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Actress Anita Linda, 95

Anita Linda, considered by many to be the country’s oldest active actor, died at the age of 95 early Wednesday morning.

Her death was announced by director Adolf B. Alix, Jr. via a Facebook post and was subsequently confirmed via text message from Ms. Linda’s daughter, Francesca Legaspi, to The Philippine Star.

“She passed away this morning at home. [She had] difficulty breathing,” Ms. Legaspi said in the text message.

Mr. Alix, who worked with the actress in the films Adela (2008) and Circa (2019) mourned her passing by posting, “This is a very sad day for me. I am trembling as I am gathering my thoughts.”

He added that Ms. Linda was like a grandmother to him.

Anita Linda (real name: Alice Buenaflor Lake) was born on Nov. 23, 1924 in Pasay City. Her father was an American mining engineer and her mother hailed from Iloilo.

Her acting career started shortly before the Second World War when she was called backstage by director Lamberto V. Avellana after he saw her watching a show at the Avenue Theater in Manila. Mr. Avellana asked if she wanted to be an actress and she declined as she couldn’t speak Tagalog, but Mr. Avellana insisted that she come to the rehearsals for the next show and even had her fetched from home when she didn’t show up.

Mr. Avellana was the one who gave her the stage name Anita Linda.

In 1943, Mr. Avellana cast Ms. Linda in her first movie acting role in Tiya Juana. Her first leading role was in 1947 in Moises A. Caguin’s Alyas Sakim.

She was cast as the titular Sisa in the 1951 film by Gerardo de Leon, based on the mother who went mad searching for her sons in Jose P. Rizal’s novel Noli Me Tangere.

Throughout the 1950s, she was Premiere Productions’ top actress and was often paired with Ramon D’Salva, Jose Padilla, Jr., Fred Santos, and Eddie del Mar.

In the 1970s, Ms. Linda saw a career resurgence after taking a years-long hiatus from lead roles in the 1960s after her contract with Premiere Productions expired. She worked with Lino Brocka on Tatlo, Dalawa, Isa (1974) for which she won a Best Supporting Actress Award from FAMAS (Filipino Academy of Movie Arts and Sciences). She also starred in several of Mr. Brocka’s critically acclaimed and award-winning films including Tinimbang Ka Ngunit Kulang (1974), Mortal (1976), Jaguar (1979), Dalaga si Misis, Binata si Mister (1981), Mother Dear (1982), Experience (1984), and Pasan Ko ang Daigdig (1987).

In 1982, Gawad Urian gave her a Lifetime Achievement Award. Four years later, she won the Gawad Urian award for Best Supporting Actress for Takaw Tukso by William Pascual.

Her IMDb page lists 398 acting credits. Her most recent film was in Mr. Alix’s Circa, which tells the story of a celebrated film producer celebrating her 100th birthday whose wish is to see the people she worked with over the years.

She became the oldest actress to win a FAMAS when she bagged the Best Supporting Actress award in Mario O’Hara’s Ang Babae sa Bubungang Lata (1998).

“The industry is blessed to have you. Thank you for being an inspiration to all of us. Your words will forever be in my heart,” Mary Liza Dino-Seguerra, chairman and CEO of the Film Development Council of the Philippines said in a Facebook post mourning Ms. Linda’s passing.

She recounted a conversation she had with the veteran actress who said that life has been good to her and that she didn’t want to leave life because it feels nice to live.

“It was such a humbling experience to have been able to spend a moment with one of our country’s living treasures,” Ms. Dino-Seguerra said.

Ms. Linda is survived by her children Francesca Legaspi and Fred Osburn. — Z.B. Chua

Maynilad to build P15-M virus testing center

MAYNILAD Water Services, Inc. has teamed up with the De los Santos Medical Center (DLSMC) to build a P15-million testing and laboratory center to boost the country’s testing capacity and help contain the spread of the coronavirus disease 2019 (COVID-19).

“We are happy with the decision we made,” said Maynilad President and Chief Executive Ramoncito S. Fernandez on selecting the hospital as the beneficiary of the donation.

The new facility will be built within the medical center’s complex in Quezon City. It will conduct and process reverse transcription-polymerase chain reaction (RT-PCR) tests for suspected COVID-19 patients. RT-PCR is the standard testing procedure recommended by the World Health Organization in detecting the virus.

“From our own experience, DLSMC has been very efficient and flexible in servicing the needs of Maynilad. This laboratory will be a testament to our partnership and is also our small contribution to our country and to the MPIC group in its quest for doubling the testing capacity in the country,” Mr. Fernandez said.

