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Your Weekend Guide (February 21, 2020)

Art Fair Philippines

ART Fair Philippines (AFP) returns for its 8th installment on Feb. 21 to 23 at The Link carpark in Ayala Center, Makati City. This year’s art fair will showcase 61 exhibitors, plus workshops and film screenings. Fair tickets are available at www.artfairphilippines.com. Tickets will also be available at the reception area. For more information, visit the Art Fair Philippines website (artfairphilippines.com) and follow Art Fair Philippines on Instagram (@artfairph) and Facebook (www.facebook.com/artfairph).

Joseph the Dreamer

TRUMPETS returns with its longest running musical Joseph the Dreamer, starring Sam Concepcion in the title role. Written by Freddie Santos, the musical based on the cantata by Cam Florian presents themes of love, forgiveness and unwavering faith in God shown. Directed by Paolo Valenciano with Myke Salomon as musical director. The show runs at the Maybank Theater, BGC Arts Center, Taguig from Feb. 21 to March 7. Tickets are available through TicketWorld (www.ticketworld.com.ph, 8891-9999).

Batang Mujahideen

TANGHALANG Pilipino presents Malou Jacob’s play Batang Mujahideen from Feb. 21 to March 7 at the Little Theater of the Cultural Center of the Philippines. The story follows a seven-year-old Yakan girl, Fatima, who witnessed the March 2000 Abu Sayyaf kidnapping of a priest, teachers, and students in Basilan. She goes on to take a vow of silence and joins the ranks of mujahideen, disguising herself as a boy. Tickets are available through TicketWorld (www.ticketworld.com.ph, 8891-9999).

‘Perfect painting’ seminar

VISUAL artist Celeste Lecaroz is holding a one-time only seminar titled 11 + 1 Art Discourse (My Quest for the Perfect Painting) on Feb. 22, 1 p.m., at the Fernando B. Sena Buenas Artes Art Facility, at Unit C-1 Windsor Villas, 348 Tandang Sora Ave. corner Congressional Ave. Ext., Quezon City. The seminar is part of Celeste’s advocacy to promote the importance of visual arts and share her passion. The artist has prepared exercises for the attendees and will give a live painting demo. To reserve slots, contact Buenas Artes at 7587-5853.

Big Bad Wolf Book Sale

THE world’s biggest 24-hour book sale returns to Manila for the third time, running until Feb. 24 at the World Trade Center in Pasay City. The book sale offers more than 2 million books, with 17,000 new titles which are available at 50% to 90% off their recommended retail price, and a Crazy Deals promotion with prices as low as P60. Admission is free.

Stage Kiss

REPERTORY Philippines’ 83rd season opens with Sarah Ruhl’s Stage Kiss, which is running until March 1 at the Onstage Theater in Greenbelt 1, Makati City. Directed by Carlitos Siguion-Reyna, it stars Missy Maramara and Tarek El Tayech in a story of the dynamics between actors on- and off-stage. Tickets are available through TicketWorld (www.ticketworld.com.ph, 8891-9999).

Under My Skin

PETA closes its 52nd season with Under My Skin which is running until March 22. Written by Rody Vera and directed by Melvin Lee, it is an anthology of stories about Filipinos living with HIV. The play stars Cherry Pie Picache, Roselyn Perez, Eko Baquial, Miguel Almendras, Mike Liwag, Gio Gahol, Anthony Falcon, and Gold Villar-Lim. It is part of PETA’s advocacy campaign on HIV. Tickets are available through TicketWorld (www.ticketworld.com.ph, 8891-9999).

Alice Reyes ballet concert

ALICE & FRIENDS: A Tapestry of Dances in Celebration of 50 Years in Dance at the Cultural Center of the Philippines will be held on Feb. 21, 8 p.m., at the Main Theater of the Cultural Center of the Philippines (CCP). The concert marks the 50th year since Natioanl Artist for Dance Alice Reyes held the first modern dance concert at the then-new CCP. The free concert is open to the public on a first-come-first-served, free seating basis. Among the works to be presented in Itim Asu, pasted on Virginia Moreno’s play Onyx Wolf.

