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BDO raises $600M from dollar bond offer

BDO Unibank, Inc. saw strong demand for its latest offshore issuance, allowing it to raise $600 million via the fixed rate notes to fund the bank’s dollar-denominated projects.

BDO said in a filing with the local bourse on Tuesday that it issued $600 million in long-term dollar-denominated notes from total orders worth $2.9 billion, or nearly five times the offered amount.

The debt notes have a tenor of 5.5 years and a coupon rate of 2.125% per annum. Moody’s Investors Service gave the issue a rating of Baa2.

“The senior note issue is part of the bank’s liability management initiatives to tap longer-term funding sources to support dollar-denominated projects,” the statement read.

BDO’s issuance was part of its $5-billion euro medium-term note program.

The notes will be listed on Singapore Exchange Securities Trading Ltd.

Standard Chartered Bank served as sole global coordinator for the issuance, while Standard Chartered Bank and Merrill Lynch (Singapore) Pte. Ltd. were the joint bookrunners and lead managers for the transaction.

The issuance came just a week after the Sy-led lender raised P36 billion on Friday via 1.75-year peso-denominated bonds. The debt papers fetched a coupon of 3.125%

In January, BDO also raised P40.1 billion from 2.5-year bonds, higher than the initial P5-billion offer due to strong demand.

The Sy-led bank’s net income dropped 10.2% in the first quarter from a year ago to P8.8 billion on weak market conditions.

Shares in BDO closed at P98 apiece on Tuesday, up 0.51% or by 50 centavos from Tuesday’s close of P99.30 each. — BML

Protecting your employees at a time of great uncertainty

In the wake of the coronavirus disease (COVID-19) pandemic, many Filipinos have their minds awash with fear and worry. Not only are they worried about their own health and their families’, they are also uncertain about the future of their income. The Department of Labor and Employment has predicted in a Senate hearing in May that an estimated 10 million Filipinos will lose their jobs this year due to the COVID-19 pandemic.

This kind of fear and uncertainty is unhealthy for any business that is already struggling to survive in the crisis. Low morale can hurt productivity and inevitably lead to further losses in revenues and sales, not to mention the very human impact that hopelessness can wreak in the workplace.

Taking care of employees is important

One way that businesses can care for and show their support to their employees during this time is by giving them additional medical benefits through a group life insurance. People are worried about their health, so aside from ensuring the safety and cleanliness of their workplace, company leaders can further lessen the burden on employees through benefits.

“If we relate it to our situation now, studies undertaken by reputable organizations have shown that getting sick can really drain a person’s resources,” Ging De Venecia of Sun Life Philippines’ Head for Group Life and Employee Marketing said.

“If that happens to an employee, not only will the employee’s family life be affected, but the employer as well because the staff’s productivity takes a toll.”

Ms. De Venecia added that for companies, a protection benefit, whether it’s for life insurance or critical illness, is one of the least expensive packages an organization can give to their employees, yet it is the ones that provides the most substantial returns.

“While it may be viewed as the least costly form of benefit, the impact to the organization is significant. It builds up loyalty and can lead to high employee morale and productivity,” she added. 

What is group life insurance?

Group life insurance is a single contract which provides life insurance coverage to a group of people. This type of insurance is offered mainly by organizations and companies to their members or employees. It’s one way for employers to protect their employees and members by creating a unique benefits package that can fit the needs of the business or organization.

Prioritizing health and safety 

Currently, health and safety have become the foremost concern in Filipinos’ minds in the wake of the COVID-19 pandemic. Recognizing this, Sun Life of Canada (Philippines), Inc. (Sun Life), the first and longest-standing life insurance provider in the country, recently launched its Group Life Insurance Critical Illness Benefit Rider. 

The benefit rider, one of the most comprehensive in the market today, would act as a supplementary benefit to the Sun Life Group Yearly Renewable Term Life base plan. It will provide a guaranteed lump cash benefit upon first diagnosis of any of the 36 covered critical illnesses, provided that such diagnosis happened 90 days after the employee’s coverage is in effect and is alive within 15 days after such diagnosis.

This means that employees who suddenly get diagnosed with critical illnesses such as invasive cancer, stroke, or even disabilities such as total blindness and paralysis can expect their insurance provider to pay a fixed and lump sum cash benefit that they can use for their treatment, on top of any existing medical coverage.

For companies with existing medical coverage, the Group Critical Illness Benefit Rider can act as a second layer of protection, providing a high amount of benefits yet budget-friendly. 

