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Alex Eala makes W60 tournament debut in Bellinzona

ALEX EALA of the Philippines was to make her $60,000 tournament debut later on Tuesday at the W60 Bellinzona in Switzerland.

FILIPINO tennis ace Alex Eala was set to make her $60,000 tournament debut later on Tuesday at the W60 Bellinzona in Switzerland.

Ms. Eala, 15, was to face Margot Yerolymos of France in the opening round of the International Tennis Federation (ITF)-sanctioned event.

It will be the first $60,000 tournament in her young career, which has taken an impressive ascent early in 2021.

The Rafa Nadal Academy scholar and Globe ambassador was to enter the competition off her Women’s Tennis Association (WTA) Tournament debut two weeks ago at the Miami Open.

In Miami, Ms. Eala played in the qualifiers, but fell short against world no. 104 Viktória Kužmová of Slovakia (6-4, 4-6, 2-6).

Despite her early exit, Ms. Eala’s ascent in the WTA singles rankings continued as she is now ranked 715th in the world — a career high.

In Bellinzona, she qualified as a junior exempt being the third-ranked juniors player in the world.

Ms. Eala has racked up a 12-5 win loss slate in the WTA, while she holds a 17-9 overall record to include her matches in the ITF for the year.

She earned her first-ever singles title since turning professional when she ruled the opening leg of the Rafa Nadal Academy ITF World Tour in Mallorca, Spain, in January. Ms. Eala then followed it up with three consecutive quarterfinal appearances in her next three tournaments. — Michael Angelo S. Murillo

TNT event is ONE’s coming-out party in America, says Alvarez

VETERAN and champion fighter Eddie Alvarez will be featured in the main card of “ONE on TNT I” on April 8. — ONE CHAMPIONSHIP

By Michael Angelo S. Murillo, Senior Reporter

ONE Championship will make history this week as for the first time, its fights will be shown in the United States in prime time; a huge development for the Asian promotion, said veteran and champion fighter Eddie “The Underground King” Alvarez.

Beginning April 8, Thursday (Manila time), ONE rolls out its “ONE on TNT” series, a four-part weekly offering until April 29 that will have the promotion’s preliminary card digitally streamed exclusively on the Bleacher Report App and B/R Live followed by three main card fights televised exclusively on TNT.

The series kicks off with “ONE on TNT I” which will be bannered by the world flyweight championship fight between reigning champ Adriano Moraes of Brazil and challenger and mixed martial arts legend Demetrious “Mighty Mouse” Johnson; non-title bout between ONE flyweight muay thai world champion Rodtang “The Iron Man” Jitmuangnon and Jacob Smith of the United Kingdom; and the lightweight clash of Mr. Alvarez and Iuri Lapicus of Moldova.

Three Filipino fighters are set to see action in the fight series, namely, Lito Adiwang (“ONE on TNT II,” April 14), and Eduard “Landslide” Folayang and Stephen Loman (“ONE on TNT IV,” April 29). All three are fighting out of Baguio-based Team Lakay.

For American MMA legend Alvarez, a former champion in the Ultimate Fighting Championship and Bellator, ONE on American prime time is very significant for Asia’s largest sports media property and hardcore MMA fans in the US.

“I kinda feel that this is ONE’s coming-out party in America. I’m excited to be part of it. On April 7 (April 8), fans will see ONE Championship in a different light. And after they see what they see, I think there will be a new guy in town,” said Mr. Alvarez in the online media day for the event on Monday.

Mr. Alvarez went on to assure fight fans that ONE has put on much thought on the event and did everything needed to come out with an impressive offering.

Zeroing in on his fight with Mr. Lapicus, The Underground King said he is ready to get it going and he is confident of his chances.

“We have had an amazing camp, could not have asked for a better one. We’re on point and ready to go,” said Mr. Alvarez (30-7, one no-contest), who last fought in August 2019 and angling to add the ONE lightweight title to his list of achievements.

Looking to derail his push is Moldovan Lapicus (14-1), who fell short in his attempt to seize the lightweight title from champion Christian Lee in his last fight.

“ONE on TNT I” will be shown live in the country on ONE Sports and One Sports+ with an encore telecast on April 11, 12 a.m. on TV5.

A chance

It would be an understatement to argue that the Clippers’ signing of DeMarcus Cousins smacks of desperation. After all, the value of the fifth overall pick in the 2010 National Basketball Association draft is suspect at best. While he has four All-Star and two All-NBA berths to his name, three significant lower back injuries in the intervening seasons have all but eroded his otherwise-prodigious skill set. It’s why even the talent-challenged Rockets saw fit to cut him loose in the face of his depressed numbers through the first third of the 2020-21 campaign, and why he found himself hitherto hard-pressed to latch on to an employer.

To be sure, the risk the Clippers will incur in inking Cousins to a 10-day contract is minimal; at little cost, he will serve as insurance given the sidelining of starting slotman Serge Ibaka. Frontliner Ivica Zubac figures to continue using up the bulk of available minutes, but he adds to the depth chart and can be tapped as needed by head coach Tyronn Lue. Meanwhile, he’ll be spurred to exceed himself both on and off the court; it may well signify his last opportunity to snag a roster spot, with an assured ticket to the playoffs as a bonus should his stint pan out.

