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Peso rebounds vs dollar on narrower trade deficit

THE PESO rebounded against the greenback on Wednesday on news of a narrower April trade deficit and the unsustained rally of US stocks.

The local unit finished trading at P49.85 per dollar on Wednesday, appreciating by 10 centavos from its Tuesday close of P49.95, according to data from the Bankers Association of the Philippines.

The peso opened at P50.05 versus the dollar. Its weakest showing for the day was at P50.07 while its strongest was at P49.83 against the greenback.

Dollars traded climbed to $1.12 billion on Wednesday from the $793.71 million seen on Tuesday.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort attributed the local unit’s gains to trade data released yesterday.

“The peso closed stronger after the [release of data showing the] narrowest trade deficit in nearly five years,” Mr. Ricafort said in a text message.

Data from the Philippine Statistics Authority showed the country’s trade deficit was at $499.21 million in April, slimmer than the $3.8-billion gap in the same month in 2019. This, as exports dropped 50.8% to $2.78 billion while imports plunged 65.3% to $3.28 billion.

Year to date, the trade balance was at a deficit of $8.03 billion from January to April, smaller than the $14.14-billion shortfall in the comparable 2019 period.

Meanwhile, a trader said the peso’s rebound came due to weaker dollar sentiment after the US stock market failed to sustain its rally.

“The peso was stronger as investors took in the news that Wall Street gains did not push through on Tuesday,” the trader said in a phone call.

The S&P 500 and Dow fell on Tuesday, pausing after recent strong gains as focus shifted to the Federal Reserve, while the Nasdaq ended at an all-time high for a second straight day after briefly rising above the 10,000 mark for the first time, Reuters reported.

The Fed began a two-day meeting. While no major policy announcements are expected when the US central bank wraps up on Wednesday, investors will scrutinize its remarks on the health of the economy, which has been reopening after coronavirus-related closures.

The Nasdaq’s gains came on the back of strong gains in tech-related shares, a day after the index became the first of Wall Street’s major indexes to confirm a new bull market. Apple, up 3.2%, gave the Nasdaq its biggest boost on Tuesday.

The benchmark S&P 500 fell back into negative territory for the year after temporarily erasing those losses on Monday.

The Dow Jones Industrial Average fell 300.14 points or 1.09% to 27,272.3; the S&P 500 lost 25.21 points or 0.78% to 3,207.18 and the Nasdaq Composite added 29.01 points or 0.29% to 9,953.75.

For today, Mr. Ricafort gave a forecast range of P49.75 to P50 versus the dollar while the trader expects the peso to move around the P49.70 to P50.05 band. — L.W.T. Noble with Reuters

COVID-19 spending reckoned at P355 billion

GOVERNMENT spending on its coronavirus disease 2019 (COVID-19) containment effort totaled P355.084 billion as of Tuesday, June 9, according to the Department of Budget and Management (DBM).

The June 9 total compares with the P352 billion reported in the period ending May 27, after more funds were disbursed to relief programs, including the Social Amelioration Program (SAP).

The funds were released through Special Allotment Release Orders, which are a DBM authorization to line agencies allowing them to incur obligations in that specific period and for a defined purpose.

The increased spending was largely due to the P500 million in new allotment releases issued to Small Business Corp. for its Pondo sa Pagbabago at Pag-asenso program on May 29 and the P2.02 billion released to cover the remaining funding needs for SAP on June 3.

Earlier allotment releases for the P205-billion SAP were the P100 billion released on April 2 and P96.044 billion on April 16.

The DBM estimates that 70% or P246.622 billion of the funds were sourced from discontinued programs, activities and projects, while 27% or P98.217 billion came from special purpose funds. The remaining 3% or P10.245 billion was from current budgets of implementing agencies.

At the level of notices of cash allocation (NCA) issued by the DBM, which are an authorization for government offices to disburse funds allocated to them, a total of P354.455 billion was released so far.