What to see this week

7 films to see on the week of February 21, 2020 — February 27, 2020

Little Women

THE story of the four March sisters — Jo, Meg, Amy, and Beth — who dream of living a life on their own terms, gets a new adaptation directed by Greta Gerwig. It stars Saoirse Ronan, Emma Watson, Florence Pugh, Eliza Scanlen, Timothée Chalamet, and Meryl Streep. www.rogerebert.com’s Tomris Laffly writes, “Gerwig taps into a radical proposition — she unearths a reflective sense of memory and nostalgia within the conversation she fosters between the film’s two timelines. Her structure of well-paced flashbacks, laced with emotional peaks and soothing cadences, is first a surprising puzzle and then a source of awe, but never disrespectful to Alcott’s intentions. It is a smart twist for Little Women loyalists as much as an inventive way-in for first-timers.”

MTRCB Rating: PG

Sonic the Hedgehog

SONIC and his human friend Tom join forces to stop the villainous Dr. Robotnik from capturing Sonic and plotting world domination. Directed by Jeff Fowler, the semi-animated film features the voices of Ben Schwartz and Tika Sumpter as Sonic, and stars Jim Carrey and James Marsden. The Verge’s Dami Lee writes, “Sonic the Hedgehog could have gone from a good to a great movie not by bringing Sonic into the human world, but by bringing audiences into his. Maybe we should just be thankful that the movie was watchable at all. Sonic’s success hinges on the character being likable, and the redesigned Sonic is easy to love.”

MTRCB Rating: PG

Bombshell

BOMBSHELL

BASED ON the real scandal, the story follows the three women who exposed Fox News head Roger Ailes as a sexual harasser and the toxic atmosphere as he presided over the network. Directed by Jay Roach, the film stars Charlize Theron, Margot Robbie, Nicole Kidman, and John Lithgow. Variety’s Owen Gleiberman writes, “It’s suspenseful, and deeply satisfying, to see Ailes’ web of power unravel, as Lithgow’s performance becomes a tightrope dance of rage and fear.”

MTRCB Rating: PG

Watch List

AFTER HER husband is killed from the drug war, a widowed mother struggles to protect her three children. Directed by Ben Rekhi, the film stars Alessandra de Rossi, Arthur Acuña, and Jake Macapagal.

MTRCB Rating: R-16

The Night Clerk

A YOUNG hotel clerk who witnesses a murder in one of the rooms while on duty becomes the lead detective’s primary suspect. Directed by Michael Cristofer, the film stars Tye Sheridan, Ana de Armas, Helen Hunt, and John Leguizamo.

MTRCB Rating: R-13

The Call of the Wild

ADAPTED from the literary classic of the same title, the story follows Buck, a big-hearted dog whose domestic life is disrupted when he is suddenly uprooted from his California home to the wilds of the Alaskan Yukon in the 1890s. Directed by Chris Sanders, the film stars Karen Gillan, Harrison Ford, and Cara Gee. The Washington Post’s Mark Lieberman writes, “In an age of children’s entertainment that’s snarky, self-referential and even meta, The Call of the Wild… stands out for its earnest effort to entertain without commenting on itself or the modern world.”

MTRCB Rating: PG

Brahms: The Boy II

A FAMILY moves into the Heelshire Mansion, unaware of the mansion’s history. There their young son befriends a life-like doll named Brahms. Directed by William Brent Bell, the film stars Katie Holmes, Owain Yeoman, and Christopher Convery.

MTRCB Rating: R-13

This revamp will be different, says HSBC boss

HSBC is on its third overhaul since the financial crisis. — REUTERS

HONG KONG/LONDON — Noel Quinn, the interim chief executive of Hongkong & Shanghai Banking Corp. (HSBC), says this time things are going to be different.

Unveiling the bank’s third overhaul since the financial crisis, Mr. Quinn told Reuters this week that the latest revamp would be less reliant on external factors, such as global interest rates and China’s economy.

“I believe this plan is predicated on three things we can control, which are costs, simplification of the business, and capital efficiency, rather than being dependent on revenue growth assumptions influenced by the macroeconomic environment,” he said.

Investors and HSBC employees aren’t convinced.

In a call with staff on Tuesday, Mr. Quinn and Chief Financial Officer Ewen Stevenson were put on the defensive over the bank’s commitment to the overhaul given that Quinn, the man unveiling it, has not been made permanent.

“Internally, expectations had built up in the run up to the strategy update that Quinn will be confirmed as the group CEO,” said a person with knowledge of the call.