Once operational in August 2020, the testing center will have the capacity to test and process swab samples from about 200 patients daily. Maynilad also continues with relief activities for frontliners and urban poor communities during the pandemic

Both Maynilad and DLSMC are companies under Metro Pacific Investments Corp., with DLSMC as one of 16 hospitals under Metro Pacific Hospital Holdings, Inc.

At-home consumption, online buying here to stay

CONSUMERS in Southeast Asia are expected to keep their home-centric habits even when physical distancing requirements are lifted, a joint study by Bain & Company, Inc. and Facebook, Inc. found.

In their report “Southeast Asia Digital Consumer Trends that Shape the Next Normal,” Bain and Facebook said online buying trends that emerged from the coronavirus disease 2019 (COVID-19) pandemic are likely to outlive mandated social isolation.

“Companies and consumers have all been dealing with severe disruptions over the past few months. Moving forward, many will not be able to go back to old ways of functioning,” Bain Partner Praneeth Yendamuri, who co-authored the report, said in a statement on Tuesday.

The study is based on April 2020 data from a YouGov survey about digital consumer trends across Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam. It also included interviews with about 20 C-level executives and venture capitalists.

The report identified six themes that shape new consumption habits, all of which companies must learn to adapt in what it called the “next normal.”

When quarantine measures were imposed in Southeast Asian countries on different dates during the first quarter, consumers were forced to resort to digital platforms for most activities, including consumption of essential goods. The report said this behavior is likely to stay.

“As businesses adjust to the new normal, this shift to online purchases has accelerated, mainly for essentials. People staying at home has increased the demand for essentials in the short term, both online and offline,” it said.

Affinity for digital platforms is also seen to grow, with most people being more open to discovering new applications. “Consumers are turning to digital devices to keep themselves occupied while indoors. As a result, the usage and adoption of different digital apps have accelerated and will likely continue,” the report said.

Not all applications may be getting an equal amount of attention, but those that are attracting most users are social media, video streaming, instant messaging, e-commerce, food delivery and digital payments platforms.

The pandemic also gave birth to the rise of value-for-money as a key consideration for consumers in making purchases. Specifically, it said more than half of consumers in the Philippines say they prioritize value in purchases when shopping.

“The trend is likely to continue, as Southeast Asians say they expect to be less materialistic, save more and take out more insurance in the new normal… [A]s a whole Southeast Asians are, on average, twice as likely to save more for a rainy day or take out insurance,” it said.

But while there is openness for new applications, the pandemic also set the stage for reliable brands to rise. “Southeast Asia’s digital consumers have always been open to trying new brands… This year we looked closely at the types of brands consumers buy — and they showed a strong preference for trusted and established brands,” it said.

It noted this behavior is largely driven by the ability of established brands to offer better availability and pricing. This fits perfectly with consumers who choose to buy by the bulk to reduce the need to leave homes.

And with COVID-19 still a very much active health issue, the report said health and welfare consumptions will remain the priority of Southeast Asian consumers. “In countries like the Philippines and Vietnam, consumers prioritize health and wellness or corporate social responsibility even more highly than value-for-money,” it said.

Lastly, the report said consumers in Southeast Asia are more likely to choose at-home activities long after physical distancing is required.

“Southeast Asian consumers adopt more favorable attitudes to working from home and use remote-presence apps more often. At least a third of respondents felt more productive when working from home and felt that doing so has improved their mental health and stress,” it said.

It noted companies have also adjusted to this better with the introduction and enhancement of contactless innovations. It specifically mentioned the increased adoption of Ayala-owned GCash, which it said recorded a 30% increase in transaction volumes since March.

“While there are significant challenges we need to overcome, some of the digital leapfrogs we are seeing could also pose opportunities. Companies will need to ‘Plan Now’ to prepare for the structural changes tweaking their operating models, value propositions and consumer outreach,” Mr. Yendamuri said.

“What’s clear is that designing for discovery via social and digital platforms will continue to be important and companies that are able to adjust strategies to meet the new consumer trends will be in a better position to weather through these challenging times,” added Dhruv Vohra, industry director for digital natives and technology at Facebook. — Denise A. Valdez

VLF 2020: From TV to online

Anthony Kim Vergara’s Virgin Labfest (VLF) 2020 entry, The Boy-Boy and Friends Channel, follows four friends who make a new career as YouTubers after they lose their jobs as production crew members due to the untimely shutdown of their TV network. Boy-Boy, together with his friends, take on an insane challenge on their channel which changes their friendship.