There were no NCA releases for the latest SAP allocations for as of Tuesday.

The documents are posted on DBM’s website and are being updated regularly. — Beatrice M. Laforga

DoT clearance required for hotels to reopen

THE Interagency Task Force for the Management of Emerging Infectious Disease (IATF-EID) on Wednesday ordered hotels and other accommodation establishments (AEs) to obtain an authorization from the tourism department before resuming operations.

IATF-EID Resolution No. 43, Series of 2020, provides that AEs may operate only upon the issuance of a Certificate of Authority.

Tourism Secretary Bernadette Romulo-Puyat said this is intended to ensure the “safety and health” of guests.

“With this ‘No DoT Certification, No Operation policy,’ we shall further implement the DoT Health and Safety Guidelines for Accommodation Establishments Under the New Normal,” she said in a statement Wednesday.

Its guidelines follow protocols issued by the World Health Organization and the Department of Health.

This applies to establishments such as hotels, resorts, and tourist inns restarting their business as the government eases lockdown restrictions.

Luzon was locked down to contain the pandemic starting mid-March, suspending work, classes and public transportation.

The government started lifting restrictions in areas deemed lower-risk starting May 15 and later in Metro Manila and Cebu on June 1.

To obtain the certificate, AEs accredited by the Department need to submit a Letter of Intent to Operate to their respective DoT (Department of Tourism) regional offices. Meanwhile non-accredited establishments need to apply for accreditation.

Ms. Puyat said the application will be free of charge, and warned businesses that failure to comply will be subject to penalties. — Charmaine A. Tadalan

ADB 2020 lending to PHL at record $2.6B

THE Asian Development Bank’s (ADB) lending to the Philippines has hit a record $2.6 billion so far this year, exceeding the 2019 level of $2.5 billion.

In a statement Wednesday, the ADB approved a $500-million loan for the government’s conditional cash aid program, known as the Pantawid Pamilyang Pilipino Program (4Ps).

“With this loan, ADB’s total lending to the Philippines has reached $2.6 billion so far this year, exceeding its record lending of $2.5 billion in 2019,” it said.

The ADB said the $500-million loan is for the Expanded Social Assistance Project aiming to “help families maintain health and educational gains for their children” under the 4Ps program of the Department of Social Welfare and Development.

“The 4Ps program provides vulnerable households with an income supplement to help their children become educated, stay healthy, and leave poverty for good. Our evidence shows that this is working. The 4Ps program has helped 1.5 million people escape poverty since it began in 2008. Through this project loan and technical assistance support, ADB is helping the Philippines expand these gains,” ADB Vice-President Ahmed M. Saeed was quoted as saying.

The 4Ps program provides cash aid every two months to some 4.3 million families on condition that their children stay in school and submit to regular health checkups, while women must attend pre- and post-natal care sessions and parents participate in family development sessions.

The ADB said it will also extend $3.1 million worth of technical assistance to enhance the development sessions, to update the list of eligible families and provide a livelihood package that will help 3,000 families emerge from poverty.

The technical assistance will also help in information technology reforms that will “automate compliance verification and grievance redress” and assist in integrating the 4Ps database with the government’s national ID system.

The ADB said its total assistance to the 4Ps program has amounted to over $1.5 billion so far.

Other loans the ADB approved for the Philippines this year include $1.7 billion approved in April to help the government respond to the pandemic and a $400-million loan for capital market development in June. — Beatrice M. Laforga

New ecozones to generate P6.4B in investment

A DOZEN new economic zones approved this year are expected to attract P6.4 billion worth of investment, including seven new zones proclaimed in the last month.

The Philippine Economic Zone Authority (PEZA) said in a statement Wednesday that President Rodrigo R. Duterte signed the proclamation of seven new ecozones starting May 5.

The ecozones include nine information technology (IT) centers, two manufacturing ecozones, and one IT park.

Eight ecozones are in Luzon, while four are in the Visayas and Mindanao.