“But the way the whole thing is being handled … it has created more confusion about the strategy and whether the bank will stick to it for the next three years even if there is a change at the top.”

HSBC’s shares dropped 6.6% on Tuesday to their lowest level in more than three years after the bank, which has struggled to keep pace with leaner and more focused rivals, said it would suspend buybacks for two years to pay for the restructuring.

Mr. Stevenson told employees that even if the markets didn’t have much conviction in the execution of the strategy, HSBC staff would have to rally behind management to see it through. HSBC declined to comment.

RELENTLESS
The London-headquartered bank, which makes 90% of its profit in Asia, is shrinking its investment bank, cutting 35,000 jobs and revamping its US and European businesses, to remove $4.5 billion in costs.

HSBC veteran Mr. Quinn is auditioning for the permanent role of CEO, which the bank said in August would be announced within six to 12 months.

“This is a significant restructuring which is being driven by an interim CEO who may not be the person that delivers it,” one of the bank’s 20 largest investors told Reuters, declining to be named in line with his firm’s media policy.

HSBC’s Hong Kong shares dropped 1.3% on Wednesday, while the London stock finished up 1.3%.

Against a backdrop of lower global growth and depressed interest rates, a second investor among HSBC’s 20 largest shareholders said he was disappointed the bank was running hard to stand still.

While withdrawing from investment banking businesses sounded like a good idea, analysts pointed out that exits were often expensive and complicated, and could lead to disposal losses greater than the $1.2 billion HSBC has set aside.

“They are having to do a lot of heavy lifting and all this restructuring just to hit the targets they had before. I know there might be disappointment among the workforce but I’m not sure management have much of a choice,” the investor said.

“I think once they do this, they are going to have to do it again. While this low interest rate environment persists, they will have to keep hacking away at the cost base. It’s going to be relentless.” — Reuters

When a clerk’s salary is bigger than his boss’s

I have been out of job for one year after I resigned my human resource (HR) job to put up a goto (rice porridge) business with my girlfriend. Now that the business is going on smoothly, I applied and was hired as an HR supervisor at a small hotel. I was given P30,000 monthly pay during my probationary period. My task is to be the alter ego of the Vice-President for HR which includes supervising four clerical assistants, including “A” who has been with the hotel for more than four years now. My “problem” started when I discovered that “A” is receiving P40,000 a month due to his seniority, many responsibilities and annual merit increases. Is this something that I should be constantly worried about? What can I do now? — Young Wine.

A young salesman walked up to the receptionist and asked to see the company’s sales manager. The receptionist asked the manager if he was willing to talk to the young salesman and was given the go-signal. Ushered into the office, the salesman said: “Sir, with your current economic status, I suppose you don’t want to buy any life insurance from me? Is that correct?”

“You’re right! I’m not interested and not impressed,” the sales manager replied.

As the salesman began to leave the manager’s office, he was called to stay. “Wait a minute. I want to talk to you.” The salesman sat down again, obviously nervous and confused. “I train salesmen like you,” said the manager. “You’re the worst I’ve seen in my career. You can’t sell like that unless you show a little confidence by accentuating the positive. Now that you’re new at this, I’ll help you out by signing up for a P3-million policy.”

After the manager had signed the contract, he said helpfully: “Young man, there’s one thing you’ll have to do to develop a few standard organized sales talks.” The young salesman smiled, then replied: “Thank you, Sir. But really, that’s my standard organized sales talk for sales managers like you.”

Having a “standard” policy when applied to salary issues will always become a touchy subject matter to talk about. In general, when salary issues like this are raised, people will give all kinds of reasons why they deserve more money than the rest. In your case, it becomes doubly necessary to evaluate how you can minimize, if not remove the salary difference.

FIVE STRATEGIES
Discussing the salary issue with your boss, in this case, the Vice-President for HR, requires good timing and a lot of diplomacy, combined with a good mix of technical competence and above-average work performance to back you up. In doing this, there are several tactics that you can resort to justify your quest for justice. These are:

One, do your best as if money is not important. Hit the ground running by giving your best shot in every situation, every step of the way. Don’t rock the boat. At least, not yet. Remember that whoever complains about salary is always in the weakest position. If you can prove your worth in less than three months, there’s a big chance you can get the right amount of pay before your six-month period is up. In the meantime, you must go beyond money matters. If you can do that, your desired salary will surely follow.