“Health and safety are some of the main considerations that employees would be looking at. Having this type of benefit would help put an employee’s mind at ease knowing that his employer cares for him and his family,” Ms. De Venecia said.

“On the part of Sun Life, it is our thrust to look into what our clients needs and we do our best to respond. The launch of this health coverage solution is our way of telling the general public that we are listening and we’re here to provide,” she added.

For more details on Sun Life Philippines’ Group Life Insurance, you may check out www.sunlife.com.ph or you may send inquires through email: GroupLife_Sales@sunlife.com.

Arts & Leisure (07/08/20)

Illustration, writing workshops

THE Filipinas Heritage Library will be holding workshops on illustration and writing later this month. The workshops are done along with the US Embassy and Adarna House as part of Liberation: War & Hope, a series of events in commemoration of the 75th anniversary of the end of World War II. The Basics of Character Designing, an illustration workshop with Marcus Nada, will be held on July 17, 9 a.m. to noon, via Zoom. It is open to students ages 13 and above with intermediate skills. Go to bit.ly/FHLXADARNACharacterDesignWorkshop to register. Meanwhile, Writing from Your Memories, a beginners writing workshop with Maya Calica Collins, will be held on July 18, 2-4 p.m. Open to women ages 16 and above. The workshop is a space for women to freely share their stories. It is part of the online efforts connected to the online exhibit War Through the Eyes of the Child. Register at bit.ly/FHLWomenOnlyWritingWorkshop. There are only limited slots available for the workshops which are free. Meanwhile, War & Children in Books: E-Storytelling and Q&A will be held on June 19. The Q&A will feature facilitators Marcus Nada and Maya Calica Collins on the conceptualization and process of illustrating and writingbooks for children about the war. For inquiries, e-mail asklibrarian@filipinaslibrary.org.ph. The virtual exhibit is at https://artsandculture.google.com/exhibit/war-through-the-eyes-of-the-child/LwJyQdqPZcY7JA.

The Met holds Zoom seminar

The Metropolitan Museum of Manila presents Cues from the Times: Arts & Crisis, a Zoom seminar, on July 8, 4 p.m. Speakers are curator Patrick Flores and artists Yason Banal and Mark Salvatus. This is a timely conversation with artists on how art has consistently reflected on and responded to crisis over time. Flores draws insights from the works of nine contemporary Filipino artists in the ongoing exhibition Cue from Life Itself: Filipino Artists Transform the Everyday, which opened last February at the Metropolitan Museum of Manila and was temporarily closed due to the Enhanced Community Quarantine. This webinar is organized by the Metropolitan Museum of Manila and facilitated by Alliance of Greater Manila Area Museums for its Museum Online Talk Series, with the support of Philippine Arts in Venice Biennale, National Commission for Culture and the Arts, and the Office of Deputy Speaker and Congresswoman Loren Legarda. The event will be hosted on Zoom and broadcast live on Facebook.

CCP grounds open to recreational visitors

AS Metro Manila gradually opens up under the GCQ and life begins under the new normal, the Cultural Center of the Philippines welcomes back visitors to its outdoor spaces. The CCP grounds are open for jogging, exercising and other physical wellness activities. Visitors are requested to practice social distancing, wear face masks and face shields for their own protection as well as everyone else. The use of the CCP Front Lawn will be limited to only 30 people at a time while the CCP Ramp will be closed. For many years, the CCP Complex has provided residents of Manila and Pasay with the freedom and enjoyment the outdoors have to offer. On a seasonal basis, the CCP continues to present visitors with outdoor art installations, cultural programs with open-air performances and light and sound shows on its facade. The CCP Complex, although not officially a park, has always been a place for people to play and spend time with family.

Silverlens holds exhibits at the gallery

SILVERLENS presents, Try Pushing a Big Tree, bringing together works by Dina Gadia, Lou Lim, Jonathan Ching, Mariano Ching, and Mark Andy Garcia. In the gallery’s front room, these pieces tackle the perennial issue of man against nature, outlining man’s hubris towards the natural world. Try Pushing a Big Tree is on view onsite alongside Sustainable Anxiety by Pow Martinez, and Little Blue Window by Corinne de San Jose through July 24. While the physical space is open, gallery visits are strictly by appointment only to prevent the spread of COVID-19. In line with the city’s guidelines for social distancing, no walk-ins will be accepted. Gallery visits are limited and by appointment only, from Tuesday to Saturday, 10 a.m. to 4 p.m. Upon entering the compound, security guards will take the visitor’s temperature and they will be asked to fill out a health inspection form. Hand sanitizer will be provided, and high-touch surfaces will be cleaned following each visit. All visitors are required to wear masks. The gallery is located at 2263 Don Chino Roces Ave. Extension, Makati City. For more information, contact info@silverlensgalleries.com or call 0917-587-4011.