PEZA did not provide detailed comparative data for recent years, but said that 73 ecozones generating P88.3 billion in investment were approved since 2016.

PEZA Director-General Charito B. Plaza is urging the government to improve fiscal and non-fiscal incentives to support public works, information technology infrastructure, and logistics and transportation hubs.

She requested training programs for workers to match the manpower needs of investors.

“Once these efficiency factors are addressed, it will lower the cost of doing business and will make the country an investment haven in Asia. This will likewise attract more export-oriented industries to the Philippines that would triple the economic gains and inject more investment,” she said.

PEZA manages 408 ecozones, with 4,542 locator companies directly employing 1.6 million workers. — Jenina P. Ibañez

Legislator seeks review of Rice Tariffication Law after gov’t rice imports

MAGSASAKA Partylist Representative Argel T. Cabatbat called for a review of Republic Act No. 11203 or the Rice Tariffication Law (RTL) after the government resumed imports on its own account by declaring an auction for 300,000 metric tons (MT) of rice via government to government (G2G) deals.

In a mobile phone message, Mr. Cabatbat said the plan to import rice by the Department of Agriculture (DA) and the Department of Trade and Industry, through the Philippine International Trading Corp. (PITC), is a “step back” from the original intent of the RTL.

“It disempowers Filipino farmers who deserve to be prioritized and protected because of the impact of coronavirus disease 2019 (COVID-19),” Mr. Cabatbat said.

Mr. Cabatbat asked the DA to clarify why imports were resorted to despite the department’s assurance that there is no impending rice shortage.

“It is more expensive to import rice and it only adds to the burden of our rice farmers, instead of helping them.” Mr. Cabatbat said.

On Monday, the PITC conducted an online auction for rice imports amounting to 300,000 MT, with four countries showing interest.

Myanmar, Thailand, Vietnam, and India have posted bids to supply well-milled long-grain rice with 25% brokens, for delivery to five ports.

Half or 150,000 MT must be shipped not later than July 14 while the other half is due to arrive on or before August 14.

The national government, via the PITC, has allotted P7.45 billion for the G2G imports, while the reference price was set at $497.62 per MT, equivalent to around P25,000.

Mr. Cabatbat said that the reference price indicates that the government is willing to buy rice at double the domestic production cost.

“We have the current supply, and we can produce a metric ton of rice at P12,720,” Mr. Cabatbat said.

“The amount that the DA is planning to spend for imported rice could uplift the rice industry from the visible damage the RTL has visited upon hundreds of thousands of Filipino farmers who found themselves on the brink of bankruptcy during the last planting season,” Mr. Cabatbat said.

On May 12, the DA said that the 300,000 MT of rice will serve as a contingency supply during the lean months.

“This is because the bulk of the rice supply will come from the harvest during the fourth quarter, coupled with continued imports,” the DA said.

According to the DA’s food supply outlook, rice supply at the end of 2020 is sufficient for 94 days.

G2G imports under emergency conditions are permitted under the RTL to ensure adequate supply. — Revin Mikhael D. Ochave

SB Corp. targets full loan disbursement to MSMEs by Aug.

THE Small Business Corp. (SB Corp.) told legislators that it will finish releasing its P1.5-billion loan program to micro, small and medium enterprises (MSMEs) by August.

“Ang pine-prepare po kasi namin, everyday 500 accounts ang aming maa-approve at mare-release ‘yan the following day. ‘Yun pong P1.5 billion namin para dun sa COVID-19 assistance to restart enterprises (CARES), we should be able to complete the approvals within July and by August ubos na po ’yun (We approve 500 accounts per day and release the following day. The P1.5 billion for the CARES program will have all loans approved by July for release by August),” SB Corp. President and Chief Executive Officer Ma. Luna E. Cacanando told the House committee on MSME development in a virtual hearing Wednesday.

As of June 8, SB Corp. has processed a total of 7,333 loan applications under the CARES program. Of these, 287 were approved while P1.22 million covering 12 applications was released.