Two, review current salary standards to make pay competitive. This becomes necessary if and when you have a double-digit turnover rate. Hiring and replacing people are expensive. Therefore, your strategic move is to participate in, if not buy a salary survey that focuses on your industry — hotel and restaurant. This is an objective approach necessary to come up with an updated pay and perks package for everyone. Without an industry survey, it would be difficult for you to justify any review.

Three, update salary differences between job grade levels. This is related to number two above. As soon as you can get the latest facts and figures on salaries, you can devise a way to place the right price tag for the right job, while taking into consideration the average percentage difference between job levels, which could be as high of 25% to a low of 15%.

Erick Reyes, Vice-President for HR at Roxas Holdings says it could be 25%, while rewards management expert Oliver Requilman recommends 20%. On the other hand, newly-retired Jun Mendoza, former Senior Vice-President for HR at CTBC Bank, prescribes 15% between grade levels. This price range hopes to protect seniority, internal equity and other factors.

Four, establish a firm policy on “red circle” salaries. (bold ends) This means strict monitoring of the workers’ salary to flag those who have reached the maximum level of their pay bracket. Devise a way to correct this to avoid salary distortions. One approach is to “promote” these workers to the next job grade by giving them additional tasks, if not transfer them to other work assignments that could justify their pay.

Corollary to this, strengthen your “promotion from within” policy so that your case is never repeated. If there is one important strategy in people management, “promotion from within” can’t be ignored. But, just like other policies, there are certain exceptions to the general rule. Be careful of promoting people to their level of incompetence.

Last, ask your boss about his plan to correct the situation. As I’ve said earlier, timing is very important. At times, it could happen when you’ve hit a milestone that was not witnessed by your company. The average boss who knows how to recognize extraordinary performance would not hesitate to give the right amount of pay for the talent. Sometimes, it is the boss who would initiate the talk.

If that happens, grab the chance right away. Just be sure that you don’t act like Mister Greedy. Be thankful for what’s given to you even if you’re not happy. In due time, you’ll receive the right amount of money that you deserve.

ELBONOMICS: Whoever raises the issue of salary is always in a weak position.

 

Send anonymous questions to elbonomics@gmail.com or via https://reyelbo.consulting

DITO commercial launch set in March next year

DENNIS A. UY’S DITO Telecommunity Corp. clarified on Thursday that its commercial launch will happen in March next year.

Adel A. Tamano, DITO chief administrative officer, told reporters in a media conference in Taguig City on Thursday that its commercial launch will be in March 2021 as indicated in the company’s Certificate of Public Convenience and Necessity (CPCN).

“March 2021 is really the mandated date by the NTC (National Telecommunications Commission),” he said.

He said that what will happen in July this year is a “technical launch” required by the Department of Information and Communications Technology (DICT).

The NTC, he said, will audit DITO’s compliance with the government’s requirement to cover 37% of the population nationwide with 27 megabits per second (mbps) during the said “technical launch.”

Mr. Tamano also reiterated that DITO has enough resources for the July “technical launch”.”

A pre-commercial trial will begin in September, he said, adding that the commercial launch can also happen before March 2021.

For his part, DITO Chief Technology Officer Rodolfo D. Santiago said the company is “aiming to invest P150 billion this year.”

“There’s a possibility to spend less if we can improve efficiencies, which would also bring down costs for consumers,” he added.

Mr. Tamano said DITO has already drawn from the initial facility “worth $500 million through the Bank of China.”

Mr. Santiago said funding sources will be mainly foreign banks. He added that local banks could not meet the “enormity” of the investment requirements.

President Rodrigo R. Duterte formally awarded DITO’s CPCN in July last year.

If DITO fails to meet its commitments, its CPCN will be taken back by the government.

Mr. Tamano recently said in a statement: “As we have been assuring the public, we are on track to meet our year-one commitment to the government and to the Filipino people to provide world-class telecommunications services.” — Arjay L. Balinbin

How PSEi member stocks performed — February 20, 2020

Here’s a quick glance at how PSEi stocks fared on Thursday, February 20, 2020.