How PSEi member stocks performed — July 7, 2020

Here’s a quick glance at how PSEi stocks fared on Tuesday, July 7, 2020.

Peso retreats as inflation picks up in June

THE peso weakened versus the greenback on Tuesday after data showed a faster-than-expected rise in consumer prices in June.

The local unit closed at P49.54 against the dollar on Tuesday, depreciating by 15.9 centavos from its P49.381 finish on Monday, data from the Bankers Association of the Philippines showed.

The peso opened the session at P49.35 per dollar. Its weakest showing was at P49.55 while its intraday best was at P49.30 against the greenback.

Dollars traded surged to $1.092 billion from the $609.77 million on Monday.

The peso dropped due to inflation data released yesterday, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

“The peso closed weaker, largely brought about by the higher than expected inflation data,” he said in a text message.

The Philippine Statistics Authority on Tuesday reported that headline inflation in June stood at 2.5%, slower than the 2.7% seen in the same month last year but quicker than the 2.1% seen in May. The pickup was due to higher food, fuel and transport prices.

The 2.5% June print is also faster than the 2.1% median estimate in BusinessWorld’s poll of 16 economists last week.

Meanwhile, a trader attributed the peso’s depreciation to profit-taking.

“The local currency weakened from dollar bargain-hunting by market participants following the appreciating trend of the peso in the past few days,” the trader said in an email.

For Wednesday, Mr. Ricafort and the trader expect the local unit to move around the P49.40 to P49.60 levels versus the dollar. — LWTN

Stocks sink further as virus tally continues to rise

By Denise A. Valdez, Reporter

SHARES continued to decline on Tuesday due to sustained worries over the thousands of new coronavirus disease 2019 (COVID-19) cases reported in the Philippines.

The bellwether Philippine Stock Exchange index (PSEi) lost 61.01 points or 0.96% to end at 6,267.40, while the broader all shares index shed 24.34 points or 0.65% to close at 3,677.83.

“The market trading today is somehow giving us a hint that the investors are not quite optimistic on the market given the current situation, fears of Metro Manila going back to stricter quarantine measures and uncertainties in US,” Philstocks Financial, Inc. Research Associate Piper Chaucer E. Tan said in a text message on Tuesday.

The Philippines reported 2,099 new COVID-19 cases on Monday, pushing the country’s total tally to 46,333 cases, where 32,845 are still active. The virus has killed 1,303 so far, while 12,185 were able to recover.

But quarantine measures in Metro Manila remain relaxed, worrying investors that the number of COVID-19 cases may keep growing, making it difficult to return to normal operations. For example, the Metro Rail Transit Line 3, which ferries passengers along EDSA to central business districts, has suspended operations starting Tuesday because of the hundreds of COVID-19 cases among its staff.

Across the world, the virus has already infected 11.62 million people as of Tuesday and some 538,079 have died.

“Local shares traded lower at close as investors couldn’t shake off a continued rise in coronavirus cases and inflation came out much higher than expected for June,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.

The government reported on Tuesday that inflation picked up to 2.5% in June from 2.1% in May, but lower than the 2.7% seen in the same month in 2019. The turnout is higher than the median estimate of 2.2% in BusinessWorld’s poll of economists.

Higher inflation was attributed to the easing of lockdowns during the month, which drove up the prices of widely used goods.

The market closed with four sectoral indices posting declines. Property dropped 70.47 points or 2.24% to 3,070.28; services fell 18.68 points or 1.28% to 1,432.39; industrials slid 71.72 points or 0.90% to 7,858.27; and holding firms shed 13.71 points or 0.21% to 6,518.82.

The gainers were mining and oil, which added 14.32 points or 0.26% to 5,473.23, and financials, which climbed 2.18 points or 0.17% to 1,241.89 at the end of the session.

Value turnover on Tuesday stood at P7.59 billion with 1.48 billion issues switching hands, up from the previous day’s 6.15 billion with 1.07 billion issues.

Advancers narrowly outnumbered decliners, 99 against 96, while 47 names ended unchanged.

Foreign investors remained sellers, with net outflows growing to P2.51 billion from P745.45 million the previous day.