The loan is open to micro and small businesses which have been in at least a year of continuous operation by March 2020, and those that “suffered drastic reduction” in business during the pandemic.

Loans can be applied to keeping loan amortizations for vehicles and other fixed assets up to date, inventory replacement for damaged perishable stock, and working capital to restart the business.

Micro enterprises with assets of up to P3 million may borrow between P10,000 to P200,000, while small enterprises with assets not bigger than P10 million may borrow up to P500,000.

With an average loan release of P85,000 per day, Ms. Cacanando estimates that SB Corp. will accommodate 17,000 to 20,000 borrowers.

Deputy Speaker and Ilocos Sur Rep. Deogracias Victor B. Savellano urged SB. Corp to lower its 6% service charge.

“Zero interest but you have a service charge of 6% which I think, hindi na uso ‘yung 6% interest ngayon eh. Kasi ‘yung service charge niyo ano lang ‘yan eh, mapupunta lang sa inyo. (No one charge 6% interest these days, and the funds will do no good if held by the government) You are working with the government, bakit pa tayo may service charge? Dapat babaan pa (Why is there even a service charge? It should be reduced),” he said.

Development Bank of the Philippines (DBP) President Emmanuel G. Herbosa said the bank is developing a “terms of engagement” with SB Corp. to help lend its funds to those MSMEs which have the “potential to become larger.”

“SB Corp. is going to be a partner of DBP to help them process those MSMEs that have potential to become larger. We have to understand that SB Corp. has excellent credit expertise kaya lang po minsan talagang nasasapawan sila (but sometimes they get overwhelmed). So, what we’re doing right now is developing terms of engagement with SB Corp. to help them out,” he said.

Mr. Herbosa said that the DBP can provide loans that exceed SB Corp.’s P5 million limit.

“Ang sinasabi natin sa SB Corp…P5 million ang maximum limit nila. So kung meron pa silang on top of the maximum limit, pwede namin dagdagan for certain borrowers they have (DBP can top up loans beyond SB Corp’s limit). If there’s some good local manufacturing, self fabrication, anything that helps enhance our supply chain, replace imports or foreign suppliers, I’m encouraging Luna to pass the loan to us that’s beyond P5 million,” he said. — Genshen L. Espedido

IMF plans bilateral talks on members’ COVID-19 response

THE International Monetary Fund (IMF) will engage in bilateral talks with member-countries to gauge their policy responses in containing the impact of coronavirus disease 2019 (COVID-19).

“The conversation that we would have with each country on the measures they have in place and whether they work or not… will be discussed bilaterally with countries over time,” IMF Deputy Managing Director Geoffrey Okamoto said in a briefing late Wednesday.

Mr. Okamoto said the crisis has delayed the IMF’s in-depth bilateral surveillance of member-countries.

So far, the IMF has received requests for assistance from 100 countries for emergency financing.

“The IMF’s engagement with its member countries is a continuous process. For the Philippines, the engagement involves both exchanges on policy issues (including those related to COVID-19) and capacity development (technical assistance and training),” IMF Representative to the Philippines Yongzheng Yang said in an e-mail.

In its April World Economic Outlook, the IMF said iprojects Asian economic growth at zero in 2020.

“That’s the worst in the last 60 years. It’s worse than the Asian financial crisis, it’s worse than the global financial crisis,” Mr. Okamoto said.

The IMF’s latest forecast for the Philippine economy is a 3% contraction this year. This compares with estimates of between minus 2% to minus 3% issued by the government’s economic team.

The IMF will release its updated estimates on June 24.

According to Mr. Okamoto, the pandemic’s impact on Asia is evident in supply chain shocks.

“Asia is heavily integrated into global supply chains. And for some of them, right, the supply chain shock or the commodity price shock has been just as bad or worse than the health shock,” he said.

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said the trade deficit data reveal the extent of the shock.