 

No plans to cut Angat dam water allocations

METRO MANILA’S water allocation will remain unchanged after Angat Dam levels approached the 200-meter level a few months before the dry season, the National Water Resources Board (NWRB) said.

Executive Director Sevillo D. David, Jr. said the capital’s main source of supply, Angat Dam, will have sufficient water to supply Metro Manila, avoiding a repeat of last year’s water crisis.

As of 6 a.m. Thursday, the water level at Angat Dam rose 0.11 meters to 202.50, according to the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA), or below the level considered “ideal” — 212 meters.

However, Mr. David added: “Expected talaga na bumaba ang water level ng Angat Dam kasi kaunti nalang ang ulan at dahil papalapit na ang summer months (The water level decline in Angat Dam is expected because of decreased rainfall with the approach of the dry season), Mr David told BusinessWorld in a phone interview.

He said there is no reason at the moment to adjust water allocations to the two private water concessionaires supplying Metro Manila.

Mr. David said that water allocations to the two water providers will remain at 42 cubic meters per second (CMS).

The capital’s two water suppliers, Maynilad Water Services, Inc. and Manila Water Co. Inc., are implementing the measures to mitigate the impact of reduced rainfall, he said.

Manila Water’s Corporate Communications Head Nestor Jeric T. Sevilla, Jr. said the company will undertake all efforts to prevent a repeat of the 2019 water shortage.

In an interview, Mr. Sevilla said Manila Water will reduce water pressure and selectively interrupt service during off peak hours.

He said the company, which services the east zone of Metro Manila is maximizing output from its Cardona Water Plant in Rizal, which provides 100 million liters of water a day, along with 35 deep wells that produce 44 million liters per day.

On the other hand, Maynilad Water Supply Operations Head Ronald C. Padua said ongoing rotational water interruptions will help avert the shortages experienced last year.

“Water levels usually go down during the summer months due to high demand caused by the heat,” Mr. Padua said in an interview.

Maynilad, the west zone provider, issued the schedule of rotational service interruptions on its social media accounts. Affected cities were Manila, Makati, Malabon, Muntinlupa, and Navotas. — Revin Mikhael D. Ochave

Release of over P80 billion from 2020 budget on hold, Budget dep’t confirms

THE Department of Budget and Management (DBM) said Thursday that the release of over P80 billion from the 2020 General Appropriations Act (GAA) will be withheld with the department cracking down on projects that do not conform to the government’s priorities.

The DBM’s statement is the latest development in the budget “insertion” saga dating back to late 2018, amid allegations that funds were diverted during the preparation process of the last two budgets.

The 2020 Budget was signed in early January, avoiding the four-month delay that accompanied the 2019 budget, after legislators allegedly “inserted” new items in the spending plan, later declared contrary to law by Malacañang in its veto message.

President Rodrigo R. Duterte did not formally veto any items in the 2020 budget, though the government may have pulled off an informal veto after the DBM attached release guidelines for many appropriations, subjecting non-priority items to additional review.

Senator Panfilo M. Lacson said Wednesday that he estimated that P84 billion was taken from the “Build, Build, Build” program for use by lawmakers in their “pet projects.”

The DBM has said it is withholding the release of these funds, adding: “government funds shall be made available only for projects which are implementation-ready for the year and aligned with government priorities.”

In a briefing Thursday, the President’s Spokesman Salvador S. Panelo said that the P84 billion will have to undergo proper processes before being released.

“There is a protocol for that. They have to pass through that,” he said.

DBM added that the P84 billion did not undergo the usual budget evaluation process prior to the passage of the budget legislation, and must fulfill documentary requirements and the concurrence of various government bodies.

The funding guidelines were released on Jan. 6, the same day Mr. Duterte signed the 2020 General Appropriations Act worth P4.1 trillion. — Gillian M. Cortez

Power industry warns of tight supply during dry months

THE National Grid Corp. of the Philippines (NGCP) and the Independent Electricity Market Operator of the Philippines, Inc. (IEMOP) separately raised concerns yesterday about power supply in May.

“The worst-case projections (are) not good,” NGCP Spokesperson Cynthia P. Alabanza told reporters in a briefing Thursday.

She said the “usage habits” in the Luzon, Visayas and Mindanao grids have been changing as observed by NGCP. Power demand in Luzon usually peaks in May, the hottest month of the year. During the day, demand is highest at 2 p.m., the hottest hour of the day.

