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How this Filipino billionaire built a crocodile empire

William T. Belo, Wilcon Depot chairman emeritus

WHY own one crocodile when you can have thousands of them?

William Belo, whose Wilcon Depot Inc. dominates the Philippines home-improvement market with 57 stores nationwide, was already on the path to becoming a business success when he decided to try his hand at something different.

He started an egg farm in 1989 as a weekend activity.

Then he needed to figure out how to handle the chickens that were no longer able to lay. So, in the mid-1990s, he thought about feeding them to tigers before settling on crocodiles. He bought about 1,200 of them over three years after learning that a crocodile conservation farm in the province of Palawan was looking to sell some of its stock.

“My plan was just to have a farm with a small number of animals and fresh eggs for personal consumption,” Mr. Belo said in an interview in Manila. “One thing led to another. We brought in crocodiles to feed the chickens we didn’t need.”

Today he breeds his crocs by the bask and owns about 23,000 of the semi-aquatic reptiles, for which he has found more lucrative uses. Their skins are supplied to luxury brands such as LVMH, and the meat is found in a variety of food products, including Hungarian sausages and a popular local dish called sisig. The food products are sold under the Dundee brand name, a tribute to the 1986 movie “Crocodile Dundee.”

Mr. Belo now has two crocodile farms, one for breeding on 10 hectares (24.7 acres), and another that’s seven times larger, for culling and managing animal waste. The venture has about 800,000 chickens and 5,000 hogs, and he sells about 2,000 to 3,000 croc skins a year for $200 to $250 apiece.

“It’s hard to turn this into a larger scale because food can be very expensive and there are issues of in-breeding which affect the quality of the skin,” Mr. Belo said. “You aren’t allowed to bring in crocodiles from other countries to fix in-breeding and there are few left in the wild.”

LUXURY PRODUCTS
The price of crocodile skin has dropped because of oversupply prompted by weaker demand for luxury products by Chinese consumers, who he estimates easily account for half of global demand for high-end bags.

“It’s hard to grow this into a bigger industry because we don’t have breeders and there is a limit to the market now,” Mr. Belo said.

Still, he’s doing just fine. Wilcon is thriving amid a construction boom sweeping the country under President Rodrigo Duterte’s “Build, Build, Build” infrastructure push. The value of construction projects rose 22% in the second quarter from a year earlier to P123 billion ($2.4 billion), with residential developments accounting for more than half of that total, according to the Philippine Statistics Authority.

Shares of Manila-based Wilcon have surged 42% this year, the 11th-best performance among 262 companies on the Philippine Stock Exchange. That has vaulted Mr. Belo into the ranks of the world’s billionaires. He and his family control two-thirds of Wilcon, giving him a net worth of about $1 billion, according to the Bloomberg Billionaires Index.

Bloomberg’s estimate is “most likely conservative” because it’s only based on information that’s publicly available, said Jean Alger, Wilcon’s head of investor relations, who declined to elaborate on Belo’s wealth.

PLUMBING FIXTURES
Wilcon targets middle- to high-income homeowners selling everything from plumbing fixtures to tiles and faucets. The home-improvement chain’s sales climbed 18% to P11.8 billion in the first half of the year, boosting the company’s expansion plans. It expects to have 65 stores next year and 100 by 2025.

After graduating from high school, Mr. Belo studied engineering at the University of Santo Tomas in Manila while working evenings at a construction-supply company partially owned by his father. In 1977, he finally opened his own store in a space no bigger than one-bedroom apartment and worked for decades to build a company that is now the leading retailer in the Philippines’ home-improvement market.

In an interview with Bloomberg last year, he said he was undaunted by Ikea’s plan to open its first store in the country in 2020.

“When you want to build a house, you don’t go to Ikea, you go to Wilcon,” he said.

While Mr. Belo still goes to the office five days a week, he now oversees the business as chairman emeritus while leaving day-to-day operations to his three children.

That’s given him “more time to relax,” he said, and perhaps devote more time to other pursuits, like raising crocodiles. — Bloomberg

Roxas unit sells Cubao property

ROXAS and Co., Inc. (RCI) said its subsidiary in the hospitality business is selling its hotel in Cubao, and relocating “to a more strategic location” in a move aimed at improving the company’s finances.

“Proceeds from the sale of Cubao (property) of about P411 million will be used to improve existing sites and lower the subsidiary’s outstanding debt until a new site has been identified,” the listed company told the stock exchange on Monday.