In a video call with BusinessWorld on June 9, the play’s director Joshua Tayco said that The Boy-Boy and Friends Channel was not going to be staged this year, thanks to the COVID-19 pandemic and the subsequent movement of the Cultural Center’s theater festival online. However, the playwright decided to push through with it due to recent events in the country.

“A part of our play tries to explore the interaction between the online audience and the performance since audiences can comment during the show,” he said.

With the decision to “stage” the play, Mr. Tayco was invited to direct in early May.

“We’re attempting to push the boundaries of what can be done,” he said, noting the limitations of what can be done in the digital medium as the production team faced challenges with internet connections.

“One of the things we have to accept as artists is to look at what we have gained rather than what we have lost,” Mr. Tayco said.

The set designer became a layout designer, stage managers are now screen managers, and actors have set up their own sets.

In the cast are Norbs Portales, Anthony Falcon, Jerald Napoles, Nicco Manalo, and Gabo Tolentino.

“Sana’y sumakit ang tiyan nila sa kakatawa hanggang sa mabilaukan sa katotohanan (Hopefully, their stomachs hurt from laughing until they grasp the truth),” Mr. Tayco said of the audience.

The Boy-Boy and Friends Channel will stream live on June 12, 8 p.m. and June 23, 8 p.m.

Recorded versions of the shows will be streamed on Vimeo website and app beginning June 14 to 28. Viewers can set up an account then search for “Cultural Center of the Philippines” or “VLF Kapit” for access to the shows.

The VLF Playwright’s Fair online, where this year’s playwrights will talk about their work, will screen on June 11-14, 17-20, 25-27 at 8 p.m. Meanwhile, the Virgin Labfest 2020 Writing Fellowship Program will culminate in an online staged reading of the fellows’ works on June 28 at 2 and 5 p.m. For instances of schedule overlaps, the featured performances will stream on CCP’s official Facebook page while the VLF Playwright’s Fair will stream at the official VLF Facebook page (https://www.facebook.com/thevirginlabfest).

For more details and show schedules, visit https://www.facebook.com/watch/TheBoyBoyAndFriendsChannelVLF/, https://www.facebook.com/culturalcenterofthephilippines/, and https://www.facebook.com/thevirginlabfest/, or join https://www.facebook.com/groups/VLFTambayan/. — Michelle P. Soliman

Renewables seen key in powering post-pandemic recovery

YUCHENGCO-LED PetroEnergy Resources Corp. expects renewable energy (RE) to play a “key role” in helping provide stable power as it forecasts demand for reliable and efficient electricity supply to increase.

“We expect an increased move to digitization and technology-enabled services that are heavily dependent on reliable electricity and power supply,” said Dave P. Gadiano, head of energy trading and marketing of PetroGreen Energy Corp., the renewables subsidiary of PetroEnergy.

He said having a more resilient power supply can make the post-pandemic recovery to happen faster and easier.

“This is why we ensured that our RE facilities continue to operate despite the health crisis,” Mr. Gadiano said in a statement.

Under the Renewable Energy Act of 2008, plants run by solar, wind, geothermal and other renewable sources are “must dispatch,” which helped in stabilizing power supply even if most renewables facilities have variable output and many huge coal power plants were on shutdown due to repairs and fuel supply disruptions during the quarantine period.

“The government can further add to this grid resiliency by making geothermal, the most stable and weather indifferent RE source, as ‘must dispatch’ as well,” Mr. Gadiano said.

PetroEnergy and PetroGreen’s power plants were operational since the community quarantine, generating 26.81 gigawatt-hours of power from March 16 to May 31, 2020.

What Do You Prefer, Nosecco or Prosecco?

FANCY a glass of Nosecco?

The alcohol-free sparkling wine might not be to everyone’s taste, but its catchy name caused a fight between a French group and the Italian producers of Prosecco. The outcome could have implications for companies looking to ride the trend toward alcohol-free alternatives to traditional drinks and vegan offerings that strive to look and taste like meat and dairy products.

While familiar packaged-food brands, such as Kraft macaroni and cheese and Nestlé’s Hot Pockets, enjoyed a revival during the pandemic, the long-term prospects remain brighter for products that are perceived as healthier. Just look at the rise of the vegan sausage roll sold at Greggs Plc. Its arrival prompted the UK baker to upgrade its profit forecasts several times in 2019.