This year, power demand is expected to peak at 12,285 megawatts (MW) in Luzon in May, 2,419 MW in Visayas also in May, and 2,278 MW in Mindanao in November, according to the NGCP. Thin electricity supply is expected between April to June even with an expected 700 MW capacity from new power plants.

The NGCP said the Luzon grid needs around 4% of peak demand or around 491 MW in regulating power to stabilize the grid. It also needs to maintain a reserve equivalent to the largest plant online, usually equivalent to 647 MW, as contingency power to support the grid in case of an emergency power plant shutdown.

Should the net operating margin fall below these numbers, NGCP issues a yellow alert. If the power supply falls below the system peak demand, it issues a red alert, which means rotating power interruptions may be implemented to protect the integrity of the power grid.

“Normally, Luzon and Visayas, which are interconnected, can help each other,” Ms. Alabanza said, referring to the two grids exporting power to each other because their power demand peaks at different hours of the day.

Visayas and Mindanao used to register peak power demand during the day at 7 p.m., and in November to December over the course of the year. The grids in Luzon and the Visayas are interconnected, while the Visayas are expected to be linked to Mindanao by year’s end.

However, Ms. Alabanza said heaviest usage in Cebu and Visayas has shifted towards the dry season, and at 2 p.m. during the day.

“Why is that of concern to NGCP? Because then nag-aagawan na sila (the grids are competing) for the same resources at the same time,” she said.

Separately, Robinson P. Descanzo, IEMOP chief operating officer and head of trading operations, said in a briefing Thursday that May and June could be the worst period for power supply this year.

He said after Easter, which this year falls on the second week of April, power supply will be “barely enough” to cover the requirements of the system. But in May to June, supply is expected to be insufficient to cover the system’s reserve requirement.

The deficiency could give rise to a new round of yellow and red alert notices during these months.

Mr. Descanzo said the worst-case scenario would be when power plants go on forced outage in May or June. He said if 1,200 MW is lost because of unscheduled shutdowns, the average electricity prices at the spot market could jump to as high as P5.50 per kilowatt-hour (kWh) in May and P6.00 per kWh in June.

The estimated increase compares with the low prices seen in January and February at P3.03 per kWh and P3.47 per kWh, respectively.

Ms. Alabanza said the deficiency “underlines the need for more investment in new power plants.” She said the fastest to be built are solar farms whose power supply is intermittent.

“The ones that are baseload tend to be longer in coming,” she said.

Mr. Descanzo only one big power plant is expected to come online this year — the first 668 MW unit of GNPower Dinginin Ltd. Co. in Bataan, which is set for launch in June.

“After Dinginin walang papasok na baseload na malalaki (After Diningin, no big baseload power plant will come online),” he said. — Victor V. Saulon

Customs bureau misses Jan. collection target

THE Bureau of Customs (BoC) said it missed its January tax collection target by 3.5% or P2 billion due in part to Lunar New Year falling during the month, with the result not yet reflecting the disruptions to global trade posed by the coronavirus outbreak.

BoC Assistant Commissioner and Spokesperson Vincent Philip C. Maronilla told BusinessWorld the bureau collected P56.107 billion last month, according to preliminary data, highlighting the 16% year-on-year gain.

“(January’s collection) is pretty good, considering na maaga ang Chinese new year (even when we factor in the early Chinese new year). Year-on-year, we’re about 16% (up), rough estimate (or even higher),” he said Tuesday.

BoC’s Mr. Maronilla said trade volume increased in January.

The global coronavirus outbreak originating in China spread alongside the peak Mainland travel period of Lunar New Year. The new year in 2020 fell on Jan. 25.

The coronavirus formally known as Covid-19, disrupted global supply chains after Beijing isolated whole communities and extended the holiday to contain the spread of the disease, leaving factories idle.

The Finance department has estimated that the number of shipping containers landed in the Philippines from China fell 62.15% year-on-year in the first half of February.

This year, the Bureau of Internal Revenue (BIR) is tasked to collect P2.576 trillion or 78% of the P3.3-trillion goal assigned to the two biggest tax collection agencies, while the BoC is tasked to collect the remaining P731.235 billion.

The BIR has also reported a decline in sales of businesses, especially hotels after occupancy rates plunged due to the outbreak.

