid or real-time reverse transcription polymerase chain reaction, and they should test negative for COVID.)

Ms. Castelo also suggested that the motorcycles be regularly disinfected and that passengers must bring their own helmets, face masks, and face shields.

Commenting on the initiative, Dr. Vicente Y. Belizario, dean of College of Public Health at the University of the Philippines – Manila, said the plastic shield will make back-riding “safer,” even though physical distancing is not observed.

“It can help because it’s an added barrier,” he said, saying that it can help in reducing the transmission of COVID-19.

“We’re not achieving physical or social distancing when you do back-riding but you can actually strengthen the other [safety] measures, trying to reduce the chances of COVID transmission,” the former Department of Health official said.

Angkas is seeking at least the limited use of its ride-hailing service if it returns.

“For us, it’s not a question of when we’ll resume operations. What we want to do is help in this current crisis,” Mr. Royeca said.

“If the government feels the need [and] we have the ability to provide assistance, we will [provide]. That’s why we are proposing limited use… talagang maraming restrictions (there really are many restrictions), not everybody can use the app,” he added.

He suggested that private companies can pre-register their employees for the service.

Angkas is looking to offer its enhanced service to the public if the government adopts its proposal. A possible fare hike is still out of the equation, Mr. Royeca said.

Ms. Castelo sees that there is a chance that her proposal will get approved as the IATF is considering it.

Meanwhile, the Department of Transportation said it submitted its findings on the operations of motorcycle taxis during the trial period which lapsed in April, to the House of Representatives.

“The pilot study (trial period) of motorcycle taxis had already expired last April. We already submitted our recommendations to the HOR and are awaiting their action if they will be allowed to continue operations,” it said in a statement.

Angkas’ motorcycle-taxi services will not resume unless the government legalizes it as a mode of public transport. — Adam J. Ang

Despite calls to leave, Duque to stay on in DoH

The Department of Health (DoH) said Secretary Francisco T. Duque III will continue to lead the agency’s efforts against the coronavirus disease 2019 (COVID-19), despite calls for him to step down while the Ombudsman looks into alleged corruption.

In a briefing on Friday, Health Undersecretary Maria Rosario S. Vergeire said they do not see the need for Mr. Duque to step down temporarily while the investigation of the Ombudsman is ongoing. Ombudsman Samuel R. Martires ordered a probe into the alleged mishandling of funds for the DoH COVID-19 response.

“Wala kami nakikitang pangangailangan siya’y magbitiw o magtemporarily tumigil sa pagtrabaho para mabigyan daan ang imbestigasyon (We don’t see the need for him to resign or for him to temporarily stop work just to give way for the investigation),” Ms. Vergeire said.

Her statement comes after Senator Sherwin T. Gatchalian said on Friday that it would be best for Mr. Duque “to take time off” so the Ombudsman can conduct an impartial investigation.

Ms. Vergeire added that the DoH has yet to receive any formal notice from the Ombudsman. If they do, she said they will cooperate.

She also commended Mr. Duque as a “leader,” adding that she and the rest of the undersecretaries are able to work well because of him.

“We have our full support of our Secretary and we think he should still be retained in his position,” she said.

Earlier this week, the Palace said that Mr. Duque still has the full confidence of President Rodrigo R. Duterte but they will respect the decision of the Ombudsman to look into issues within the Health Department if needed.

In an interview with CNN Philippines on Friday, Mr. Martires said they will be issuing subpoenas to both Mr. Duque and to Budget Secretary Wendel E. Avisado with regard to the use of funds for the COVID-19 response and the delay of the release of benefits for frontliners who died while on duty during the COVID-19 crisis.

“Today we will be issuing subpoenas to the Department of Budget and Management (and) to the Department of Health, particularly to the special allotment request order sa budget binigay ng pangulo sa namatay na frontliner, sa budget para sa (for the budget given by President to frontliners who died and for the budget for) COVID-19,” he said. — Gillian M. Cortez

Diplomats present their credentials virtually

Five diplomats presented their credentials to President Rodrigo R. Duterte on Friday evening during the Palace’s first virtual credentials ceremony.