“Unfortunately, the Philippine economy has a significant level of trade integration that a supply chain shock would definitely impact,” Mr. Asuncion said in a text message.

The Philippine Statistics Authority puts the trade deficit at $499.21 million in April, against the $3.8 billion deficit a year earlier. Exports fell 50.8% to $2.78 billion while imports declined 65.3% to $3.28 billion.

Security Bank Corp. Chief Economist Robert Dan J. Roces said there are bright spots despite the disruptions.

“We benefit from the depressed world oil prices — low global oil prices and supply disruptions offset each other thus our low inflation rates,” Mr. Roces said in a text message.

Inflation in May was 2.1%, easing further from the 2.2% in April and the 3.2% a year earlier due to lower food and oil prices. — Luz Wendy T. Noble

ARTA extends deadline for streamlining regulations

THE Anti-Red Tape Authority (ARTA) is extending the deadline for government agencies to report on their compliance with a Palace order to streamline regulation.

The deadline for compliance reports is now July 25. ARTA had asked the Office of the President for an extension of the initial March deadline, citing disruptions due to the lockdown.

Government agencies under Administrative Order No. 23 must reform their processes to do away with excessive, redundant, or burdensome regulation.

ARTA said that all national government agencies, local government units, and government-owned or-controlled corporations must submit compliance reports, which include information on their citizen’s charters.

The citizen’s charter is the official document that outlines the agency’s service standards.

“Other than communicating the service standards of the office, it shall also serve as the basis for establishing liability of all erring government employees involved in unnecessary red tape and corruption,” ARTA said.

The report should include details about the services offered to the public, laws that empower the agency to regulate or provide the services, the list of regulations and issuances, as well as details on procedures, processing time, and fees.

Reports may only be submitted electronically. — Jenina P. Ibañez

Additional options for submission of 2019 ITR and attachments

Prior to the pandemic and the various quarantines imposed in various parts of the country, the hard copy of duly filed Income Tax Return (ITR), along with the required attachments, had to be submitted manually and stamped “Received” at the Large Taxpayers Division (LTD)/Revenue District Office (RDO) where the taxpayer is registered, within 15 days from the statutory due date or date of filing/payment of the ITR, whichever comes later. This year, due to the state of emergency, the filing and payment of income tax have been extended until June 14. However, as June 14 falls on a Sunday, the deadline is automatically extended to the next working day (June 15). Consequently, the submission of the duly filed 2019 ITR and its attachments has been extended until June 30.

Considering social distancing restrictions, taxpayers are now given additional options under Revenue Memorandum Circular (RMC) No. 49-2020 to submit their filed 2019 ITR and its attachments. Accordingly, they may opt to submit their returns through the nearest Revenue Collection Officers (RCOs) or the online eAFS.

OPTION 1 — SUBMISSION THROUGH RCOS
The first alternative is for taxpayers to manually submit their duly filed 2019 ITR with its attachments to the RCOs nearest to them, notwithstanding RDO jurisdiction. For instance, if the taxpayer is registered in Makati City but is currently in Cebu City, the ITR and its attachments can be manually submitted to the RCO of Cebu City. The RCO will then forward the documents to the RDO in Makati where the taxpayer is registered.

For ITRs paid online through the facility of the Authorized Agent Banks (AABs), the RCOs shall stamp “Received” on the first page of the ITR, balance sheet, income statement, and the external auditor certificate. For ITRs filed electronically, the RCOs will only stamp as “Received” the Filing Reference Number generated from the eFPS or the e-mail confirmation from the eBIR Forms System and the financial statements.

OPTION 2 — SUBMISSION THROUGH ONLINE EAFS
As an alternative to physical submission, taxpayers are also given an option to submit the duly filed 2019 ITR and attachments electronically through the eAFS system of the Bureau of Internal Revenue (BIR). The eAFS is available to all types of taxpayers, and there are no requirements for technical specifications or software installation. It is a web-based system and can be used if the taxpayer has access to a browser and a reliable internet connection.