In fact, with the unprecedented focus on health precipitated by the novel coronavirus outbreak, the opportunities for categories such as fake meat, fish, and eggs may be even bigger.

What happens in the Nosecco case could be a lesson for the upstarts.

Nosecco has been sold in the UK since 2017, and Les Grands Chais de France, the country’s largest independent wine producer responsible for J.P. Chenet and Chemin des Papes wines, wanted to establish a trademark for it. It was challenged in 2018 by a consortium representing the northeast Italian region where Prosecco is produced, which said the name brought to mind the Italian wine, which is protected by European rules on origin.

The French company argued the name was never meant to rival Prosecco in the UK. Instead, it was chosen to capture the drink’s alcohol-free quality while playing on the fact that it wasn’t “sec,” or dry, like the Italian wine, but rather sweet.

But the UK’s Intellectual Property Office found in favor of the Italian producers, deciding that in the minds of consumers the name Nosecco evoked the hugely popular Prosecco. There was a serious risk, it said, that consumers would believe the drink was in fact non-alcoholic Prosecco. Les Grands Chais de France is now appealing the decision in the High Court.

The company is not alone in facing delicate marketing issues when it comes to new food categories. It has long been debated whether dairy alternatives can be classed as milk. In Sweden, that’s culminated in a “milk war” between the country’s dairy industry and Oatly, a Swedish manufacturer of oat milk. There’s no clear winner, but the skirmish doesn’t seem to have done Oatly any harm: Oat milk is hot around the world right now. In what could be a challenge to the rise of meat substitutes, some US states, including Arkansas and Mississippi, have sought to restrict the use of terms such as burgers and dogs. (Mississippi now allows plant-based food makers to use some terms so long as they carry modifiers such as meat-free.)

Naming battles will likely crop up between competing alternative-food makers, too. Just last week, Nestle SA, the world’s biggest food company, said it would rename its Incredible plant-based patties as the Sensational burger. The move came after a Dutch court upheld an injunction filed by Impossible Foods Inc., citing a trademark infringement. Nestle said it will appeal the ruling.

What is clear is that producers of everything from lupin burgers to non-alcoholic gin must work hard to stand out. While there is huge growth to be had, the competition will be stiff. Traditional food companies and brewers are piling in, too. Drinks giant Diageo Plc last year acquired a majority stake in Seedlip, the non-alcoholic spirit maker.

There is no doubt that Nosecco was a stroke of marketing genius. But it has ended up in a protracted legal wrangle. Amid the shifting landscape for alternatives, producers will need to be innovative and creative with their branding. The Vegetarian Butcher, the meat-substitute maker acquired by Unilever Plc in December 2018, is perhaps a good example.

It’s not always easy to get the message across that a dish or drink is a vegan or non-alcoholic version of an old favorite, and in an appealing way, but marketers will need to dig deep. Otherwise, as Nosecco has shown, they could have a fight on their hands, and that’s not very appetizing for anyone.

Yields on term deposits drop as offer of 14-day tenor resumes

YIELDS ON THE Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) continued to slip following its easing moves in the past months to help mitigate the impact of the coronavirus crisis on the economy.

Total tenders for the term deposits offered by the BSP on Wednesday amounted to P353.789 billion, surpassing the P180 billion on the auction block as the central bank resumed its offer of 14-day deposits after three months of not offering the tenor. Last week, bids for the seven-day deposits amounted to P328.68 billion, higher than the P170 billion on the auction block.

Tenders for the seven-day papers auctioned by the BSP yesterday totaled P284.139 billion, going beyond the P120 billion up for grabs but lower than the last week’s bids.

Rates for the one-week term deposits ranged from 2.25% to 2.2515%, a slimmer band compared to the 2.25% to 2.2525% seen on June 3. With this, the average rate of the seven-day papers settled at 2.2507%, dipping by 0.03 basis point (bp) from the 2.251% seen recorded last week.

Meanwhile, tenders for the 14-day term deposits hit P70.65 billion, more than thrice the P20 billion on the auction block but slightly lower than the P70.844 billion seen for March 11’s P50-billion offering — the last time the BSP offered this tenor.

Lenders asked for yields ranging from 2.25% to 2.254%, coming from the 3.75% to 3.812% band logged during the March 11 auction. This caused its average rate to come in at 2.252%, plunging by 152.37 bps from the 3.7757% recorded three months ago.

“The results in the auction show strong market interest for BSP’s deposit facilities as financial system liquidity further stabilizes,” BSP Deputy Governor Francisco G. Dakila, Jr. said in a statement.