BIR Deputy Commissioner for Operations Arnel S.D. Guballa has said the eruption of Taal Volcano also disrupted business operations for the region, which might result in lower tax yield.

Mr. Guballa said BIR’s regional offices are still assessing the potential impact on their collections, especially those from large taxpayers who are expected to provide more than P1.6 trillion of the its collection target for the year.

BIR and BoC collections make up the bulk of the country’s revenues, and are being counted on to fund the government’s P4.1 trillion spending plan this year. — Beatrice M. Laforga

NTC awaiting legal advice on ABS-CBN operations past March

THE Justice department will issue a legal opinion to the telecom regulator next week on whether ABS-CBN Corp. can operate after its franchise expires at the end of March.

Justice Secretary Menardo I. Guevarra said the National Telecommunications Commission (NTC) had asked the Department of Justice (DoJ) to render an opinion.

“The main question is whether or not ABS-CBN may continue operating after the lapse of the franchise period, pending action by the Congress on the franchise renewal bills,” he said.

“We got (the request on) Tuesday afternoon and we hope to reply by next week,” he added.

Twelve bills are pending at the House of Representatives and one at the Senate regarding the renewal of ABS-CBN’s franchise.

ABS-CBN is also facing quo waranto proceeding before the Supreme Court as requested by the Office of the Solicitor-General (OSG). The OSG is seeking the revocation of the legislative franchises of ABS-CBN and its unit ABS-CBN Convergence, Inc.

The OSG alleges that the network violated the constitutional ban on foreign ownership in media companies when it issued Philippine Depositary Receipts to foreign investors, as well as operating the pay-per-view KBO Channel without NTC approval.

ABS-CBN was given 10 days to comment on the petition.

The OSG also filed a motion Tuesday for the issuance of a gag order against the parties, prohibiting them from making statements on the merits of a pending case.

It noted that the network produced propaganda in support of franchise renewal which could be viewed as an attempt to influence the court’s ruling.

The high court gave the network five days to comment on the motion. — Vann Marlo M. Villegas

Airline industry seeks removal or reduction of travel tax

THE Air Carriers Association of the Philippines, Inc. (ACAP) is asking the government to eliminate or reduce the travel tax to help the tourism sector recover from the China coronavirus outbreak.

ACAP Executive Director and Vice-Chairman Roberto C.O. Lim made the proposal during a House committee hearing on Wednesday on the effects of the coronavirus epidemic, formally known as Covid-19, which originated in the Chinese city of Wuhan.

The official Twitter account of the House of Representatives quoted Mr. Lim as saying: “We are the only country in ASEAN (Association of Southeast Asian Nations) that imposes travel tax. P1,620 is a hefty fee. Its removal can spur travel demand.”

The House said Representative Rozzano Rufino B. Biazon of Muntinlupa asked ACAP to submit its “studies and recommendations” on the matter.

In a news conference at Malacañang Palace, Manila International Airport Authority (MIAA) General Manager Eddie V. Monreal confirmed Wednesday that the airline industry wrote the agency a letter seeking discounts on or the waiver of certain fees.

“Mayroon silang mga sinulat. Nagsulat sila sa amin at iyan po ay pinag-aaralan natin dahil hindi naman basta-basta puwede nating desisyunan outright. So mayroon kaming mga sulat na natatanggap requesting for those considerations pero wala pang desisyon na pormal kung ano ang magiging aksyon (They wrote my office, and we are studying their proposals, which I cannot rule on outright. There is no formal decision yet.),” Mr. Monreal said.

Tourism Secretary Bernadette Fatima T. Romulo-Puyat has estimated the Tourism industry’s lost business at P42.9 billion between February and April — including P16.8 billion this month, P14.11 billion in March and P11.98 billion in April.

ACAP has said it expects to issue about P3 billion worth of ticket refunds in the next two months after the Philippine travel ban on China, Hong Kong, Macau and Taiwan.

The government wants Filipinos to visit domestic destinations in the face of the decline in international tourism due to the outbreak.

President Rodrigo R. Duterte has said he will visit Boracay, Cebu, and Bohol.

The Tourism department estimated that foreign tourist arrivals in 2019 at 8.26 million, exceeding its 8.2 million target.

The government hopes to attract 9.2 million international visitors this year. — Arjay L. Balinbin

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