First things first, though, and for Cousins, it means being at his level best. He’s not exactly known for his decorum while burning rubber, but, by all accounts, he’s a positive presence in the locker room. The flipside, of course, is that moral support goes only so far, especially for organizations with valid reasons to cast a moist eye on the hardware. And, in this regard, he will be handicapped; his fate is not his to carve. There will be other, more pressing considerations. How, for instance, will the Clippers view him once Ibaka is given a clean bill of health?

For now, Cousins has what he has been trying to secure since he parted ways with the Rockets in February: a chance. He needs to temper his expectations, however. He wanted out of Clutch City because of a pointed refusal to play behind — and serve as mentor to — former journeyman Christian Wood; never mind his underwhelming stats. And, all things considered, his pride looks to get him going either way: It can spur him to appreciate the importance of professionalism, or it can move him to insist on an inflated view of self.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.

OFWs: Smugglers of faith and joy

(First of three parts)

With his inimitable sense of humor, Pope Francis called Overseas Filipino Workers (OFWs) in Rome, especially the women, as “smugglers of faith” in his homily during the celebration at the Vatican of the 500th Anniversary of Christianity in the Philippines on March 14. He thanked the Filipino community who attended the liturgical services commemorating the event for “the joy you bring to the whole world and to our Christian communities.” His Eminence Luis Antonio Cardinal Tagle, in his response to the Pope, gave statistical flesh to the complimentary words of the Supreme Pontiff of the Catholic Church: “We bring you the filial love of Filipinos in the 7,641 islands of our country. There are more than 10 million Filipino migrants living in almost 100 countries in the world. They are united with us this morning.” I was glad that, thanks to the EWTN TV network, I was one of those united with that small Filipino community who were lucky enough to be physically present in St. Peter’s Cathedral to listen to the Pope’s message.

Before I spell out the economic impact of the more than $30 billion of remittances annually sent by those over 10 million OFWs to their relatives in the Philippines, let me add some anecdotal evidence to support the words of both Pope Francis and Cardinal Tagle. During my recent two-year stay as a Visiting Professor of one of the leading business schools in the world, the IESE Business School in Barcelona, Spain, I had the occasion to travel extensively all over Europe and attest to the fact that Filipino migrant workers in key cities of Europe are indeed “smugglers of faith and joy” to vast numbers of Europeans, whether Roman Catholic or not. Whether they are in London, Paris, Stockholm, Helsinki, Madrid, Rome or Munich, Filipino Catholics among the OFWs are giving life once more to the many parishes in which they constitute a large majority of those who attend Mass on Sundays and even weekdays. More often than not, many of them are the ones who are active in choir singing and other services rendered by lay persons in their respective parishes. In fact, I was amused that during my time in Barcelona, there was a parish that was called the parish of San Agustin during weekdays but during the weekends, especially on Sundays, was referred to as either the Sto. Nino parish or San Lorenzo Ruiz parish. During road shows I had to conduct in Dubai, Qatar, and other cities in the Middle East, the very large presence of Filipino Catholics (together with Indian Catholics) was testimony to the contribution of Filipinos to keep the Catholic faith alive in these countries.

European Catholics are not the only ones who benefit from the attractive human qualities of most Filipino overseas workers. Together with some MBA students of the IESE Business School, I conducted an informal survey to find out some of the reasons why in many occupations that require personal interactions, Filipino workers are usually preferred to others of different nationalities. We found out that in addition to personal hygiene (Filipinos take a shower every day), one of the most appreciated traits of Filipinos is that they always have a “smiling face.” Our people are famous for their soft skills. This fact is even more evident during the ongoing pandemic. In countries where there are significant numbers of Filipino nurses and health workers, there have been top government officials and CEOs who have publicly praised our OFWs in these professions for the great service that they have rendered to the COVID-19 and other patients. It would not be an exaggeration to say that the health systems of a number of these countries would collapse if we were to pull out the Filipino doctors, nurses and other health workers from their respective hospitals, medical clinics, and nursing homes.

Also based on my years of residence in Barcelona and frequent travel to other European cities (I miss them now that all my “road shows” are conducted online), I would venture to say that the “smuggling of joy” is not limited to the health and wellness sector. Whether it is in the hospitality industry, retailing sector (the Dubai airport used to be like a district of Makati with the predominance of Filipino service workers), or in domestic services, the soft skills of Filipinos have contributed significantly to a bright and cheerful environment in many a European community. It is sad that we have recently lost a lot of points in the Gross National Happiness index because of the very inept and unpredictable manner by which some of our political leaders and government officials responded to the pandemic crisis (leading to the unemployment of 4.2 million workers and a worsening of our poverty incidence). I still think, however, that individually Filipinos are among the most hopeful and cheerful creatures in the world today. It would be interesting for some social scientists to conduct research on the role of migrant Filipino workers in putting Finland, Switzerland, and other European countries at the top of the Gross National Happiness index. I would bet my bottom dollar (which is expected to appreciate with the $1.2-trillion stimulus package of President Biden) that without their Filipino service workers, some of these European countries would not rank as high in the Happiness index.