PEZA expecting to approve P2B in new investments

THE Philippine Economic Zone Authority (PEZA) is estimating approvals of P2 billion worth of investments at its board meeting on Friday, after its June meeting was postponed following health care risks at its offices.

The 27 projects up for approval will generate an estimated 3,694 jobs.

Approved investments fell nearly 32% to P29.5 billion in the first five months.

PEZA has yet to release complete data on total approvals for the first half of 2020.

The investment promotion agency’s June meeting was postponed after employees at its shared facility tested positive for coronavirus disease 2019 (COVID-19).

PEZA Director General Charito B. Plaza said in a news conference Tuesday that she remains optimistic about investment opportunities for the rest of the year.

“In fact, we will be doing continuous virtual investor forums. We have now arranged for investor forums in various countries with the help of our commercial attachés,” she said, adding that foreign investors consider the Philippines’ shortcomings to include the cost of doing business and poor information technology infrastructure.

Ms. Plaza said that some service providers have recently canceled their PEZA registration.

“These are minor industries but the very reason they are cancelling their registration with PEZA is because they lost their buyers,” she said, adding that lack of raw materials were also a factor in the cancellations.

She said these companies are facility and service providers employing fewer than 1,000 workers.

“We are closely monitoring… ang kinakatakutan ko (what I fear) is with the world recession, there might be export companies who will consolidate their resources so that they have to stop or close their other branches and concentrate their resources in countries which are investor-friendly, where the cost of doing business is low,” she said.

PEZA is also launching its Development Outreach for Labor, Livelihood, and Advancement of Resources program, starting with its quarterly job fair on June 13. The job expo is intended to give repatriated overseas Filipino workers opportunities.

The available jobs will mostly come from the outsourcing sector, while other sectors will be hiring for administrative and technical work.

The program is touted as an employment generator for areas outside of Metro Manila. Ms. Plaza said most of the companies will be hiring in Metro Manila, Calabarzon, Central Luzon, Baguio, Ilocos Norte, Cebu, and Iloilo, along with other ecozone locations.

Ms. Plaza said there will also be online work-from-home jobs.

As of its June 15 to 19 report, 78% of PEZA-registered companies are operational, with 75% of employees continuing to work. — Jenina P. Ibañez

Economy may shrink by 3.9% due to negative consumer sentiment — HSBC

THE economy could shrink by 3.9% this year due to continued negative consumer sentiment and a fragile and volatile recovery from the pandemic, according to the Hongkong and Shanghai Banking Corp.’s (HSBC) private banking unit.

“This is a confidence crisis as well for the consumer… The consumer will play a very important role in the shape of the recovery,” said Willem Sels, Global Chief Market Strategist at HSBC Private Banking in an online briefing Tuesday.

The private bank’s forecast is grimmer than the 2-3.4% projection issued by the government. It had an initial growth outlook of 6.4% made in January.

It projected growth at 7% in 2021, upgrading the 6.5% forecast issued earlier this year.

“The world is now showing increasing concerns about the potential expected next waves of COVID-19 (coronavirus disease 2019) and in fact, there are still many countries in the first wave of outbreaks in Asia,” Fan Cheuk Wan, chief market strategist for Asia at HSBC Private Banking said.

She noted that having effective containment measures related to the spread of the virus will facilitate faster economic reopenings, citing the return to activity in China, South Korea, Japan, Taiwan, and Hong Kong.

Ms. Fan also said that many Asian economies will prioritize technology infrastructure, learning from the COVID-19 experience, when online consumption became the rule.

She added that the central bank will continue to be dovish this year to support the weak economy.

“We expect another 25 bps (basis points) policy rate cut to 2.00% and 200 bps of RRR (reserve requirement ratio) cuts to 10% by the end of this year,” Ms. Fan said.

The Bangko Sentral ng Pilipinas has reduced rates by 175 bps this year, with the latest 50 bps reduction coming in June. This brought reverse repurchase, lending, and deposit rates to record lows of 2.25%, 2.75%, and 1.75%, respectively.

Meanwhile, the RRR of big banks was reduced by 200 bps in April to 12% while those of rural and thrift lenders were kept at 4% and 3%, respectively. The Monetary Board is authorized to slash the RRR by up to 400 bps this year. — Luz Wendy T. Noble

ERC to order lockdown refund from Meralco

THE Energy Regulatory Commission (ERC) said Tuesday it will soon issue an order to issue refunds to customers who overpaid on their electricity bills, after the Manila Electric Co. (Meralco) agreed to return excess collections made during the enhanced community quarantine (ECQ).