The BSP halted offering term deposits at the onset of the Luzon lockdown in March to provide support to the banking system. In mid-April, it started offering seven-day papers again. The central bank said on Tuesday that it will gradually resume offering the other TDF tenors as liquidity continues to stabilize.

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said the easing stance by the BSP caused yields to drop.

“The high demand is pushing average yields lower and this is a direct and outright impact of lower monetary policy rates and other easing measures that the BSP has implemented in the last few months,” Mr. Asuncion said in an e-mail.

The BSP has reduced benchmark interest rates by 125 bps this year, which brought the overnight reverse repurchase, deposit, and lending rates to record lows of 2.75%, 2.25%, and 3.25%, respectively.

Meanwhile, the reserve requirement ratio of big banks was also trimmed by 200 bps to 12% in April. — L.W.T. Noble

Robot built for Japan’s aging workforce finds coronavirus role

TOKYO — Mira Robotics developed its “ugo” robot to reinforce greying Japan’s shrinking workforce, but as the coronavirus threat persists, the Japanese start-up is offering its machine as a tool in the fight against the outbreak, the company’s CEO said.

“The coronavirus has created a need for robots because they can reduce direct contact between people,” Ken Matsui told Reuters at his company’s workshop in Kawasaki, near Tokyo. “We’ve had inquiries from overseas, including from Singapore and France.”

The latest feature of the remote-controlled or so-called avatar robot is a hand attachment that uses ultraviolet light to kill viruses on door handles.

An unprecedented population decline that is shrinking Japan’s workforce by more than half a million people a year as well as a reluctance to bring in foreign labor to fill vacant positions has spurred robot development in Japan.

The emergence of coronavirus-related demand could further that work.

Mira Robotics’ Ugo is a pair of height-adjustable robotic arms mounted on wheels, operated remotely through a wireless connection with a laptop and game controller. A range-measuring laser mounted on the base helps it navigate, while a panel at the top displays eyes to give it a friendlier appearance.

It takes around 30 minutes to learn how to use the robot, with each operator able to control as many as four machines, said Mr. Matsui. Ugo which costs around $1,000 a month to rent, can be deployed as a security guard, carry out equipment inspections and clean toilets and other areas in office buildings, he added.

Mr. Matsui’s two-year-old start-up so far has only one ugo operating at an office building in Tokyo. — Reuters

Phoenix goes contactless

PHOENIX Petroleum Philippines, Inc. launched a contactless mode of payment in its fuel stations in Luzon for safe transactions amid the ongoing pandemic.

The listed independent fuel retailer on Wednesday said it is now allowing electronic payment in some 100 stations via QR code scanning.

“This time, we want to ensure the safety of our customers by offering contactless transactions that could help flatten the curve [of cases of coronavirus disease 2019],” Phoenix President and Chief Operating Officer Henry Albert R. Fadullon was quoted as saying.

Phoenix has partnered with e-payments platforms Alipay, GCash, WeChat Pay, and GrabPay to introduce such a scheme.

The same payment mode will be implemented in the rest of its fuel stations in Visayas and Mindanao within the month.

Last week, the company launched its latest range of exclusive products for public utility vehicle drivers via the Bangon Tsuper program in aid of their return to mass transport operations.

PayMaya offers cashless payment for BIR, SSS dues

FILIPINOS can now easily pay for their tax and social security dues using their PayMaya accounts from the safety and comfort of their homes, the digital financial services company said.

“We at PayMaya are excited to work with more national government agencies and local government units towards those same goals” said Orlando B. Vea, founder and chief executive of PayMaya.

For payment of dues to the Bureau of Internal Revenue (BIR), convenience fees are waived when taxpayers use the Pay Bills section of the app. They also get a chance to earn up to 100% cashback when they pay their fees using their PayMaya accounts via the Social Security System (SSS) mobile app.

PayMaya has also enabled more government agencies and units with the ability to accept card and e-wallet payments as the country accelerates digital efforts because of the coronavirus disease 2019 (COVID-19) pandemic.

These agencies and units include the Pag-IBIG Fund, Department of Trade and Industry, the Professional Regulation Commission, the Department of Science and Technology, the Department of Foreign Affairs, the National Home Mortgage Finance Corp., and the City of Valenzuela.

PayMaya has also partnered with the Department of Transportation and the Land Transport Regulatory and Franchising Board to equip public utility vehicles such as taxis, buses, and ride-hailing service providers with cashless payments acceptance for commuters.