One may ask, however, if our OFWs are doing much to cheer up people in their host countries all over the world (more recent estimates of the Commission of Filipinos Overseas put the number of host countries and territories closer to 200) what are they doing for their relatives and other loved ones whom they have left behind? We can find part of the answer in what happened to the economy in 2020. Because of the very long lockdowns imposed on consumers and business establishments, our GDP dropped by 9.5% for the whole year of 2020. There were doomsday projections like that of the World Bank that predicted that for the whole of 2020, remittances from OFWs would fall by 13%. But thanks to the generosity of these “smugglers of faith and joy,” the dollar remittances they sent home during 2020 dropped only by 0.8%. Without this assistance, many Filipinos at home would have been gloomier and more desperate than they were. We would have ranked even lower in the Happiness index.

There are reasons for even greater optimism for 2021 among those left behind by the OFWs. Despite my own projection that GDP will grow only 4% in 2021 (in contrast with the majority of forecasts that cite 6% or more), remittances for 2021 are seen to settle at $31 billion, up 4% at the least and at most by 7%, according to the multinational bank Morgan Stanley. In a February 2021 report, Morgan Stanley Research stated that the remittances for 2021 will be better than expected and would drive a recovery in household discretionary spending and support the current account to stay in a balanced position. These remittances will prop up the Philippine peso as well as domestic banking, consumer and property sectors.

Indeed, as Cardinal Tagle assured Pope Francis (whom he called “Lolo Kiko”), “By God’s mysterious design, the gift of faith we have received is now being shared by millions of Filipino migrants in different parts of the world. We have left our families, not to abandon them, but to care for them and their future. For love of them, we endure the sorrow of separation.” As we shall see in the subsequent parts of this series, the sorrow of separation is only one of the sufferings our OFWs have to bear to help their loved ones and the whole country survive, recover, and grow during and after the pandemic.

To be continued.

 

Bernardo M. Villegas has a Ph.D. in Economics from Harvard, is Professor Emeritus at the University of Asia and the Pacific, and a Visiting Professor at the IESE Business School in Barcelona, Spain. He was a member of the 1986 Constitutional Commission.

bernardo.villegas@uap.asia

Digitalization and the Private Sector as the force for recovery

VECTORJUICE-FREEPIK

The results that policymakers had hoped for when the Philippines was locked down in March 2020 to curb the spread of COVID-19 did not happen. A year after, the National Capital Region and the surrounding provinces of Bulacan, Cavite, Laguna, and Rizal have again been put under lockdown, with 11 hours curfews, the highest infection rates, and healthcare systems stressed to critical levels. In this scenario, the week-long enhanced community quarantine has been extended.

The economy went into recession as thousands of businesses had to either temporarily or permanently halt operations, and millions of people lost their jobs and experienced involuntary hunger. To date, the Philippine economy is yet to show significant signs of recovery at pace with its Southeast Asian neighbors and might take some time to catch up as the economy contracted by 9.5% in 2020, the worst in 73 years and the lowest in the region. Recent data from the Philippine Statistics Authority (PSA) show that the unemployment rate was recorded at 8.8% in February 2021 — slightly higher than the 8.7% the month earlier — but this still translated to 4.2 million unemployed Filipinos. As such, the country is projected to be the last to recover in the region.

Despite having the most prolonged and strictest lockdown in the world, the spread of the virus in the Philippines has not been contained, and recent data showed record highs of more than 10,000 cases. While other countries are successfully implementing their vaccination programs to recover more quickly, the Philippine government continues to rely on prolonged lockdowns and curfews and is still in a state of trial and error in implementing their COVID-19 response efforts, including vaccination. Haven’t policymakers learned any lessons?

Economic managers have recognized the need for digitalization to adapt and recover from this emergency situation. The National Economic and Development Authority (NEDA) recently published an updated Philippine Development Plan (PDP) 2017-2022, which now takes into consideration the socio-economic impacts of the COVID-19 pandemic. It seeks to build the foundation for a healthy and resilient Philippines through five key programs under the new normal: 1.) health system improvement; 2.) food security and resiliency; 3.) learning continuity; 4.) digital transformation; and, 5.) regional development through the Balik Probinsya, Bagong Pag-Asa Program.

A noteworthy aspect of these five programs is digital transformation, as mobility restrictions have forced people to work-from-home, buy essential goods online, do online transactions, and the like. This has given rise to an emerging business sector engaged in mobility as a service.