RCI said the decision by its unit Roxaco-Asia Hospitality Corp. (RAHC) was part of “continuing objective of improving net income and reducing the group’s overall debt.”

RAHC operates five budget hotels under the Go Hotel franchise.

Separately, RCI disclosed that it had sold more treasury shares, bringing the total sold so far at 37,486,989 out of the 933,703,514 shares authorized for sale. The board approved in 2014 the continuous sale of treasury shares as a fundraising initiative for working capital and expansion projects.

Based on the company’s quarterly financial report, it incurred a net loss of P102.37 million in the third quarter, or lower than the P113.08 million recorded in the same period last year.

During the same period, it managed to post nearly a 90% rise in gross revenues to P208.55 million. Hotel revenues contributed more than half of the company’s top-line figure in the third quarter.

RCI has short-term and long-term loans amounting to P1.30 billion and P2.75 billion, respectively, which it used for working capital and to fund real estate, hotel and coconut projects.

As of the third quarter, the company said its debt-to-equity ratio slightly increased to 0.64:1 from 0.61:1 in December 2018. It said the latest ratio was still within the 0.75:1 ratio limit required by banks for term loans.

To improve its liquidity and debt-to-equity ratio, it started to sell several of its assets and investments with the proceeds used to reduce debt. It has also refinanced about P450 million of its outstanding long-term debts with new term loans having longer repayment terms and with two-year grace periods before repayment. It secured new short-term credit lines with banks to support operations.

RAHC is the former Roxaco-Vanguard Hotels Corp., which changed its name in October 2018. Its hotel management subsidiary looks after all its five Go Hotels and the premium Anya Hotel and Resorts Tagaytay, which began full-year commercial operations in 2018 with 80 hotel suites, premium restaurants, heated pools, a library, function rooms, events venues and lounges.

On Monday, shares in RCI rose by 0.47% to P2.15 each. — Victor V. Saulon

Installment transactions make up more than half of CIC credit data

STATE-RUN Credit Information Corp. (CIC) said installment transactions dominated Filipinos’ credit reports as more than 36 million of the 56 million contract data it gathered had this mode of payment.

In a statement on Monday, the county’s sole public credit registry said installment transactions accounted for more than half or 65% of the total data based on the credit reports it collected as of Dec. 16.

“Installment transactions being the bulk of CIC data is significant. Until now, most transactions captured by other credit bureaus were credit card transactions which may not necessarily reflect an accurate picture of the broader type of lending that is happening in the Philippines,” CIC President and Chief Executive Officer Jaime Casto Jose P. Garchitorena was quoted as saying.

CIC said installment transactions vary from microfinance institution loans to vehicle and housing loans, which involve a series of payments that are usually accompanied by interest rates.

This was followed by the 18.81 million transactions done through credit cards which accounted for 33.58% of the total and the remaining 633,192 via non-installment contracts.

The CIC database houses more than nine million unique data subjects and 81,364 companies and corporations, it said.

Mr. Garchitorena said their large database will provide clients “a better view of true credit behaviors” as it contains data from various sources including salary loans, housing loans and car loans, compared to other databases that were mostly reliant on credit card history.

“Statistically, if a lender wants to get a relevant view of credit and lending in the Philippines, the sampling has to be broader — not just credit cards,” he said.

Meanwhile, CIC said around 25% of all borrowers own sole proprietorships which they use either as a source of income or for loan applications.

“We know that credit card penetration is still quite low in the Philippines and therefore may be less relevant to lenders who want to see behaviors of borrowers across a wider range of loan products. To the individual borrower, having access to their own credit records in the CIC database means they now have a way of proving their creditworthiness,” he said. — B.M. Laforga

Peso weakens as market awaits US-China deal

THE PESO depreciated on Monday as the market waits for the developments in the trade negotiations between the United States and China.

The local unit closed at P50.83 against the greenback, weakening by 1.5 centavos from its Friday finish of P50.815 per dollar, according to data from the Bankers Association of the Philippines.

The peso opened the session at P50.77 versus the dollar. Its weakest showing was seen at P50.915, while its intraday best against the dollar was at P50.755.

Dollars traded dropped to $757 million from $835.75 million on Friday.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort attributed the peso’s movement for the day to new leads regarding the trade deal between the world’s two biggest economies.