BSP’s rediscount facility left untapped in May

THE CENTRAL BANK’S term deposit facility was untapped in May. — BW FILE PHOTO

LENDERS LEFT the central bank’s rediscount facility untouched in May, signaling liquidity levels have increased after the implementation of measures meant to funnel more funds into the financial system.

“There was no availment under the BSP (Bangko Sentral ng Pilipinas) Rediscount Facilities for the month ending May 31,” the central bank said in a statement on Wednesday.

The rediscount facility of the BSP lets banks get hold of additional money supply by posting their collectibles from clients as collateral.

In turn, the banks may use the cash — in peso, dollar or yen — to disburse more credit for corporate or retail clients and service unexpected withdrawals.

From March to April, peso rediscount borrowings totaled P20.7 billion. This compares to the P85.799 billion loan availments from January to May 2019.

Lenders also left the rediscount facility untapped from November 2019 to February 2020.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said banks’ decision not to tap the rediscount facility in May reflects “increased peso liquidity” after the reduction in reserve requirement ratio for banks as well as other regulatory relief measures that encourage lenders to disburse more credit.

“This sends a positive signal to the markets, as banks need not rediscount their loans with the BSP and indicate they have more than enough funding to service the requirements of their depositing and borrowing clients,” he said in an e-mail.

Mr. Ricafort said the continued increase in liquidity due to easing measures from the central bank will reduce banks’ need to tap the rediscounting facility for extra funding.

The reserve requirement of universal and commercial banks was reduced by 200 basis points to 12% effective in April in a move to boost liquidity during the Luzon lockdown. This move infused some P200 billion into the banking system, Mr. Ricafort said.

Aside from this, the BSP has also allowed banks’ lending to micro-, small-, and medium-sized enterprises and to large enterprises hit by the pandemic to count as alternative reserve compliance.

JUNE RATES
Meanwhile, applicable rates for peso loans regardless of maturity is at 3.25% this month, which is the current lending rate of the central bank. The rate was approved by the Monetary Board in May and is effective until July 17.

Meanwhile, dollar-denominated loans are priced at 2.776% for those maturing in three months or less; 3.208% for those maturing in 91 days to 180 days; and 4.072% for those with a term of 181.36%.

For yen-denominated loans, rates are at 2.39117% for those with terms of three months or less; 2.82317% for those maturing within a 91-180 day time frame; and 3.68717% for loans maturing from 181 to 360 days.

The Exporters’ Dollar and Yen Rediscount Facility rates are based on the 90-day London Inter-Bank Offered Rate plus a spread depending on the term of the loan. — Luz Wendy T. Noble

Thailand OKs bill seeking to tax foreign internet companies

BANGKOK — Thailand on Tuesday approved a draft bill requiring foreign digital service providers to pay a value-added tax (VAT), becoming the latest country in Southeast Asia to seek to boost tax revenues from international tech companies.

Last month, Indonesia passed a law requiring big internet companies to pay VAT on sales of digital products and services from July, and in the Philippines a lawmaker introduced a similar bill in parliament to tax digital services.

The Thai bill, which still has to be voted on by Thailand’s parliament, requires non-resident companies or platforms that earn more than 1.8 million baht ($57,434.59) per year from providing digital services in the country to pay a 7% VAT on sales, deputy government spokeswoman Ratchada Thanadirek told reporters.

Thailand is expected to add about 3 billion baht ($95.72 million) to its coffers annually from the move, which will affect services such as music and video streaming, gaming, and hotel booking, she added, without naming any companies.

“These businesses would’ve had to pay VAT if they had been Thai, which is unfair,” Ms. Ratchada said.

Thailand, Southeast Asia’s second-largest economy, has mulled taxing digital businesses for years, hoping to tap the country’s internet economy, one of the fastest growing in the region.

Thanawat Malabuppha, president of the Thai e-Commerce Association, told Reuters he welcomed the move, as it will help level the playing field for rival Thai businesses.

“Anyone who makes money from Thai people should pay taxes to the country,” he said.

Analysts say the COVID-19 (coronavirus disease 2019) pandemic has accentuated a push by governments around the world to tax internet companies, who could see a boost in revenues as people stay at home during global lockdowns.

Nearly 140 countries from the Organisation for Economic Cooperation and Development are negotiating the first major rewriting of tax rules to take better account of the rise of big tech companies such as Amazon, Facebook, Apple and Google.

Southeast Asian regulators held talks last year on a region-wide effort to tax tech giants more, while industry groups have warned that over-regulation could blunt the region’s booming digital economy. — Reuters

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