Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 8717

Manila Water income up 4%

EAST ZONE water concessionaire Manila Water Co. Inc. reported a 4% increase in its consolidated net income to P1.3 billion for the first quarter, despite lower contributions from its domestic subsidiaries.

In a disclosure to the stock exchange on Friday, Manila Water’s concession earnings were at P1.63 billion during the first quarter of the year while its revenues rose by 9% to P5.5 billion.

The water company’s costs and expenses declined by 30% to P1.3 billion, despite the 15% increase in direct costs due to the P534-million penalty imposed by the Metropolitan Waterworks and Sewerage System (MWSS) for the water supply shortage last year.

The 15% increase in direct costs was driven by higher chemical costs with the operations in Manila Water’s Cardona treatment plant as well as increased power costs for the energization of new deep wells.

Meanwhile, domestic operations under Manila Water Philippine Ventures recorded a net loss of P151 million for the first quarter.

The company attributed the loss to the lower contribution of Estate Water caused by its lower supervision fees.

“The decline was primarily the result of the change in accounting treatment for said fees, but also in part by the stoppage of projects due to the enhanced community quarantine,” the statement said.

Manila Water Asia Pacific also reported a net loss of P193 million due to the additional expenses in relation to its investment in Cu Chi in Vietnam.

Manila Water said the recognition of additional expenses in the Vietnam project was partially offset by the increase in equity share in net income of associates, which stood at P219 million, 6% higher than last year.

Locally, the company has suspended meter reading activities in its service areas and deferred the due date of customer bills for 30 days.

The water concessionaire also implemented business contingency measures for continuous operations despite the enhanced community quarantine.

“As we face the unprecedented challenges posed by the COVID-19 pandemic, we should work even more closely with our partners and stakeholders so we can continue to provide reliable service. Only by working together can we find safer, more effective and innovative ways of serving our customers under this new normal,” Manila Water President Jose Gregory D. Almendras said.

On Friday, shares in Manila Water rose by 8.55% to close at P12.70 each. — Revin Mikhael D. Ochave

PLDT studies 5G delay as pandemic disrupts supply chain

THE coronavirus pandemic is pushing PLDT Inc. to delay the launching of its fifth-generation (5G) network services, Chief Revenue Officer Alfredo S. Panlilio of the Pangilinan-led telecommunications company said.

“It is still an area that we are looking at. Maybe it will be deferred to a later date, but it is still something that we will get into,” he told reporters on Thursday, citing the coronavirus disease 2019 (COVID-19) pandemic that is causing disruptions in the whole supply chain for all industries.

Mr. Panlilio was quoted as saying in a newspaper report by The Philippine Star on March 9 that PLDT was “plotting to have something that it can bring to the market sometime in the second quarter” of the year.

In December, PLDT Chairman, President and Chief Executive Officer Manuel V. Pangilinan said a significant amount of the capital expenditures (capex) for 2020 would be used to fund the company’s continuing rollout of its 5G technology, although the product “may not be immediately” profitable.

On Thursday, the telecommunications company said the capital spending for this year would probably be cut by 24% to P63 billion from the planned P83 billion as movement and travel restrictions under the government-imposed enhanced community quarantine (ECQ) hamper its network rollout activities.

Technology firm Cisco Systems, Inc. (Cisco) earlier said the rollout of 5G network services in the Philippines could increase the annual revenues of telecommunications companies by as much as $650 million beginning 2025.

Cisco said 5G penetration in countries in Southeast Asia is expected to reach 25% to 40% by 2025.

Fitch Ratings said in November last year that Philippine telcos are expected to be still dependent in the next three years on existing 4G technologies amid growing demand for data.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin

Nickel Asia posts losses as virus hits global markets

NICKEL ASIA Corp. on Friday reported an attributable first-quarter net loss of P89 million, reversing last year’s profit of P138 million, as the pandemic hit the listed mining company’s investments.

In a disclosure to the stock exchange, it said the net loss during the quarter was mainly because of the P261-million mark-to-market loss from its portfolio investments as the spread of the coronavirus disease 2019 (COVID-19) “profoundly affected markets globally.”

“The said loss translates to a negative 5.6% overall return on the portfolio’s performance,” Nickel Asia said.