Another imminent force in the country’s recovery and development is characterized by the growing clamor for a dynamic leadership of the private sector. Just recently, the Stratbase ADR Institute held a virtual roundtable discussion entitled, “The Private Sector as the Reliable Partner for Economic Recovery.” Chairman Ambassador Albert del Rosario commended the tech savviness of Filipinos, which he said is a great potential for the country. Everyone quickly shifted from predominantly face-to-face manual mode of interactions towards a digitalized system of communications and transactions. And that, without the government having to advise them to. Almost as quickly, public and private institutions teamed together to adapt to a “new normal” and change their ways by stepping-up their initiatives for digital transformation in order to continue delivering their goods and services to their clients. “This crisis has unveiled a transformative potential that is actually achievable with existing technologies,” he said. 

“Technology is a powerful tool not just for communications and business processes, but just as important, in managing the risks to the environment. This is a realm wherein nimbleness, innovation, expertise, and mobility of resources is needed, attributes that are native to the developmental spirit of the private sector,” he added.

Ayala Corp. Chairman and CEO Jaime Augusto Zobel de Ayala elaborated, saying that “the strengths of the private sector — its resources, ingenuity, energy and performance management discipline — are crucial to augment the Government’s massive machinery; and even co-develop new ways to deliver critical aid and other forms of support to our stakeholders.

“I sincerely believe that the private sector is a force for growth and a force for good. And if we continue to put our collective resources and determination to task, we will be able to multiply the growth and the good that we contribute to nation-building,” Mr. Zobel said.

A pioneering intervention is the country’s biggest 5G Hackathon, launched by De La Salle University’s Animo Labs in cooperation with Globe Telecom. The ongoing competition will create opportunities for students and professionals to develop our own innovations in 5G technology to solve real life problems in Education, Health Care, Livelihood, Retail, Manufacturing, Logistics, E-Commerce, Disaster risk management, Sustainability, Asset and Resource Management, and Transportation.

Digital transformation and private sector participation will not only bolster pandemic responses but will, in turn, jointly facilitate improvements in the agenda espoused by the updated PDP 2017-2022, i.e., health system, food security and resiliency, learning community, and regional development, by providing jobs, income security, and investments. Additionally, such development plans will entail the holistic engagement of the different stakeholders of society and set forward the path to national recovery.

In the aspect of leadership, President Duterte and his administration should inspire the people’s confidence and behavior with good governance demonstrated through transparency, professionalism, and statesmanship that does not polarize and produces positive results. Otherwise, the high trust and approval ratings of President Duterte is merely a synthetic embellishment that cannot not hide a suffering country.

 

Victor Andres “Dindo” C. Manhit is the President of the Stratbase ADR Institute.

A culture of mediocrity

An outstanding classmate in college used to say “whatever is worth doing is worth doing well.” Truly, she adhered to her motto and topped the class. At the time, and even later, Singapore and Korea were backwoods countries, and the Philippines looked like the next candidate for getting into the First World.

Today, our grade school students are ranking at the bottom among almost a hundred tested countries in reading, science, and mathematics. Our government’s performance against the COVID-19 pandemic is pathetic compared to those of erstwhile less developed countries like Vietnam, Laos, and Cambodia, countries bordering China where the coronavirus originated. We have a police chief, the head of the law enforcement agency, violating pandemic protocols, being allowed to stay in office. A health secretary who has been exposed as having conflicts of interest as a government official doing business with the government while still in office. A Solicitor General maintaining million-peso retainers with government agencies which he is duty bound to monitor to ensure compliance with civil service ethics. And we have a president who openly behaves as a lackey of China, which should be considered our enemy, since they are brazenly taking over our internationally recognized territories. The work performance, moral, and ethical standards and compliance with the laws are rapidly going downhill.

How far down will they go? And are the trends reversible?

We cannot say it is genetic or racially determined because many Filipinos who migrate to more developed countries have demonstrated a capacity for excellence. The Biden government’s Administrator for USAID in the world is a Fil-American named Gloria Steele who graduated from Maryknoll College in Manila and Kansas State U. A successor to now Vice-President Kamala Harris and former California Governor Jerry Brown as the new attorney general for the state of California (which is bigger than the Philippines), Rob Bonta, is the son of Filipino immigrants to the United States who became farm worker activists with Cesar Chavez. One of the geniuses in the Silicon Valley IT industry, an inventor of microchips and other IT products, Dado Banatao, is the son of a farmer from La Union. If they had stayed here, not being from the landed, well-to-do Ilustrado or politically powerful classes, would they have achieved the remarkable success that they have attained?

When I was a child, to be a Japanese product meant “inferior quality.” Today, “made in Japan” means excellence. Akiro Morita of Sony, a physicist who set out to produce the best sound in the world, led by example. Today, even Korean products are catching up with their rival Japanese in producing superior cars and home appliances. South Korea was blessed to have had Park Chung Hee as a benevolent dictator who catapulted his country into a high performance economy. China will soon enough surpass these economies with their increasingly sophisticated industries, including those in the IT field. They were fortunate to have been led by “capitalist roader” Deng Xiaoping. Lee Kwan Yu’s Singapore has joined the first world. And formerly war-torn but victorious Vietnam, which defeated two of the most powerful countries in the world with their indomitable courage and determination to win, will soon overtake us economically. Their communist government, which is inspired by the leadership example of guerrilla leader and incorruptible President Ho Chi Minh, is host to many successful capitalist-oriented industries, including agribusinesses. Vietnam has overtaken us as the second biggest coffee producer next to Brazil in a very short time. They have been selling us rice for some time. We now import coffee from this country.