In a statement on Friday, the Palace said Mr. Duterte “affirmed anew” the country’’s ties with the State of Palestine, New Zealand, Canada, the Islamic Republic of Iran, and the Socialist Republic of Vietnam on Friday.

“The presentation of credentials ceremony was held virtually for the first time under the ‘new normal’ ushered in by the COVID-19 pandemic,” the Palace said.

Palace Spokesperson Harry l. Roque said earlier this week that the ambassadors would present their credentials online to observe precautionary measures during the current pandemic.

Mr. Duterte welcomed the Palestine Ambassador to the Philippines Saleh Asad Saleh Fhied Mohammad, who is that country’s first ambassador since Palestine re-established its embassy in Manila last year.

Other diplomats who presented their credentials to the President were New Zealand Ambassador to the Philippines Peter Francis Tavita Kell, Canadian Ambassador to the Philippines James Peter MacArthur, Iranian Ambassador to the Philippines Alireza Tootoonchia, and Vietnamese Ambassador to the Philippines Hoang Huy Chung.

Credit to MSMEs, consumers may cause NPLs to rise amid crisis

BANKS’ LENDING to small businesses and consumers are seen causing an uptick in soured loans amid the coronavirus crisis, S&P Global Ratings said.

“We expect the consumer and micro, small and midsize enterprises (MSME) portfolios to contribute to higher NPLs in the coming quarters. Support measures from the government and the central bank should reduce the risk of defaults,” S&P analyst Nikita Anand said in a note sent to reporters on Friday.

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said Thursday that the NPL ratio of banks inched up to 2.3% as of April from 2.2% as of March and 2% as of December 2019. Mr. Diokno noted lenders are currently assessing their portfolios after lockdown measures in the country were eased.

BSP Managing Director for Policy and Specialized Supervision Lyn I. Javier said they do not expect bad loans to rise to significant levels.

Latest data from the BSP showed total loans of the banking system increased by 7.8% to P11 trillion as of end-April when restrictions were imposed to prevent the virus spread.

Ms. Anand said heightened credit risks from the MSME and consumer loan sector may be felt more by smaller banks.

“Rural and thrift banks could see higher capital impact because they have higher exposure to consumers and SMEs. However, at 1% and 6% respectively, their share in the banking sector’s assets is small and limits contagion impact,” she said.

The government is providing support for embattled firms through wage subsidies. The Accelerated Recovery and Investments Stimulus for the Economy (ARISE) bill, which was left pending before the Congress adjourned, allocated P10 billion assistance to MSMEs as well as P25 billion worth of loans for the sector.

Meanwhile, the central bank has rolled out regulatory relief measures, such as allowing banks to count lending to small businesses as part of their reserve compliance and lowering the credit risk weight given to MSMEs.

S&P said banks’ exposure to big conglomerates will buoy them during this crisis.

“We believe the resilience of large corporates in the Philippines will be key to containing credit losses in this downturn,” Ms. Anand said.

“We expect large conglomerates, which form the bulk of the banking sector’s loan book, to be able to tide over the challenging operating conditions because of their strong business profiles, diversified revenue streams, and solid liquidity buffers,” she added.

Lenders have set aside higher loss provisions as they factored the impact of the virus outbreak to the economy.

The banking industry has an overall capital adequacy ratio of 15.4% and 16.4% on stand-alone and consolidated bases, well above the 10% minimum requirement of the BSP. — Luz Wendy T. Noble

IC issues rules on use of insurtechs’ regulatory sandbox

THE Insurance Commission (IC) issued guidelines on the adoption of a regulatory sandbox framework, requiring insurance technology (insurtech) firms to secure approval from the regulator.