Nickel Asia also reported a consolidated net loss of P10 million from its equity investments in Coral Bay Nickel Corp. and Taganito HPAL Nickel Corp. The figure is slightly lower than the P25-million loss in the same quarter last year.

Nickel Asia President Martin Antonio G. Zamora said: “We remain cautious for the rest of the year owing to the uncertainties prevailing in markets globally.”

The company reported that it had sold an aggregate 2.78 million wet metric tons (MT) of nickel ore for the first quarter, lower than the 2.89 million wet MT ore sold in the previous year.

Nickel Asia said it had realized an average price of $5.80 per pound of payable nickel on its shipment of ore to the two HPAL (high pressure acid leach) plants, the prices of which are linked to the London Metal Exchange.

“This compares to an average price of $5.56 per pound of payable nickel sold in 2019,” it added.

Ore exports sales achieved an average price of $28.58 per wet MT, higher than $19.71 last year.

Revenues rose by 11% to P2.21 billion because of the impact of higher ore prices during the first quarter.

The company’s earnings before interest, tax, depreciation, and amortization (EBITDA) rose by 21% to P804 million.

Mr. Zamora said if the mark-to-market loss was stripped out from the company’s portfolio investments while taking out the challenges brought by COVID-19, earnings from operations “actually improved year-on-year as evidenced by a higher EBITDA.”

The company also said its Taganito and Taganaan mines have resumed operations this month, after almost one month of voluntary suspension.

On Friday, Nickel Asia shares were unchanged at P1.54 each. — R. M. D. Ochave

Almost $1 billion hot money left Philippines in March

By Luz Wendy T. Noble, Reporter

ALMOST $1 billion in foreign capital left the country in March, reflecting investor preference for safe-haven assets as a Luzon-wide lockdown meant to contain a coronavirus pandemic brought the Philippine economy to a standstill.

Foreign portfolio investments posted a net outflow of $961.05 million in March, reversing from a net inflow of $40.06 million a month earlier, the Philippine central bank said in a statement late Thursday.

The hot money net outflow was also wider than the $739 million net outflow in March last year, according to Bangko Sentral ng Pilipinas (BSP) data.

The central bank cited negative sentiment “that has prompted investors to liquidate portfolios and keep money in cash amid heightened worries over the adverse economic impact of the coronavirus disease 2019 (COVID-19) pandemic.”

The net outflow also came despite the government’s initial fiscal stimulus package against the virus, which has sickened more than 10,000 and killed almost 700 people in the Philippines.

Aside from the pandemic, US-Iran tensions, trade negotiations between the US and China, and government review of local water contracts had affected foreign investor sentiment, the central bank said.

March gross inflows reached $953 million, lower than the $1.374 billion posted in February and the $1.732 billion a year ago.

Gross outflows hit $1.914 billion, worse than the $1.334 billion gross outflows a month earlier but lower than the $2.471 billion posted in March last year.

Majority or 93% of the investments during the month were placed in shares on the Philippine Stock Exchange, particularly banks, property, holding, food, beverage and tobacco, and transport companies.

The remaining 7% of the investments were channeled to government securities.

The top five investor economies with a combined share of 83.9% in total portfolio investments were the United Kingdom, United States, Singapore, Hong Kong and Luxembourg, BSP said.

“It’s definitely the COVID-19’s handiwork at play here in this horrendous outflow,” Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, Inc. said in an e-mail.

“With the COVID-19 pandemic, everything turned south and the general economic outlook turned sour,” he added.

The Philipine economy shrank by 0.2% in the first quarter, the first contraction since the fourth quarter of 1998.

The outbreak had induced a sell-off in March as countries including the Philippines locked down major cities to contain it, Nicholas Antonio T. Mapa, a senior economist at ING Bank-NV Manila said.

President Rodrigo R. Duterte locked down the entire Luzon island in mid-March suspending work, classes and public transportation to contain the outbreak. He extended the so-called enhanced community quarantine in Metro Manila and other key regions until May 15.

Analysts earlier said the central bank would have to revise its hot money goal this year of $8.2 billion net inflows, made before the pandemic hit the globe.

Investor sentiment may turn positive again once markets see a glint of a gradual economic recovery, said Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp.

“Financial market sentiment could improve once the lockdowns are eased in the coming months and as the economy is allowed to gradually restart,” he said.