Why can’t we get our act together? When did this culture of “pwede na” and “okay lang” become the norm for what is acceptable? How did it happen? What can we do about it? Perhaps the attitude is that given the unfair and even hostile environment, “pwede na” has got to be good enough.

These issues must be raised as a challenge to our educators and leaders in politics, business, and civil society. What are we doing to our children? Are we challenging them enough? What are the standards we are setting for them, primarily by example? Our tribal people once made excellent fabrics, baskets, and trinkets. What happened to this culture of excellence? Are the performance standards fair and clear? Have we become too easy to please? Too tolerant of mediocrity?

We need to revitalize the idea of challenging our people to discover and value their true potential. The schools are one key environment for promoting a culture of excellence. The schools, from grade school all the way to graduate school, may have become too kind and tolerant or complacent these days.

It is not impossible. But we need to aim for it as a nation. Leadership does matter. We need to select leaders who will challenge us to be the best we can be. And who need to set an example. And who will ensure that the rules are clear and consistent. What we have today in all the branches of government — executive, legislative, judiciary and even the uniformed forces — are sad examples of mediocrity, even of shabby quality. Decisions and actions in these supposedly independent branches of government are based on second-guessing the thinking of the President who has a compulsive need to feel superior. And the national leadership, which seems to have seized more power than it is entitled to by law, has enabled crummy performance and unethical behavior to thrive, in return for blind loyalty.

The environment in our country, which tolerates too much mediocrity, does not enable excellence to thrive. So, no wonder the prevailing goal is to migrate to other countries where real effort and good performance is recognized and rewarded fairly. And one does not have to cater to the whims of undeserved power.

Even today, we can anticipate the legacy that the Duterte regime will leave behind. It is a culture of mediocrity. It will take fantastic will, determination, and inspired leadership by example and a miracle to reverse the trend.

 

Teresa S. Abesamis is a former professor at the Asian Institute of Management and Fellow of the Development Academy of the Philippines.

tsabesamis0114@yahoo.com

CREATE: a reformation of the corporate income tax and incentives system

To mitigate the dire financial and economic effects brought about by the COVID-19 pandemic, Congress enacted Republic Act No. 11534 otherwise known as the Corporate Recovery and Tax Incentives for Enterprises Act or CREATE.

CREATE, which was signed by the President on March 26 this year, improves the corporate tax system by lowering the rate, widening the tax base, and reducing tax distortions and leakages. Below are some of its notable provisions.

REGULAR CORPORATE INCOME TAX
CREATE lowered the regular corporate income tax (RCIT) for domestic and foreign corporations engaged in trade or business within the Philippines (resident foreign corporations) from 30% to 25% of taxable income effective July 1, 2020.

However, domestic corporations with net taxable income not exceeding P5 million and with total assets not exceeding P100 million, excluding land on which the particular business entity’s office, plant, and equipment are situated, shall be taxed at 20%.

The RCIT for foreign corporations not engaged in trade or business in the Philippines (non-resident foreign corporation) is also lowered from 30% to 25% of gross income effective Jan. 1, 2021.

Proprietary educational institutions and hospitals, except those whose gross income from unrelated trade, business or other activity exceeds 50% of the total gross income derived from all sources, shall pay a tax of 10% on their taxable income.

MINIMUM CORPORATE INCOME TAX
CREATE reduced the 2% minimum corporate income tax imposed on domestic and resident foreign corporations to 1% of gross income effective July 1, 2020 until June 30, 2023.

IMPROPERLY ACCUMULATED EARNINGS TAX
CREATE repealed the imposition of improperly accumulated earnings tax under Section 29 of the National Internal Revenue Code (NIRC).

REGIONAL OPERATING HEADQUARTERS
Regional operating headquarters (ROHQs) of resident foreign corporations shall pay a tax of 10% of their taxable income provided that effective Jan. 1, 2022, the ROHQs shall be subject to the RCIT of 25% of their taxable income.

INTERCORPORATE DIVIDENDS
Under CREATE, dividends received by a domestic corporation shall not be subject to tax. Foreign-sourced dividends are exempt from income tax provided that: a.) the funds from such dividends actually received or remitted into the Philippines are reinvested in the business operations of the domestic corporation in the Philippines within the next taxable year from the time the foreign-sourced dividends were received and shall be limited to funding the working capital requirements, capital expenditures, dividend payments, investment in domestic subsidiaries, and infrastructure project; b.) the domestic corporation must hold directly at least 20% of the outstanding shares of the foreign corporation; and c.) the domestic corporation must have held the shareholdings for a minimum of two years at the time of the dividends distribution.