ENROLLMENT IN EAFS
The eAFS or the portal for online submission can be accessed through the BIR webpage at www.bir.gov.ph by clicking the eAFS icon. Enrollment is required, and the taxpayer should supply all the necessary information such as the taxpayer’s data, name of authorized tax agent/representative, and login information. Once all the information has been encoded, the Statement of Undertaking will appear. The taxpayer will have to click “Accept” for the enrollment to proceed.

The confirmation message and an activation link will then be sent to the taxpayer’s designated e-mail. The activation link must be clicked within 72 hours to activate the account. Otherwise, the enrollment will be discarded. Note that the system is Tax Identification Number (TIN) and e-mail sensitive. This means that the TIN and e-mail address can only be registered once; thus, all the information provided must be correct. Once enrollment is done, there is no mechanism for amending the information submitted.

UPLOADING TO EAFS
The attached documents are grouped into three types: Income Tax Return (File 1), Audited Financial Statements (File 2), and the Other Required Attachments (File 3). The taxpayer must attach the appropriate documents to upload to every file box. To upload and submit the files thru eAFS, the taxpayer must scan the documents, save them as PDF files, and name them accordingly as prescribed in the RMC.

The eAFS will acknowledge the successful submission by issuing a system-generated Transaction Reference Number (TRN) and an e-mail confirmation with the TRN to the taxpayer. The TRN shall serve as proof of submission by the taxpayer, in place of the manual “Received” stamping. In case of corporations and other juridical persons who also need to submit the audited financial statements (AFS) to the Securities and Exchange Commission (SEC), the TRN shall serve as proof of submission to the BIR. The taxpayer must print the TRN and attach it to the AFS for submission to the SEC.

RETENTION PERIOD
After submitting the ITR and its required attachments, the taxpayer shall keep the original copies of the digitally submitted documents as required under Section 235 of the Tax Code. Under Revenue Regulations (RRs) No. 17-2013 and 5-2014, all books of account, subsidiary books, and other accounting records must be kept by the taxpayer for 10 years. For the first five years, the preservation of accounting records must be in hard copy. For the sixth to the tenth year, accounting records may be preserved only in electronic form based on the guidelines of the RR.

Based on RMC No. 49-2020, the options to submit to the nearest RCOs or online would seem to apply only for calendar year taxpayers with respect to their 2019 ITRs and their attachments, in the absence of a provision including in the coverage the submission of amended ITRs and AFS for prior years, and those with a fiscal year ending Jan. 31, 2020, or onwards. It would be good for the BIR to release a circular clarifying this matter, especially since Jan. 31 year-end taxpayers are due to submit the same documents by July 15. Not only will it dispel confusion but also minimize the influx of taxpayers at the RCOs given the restrictions on social distancing.

Thinking even further ahead, it would certainly be a big boost to the country’s ease of doing business status if the eAFS option is made available on a more permanent basis. Perhaps it could even be expanded to include other documents that are still manually filed (or in electronic format but still physically filed) like the annual inventory lists and withholding tax certificates issued to employees (BIR Form 2316) with the accompanying certified list of employees qualified for substituted ITR filing. Online tax filing and payment was introduced by the BIR 18 years ago back in 2002, but it is only now that full electronic filing of all documents has been possible. Here’s hoping that the eAFS and similar online portals become available all year round, which could be one silver lining we can attribute to the unfortunate COVID-19 cloud.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

 

Anthony Tampoco is a manager with the Client Accounting Services group of Isla Lipana & Co., the Philippine member firm of the PwC network.

+63 (2) 8845-2728

anthony.c.tampoco@pwc.com

Coronavirus cases near 24,000 as local death toll rises steadily

THE DEPARTMENT of Health (DoH) reported 740 new coronavirus infections on Wednesday, bringing the total to 23,732.

The death toll rose to 1,027 after 10 more patients died, while 159 more patients have gotten well, bringing the total recoveries to 4,895, it said in a bulletin.