Insurance Commissioner Dennis B. Funa issued Circular Letter No. 2020-73 dated June 14 outlining the guidelines on the use of regulatory sandboxes, requiring firms to secure prior approval from the IC before these are implemented.

“No Regulatory Sandbox that involves the doing an insurance business, as defined in Section 2 (b) of the Insurance Code of the Philippines, as amended by Republic Act No. 10607, or the performance of any act that will require licensing and/or regulation by this Commission shall be adopted and implemented unless approved by this Commission,” the circular read.

A regulatory sandbox is a controlled environment where a licensed insurance provider will set up a system to allow “small scale and live testing of technical innovations” in different scenarios.

“(IC) recognizes the immense benefit that can be derived from further developing such technological innovations (insurtech) through experimentation, testing, and learning, which can be achieved without necessarily compromising the protection of the interests of the insuring public,” it said.

It said non-regulated entities wanting to join a regulatory sandbox will have to comply with IC’s existing regulations first and submit an application.

A regulatory sandbox should be operated in experimentation cycles that will have to be approved by the IC, with a maximum period of one year with period extension of up to six months.

The IC also requires firms to submit several documents such as registration documents and consent of test subjects if it will apply to participate in a regulatory sandbox.

Applicants will also have to submit an “exit plan” from the regulatory sandbox that will contain a methodology of scaling up the project for a larger market; a plan for clients in case the proposal is discontinued; and the amount allotted to implement the technological solution “that shall be intended as payment for any claims arising from said implementation or adoption thereof, which shall be unimpaired at all times.”

The applicants will be screened based on the idea itself, how it can promote better access to insurance and literacy to the industry, consumer benefit and protection, project readiness and the soundness of the “exit plan.”
The regulator’s Regulation, Enforcement, and Prosecution Division (REPD) will submit a recommendation to the IC based on its assessment of the application and documents.

The IC will then allow the applicant to proceed with the live testing or experiments if it is “satisfied with the recommendations of the REPD.”

Participants need to submit a completion report to the regulator after the experimentation cycle has ended.
“The applicant’s failure to comply with any of the provisions of this circular letter shall warrant the immediate denial of the application,” it said. — B.M. Laforga

DBP scaling down expansion plans to invest in digitalization

STATE-RUN Development Bank of the Philippines (DBP) will scale down its expansion plans as it looks to invest in digitalization and tap more financial technology (fintech) companies.

In a press release on Thursday, DBP President and CEO G. Herbosa said the bank “is looking at scaling down its expansion plans” over the medium term and instead re-channel its resources to widen its reach by investing in technology and enhancing its existing banking infrastructure and systems.

“The current market situation and trends dictate the need to re-evaluate the viability of the brick-and-mortar approach to banking,” he was quoted as saying.

DBP said on Thursday the “re-evaluation of the bank’s strategy” means it will put on hold plans to establish more branches, but the amount of investment involved was not disclosed.

It said the lender will tap fintech companies, non-bank financial institutions (NBFIs), rural banks and available information technology (IT) applications to improve its services.

“DBP views its partnerships with fintech firms, NBFIs, and potential alliances with progressive rural banks as a means to bridge the so-called “last mile” in providing essential banking services especially in the far-flung and unbanked communities,” Mr. Herbosa said.

He said these partnerships helped the lender implement past programs, particularly in accelerating the release of payouts to beneficiaries.

“These collaborations could be a model for future undertakings that would require massive amounts of disbursements to individual recipients in a short period of time,” he added.

DBP has 129 branches with 11 branch lite units and 837 automated teller machines (ATMs) across the country.

The bank was the ninth biggest bank in the country in terms of assets in 2019 with P761.5 billion.

“Moving forward, DBP as a development bank would need to beef up its retail banking capability while catering to its niche of institutional customers such as local government units, water districts, as well as micro, small and medium enterprises,” Mr. Herbosa said.

The bank’s net income dropped seven percent to P1.46 billion in the first quarter after it hiked loan loss provisions amid the coronavirus pandemic. — B.M. Laforga

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