In a Laging Handa briefing Tuesday, ERC Chair Agnes VST Devanadera said “Hanggang bukas maglalabas na namin ng order. Kahapon nag-commit na ang Meralco by no less than its President ang pangako nilang magre-refund (By tomorrow we will release an order. Yesterday, Meralco’s president made a commitment).”

Earlier this week, Meralco said it will refund excess payments made by consumers during the ECQ. Confusion over power bills started when June bills asked consumers to settle their bills from March, April and May, even though the government allowed payments for the lockdown months to be settled in installments.

The June bill is no longer covered by the installment plan and was due on June 30.

Ms. Devanadera said the ERC will also look into distribution utilities that violated ERC billing guidelines.

Ms. Denavedera said “’Yung distribution utilities… sinabi natin na ang universal charge, ang environmental charge huwag singilin… naniningil pa. Itong mga ito ay violations sa mga pinag-uutos ng ERC (Some distribution utilities collected the May universal charge and the environmental charge even though we ordered them not to). These are violations of the orders of the ERC).”

In a Senate hearing on Monday, the ERC said it received 47,000 complaints from consumers regarding their electric bills. Ms. Devanadera said that the ERC is doing its best to address these concerns despite being understaffed. — Gillian M. Cortez

No rate increase from modified renewable tariffs, regulator says

THE Energy Regulatory Commission (ERC) said a component of electricity bills for renewables development will not be affected by its recently-approved adjustment to the feed-in-tariff (FiT) for 2016 to 2020.

In a resolution, the regulator adopted the adjusted tariff, affirming the use of the 2014 consumer price index and foreign exchange rate in determining its rate, which was previously computed using the 2009 base year.

Using the latter base year would have a “significant impact” on consumers’ electricity bills, it said.

The 2020 FiT for the first batch of eligible solar developers computed using the 2009 base year is P11.4210 per kilowatt-hour (kWh), while the rate using the 2014 base year is P11.2758/kWh.

For the first batch of wind developers, the 2020 FiT using the old base year is P10.2036/kWh, while the adjusted rate now is P9.8976/kWh.

Consumer group Laban Konsyumer had claimed that the latest adjustment would lead to higher power charges.

Victor A. Dimagiba, the group’s president, said this year’s FiT going to Solar Batch 1 rose from P9.68/kWh, the rate in 2015, while the rate for Wind Batch 1 also saw an increase from P8.53/kwh over five years ago.

“These are significant increases, any way you look at them. And this will definitely have an impact on the final rates that consumers have to pay because it will surely be passed on to our detriment,” Mr. Dimagiba said in a statement Tuesday.

But the ERC said the tariff adjustment will not alter the current FiT-allowance (FiT-All), a portion of electricity bills paid for by consumers.

“The implementation of the FiT adjustment will have no impact on the current FiT-All as the current working capital allowance is enough to fund it,” ERC Spokesperson Floresinda B. Digal told BusinessWorld.

She added that the arrears for the adjustment in the past four years will be recovered in the next five years.

The regulator is mandated to adjust the FiT each year for the entire period of its applicability to allow the pass-through of local inflation and foreign exchange variations.

FiT-All was adopted following the implementation of the Renewable Energy Act of 2008 which aims to boost the development and utilization of renewable energy sources. Currently, the rate is P0.0495/kWh, lower than the previous P0.2226/kWh rate.

The National Transmission Corp. administers the collection of this charge. — Adam J. Ang

Most livestock categories posted gains in output during first quarter — PSA

LIVESTOCK output rose in the first quarter, with producers of chicken, chicken egg, pork, duck and duck egg posting gains while carabao and cattle production declined, according to the Philippine Statistics Authority (PSA).

The PSA said chicken production on a live-weight basis rose 3.3% year on year to 474,010 metric tons (MT) in the first quarter.

Central Luzon was the top chicken producer, accounting for 36.5% or 173,160 MT, followed by Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) at 17.1% or 81,257 MT, and Northern Mindanao at 8.8% or 41,881 MT.

As of April 1, the chicken inventory rose 0.4% year on year to 185.58 million birds.

Native and improved chicken accounted for much of the population at 44.3% or 82.23 million birds, followed by broiler chicken at 33.4% or 61.96 million birds, and layer chicken at 22.3% or 41.38 million birds.

The average farmgate price of broiler chicken in commercial farms rose 5.7% year on year to P77.03 per kilogram.