Of the new cases, 452 results were reported in the past three days, while 288 were reported late.

DoH said there were 17,239 active cases, 816 of whom did not show symptoms, 16,340 were mild, 64 were severe and 19 were critical. There were now 56 laboratories licensed to test coronavirus samples.

Health Undersecretary Maria Rosario S. Vergeire said zoning guidelines for specimens to be processed by laboratories would help address the backlog.

Under the rules, a laboratory will handle and process specimens from a specific area, she told an online news briefing.

Meanwhile, the palace said infections should ease somehow before the lockdown in Manila, the capital and nearby cities could be eased further, presidential spokesman Harry L. Roque told the ABS-CBN News Channel.

“We are still looking for some kind of data that would indicate that Metro Manila will not spark a second wave,” he said. “We cannot afford a second wave.”

President Rodrigo R. Duterte locked the main Philippine island of Luzon in mid-March, suspending work, classes and public transportation to contain the pandemic. People should stay home except to buy food and other basic goods, he said.

He extended the lockdown on the island twice and thrice for Metro Manila, where COVID-19 infections are mostly concentrated. The lockdown in the capital region has since been relaxed from an enhanced to a general community quarantine. Some businesses have been allowed to reopen with minimal workforce.

Metro Manila and Cebu were placed under a general community quarantine on June 1 along with Cagayan Valley, Central Luzon, Calabarzon (Calamba, Laguna, Batangas, Rizal and Quezon), Pangasinan, Albay, Mandaue City, Zamboanga City and Davao City.

Others were put under a more relaxed modified general community quarantine.

Mr. Roque separately told state broadcaster PTV-4 the government was having a hard time to bring down the number of infections, unlike New Zealand.

The South Pacific nation, with a population of five million lifted all domestic coronavirus restrictions on Monday after its final coronavirus disease 2019 patient was cleared.

The country has had 1,154 confirmed COVID-19 cases and 22 deaths. Prime Minister Jacinda Ardern said strict border controls would remain in place but restrictions such as social distancing limits on public gatherings were no longer needed, AFP reported.

Mr. Roque said the Philippines, which has more than 100 million citizens, would have a hard time eliminating the virus.

“We are already 40 million in Metro Manila alone and we are cramped,” he said. New Zealand, on ther hand, is just the size of Luzon, he added.

Mr. Roque said an inter-agency task force made up of Cabinet officials had approved a resolution allowing local governments to impose lockdowns in smaller subdivisions where infections have been rising.

The task force is expected to meet this week to discuss a decision on the metro lockdown. — Vann Marlo M. Villegas and Gillian M. Cortez

Measure that seeks to boost e-commerce market filed at Senate

A SENATOR has filed a bill that seeks to protect consumers from unscrupulous online traders and boost the country’s e-commerce market.

Senator Sherwin T. Gatchalian’s Senate Bill 1591 or the proposed Internet Transaction Act will create an e-Commerce Bureau under the Trade department that will act as a consumer complaint desk.

The agency will also develop programs to boost the country’s online retail sector.

Citing a Google and Temasek study, Mr. Gatchalian said the Philippine Internet economy posted a gross merchandise value of $7 billion last year.

This was lower than other Southeast Asian countries such as Malaysia with $11 billion, Vietnam and Singapore with $12 billion, Thailand with $16 billion and Indonesia with $40 billion.

“The country’s e-commerce market remains at 1.6% of the gross domestic product,” said Mr. Gatchalian, who is vice chairman of the economic affairs committee.

The proposed law will give incentives to entry-level micro enterprises by exempting them from national and local taxes in the first two years of operation.

It will also penalize online sellers that fail to register either as a sole proprietor, one-person corporation, partnership, corporation or cooperative with a fine worth 100% of the amount of the digital goods sold.

Online platforms that fail to show registered online sellers, their addresses and contact numbers and a clear breakdown of prices will be fined P500,000 to P5 million. — Charmaine A. Tadalan

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