TAX INCENTIVES
CREATE provides for tax incentives which may be granted to registered projects or activities. The Fiscal Incentives Review Board, or the Investment Promotion Agencies, under a delegated authority from the Fiscal Incentives Review Board, shall grant the appropriate tax incentives only to the extent of their approved registered project or activity under the Strategic Investment Priority Plan.

CREATE provides for the following tax incentives: a.) Income Tax Holiday (ITH); b.) Special Corporate Income Tax (SCIT); c.) Enhanced Deductions (ED); d.) Duty exemption on importation of capital equipment, raw materials, spare parts, or accessories; and, e.) Value-Added Tax (VAT) exemption on importation and VAT zero-rating on local purchases.

The ITH shall be followed by the SCIT or ED. ED cannot be granted simultaneously with the SCIT.

At the option of the export enterprise, the domestic market enterprises with a minimum investment capital of P500 million and domestic market enterprise under the Strategic Investment Priority Plan engaged in activities that are classified as critical, the SCIT rate of 5% based on gross income in lieu of all national and local taxes or ED shall be granted.

Domestic market enterprises under the Strategic Investment Priority Plan engaged in activities that are classified as critical shall refer to those enterprises belonging to industries identified by the National Economic Development Authority to be crucial to national development.

The duty exemption is applicable only to importation of capital equipment, raw materials, spare parts, or accessories directly and exclusively used in the registered project or activity by registered business enterprises.

The VAT exemption on importation and VAT zero-rating on local purchases shall only apply to goods and services directly and exclusively used in the registered project or activity by a registered business enterprise.

The grant and availment of the foregoing incentives are subject to the conditions and periods laid down under and Sections 295 and 296 of the NIRC as amended by CREATE.

This article is for informational and educational purposes only. It is not offered as and does not constitute legal advice or legal opinion.

 

Zyra G. Montefolca is an Associate of the Davao Branch of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW).

zgmontefolca@accralaw.com

New IMF reserves could fund vaccinations for low-, middle-income countries — report

WASHINGTON — Moves to bolster the IMF’s emergency reserves could provide the $44 billion needed to vaccinate 70% of the population in lower- and middle-income countries by the end of 2022, at no added cost to rich countries, a new Rockefeller Foundation report finds.

Finance officials from the Group of 20 major economies are expected to back a $650 billion new allocation of the International Monetary Fund’s (IMF) Special Drawing Rights (SDR) this week to help countries cope with the pandemic and its economic fallout.

Vaccination rates and economic development are diverging widely across the globe, according to the IMF and other experts.

The Rockefeller report, to be released Tuesday, said rich countries could reallocate their new SDRs to quickly close the funding gap and get more people vaccinated around the world, preventing virus mutations that could stall a global recovery.

The World Bank estimates that Africa alone would need about $12 billion for COVID-19 vaccines to attain sufficient levels of inoculations to interrupt virus transmission, according to a new paper by the bank and the IMF.

The paper, published Monday, argued for an extension of the Group of 20’s debt service moratorium through yearend, citing the continued high liquidity needs of developing countries and their deteriorating debt sustainability outlooks.

But it said additional resources would be needed, noting that the amount of money Africa needed was about the same as the total amount of official debt service payments already deferred by 45 of the poorest countries participating in the G20’s Debt Service Suspension Initiative (DSSI).

The Rockefeller report noted that high- and upper middle-income countries accounted for 86% of COVID-19 shots administered worldwide as of the end of March. It said advanced economies should aim to reallocate at least $100 billion in SDRs to fund the vaccination drive and other measures needed to help poor and middle-income countries.

Donor countries could pledge new SDRs to the IMF’s Poverty Reduction and Growth Trust, which provides loans to 63 low-income countries, but could also provide them to 16 approved institutions, including the World Bank, which could make them more widely available via low- or no-interest loans.

Another option would be for those institutions to use re-allocated SDRs to back the issuance of bonds earmarked specifically for pandemic response and the vaccination drive, the report said.  Reuters

Starbucks to end disposable cup use in Korea by 2025

STARBUCKS CORP. plans to eliminate disposable cups from its cafes across South Korea by 2025, the first such measure in a major market by the coffee giant, as it seeks to curb landfill waste and cut its carbon footprint.

The Seattle-based chain will launch a “cup circularity” program in South Korea, starting July, as it begins tackling its global refuse, which accounted for about 9% of its 16 million-ton carbon footprint in 2018. Under the program, customers will be served beverages in reusable cups that require a “small deposit,” which is refunded on return to contactless kiosks, the company said in a statement Tuesday.

South Korea, which has pledged to zero out planet-warming gases by 2050, revised a set of laws in February further limiting the use of plastic and other disposable items from retailers, food-delivery services and hotels. The revision came after the Asian nation imposed a ban on the use of plastic cups for in-store customers at all cafes in 2018.

The Starbucks move is a shift after global retail giants put sustainability efforts into reverse last year amid health concerns due to the coronavirus, undermining years of work by governments and environmentalists to wean consumers off single-use plastics.