Chicken egg production rose 5.8% year on year to 150,285 MT.

Calabarzon was the top chicken egg producer, accounting for 30% or 45,086 MT, followed by Central Luzon at 19.8% or 29,789 MT, and Central Visayas at 9% or 13,561 MT.

The average farmgate price of chicken egg rose 20.9% year on year to P5.62 each.

Pork production on a live-weight basis rose 0.7% year on year to 571,259 MT.

Central Luzon was the top pork producing region, accounting for 20% or 114,106 MT, followed by Calabarzonzon at 15.8% or 90,331 MT, and Northern Mindanao at 9.1% or 52,233 MT.

As of April 1, the hog inventory fell 0.2% to 12.71 million head.

Backyard raisers accounted for 62.3% or 7.92 million head while commercial growers had 37.7% or 4.79 million head.

The average hog farmgate price rose 0.9% to P111.53 per kilogram.

Duck production by live weight rose 0.8% year on year to 9,691 MT.

Central Luzon was the top duck producer, accounting for 43.5% or 4,218 MT, followed by Soccsksargen (South Cotabato, Cotabato City, Sultan Kudarat, Sarangani, and General Santos City) at 12.3% or 1,188 MT, and Western Visayas at 7.7% or 751 MT.

As of Jan. 1, the duck inventory rose 1.9% to 11.79 million birds.

Backyard-raised ducks accounted for 65.9% or 7.77 million birds while commercially-grown ducks were at 34.1% or 4.02 million birds.

The average farmgate price of duck rose 27.3% to P74.87 per kilogram.

Duck egg production rose 3.6% year on year to 11,568 MT.

Central Luzon was the top duck egg producer, accounting for 42.2% or 4,878 MT, followed by Northern Mindanao at 10.3% or 1,196 MT, and Western Visayas at 9.6% or 1,108 MT.

The average farmgate price of duck egg rose 8.7% to P7.22 each.

Cattle production by live weight fell 0.5% year on year to 61,024 MT.

Northern Mindanao accounted for 16.1% or 9,803 MT, followed by Ilocos Region at 11.8% or 7,177 MT, and Central Visayas at 10.1% or 6,171 MT.

The cattle inventory rose 0.3% year on year to 2.54 million head.

The average farmgate price of cattle rose 9% year on year to P119.17 per kilogram.

Carabao production by live weight, fell 1.9% year on year to 29,812 MT.

Western Visayas accounted for 18.1% or 5,402 MT, followed by Ilocos Region at 8.7% or 2,590 MT, and Bicol Region at 8.3% or 2,467 MT.

The carabao population fell 0.3% year on year to 2.87 million head.

The average farmgate price of carabao rose 0.1% year on year to P97.46 per kilogram.

The PSA estimated in May that the output of livestock sector overall in the first quarter rose 0.5% and accounted for 17.9% of total agricultural production.

It said poultry output rose 3.9% or 14.3% of overall agricultural output. — Revin Mikhael D. Ochave

Senate to consider bill soon granting WFH tax deduction

A BILL due to be filed in the Senate will seek tax deductions for employees working from home (WFH), to compensate them for having to pay more for electricity.

Senator Francis N. Tolentino said he has drafted a bill that will amend the National Internal Revenue Code to include an additional deduction against taxable income.

“Tumaas ang kuryente mo dahil work from home kayo, tumaas ‘yun dahil nagko–konsumo kayo ng aircon, electric fan, kuryente computer ninyo,” he said in a virtual briefing. (Power bills increased because people worked from home. Consumption increased because of the usage of air conditioners, fans and computers.)

“‘Yung itinaas na porsyento ng electric bill ay pwedeng i-bawas… at bigyan ng kaukulang tax deduction dahil hindi naman niya kagustuhan magtrabaho sa bahay.” (The percentage by which power bills increased will be deductible… because workers had to work from home.)

The Luzon-wide lockdown in force since mid-March suspended classes, office work, and public transportation. It also forced some businesses to adopt alternative work arrangements such as working from home.

Mr. Tolentino said the proposal includes requiring the employee or the employer to apply for a P1,000 deduction when filing the income tax return. Another option is for the employer to grant workers P1,000 every month.

“If you’re working from home, each employee should be entitled to a P1,000 tax deduction for every month worked from home,” he said.

Mr. Tolentino said he will be filing the measure with Senator Sherwin T. Gatchalian, who is also chairman of the Energy committee. — Charmaine A. Tadalan

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