“The peso exchange rate was slightly weaker…after the stronger US dollar versus major global and Asian currencies…after the latest signals by the US and China that the phase one trade deal could be signed as early as January 2020,” he said in a text message.

On Saturday, US President Donald J. Trump said that Washington and Beijing would “very shortly” sign the phase one of their trade pact, Reuters reported.

“We just achieved a breakthrough on the trade deal and we will be signing it very shortly,” Mr. Trump said at a Turning Point USA event in Florida as quoted by Reuters.

The said deal will have the US to slash some of its tariffs on Chinese goods. For its part, China will buy more American farm products.

Meanwhile, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said profit taking before the Christmas break may have dominated the market.

“Positioning for the last trading days of 2019 (the decade) may have also been the key,” he said in a text message. — LWTN with Reuters

Shares end higher on last-minute buying

SHARES ended in the green territory on Monday on last-minute buying despite more foreign outflows.

The 30-member Philippine Stock Exchange index (PSEi) gained 99.48 points or 1.28% to close at 7,872.60, while the broader all shares index climbed 46.5 points or 1.01% to end at 4,645.33.

PNB Securities, Inc. President Manuel Antonio G. Lisbona cited last-minute which pushed the main index up.

“There was also some optimism on the companies included in the water utility crisis as investors positioned themselves in anticipation of a favorable government announcement scheduled in early January,” he said in a text message.

He specifically mentioned Manila Water Co., Inc., which rose 15.19% on Monday. Metro Pacific Investments Corp. also gained 4.91% and DMCI Holdings, Inc. increased 0.31%

“If the market continues this kind of behavior, we could see the index poised to breach 8,000 by early next year,” he noted.

“The PSEi ended higher today despite foreign outflows as local buyers scoop up battered shares,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail on Monday.

Net outflows for Monday’s session totaled P1.22 billion, down from previous session’s net sales worth P1.27 billion.

“This looks like end-of-year window dressing and positioning for a 2020 rally. The market may end the week higher if local investors continue to outpace foreign selling,” he added

He also noted that the index reflected positive developments in the US-China trade war.

Sentiment improved over news that Chinese President Xi Jinping discussed through phone over the weekend with US President Donald Trump “phase one” deal, which is seen to be signed early January.

All sub-sectors gained except services, which fell 1.65 points or 0.10% to close 1,531.69.

Meanwhile, mining and oil rose 268.66 points or 3.54% to close at 7,855.40; industrials gained 286.73 points or 3.06% to 9,654.32; property climbed 68.37 points or 1.65% to 4,207.91; holding firms increased 81.42 points or 1.07% to close 7,681.07; and financials added 6.18 points or 0.33% to 1,849.34.

Some 478.95 million issues valued at P8.30 billion switched hands on Monday, down from previous session’s P13.15 billion.

Stocks that gained outnumbered those that fell, 128 to 58, while 54 issues were unchanged. — Vincent Mariel P. Galang

Seda set to open 2nd hotel in Cebu

AYALA LAND, Inc. (ALI) is opening its second Cebu City hotel under the Seda brand in January 2020, amid growing demand from tourists and business travelers.

Seda Central Bloc will rise within ALI Central Bloc community in the Cebu IT Park business district.

The 17-storey hotel will have 214 rooms, including 48 serviced residences.

In a statement, Andrea Mastellone, senior group general manager, said Seda is adding a second property in Cebu City “which we are experiencing as a vibrant hot spot for business as well as tourism.”

He said the hotel’s serviced residences will cater to mostly to young professionals and managers of business process outsourcing (BPO) firms that already have offices in the business district and of those expanding to Cebu.

Seda Central Bloc is also looking to attract leisure and business travelers, particularly those attending events at a nearby convention center.

Guests can choose hotel rooms that are sized 28 square meter (sq.m.) or serviced apartments ranging from studios (30 sq.m.) to three-bedroom units (90 sq.m.).

Seda Central Bloc will also have an all-day dining outlet, swimming pool, meeting rooms, gym and roofdeck bar.

Mr. Mastellone noted the new hotel’s location within a business district gives guests “everything they need within walking distance.”

“In addition to location, we expect guests to keep coming back because of the warm personable service now associated with the Seda brand. In each of our properties throughout the country, guests have come to expect a certain level of service excellence and we are proud of that,” he said.

Seda Central Bloc brings to 11 the number of Seda properties around the country, including resorts and serviced residences.

DM Wenceslao unit completes 1st residential project

A UNIT of D.M. Wenceslao and Associates, Inc. (DMWAI) has completed its first residential project.