Nomura expects negative Philippine debt outlook as economy weakens

CREDIT rating companies may lower the Philippines’ debt rating to negative amid dimming growth prospects caused by a global coronavirus pandemic, according to Nomura Global Markets Research.

S&P may be the first among the three credit rating companies to give a negative outlook for the country within a year, Nomura said in a note.

“We see a rising risk that S&P — which has a “BBB+” rating, a notch above Fitch Ratings and Moody’s Investors Service — could revise the outlook to negative over the next six to 12 months,” it said.

“A key support for its rating upgrade to BBB+ last year was its assessment of a strong growth trajectory, which is now undermined by the COVID-19 shock and subsequent measures to contain the local outbreak,” it added.

Nomura’s assessment came a day after Fitch Ratings lowered its outlook for the Philippines to stable from the positive it gave in February. It maintained the country’s credit rating at “BBB” — a notch above the minimum investment grade that it gave in December 2017.

S&P has lowered its growth outlook for the country to a contraction of 2% this year, after projecting 6% growth back in December.

The Philippine economy shrank by 0.2% in the first quarter, the first contraction since the 3% drop in the fourth quarter of 1998 during the Asian financial crisis.

Before the outbreak, the government was targeting to get an A rating by 2022 to get access to low-cost credit as the country was expected to become an upper middle-income country this year.

Philippine central bank Governor Benjamin E. Diokno has said the rating ambition might have to take a backseat.

Meanwhile, S&P Global Ratings warned that the credit rating of banks with strength issues in some countries may be lowered due to the global health crisis.

The coronavirus could also take its toll on the credit ratings and outlook of some countries, though limited because many of of their banks have boosted their balance sheets, S&P said in a separate note.

“We continue to expect that bank rating downgrades this year due to the COVID-19 pandemic will be limited by banks’ strengthened balance sheets over the past 10 years, the support from public authorities to household and corporate markets, and our base case of a sustained economic recovery next year,” it said.

“We cannot rule out further rating actions, including some downgrades, in particular for banks with pre-exisiting financial strength issues,” it added

S&P said most banks would face earnings rather than capital shocks. This could be worsened by weaker investor appetite and higher funding costs for systems dependent on external financing, and the oil-price shock for some, it added.

The central bank has said local banks have enough capital and buffers to withstand the impact of the health crisis. — Luz Wendy T. Noble

Metro Manila electricity bills to go down in May

ELECTRICITY rates in Metro Manila are likely to go down this month, with typical households getting at least a P50 cut in their bills, Manila Electric Co. (Meralco) said on Friday.

In a statement, the country’s biggest power distributor said the overall electricity rate this month fell by P0.2483 per kilowatt-hour (kWh) to P8.7468 from P8.9951 in April.

Households consuming 300 kWh, 400 kWh, and 500 kWh can expect their bills to decrease by P74.49, P99.31, and P124.15, respectively, Meralco said.

The lower monthly rate was due to the force majeure claim it had invoked in its power supply agreements, after power demand fell by 30% during a Luzon-wide lockdown meant to contain the outbreak.

This brought down fixed charges for generation capacity that would have been charged by suppliers, Meralco said.

A force majeure is an uncontrollable event that makes it impossible for power plant operators to fulfill their obligations.

Its generation charge for this month went down by P0.2537/kWh to P4.3848/kWh from last month’s P4.6385/kWh.

The listed firm noted that fixed costs in the April and May billing months had gone down to more than P1 billion due to its force majeure claim.

Charges from its power supply contracts, which make up 52% of its total power supply, were lowered by P0.2116/kWh.

Power costs from independent power producers, which provide 46% of Meralco’s supply needs, fell by P0.6418/kWh on higher average plant dispatch, lower fuel prices and the stronger peso.

Charges from the wholesale electricity spot market, which adds less than 2% to Meralco’s supply needs, rose by P1.8502/kWh, driven by the inclusion of line rentals related to its supply contracts.

There is still no movement in the charge for feed-in-tariff allowance as the Energy Regulatory Commission ordered another suspension of its collection this month, the power utility said.

Transmission costs rose by P0.0175/kWh as ancillary charges were increased, while taxes and other charges posted a net decrease of P0.0121/kWh.

Payments for generation charges go to power suppliers, while transmission charges are remitted to the National Grid Corp. of the Philippines. Taxes and other public policy charges such as universal charges and feed-in-tariff allowance go to the government.