Starbucks, which last year temporarily suspended reusable cups over fears of transmission, will allow customers in South Korea to bring their own tumblers again, the statement said. The country is the coffee chain’s fifth-biggest market with more than 1,500 stores and it plans to expand its current workforce there about 30% by adding more than 5,500 new jobs with a focus on young graduates, elderly citizens and people with disabilities by 2025.

Under the founder and former Chief Executive Officer Howard Schultz, Starbucks focused on sustainability including by purchasing renewable energy and giving discounts to customers who brought their own tumblers. — Bloomberg

Indian states seek widening of vaccinations amid 2nd wave

NEW DELHI — Many Indian state leaders have asked Prime Minister Narendra Modi to open up vaccinations to most of the country’s hundreds of millions of adults, following a second surge in infections that has eclipsed the first wave.

India breached the grim milestone of 100,000 daily infections for the first time on Monday, and cases are likely to stay high again when fresh figures are released later on Tuesday.

The country, the world’s biggest vaccine maker, this month expanded its vaccination programme to include everyone above the age of 45. So far it has vaccinated only about 1 in 25 people, compared with nearly 1 in 2 in the United Kingdom and 1 in 3 in the United States.

“If a larger number of young and working population is vaccinated, the intensity of the cases would be much lower than the treatment that they need today,” Uddhav Thackeray, chief minister of India’s worst affected Maharashtra state, wrote in a letter to Mr. Modi late on Monday.

Delhi Chief Minister Arvind Kejriwal and many other states have also asked for faster and wider vaccinations, with some flagging tightness in vaccine supplies even for the prioritized groups.

The federal government has said it will widen the vaccination campaign in the “near future” to include more people, and that vaccine supplies are being stepped up.

With 12.6 million cases, India is the worst affected country after the United States and Brazil. Deaths have gone past the 165,000 mark.

The country’s daily infections have risen many fold since hitting a multi-month low in early February, when authorities eased most restrictions and people largely stopped wearing masks and following social distancing.

India has recorded the most number of infections in the past week anywhere in the world. More infectious variants of the virus may have played a role in the second surge, some epidemiologists say. — Reuters

The need for global ‘maximum suppression’

New COVID variants have changed the game, vaccines will not be enough

At the end of 2020, there was a strong hope that high levels of vaccination would see humanity finally gain the upper hand over SARS-CoV-2, the virus that causes coronavirus disease 2019 COVID-19. In an ideal scenario, the virus would then be contained at very low levels without further societal disruption or significant numbers of deaths.

But since then, new “variants of concern” have emerged and spread worldwide, putting current pandemic control efforts, including vaccination, at risk of being derailed.

Put simply, the game has changed, and a successful global rollout of current vaccines by itself is no longer a guarantee of victory.

No one is truly safe from COVID-19 until everyone is safe. We are in a race against time to get global transmission rates low enough to prevent the emergence and spread of new variants. The danger is that variants will arise that can overcome the immunity conferred by vaccinations or prior infection.

What’s more, many countries lack the capacity to track emerging variants via genomic surveillance. This means the situation may be even more serious than it appears.

As members of the Lancet COVID-19 Commission Taskforce on Public Health, we call for urgent action in response to the new variants. These new variants mean we cannot rely on the vaccines alone to provide protection but must maintain strong public health measures to reduce the risk from these variants. At the same time, we need to accelerate the vaccine program in all countries in an equitable way.

Together, these strategies will deliver “maximum suppression” of the virus.

Genetic mutations of viruses like SARS-CoV-2 emerge frequently, but some variants are labelled “variants of concern”, because they can reinfect people who have had a previous infection or vaccination, or are more transmissible or can lead to more severe disease.

There are currently at least three documented SARS-CoV-2 variants of concern:

  • B.1.351, first reported in South Africa in December 2020
  • B.1.1.7, first reported in the United Kingdom in December 2020
  • P.1, first identified in Japan among travellers from Brazil in January 2021.

Similar mutations are arising in different countries simultaneously, meaning not even border controls and high vaccination rates can necessarily protect countries from home-grown variants, including variants of concern, where there is substantial community transmission.

If there are high transmission levels, and hence extensive replication of SARS-CoV-2, anywhere in the world, more variants of concern will inevitably arise and the more infectious variants will dominate. With international mobility, these variants will spread.

South Africa’s experience suggests that past infection with SARS-CoV-2 offers only partial protection against the B.1.351 variant, and it is about 50% more transmissible than pre-existing variants. The B.1.351 variant has already been detected in at least 48 countries as of March 2021.

The impact of the new variants on the effectiveness of vaccines is still not clear. Recent real-world evidence from the UK suggests both the Pfizer and AstraZeneca vaccines provide significant protection against severe disease and hospitalizations from the B.1.1.7 variant.

On the other hand, the B.1.351 variant seems to reduce the efficacy of the AstraZeneca vaccine against mild to moderate illness. We do not yet have clear evidence on whether it also reduces effectiveness against severe disease.

For these reasons, reducing community transmission is vital. No single action is sufficient to prevent the virus’s spread; we must maintain strong public health measures in tandem with vaccination programs in every country.