In a statement, Aseana Residential Holdings Corp. (ARHC) said it has inaugurated Pixel Residences located at DMWAI’s flagship mixed-use estate, Aseana City in Parañaque.

“With Pixel residences, our residential chapter in the company’s ever evolving transformational story has begun. Our buyers can have peace of mind knowing that they not only invested in a condominium, they invested in a holistic masterplanned and livable city,” DMWAI and ARHC Chief Executive Officer Delfin Angelo “Buds” C. Wenceslao was quoted as saying.

Pixel Residences offers studios, one-bedroom, and two-bedroom units ranging from 36 square meters (sq.m.) to 88 sq.m. International design firm Spark Architects collaborated with local architecture firm, CASAS +Architects, for the project.

DMWAI recorded an attributable net income of P1.65 billion in the first nine months of 2019, up 11% from the same period last year.

Cebu developer to build workspaces under IWG franchise

INTERNATIONAL Workplace Group (IWG) signed its first franchise partnership in Southeast Asia, teaming up with a Cebu-based company to develop workspace franchises in the Philippines.

In a statement, IWG said it signed the franchise partnership agreement with AppleOne Properties, Inc. (API) on Dec. 18.

Under the deal, API and IWG will develop eight workspace facilities in six cities in the Visayas, namely Cebu City, Lapu-Lapu City (Mactan), Mandaue City, Dumaguete City, Iloilo City, and Bacolod City.

This will allow IWG to expand its network which covers 3,400 locations in 120 countries. In the Philippines, the company currently has 28 locations in 10 cities across Metro Manila, Cebu, Davao, and Clark.

“This partnership with such a successful homegrown property developer will help us contribute to suburban economic growth… This will benefit the local economy in numerous ways, from creating jobs both inside and outside the center, stimulating businesses and services in the nearby area, improving productivity and opening new working opportunities for those who live locally,” Matthew James Kenley, IWG head of partnership growth APAC, was quoted as saying.

AppleOne Properties CEO and President Ray Manigsaca said the company is bullish on the growth of the serviced office market in the country.

“The serviced office market is one of the most exciting growth sectors in real estate, and we are excited to be involved in this next frontier. Our partnership with IWG will enable us to bring the many world-class benefits of flexible working to the professionals and businesses of Visayas,” Mr. Manigsaca said.

As a franchise partner of IWG, all of the workspaces developed by API will be part of the IWG network.

IWG’s brands include Regus and SPACES.

“We intend to continue developing the IWG network through strong franchise partnerships, and we are constantly searching for ambitious, experienced, entrepreneurial franchise partners so that we can have workspaces everywhere our customers need us to be,” Mr. Kenley said. — Cathy Rose A. Garcia

Police search for 80 more massacre suspects

PHILIPPINE police on Sunday sought the public’s help in the manhunt for at least 80 suspects in the massacre of more than 50 people, including 32 journalists in Maguindanao province a decade ago.

Authorities have failed to catch the suspects 10 years after the murders, which a trial court decided last week.

“Any information provided by the public will form the basis of operations to arrest the suspects,” police spokesman Brigadier General Bernard Banac told radio DZBB.

A Quezon City court sentenced two senior members of a powerful political clan in Maguindanao to life in prison for the massacre, which a global media watchdog has called the single deadliest attack on journalists.

The trial court convicted former Maguindanao Mayor Datu Andal “Unsay” Ampatuan, Jr. and his brother Zaldy, who is a former governor of the Autonomous Region in Muslim Mindanao, along with 26 other principal accused for 57 counts of murder.

More than a dozen more people were convicted as accessories to the crime. Their other brother, Datu Sajid Islam Ampatuan, was acquitted along with more than 50 others.

Critics have said the guilty verdict should help provide justice to the families of the victims, and build toward greater accountability for rights abuses in the country.

The massacre took place when family members and the media were accompanying Esmael G. Mangudadatu to the Commission on Elections to file his certificate of candidacy on Nov. 23, 2009. Mr. Mangudadatu was then running for governor of the Mindanao autonomous region to end the 20-year rule of the Ampatuan family.

New-York based Committee to Protect Journalists called the attack the “worst single incident of journalist killing.”

Judge Jocelyn A. Solis-Reyes said the prosecution proved beyond reasonable doubt that the murders had been planned.

Among the 80 suspects who are still in hiding are 12 police officers, Mr. Banac said.