Meralco’s business centers have reopened since May 7 with strict safety measures and social distancing guidelines to be observed by customers.

Shares of Meralco fell by 1.56% to close at P252 each on Friday.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls.

The Energy Regulatory Commission on Tuesday ordered distribution utilities to extend the grace period for bill payments in areas under lockdown.

Customers will pay their deferred bills, which were due from March 16 to May 15, along with their monthly bills, starting May 30. These may be paid in four installments in the next four billing periods from the lifting of the lockdown, it said. — Adam J. Ang

Metro Manila mayors eye lockdown extension

By Genshen L. Espedido, Vann Marlo M. Villegas and, Charmaine A. Tadalan

METRO MANILA’s 17 mayors may seek another two-week extension of a Luzon-wide lockdown until May 30 to contain a novel coronavirus pandemic, Parañaque Mayor Edwin L. Olivarez said on Friday,

Mr. Olivarez, who heads the Metro Manila Council, said most mayors favor an extension of the lockdown that will end at midnight of May 16.

“City mayors I’ve spoken with are in favor of extending it for 15 more days,” he told DZBB radio in Filipino.

Mr. Olivarez said all suspected and probable cases of the coronavirus including frontliners should be tested first before lifting the so-called enhanced community quarantine in the capital and nearby cities.

The mayors will come up with a resolution on Saturday that it would enforse to an inter-agency task force made up of Cabinet members, he said.

The Department of Health (DoH) reported 120 new coronavirus infections on Friday, bringing the total to 10,463.

The death toll rose to 696 after 11 more patients died, it said in a bulletin. One hundred sixteen more patients have gotten well, bringing the total recoveries to 1,734, it added.

Of the 120 new cases, 84 were from Metro Manila, 28 from Central Visayas and eight from the other regions, the agency said.

DoH said 1,934 healthcare workers have tested positive for COVID-19, 449 of whom have recovered and 34 died.

It said 136,169 people have been tested — 13,655 were positive while 122,245 tested negative.

Health Undersecretary Maria Rosario S. Vergeire said the positive cases were greater than the confirmed cases because these still have to be validated.

DoH expects confirmed cases to rise with increased testing capacity, she said at a news briefing.

President Rodrigo R. Duterte locked down Luzon island on March 17, spending work, classes and public transportation to contain the outbreak. People should stay home except to buy food and other basic goods, he said.

The lockdown in Metro Manila and key regions was extended until May 15.

Meanwhile, 250 Filipino workers from overseas were tested for COVID-19 at the opening of the first mega swab center in Metro Manila, National Task Force deputy chief implementer Vivencio B. Dizon said at a separate briefing on Friday.

The agency on Thursday started operating the swabbing center at the Palacio de Manila. There are three other swabbing centers at the Enderun Tent in Taguig City, Mall of Asia Arena in Pasay City and Philippine Sports Stadium in Bulacan.

The swabbing centers will send about 5,000 samples to the Philippine Red Cros laboratory for analysis, Mr. Dizon said.

Also on Friday, Senator Sherwin T. Gatchalian said the Senate education committee which he heads would probe the impact of the health crisis on the education sector.

The lawmaker filed a resolution seeking to draft a recovery plan for the education system during crises.

“We need to strengthen the ability of our schools to continue providing quality education during crises at disasters,” he said in a statement in Filipino.

The outbreak has affected more than 28 million students from the primary to tertiary levels.

Air quality improves amid metro lockdown

AIR QUALITY in the Philippine capital, Manila and nearby cities improved substantially after the main island of Luzon was locked down beginning March 17 to contain a novel coronavirus outbreak, according to a research group.

Metro Manila’s nitrogen dioxide level fell by 45% as transport activities slowed and electricity consumption by shuttered businesses declined, the Center for Research on Energy and Clean Air (CREA) said in a report.

The group looked at the impacts on air quality of the lockdowns imposed in Southeast Asian nations.

It said that among countries in the region, Malaysia’s Kuala Lumpur saw the most drastic and sustained change in air quality with a 60% reduction in nitrogen dioxide, compared with 2019 levels, as manufacturing and transportation activities slowed.

CREA said the air quality improvements were just anomalies if left unchecked after the lockdowns.