Each time the virus replicates, there is an opportunity for a mutation to occur. And as we are already seeing around the world, some of the resulting variants risk eroding the effectiveness of vaccines.

That’s why we have called for a global strategy of “maximum suppression.”

Public health leaders should focus on efforts that maximally suppress viral infection rates, thus helping to prevent the emergence of mutations that can become new variants of concern.

Prompt vaccine rollouts alone will not be enough to achieve this; continued public health measures, such as face masks and physical distancing, will be vital too. Ventilation of indoor spaces is important, some of which is under people’s control, some of which will require adjustments to buildings.

Global equity in vaccine access is vital too. High-income countries should support multilateral mechanisms such as the COVAX facility, donate excess vaccines to low- and middle-income countries, and support increased vaccine production.

However, to prevent the emergence of viral variants of concern, it may be necessary to prioritize countries or regions with the highest disease prevalence and transmission levels, where the risk of such variants emerging is greatest.

Those with control over healthcare resources, services, and systems should ensure support is available for health professionals to manage increased hospitalizations over shorter periods during surges without reducing care for non-COVID-19 patients.

Health systems must be better prepared against future variants. Suppression efforts should be accompanied by:

  • genomic surveillance programs to identify and quickly characterize emerging variants in as many countries as possible around the world
  • rapid large-scale “second-generation” vaccine programs and increased production capacity that can support equity in vaccine distribution
  • studies of vaccine effectiveness on existing and new variants of concern
  • adapting public health measures (such as double masking) and re-committing to health system arrangements (such as ensuring personal protective equipment for health staff)
  • behavioral, environmental, social, and systems interventions, such as enabling ventilation, distancing between people, and an effective find, test, trace, isolate and support system.

COVID-19 variants of concern have changed the game. We need to recognize and act on this if we as a global society are to avoid future waves of infections, yet more lockdowns and restrictions, and avoidable illness and death.

 

Susan Michie is Professor of Health Psychology and Director of the UCL Centre for Behaviour Change at University College London.

Chris Bullen is Professor of Public Health at the University of Auckland.

Jeffrey V. Lazarus is Associate Research Professor at Barcelona Institute for Global Health (ISGlobal).

John N. Lavis is Professor and Canada Research Chair in Evidence-Informed Health Systems at McMaster University.

John Thwaites John Thwaites is Chair of the Monash Sustainable Development Institute & ClimateWorks Australia at Monash University.

Liam Smith is Director of BehaviourWorks, Monash Sustainable Development Institute, at Monash University.

Salim Abdool Karim is Director of the Centre for the AIDS Program of Research in South Africa (CAPRISA).

Yanis Ben Amor is Assistant Professor of Global Health and Microbiological Sciences, Executive Director – Center for Sustainable Development (Earth Institute) at Columbia University.

‘Stay out of politics,’ Republican leader McConnell tells U.S. CEOs, warns of ‘consequences’

WASHINGTON – U.S. Senate Republican Leader Mitch McConnell lashed out at corporate America on Monday, warning CEOs to stay out of the debate over a new voting law in Georgia that has been criticized as restricting votes among minorities and the poor.

In a sign of a growing rift in the decades-old alliance between the conservative party and U.S. corporations, McConnell said: “My advice to the corporate CEOs of America is to stay out of politics. Don’t pick sides in these big fights.”

McConnell warned companies there could be risks for turning on the party, but he did not elaborate.

“Corporations will invite serious consequences if they become a vehicle for far-left mobs to hijack our country from outside the constitutional order,” McConnell told a news conference in his home state of Kentucky.

Big business ties with Republicans began fraying under former President Donald Trump’s leadership and the party’s focus on voting restrictions has soured businesses embracing diversity as key to their work force and customer base.

Major Georgia employers Coca-Cola and Delta Air Lines have spoken out against the law signed by Governor Brian Kemp, and Major League Baseball pulled the 2021 All-Star Game out of the state over the law strengthening identification requirements for absentee ballots and making it a crime to offer food or water to voters waiting in line.

“I found it completely discouraging to find a bunch of corporate CEOs getting in the middle of politics,” McConnell said.

Trump spent months after losing his re-election bid falsely claiming that his defeat was the result of widespread fraud. He failed in dozens of legal challenges. Nonetheless, lawmakers in 47 states this year have introduced 361 bills imposing new restrictions on voting, according to the Brennan Center for Justice.

The Georgia law brought a backlash from some U.S. companies with strong ties to the state.

Coca-Cola Co Chief Executive James Quincey called the law “unacceptable” and a “step backwards.” Delta Air Lines CEO Ed Bastian said: “The entire rationale for this bill was based on a lie: that there was widespread voter fraud in Georgia in the 2020 election.”

Independent reviews have repeatedly shown that voter fraud is rare in the United States, and state and federal probes found no evidence of widespread fraud in the 2020 election which the Republican Trump lost to Democrat Joe Biden.

Corporate America has long thrown its political muscle behind Republican candidates and office-holders, often funneling more campaign contributions to conservative candidates than Democratic ones. – Reuters