He said people were afraid to report the remaining suspects to the police. That should change since the Ampatuan family is no longer in power, the spokesman said.

Among the suspects who have evaded justice are former Salibo town Vice Mayor Kanor Ampatuan and Bahnarin Ampatuan, brother and nephew, respectively of the clan patriarch, former Maguindanao Governor Andal Ampatuan, Sr., also an accused who has since died.

Police deputy chief for operations Lieutenant General Camilo Pancratius Cascolan earlier said some of the remaining suspects, many of them close security detail for Andal Ampatuan Jr., had sought refuge in bailiwick areas.

Police are not discounting that some of the suspects may have escaped overseas through the backdoor, given strict measures enforced by the Immigration bureau, Mr. Banac said.

“We will search the entire Mindanao island,” he said in Filipino. “They might just be hiding in nearby provinces.”

The trial court heard 357 witnesses — 134 from the prosecution and 165 from the defense, aside from 58 private complainants.

The court ruling may still be appealed. — Emmanuel Tupas, Philippine Star

2-week ceasefire announced as gov’t, communist group prepare to resume peace talks

THE GOVERNMENT and the National Democratic Front of the Philippines (NDFP), the lead communist group in the country, have announced a ceasefire from December 23 to January 7 in observance of the Christmas and New Year holidays, and pave the way for the resumption of peace talks. “The ceasefires are intended to generate a positive environment conducive to the holding of informal talks preparatory to the formal meeting to resume the peace negotiations,” the two parties said in a joint statement released on Dec. 22. “The Parties shall separately issue the corresponding ceasefire orders. During the ceasefire period, the respective armed units and personnel of the Parties shall cease and desist from carrying out military offensive against the other,” reads part of the statement, a copy of which was released by the National Task Force to End Local Communist Armed Conflict. The joint statement was signed last Dec. 21 in Utrecht, The Netherlands by Labor Secretary Silvestre H. Bello III, the government panel’s chief negotiator for peace talks, negotiator Hernani A. Braganza, NDFP Senior Adviser Luis G. Jalandoni, and NDFP Negotiating Panel Chair Roel V. Agcaoili.

POLICE
The Philippine National Police (PNP), meanwhile, said its forces will remain on full alert status, but will abide by the ceasefire order once issued by President Rodrigo R. Duterte. “Kung sakali man aprubahan ito ng Pangulo at isakatuparan ay susunod ang PNP (If this is approved by the President and enforced, the PNP will abide by it,)” PNP Spokesman Brig. Gen. Bernard M. Banac said in a radio interview over dzBB yesterday. The PNP went on a 21-day nationwide full alert status starting Dec. 14 as part of its security measures during the Yuletide season. Police forces are on the lookout for possible attacks by the New People’s Army, the armed groups of the Communist Party of the Philippines, which is celebrating its founding anniversary on Dec. 26. — MSJ with a report from PHILSTAR/Emmanuel Tupas

Export body conservative for next year

By Jenina P. Ibañez

THE TRADE DEPARTMENT’S Export Marketing Bureau (EMB) has adopted a 2-4% growth forecast for overseas sales next year of the country’s goods and services, choosing to be conservative as global uncertainties persist.

“The forecast that we have for exports is still positive, although it’s just a single-digit range of total for goods and services, probably from two to four percent,” EMB Director Senen M. Perlada said in a telephone interview on Friday.

At the same time, he said the bureau is retaining the 2022 target detailed in the country’s export plan.

The Development Budget Coordination Committee on Dec. 11 adopted 2020 growth projections of four percent for merchandise exports and nine percent for overseas service sales.

The Philippine Export Development Plan 2018-2022 approved by President Rodrigo R. Duterte in July targets a compound annual growth rate of 8.89-9.96% for goods and service export revenues to $122-130.8 billion in total by 2022.

“The challenge to us now… what we need to do is to still meet the target in spite of the weighed-down forecast,” Mr. Perlada said.

He said that the bureau is “cautiously optimistic” about the first phase of the trade deal between the United States and China, which cuts US tariffs on China after an almost 18-month dispute between the two countries. “It’s good news in the sense that the first phase of the US-China trade (deal) naayos na (has been fixed),” he said, noting that he expects improved Philippine trade as a result.

This cautious optimism, however, will not boost 2020 expectations.