“Current improvements to air quality are anomalies and if left unchecked following the lockdowns, air pollution will return swiftly and the threats to human health and well-being linked to it will persist,” it said. — Adam J. Ang

Small business workers get subsidy

THE government has released P10.1 billion in cash grants to more than 1.2 million workers under a small business wage subsidy program, the Department of Finance (DoF) said on Friday.

In a statement, Finance Secretary Carlos G. Dominguez III said about 184,000 more beneficiaries would get their subsidies by Thursday.

The payouts were deposited directly to the employees’ bank or PayMaya accounts or sent via remittance centers.

“The Social Security System has partnered with the Development Bank of the Philippines to automate the payout of the subsidy, which has allowed the distribution to scale up in a short span of time,” he said.

The P51-billion program gives wage subsidy worth P5,000 to P8,000 in two tranches to 3.4 million employees of small businesses displaced by the novel coronavirus pandemic.

SSS President and Chief Executive Officer Aurora C. Ignacio said they have approved 2.2 million employees eligible for the subsidy from more than 101,400 employers that have applied for the program.

The first tranche of payouts began on April 30 and will run until May 15, while the second batch is expected to be released starting May 16 until May 31. — Beatrice M. Laforga

Pressure mounts for businesses to resume at least digital operations

All businesses, including those classified as non-essential, should be allowed to resume operations even if only via online platforms, the former head of the Philippine Retailers Association (PRA) said.

In a webinar hosted by the Management Association of the Philippines Friday, Quorum Group Chairman Roberto S. Claudio, Sr. said the government needs to “allow all businesses to operate for so long as they can do it online.”

“For e-commerce, wala dapat distinction (there should be no distinction), whether essential or non-essential,” he said.

He was referring to the current policy under the enhanced community quarantine (ECQ), which only allows essential industries, their personnel and their shipments to operate and pass through lockdown checkpoints.

“This is the only way we can get a little cash flow, at least pambayad sa mga tao (to pay for salaries). It’s not profit anymore; we are not looking for profit,” he added.

He said areas subject to the more-relaxed general community quarantine (GCQ) should allow limited operations at physical stores, while observing health and safety protocols.

According to Mr. Claudio, micro, small, and medium enterprises (MSMEs) experienced a 100% drop in sales and revenue, along with depleted working capital and negative cash flow, during the ECQ.

In a survey performed by accounting firm Isla Lipana & Co., the Philippine unit of PwC network, conducted among 350 business owners, most MSMEs said their top concern is managing their working capital.

Mr. Claudio said working capital is now a matter of survival for such firms, adding that medium-sized enterprises need to seek loans from commercial banks, while small and micro-sized businesses should be asisted by the government via its stimulus program.

Among the government assistance programs available to MSMEs are the Small Business Wage Subsidy Program of the Department of Trade and Industry (DTI), the Social Security System (SSS) and the Bureau of Internal Revenue (BIR).

The program provides at least P5,000 each month for every affected employee of a small businesses.

The government is currently putting together its stimulus program, which also includes provisions that will help sustain MSMEs, such as the proposed P25-billion bridge loan program to be offered by the Small Business Corp. and the P128-billion credit mediation and refinancing service of the Philippine Guarantee Corp.

Meanwhile, PwC Philippines is projecting a rise in strategic partnerships in the wake of the coronavirus disease 2019 (COVID-19) pandemic, while acquisition activities will be likely decline, as investors are reevaluating their transactions.

“There are uncertainties that are dampening investor appetite for investments and most will conserve their cash,” said Mary Jade T. Divinagracia, a managing partner for deals and corporate finance at PwC.

“Acquisitions will likely be down, but I believe there will be a rise in strategic partnerships as people find a way to work together, share resources, even co-develop or co-brand their products,” she added.

Ms. Divinagracia said small companies should consider entering into such partnerships, while medium enterprises might still be able to attract investors. — Adam J. Ang

Southeast Asian COVID-19 measures at $243-B

SOUTHEAST Asian countries have rolled out$242.995 billion worth of measures in response to the coronavirus disease 2019 (COVID-19) outbreak, according to the Asian Development Bank (ADB).

In a statement Friday, the ADB said the measures are equvalent to 13.1% of the $1.856 trillion worth of measures announced by all of the ADB’s developing member-countries.