May headwinds pa rin (There are still headwinds). We don’t know still what’s going to happen to (US President) Trump…may impact pa rin ’yan (that still has an impact). Brexit is still something that we don’t know. It dampens the (trade) sentiment — the uncertainties.”

“It’s the general sentiment for trade. People just want to play safe. They’re not going to be all out. The only thing I can say is medyo neutral to positive ’yung trade natin. (our trade is a bit neutral to positive),” he added.

US President Trump is currently going through impeachment proceedings and will face re-election next year. UK Prime Minister Boris Johnson promised Britain’s exit from the European Union by the end of January 2020.

To boost Philippine export growth next year, the Trade department is looking at non-traditional trade partners, as well as promoting finished products instead of intermediate goods.

“The strategy is, we want to be protected from the effects of the global trade war by engaging more with high population density countries,” he said, noting that products directly sold to economies with bigger populations and high purchasing power will suffer less impact from global value chain shocks.

He said the department is studying possible exports to Kenya, South Africa, Egypt and Russia as part of diversification plans.

Although the Trade department will continue pushing priority sectors like electronics and business process outsourcing, in 2020 it will also promote aerospace manufacturing, including maintenance repair services as well as aircraft galley and toilet parts production.

Mr. Perlada said the department also targets partnerships with subcontractors of major aircraft manufacturers including Boeing and Airbus. “(Philippine aircraft exports) is growing in the double digits… I think we can expect that to continue because travel is still a growth area.”

The department will also be focusing on promoting the country’s creative industries, including wearables such as bags and footwear, original content for animation and game design, and integrated circuit designs in the electronics industry.

Mr. Perlada also cited potential for more farm exports and the possibility of free trade agreements (FTA) being forged next year. The Philippines is currently looking at the possible signing of the Regional Comprehensive Economic Partnership between Southeast Asian economies and major trade partners as well as a free trade agreement with South Korea. The Philippines may also begin FTA talks with the United States and the United Arab Emirates next year.

At the same time, the EMB is looking for more funding to participate in international trade events and support small businesses, as well as additional supply for agriculture products. “The difficulty sometimes is we promote but there’s no supply, but for next year we should be able to,” he said. “To move the needle in this sector, we simply need supply.”

TRAIN collections top targets

TAX COLLECTIONS generated by higher rates under Republic Act No. 10963, or Tax Reform for Acceleration and Inclusion Act (TRAIN), exceeded targets as of end-September, the Department of Finance (DoF) said on Sunday.

A DoF statement quoted Finance Undersecretary Karl Kendrick T. Chua as saying that TRAIN revenues totaled P91.3 billion in the nine months to September, 18% more than the projected P77.3 billion and 107% higher year on year.

Mr. Chua said the latest collection is 80.8% of the P113.1-billion full-year target.

“This means we are now closer to completing the 2019 estimates, compared to where we were last year when we were trying to reach the 2018 estimates. This is definitely welcome news, especially for the infrastructure and human development objectives of TRAIN,” Mr. Chua said.

Preliminary Bureau of Internal Revenue (BIR) and Bureau of Customs (BoC) data showed they exceeded their targets by P9.4 billion and P4.7 billion, respectively.

Contributing to the overall increase, DoF said, was smaller foregone revenues from reduced personal income tax rates at P79.2 billion compared to the initial estimate of P96.4 billion. “This was a result of better compliance, higher employment rate resulting in an increase in registered taxpayers, and lower unemployment and underemployment rates,” he said.

Excise tax collections from imported petroleum products were above target by P14.3 billion on the back of bigger import volumes, particularly diesel and gasoline. “Overperformance is also evident in the overall BoC petroleum excise revenues for the first three quarters at P64.5 billion, which is more than double the P31.2 billion recorded in the same period last year,” DoF said.

Revenues from excise tax on sweetened beverages were slightly higher than target P1.9 billion while the tax take from tobacco products was P4.4 billion more than target.

Documentary stamp tax collections were also higher than the target at P4.7 billion due to “higher transaction value and better collection efficiency.”

Still, collection of excise tax on some products missed targets for the period, including those from automobiles and domestic petroleum products which nevertheless generated P25.2 billion in revenues.

With lower volume, excise tax on automobiles collected during the nine-month period were short by P11.3 billion. Automobile sales have been reeling from higher excise taxes since TRAIN took effect in January last year.

Collections from locally refined petroleum products also missed the target by P13.9 billion, due to “decline in the volume of removals, and the shift to imported finished products,” he said. — B. M. Laforga