Its East Asan members, meanwhile, announced $1.501 trillion worth of measures.

The data were compiled by ADB’s Economic Research and Regional Cooperation Department (ERCD), and were valid as of April 20.

The ADB said the Philippine measures rolled out so far are equivalent to $16.466 billion or 4.46% of gross domestic product (GDP).

This translates to $154.39 per person worth of spending to help contain COVID-19.

“Preliminary analysis indicates that both the package per capita and the package as a percentage of GDP are statistically unrelated to the number of COVID-19 cases and the number of deaths,” the ADB said.

Thailand has set aside $70.076 billion or 13% of GDP, followed by Indonesia with $57.1 billion or 5.4% of GDP, Singapore with $42.375 billion or 12.05% of GDP, Malaysia with $31.215 billion or 8.78% of GDP, and Vietnam $23.192 billion or 8.86% of GDP.

Of the remaining countries studied, Cambodia had $2 billion worth of measures or 7.75% of GDP, Timor Leste ($250 milllion, 8.51%), Brunei ($177 million, 1.48%), Myanmar ($71.54 million, 0.1%) and Laos ($1.12 million, 0.01%) had the smallest size of economic packages roleld out against the coronavirus pandemic.

“The liabilities of numerous central banks are ‘funding’ government deficits in different forms. For example, the central banks of the Philippines, the UK, and Indonesia have engaged in direct central bank lending/primary market purchases, while those of the United States, the Republic of Korea, Thailand, Papua New Guinea, Canada, Sweden, and the UK, implemented quantitative easing,” the ADB said. — Beatrice M. Laforga

POGOs required to obtain tax clearances before resuming operationa

PHILIPPINE Offshore Gaming Operators (POGOs) and service providers will be required to secure tax clearances from the Bureau of Internal Revenue (BIR) and settle all liabilities before will be permitted to resume operations, The Department of Finance said.

In a Viber message, Finance Secretary Carlos G. Dominguez III said POGO service providers will have to settle their 2019 income tax liabilities while registered POGOs will have to pay their outstanding franchise taxes in 2019, before they can start operating again.

POGOs and the service providers will also have to remit to the BIR all of their current withholding tax liabilities for the year, and submit an undertaking that they will pay other taxes due.

“Once these are complied with the BIR will issue a tax clearance to enable them to operate,” Mr. Dominguez told reporters.

The government’s anti-coronavirus task force allowed POGOs and their service providers to reopen with up to 30% of their workforce after they were classified as part of the business process outsourcing (BPO) sector.

Mr. Dominguez has said that the service providers are not exempt from tax since their classification as part of the BPO sector will not grant them these tax privileges.

In a separate statement, ASPAP or the Accredited Service Providers of Philippine Amusement and Gaming Corp. (PAGCOR) said it will observe all health and safety protocols set by regulators once it resumes operations.

“We wish to reassure our legislators and the public that resumption of POGO operations would not undermine the ECQ or pose unnecessary health risk to the community,” ASPAP Spokesperson Margarita Gutierrez was quoted as saying.

Senator Ana Theresia N. Hontiveros-Baraquel earlier filed a resolution seeking to prevent POGO service providers from resuming operations once the enhanced community quarantine (ECQ) is lifted, citing their unpaid taxes.

Meanwhile, 31 legislatorsn have filed a bill proposing to outlaw offshore gaming operations, including a ban on service providers, POGO hubs and gaming laboratories.

The proposed Anti-POGO Act also seeks to revoke the licenses of all foreign-based operators, local gaming agents and service providers.

Among other requirements, POGO employees, whether Filipinos or foreign nationals, should first be tested for coronavirus disease 2019 (COVID-19) and must obtain a negative test result from a testing facility duly registered with the Food and Drugs Administration, before they can be allowed to work.

The BIR collected taxes totalling P6.42 billion in 2019 from POGOs and service providers, up 170% from a year earlier.

Of the total, P5.13 billion was generated by withholding taxes, P644.07 million by income taxes, P91.13 million by value-added taxes (VAT) and percentage taxes, P81.11 million by documentary stamp taxes and P469.13 million by other taxes.

The Bureau has estimated that around P27-billion worth of tax liabilities have not been collected from POGOs. — Beatrice M. Laforga

1...8,7168,7178,718...13,386Page 8,717 of 13,386
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube