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PWDs to be granted 5% discount on staples

PERSONS with disabilities (PWDs) will be entitled to a 5% special discount on basic necessities starting next month, according to the latest regulations released by the Bureau of Internal Revenue (BIR).

BIR issued Tuesday Revenue Regulations (RR) no. 9-2019, amending RR no. 5-2017, granting PWD a 5% special discount on the regular retail price of basic necessities and prime commodities. They are not exempt from 12% value-added tax (VAT).

“Every PWD shall enjoy a special discount of five percent (5%) of the regular retail price, without exemption from the value-added tax (VAT) of basic necessities and prime commodities,” the BIR said in a statement.

The discount is limited to purchases not exceeding to P1,300 “per calendar week without carry-over of the unused amount,” it said.

The items purchased should only be for the PWD’s own consumption, it said.

The regulations will be effective as early as next month or 15 days after its publication in the Official Gazette or in any two newspapers.

Basic necessities were defined as goods “vital to the needs of consumers” while prime commodities are goods that are “essential” to them.

Necessities include rice, corn, root crops, bread, fresh, dried or canned fish and other marine products; fresh pork, beef and poultry meat; fresh eggs, potable water in bottles and containers; fresh and processed milk; fresh vegetables and fruits; locally manufactured instant noodles; coffee, coffee creamer; sugar, cooking oil, salt, laundry soap, detergent, firewood, charcoal, candles, household liquefied petroleum gas and kerosene.

Meanwhile, prime commodities include flour, dried, processed or canned pork, beef and poultry meat; dairy products not falling under basic necessities; onions, garlic, vinegar, patis, soy sauce, toilet soap, fertilizer, pesticides and herbicides; poultry, livestock and fishery feeds and veterinary products; paper, school supplies, nipa shingles, sawali, cement, clinker, GI sheets, hollow blocks, plywood, plyboard, construction nails, batteries, electrical supplies, lightbulbs and steel wire.

The regulations were signed by Finance Secretary Carlos G. Dominguez III on Aug. 8 and also by BIR Commissioner Caesar R. Dulay.

Republic Act. No. 20754 or An Act Expanding the Benefits and Privileges of PWD entitles PWDs to a 20% discount and VAT exemption on medicine, hotel and restaurant services, theater and concert tickets, among others.

Currently, PWDs also enjoy a 20% discount and VAT exemption on medical and dental services and domestic air and sea transportation fares, land transportation fare, and funeral and burial services. — Beatrice M. Laforga

DoE not ruling out single entity bidding for entire 2,000 MW of renewable energy on offer

THE Department of Energy (DoE) will allow single entities to bid for the entire 2,000 megawatts (MW) of renewable energy capacity that it plans to auction in order to encourage the development of clean power sources, an official said.

“It’s open. Why would you disqualify?” Energy Undersecretary Felix William B. Fuentebella told reporters on Wednesday on the sidelines of the Philippines Infrastructure Conference at Manila Marriott Hotel in Pasay City.

The new renewable energy (RE) capacity will be through a proposal by the DoE to set what it calls “green energy rate.” Energy Secretary Alfonso G. Cusi announced in a forum last month that the rate for the renewables would be competitive with current market rates.

He clarified that the green energy rate is different from the feed-in tariff (FiT) program and will not be subsidized by consumers.

The FiT scheme was meant to encourage the development of renewables by giving developers a fixed rate for the energy they produce. The rate is higher than the prevailing cost of electricity, with consumers subsidizing the rate by paying a FiT “allowance” tucked in their monthly power bill.

“Instead, the green energy rate will support the RE generators with securing PSAs (power supply agreements) and selling their energy through the establishment of a fair baseline price,” Mr. Cusi has said.

Mr. Fuentebella said the agency is awaiting the recommendation of the National Renewable Energy Board (NREB) on the auction mechanism. Mr. Cusi had said the board is expected to submit its recommendations “in the months ahead.”

Asked about the timeline for the framework and its target issuance, Mr. Fuentebella said: “This year.”

“The DoE is looking into the qualifications. Basically these should be renewable energy developers of good standing but as far as putting in a cap or a disqualification, we have not discussed it yet,” he said.

He dismissed fears that one entity could end up cornering the entire capacity to be auctioned, saying developers that offer a low rate upfront but put in an escalation clause for the rates in future years will be subject to review. He said the Energy Regulatory Commission (ERC) could end up setting the baseline rate.

Mr. Fuentebella left questions unanswered on how the 2,000 MW target capacity will be distributed among the country’s grids. He added issues such as whether hybrid RE sources would be included, or whether solar battery storage would count into the capacity to be auctioned. — Victor V. Saulon

Double trouble? A drawback to a taxpayer’s double invoicing system

In taxation, it is a basic rule that every transaction must be supported by a valid and relevant proof to establish the existence of either a taxable or non-taxable event. However, no matter how many stacks of documents you keep, if these do not comply with the requirements of the tax laws, they will not serve their purpose.

For value-added tax (VAT)-registered taxpayers, compliance with the invoicing requirements, for both sale and purchase transactions, is a must to determine if: (1) the seller has reported the output tax due on the sale; and (2) the buyer is entitled to claim the input tax credit from the purchase.

The tax law provides the following invoicing requirements for VAT-registered taxpayers:

1. A VAT invoice for every sale, barter, or exchange of goods or properties; and

2. A VAT official receipt for every lease of goods or properties and every sale, barter or exchange of services.

In various cases, the Supreme Court has concluded that these documents should not be confused to refer to the same things or be used interchangeably.

In the case of VAT assessments/investigations, the taxpayer must submit relevant documents necessary to support all covered transactions.

Failure to comply with these requirements may result in drawbacks such that if the subject taxpayer is the buyer/purchaser, the Bureau of Internal Revenue (BIR) may have a basis to disallow the input tax claimed as credits against the output tax due. On the other hand, if the subject taxpayer is the supplier/seller, the BIR may impose penalties, which can lead the taxpayer to a separate investigation known as “Oplan Kandado” conducted against those who have deliberately failed to issue invoices or official receipts to document their transactions.

If, however, the case involves the issuance of both an official receipt and an invoice for the same transaction, can the taxing authorities hold the taxpayer liable for deficiency taxes or penalties?

In a case docketed as Court of Tax Appeals (CTA) No. 9217 dated Aug. 17, 2018, the CTA confirmed that nowhere in the Tax Code does the law allow imposing the 12% VAT twice on the same transaction as a consequence of a taxpayer erroneously issuing both a VAT official receipt and a VAT invoice to document one sale.

The CTA’s decision is anchored on Section 113(D) of the Tax Code which specifically provides for the consequences of erroneously issuing a VAT invoice or VAT official receipt, quoted as follows:

“(1) If a person, who is not a VAT-registered person, issues an invoice or receipt showing his Taxpayer Identification Number (TIN), followed by the word ‘VAT’:

(a) The issuer shall, in addition to any liability to other percentage taxes, be liable to:

(i) The tax imposed in Section 106 or 108 without the benefit of any input tax credit; and

(ii) A fifty percent (50%) surcharge under Section 248(B) of this Code;

(b) The VAT shall, if the other requisite information required under Subsection (B) hereof is shown on the invoice or receipt, be recognized as an input tax credit to the purchaser under Section 110 of this Code.

(1) If a VAT-registered person issues a VAT invoice or VAT official receipt for a VAT-exempt transaction, but fails to display prominently on the invoice or receipt the term ‘VAT-exempt sale,’ the issuer shall be liable to account for the tax imposed in Section 106 or 108 as if Section 109 did not apply.”

From a cursory reading, it is evident that the consequences listed above do not apply to taxpayers issuing double billing documents for transactions subject to VAT. While that is true, the taxpayer nonetheless has the burden of establishing that the documents, though issued simultaneously, pertain to a single transaction and that the basis of reporting is proper.

Thus, the mere issuance of double billing documents should not cause more trouble for the taxpayer who rightfully paid what is due. In form, two documents were issued, but in essence, both documents pertain to the same transaction. As the off-cited accounting principle states, cliché as it may sound, substance should prevail over form.

On a related note, though not covered in the court decision, the tax bureau may have basis to question the issuance of both official receipt and sales invoice to cover the same transaction since there is a possibility that the customers, on the other end, may have claimed the input tax twice based on the two supporting documents. Thus, the burden of proof rests upon the taxpayer to establish the fact that no double input tax was claimed by its customers. Perhaps a sworn declaration from the customers to support this claim may suffice as proof.

Of course, double invoicing will likely raise a red flag on the suspicion that the government is being cheated out of revenue taxes. All it takes is for two conniving parties to issue an invoice with a lower value for tax purposes and secretly issue a second one with a higher value for billing purposes. However, it is a different case where the taxpayer has rightfully declared and paid what is due to the government. After all, there is no revenue loss on the part of the taxing authority. The only mistake that the taxpayer may have committed is a mere error in the documentation — a minor slip up that may, at worst, deserve only reasonable penalties.

 

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

Mary Rose Lara is a senior consultant at the Tax Services Department of Isla Lipana & Co., a Philippine member firm of the PwC network.

+63 (2) 845-2728

mary.rose.lara@pwc.com

Social media

About two weeks ago, I had lunch at a culinary school in Makati City. I was seated somewhere between the main door and the buffet table. From where I sat, I could clearly see the main bar and the staff behind it — as well as the school computer, which was, the whole time I was there for lunch, logged on to the social media application Facebook.

As a patron, I didn’t really mind the staff being on FB since it didn’t affect the food quality or the level of service given to me at the time. It was a lunch buffet, after all, so I served myself by standing up to get my own food. Other than the occasional request for a glass of water to drink, or napkins for wiping, or the bill to pay, I didn’t really need the staff to wait on me.

I had a similar experience last month in a restaurant in Baguio City. The restaurant computer was likewise logged on to FB the whole time I was there for dinner with my family. In both occasions, in Baguio and in Makati, I was seated behind the staff but facing the computer screen, and could clearly see that while on duty and during restaurant hours, staff were busy on social media.

Maybe some establishments don’t really mind staff doing FB as long as it doesn’t interfere with the work, and customers don’t complain. I am uncertain if doing FB was actually part of the job. It could be; I didn’t ask. But I suspect it wasn’t, and could only wonder how much of staff time and attention, as well as company resources, were spent on social media while at work.

Perhaps this trend is inevitable. We are in the era of “data connection,” and one can assume that access will eventually further improve and broaden, and perhaps become cheaper. More services are now becoming available online. Even retail, as well as financial transactions, have transitioned. Public services have also moved towards electronic rather manual transactions.

Just by looking around one will realize that people nowadays are just too busy looking down at their mobile phones and fiddling with it, wherever they are. It makes no difference whether they are driving, riding a motorcycle, or crossing the street, or having a meal with other people. Even during meetings, attention is split between “being” in the meeting and a mobile device.

Mobile phones have truly evolved, with fewer calls being made, it seems. What used to be a mobile or smartphone’s primary function, to make and receive calls, has become irrelevant, if not a nuisance. People now prefer messaging to calls, and “interacting” with others through “social media” rather than seeing them in person. Even e-mail is no longer as prevalent.

I make no judgment whether this is good or bad for people, in general. On one hand, with social media, we can communicate and “keep in touch” even with people that are physically very far from us. One can be halfway across the globe and still maintain a “presence” in his own home country. And unless you indicate where you are exactly, people wouldn’t know where you are.

On the other hand, I am sure something is bound to give, or get lost, as people opt to interact more through electronic means rather than in person. Good manners, right conduct, etiquettes, social graces, and the capacity and ability to engage in conversation, or to host and attend social functions appear to have been impacted by the advent of the social media age.

Then, there is my concern with respect to its impact on labor productivity. The Philippine Star, citing a mid-August global survey by market research company Global Web Index, reported that “the Philippines is the leading country that spends the most time on social media globally” — an average of four hours and five minutes daily. The other 44 countries in the survey averaged only two hours and 23 minutes daily on social networks and messaging.

In the top five, the report noted, were the Philippines, Brazil, Colombia, Nigeria, and Argentina. The Philippines was reported to have been topping the list for seven years, and over the seven-year period, the average time spent by Filipinos on social media has gone up from over two hours daily in 2012 to over four hours daily in 2016-2018.

“A look at the trended data here suggests that we might be approaching saturation in social media consumption,” Global Web Index was quoted as saying in its report. “This is likely a result of many internet users having a better awareness of the time they spend looking at screens, as well as the perceived negative effects associated with social media usage, and wanting a digital detox as a result. This trend has continued.”

The report added that majority of the social media users across the world are aged between 16 to 24 years old, and that 72% said they used social media while they were watching television. “The importance of messaging apps to this demographic is a key reason behind this, as is the centrality of smartphones to their digital lives,” the report said.

“But the effects aren’t down to age alone. Even among 16-24s, certain markets primarily in Asia and Latin America stand out for their occupation with social media. Particularly notable are Argentina (4:17), the Philippines (4:16) and Colombia (4:12),” the report added. Note how all these three countries share a Latin or Hispanic, and Catholic, background.

To an extent, I suppose it is cultural. Filipinos are sociable people. We crave the need to keep in touch, to be part of the conversation, to be updated on what is happening with others, to be always in the know, and to have a sense of belonging and community. We also have extended families, and the penchant for big gatherings, reunions, and other social interactions.

But all this seems to be transitioning or migrating to an electronic platform rather than a physical one. And by keeping in touch “electronically” through social media, we have moved away from physically seeing people and interacting with them directly. The desire or longing for kinship in a physical way is actually diminished by the almost constant and instantaneous interaction online.

I have no data, nor studies, nor research to back this assertion. Perhaps this is simply a misimpression, on my part. But I do get the sense that social media, and electronic interactions may have more detrimental than beneficial effect on us socially, in the long run. We are now in the era of multitasking — using social media while doing something else — and divided attention. Do we not see these as chipping away at our humanity, bit by bit?

We have people with one eye on work and another on FB; watching TV while doing social media; having a meal with family while messaging friends electronically; crossing the street looking down on a mobile screen and ears plugged with earphones; riding a motorcycle with one hand as another hand fiddles with a mobile device to look for the next fare; and driving a car with one hand on the wheel and another on a smartphone looking for directions.

This is the kind of world we live in today — where presence and attention are not so equally divided between the physical on the left and the electronic on the right. We have already gone past the mid-point, I believe. And, it seems, it can move only to the right over time.

 

Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippines Press Council.

matort@yahoo.com

Brief analysis of Budget 2018-2022

The Duterte government’s fiscal and expenditure program can be briefly summarized and characterized as one of over-spending and over-borrowings. Four proofs in three tables below will show why.

One, the Philippine government’s debt/GDP ratio has been declining steadily from 54.8% in 2009 (Arroyo administration) to 42.1% in 2016 (H1 Aquino, H2 Duterte), then it stayed there at 42% in 2017 and 2018. The steady decline has been halted by the current administration.

Compared to seven other neighbors, the Philippines has the biggest improvement, major decline in debt/GDP ratio at nearly 13% over the past nine years while China has the biggest deterioration, major increase of 16% over the same period. (See Table 1.)

Two, the level of spending despite rising revenues is huge, resulting in ever-rising budget deficit, from P558 billion in 2018 to projected P824 billion by 2022.

High deficit means high borrowings aside from high taxes. And so the interest payment alone, principal amortization not included yet, will double from P249 billion in 2018 to P504 billion in 2021, and further rise to P561 billion in 2022. Data are from the Department of Budget and Management’s Budget of Expenditures and Sources of Financing (BESF) 2020.

Three, while actual GDP growth was higher than target/projections and inflation was lower than target in 2016 (last half-year of previous administration), it was the opposite by 2017 to present, growth was lower than target and inflation was higher than target from 2018 to present. Multiple tax hikes under TRAIN (Tax Reform for Acceleration and Inclusion) law implemented in 2018, uncertainties of TRABAHO (Tax Reform for Attracting Better and High-Quality Opportunities) bill and other legislative proposals contributed to growth deceleration: 6.9% in 2016 to 5.6% in the first half of 2019. (See Table 2.)

It seems that the National Economic and Development Authority-Department of Finance — Department of Budget and Management triumvirate were using false assumptions in their growth and inflation projections. Like their assumption that tax hikes in oil, other products under TRAIN law would be low or insignificant — wrong.

Four, the bulk of high spending goes to salaries, meetings, travels, offices plus expanding subsidies, not in Build, Build, Build as often claimed. If we remove interest payment and bank charges, then allocation to local government units like the Metropolitan Manila Development Authority and Internal Revenue Allotment for provincial LGUs, most of which goes to salaries too, the combined shares of personnel services and Maintenance and Other Operating Expenses would be 70% and capital outlays for Build, Build, Build is only 30%. (See Table 3.)

What then to expect in the next few years?

What else but more taxes and regulatory fees. Public debt and interest payment keep rising, new agencies and departments are created, new welfare subsidies are invented and expanded, government personnel and consultants, national to local governments, their pay and perks keep rising.

While it is true that there are Build, Build, Build projects on-going, they are small compared to the hype and promises. It is possible to have faster growth and lower inflation with retained or lower budget, less taxes and borrowings. People and businesses keeping more money in their pockets and savings will prefer more investments, more integrated Public-Private Partnership infrastructure projects, and more household consumption.

 

Bienvenido S. Oplas, Jr. is the president of Minimal Government Thinkers.

minimalgovernment@gmail.com

Move people

The Metro Manila Development Authority (MMDA) has been planning to disallow provincial buses from entering Metro Manila supposedly to lessen traffic and congestion in the metropolis — especially in EDSA which most of the provincial buses eventually use to drop off passengers and enter their respective bus terminals. The MMDA’s plan is to have common terminals north and south of Metro Manila where the buses will drop off their hapless passengers. Since most of them will not have these points as their final destinations, they will have to take other means of transport (city buses, taxis, jeepneys, among others), to reach their final point which are mostly their places of work and business.

What is wrong with this picture? There are hundreds of buses coming both from the northern and southern provinces of Metro Manila who bring thousands of workers then bring them back daily. It will mean extreme discomfort and anxiety for them as well as additional expense. It will take them also longer to travel since getting off the terminals to catch another ride will easily mean more travel time.

If you look at EDSA and most other major thoroughfares of the metropolis, it is not the buses — big as they are, which congest the roads. It is the extreme number of passenger cars which more often than not carry only one or two passengers. Buses are part of the mass transport system and can carry anywhere from 60 passenger sitting down to around 80 with standing passengers.

Therein lies the rub where we prioritize the comfort of car users by lessening the volume of buses which carry a lot more passengers. Therein lies the mentality of addressing traffic issues by moving vehicles when our mindset should be moving people. We move vehicles by building roads, skyways, and instituting traffic management systems. But the more roads you build, the more it will encourage people to drive. And the government can only build so many roads with the efficient car manufacturers dumping so many more vehicles on the road network.

We have to prioritize the mindset of moving people through mass transport. It sounds easy enough to just add more trains which will run more frequently on the existing LRT and MRT lines to alleviate congestion there. But in a span of 25 years, our light rail system has not really expanded to meet the requirements of the riding public.

We have an existing rail system which traverses the metropolis from north to south all the way to Alabang and beyond but the state and frequency of trains that runs through it leaves much to be desired.

The government is now in the process of connecting the North Luzon Expressway to the South Luzon Expressway with an elevated highway system which will cut travel time from Magallanes to Balintawak significantly. But again, the ones who will be favored here are the car riders. It would have been great if a bus rapid transit system was designed to be accommodated in that connector stretch which would benefit thousands of daily commuters from Alabang to Balintawak. At the very least, maybe a point-to-point bus system can be set up that will travel that stretch, bringing more people to their destinations.

Gustavo Petro, a Colombian personality where the bus rapid transport system is largely used in its capital city of Bogota, said that “A developed country is not a place where the poor have cars. It’s where the rich use public transportation.” It all starts with a mindset — prioritize moving people, not moving cars.

 

Dr. Dennis L. Berino is an Associate Professional Lecturer with the Decision Sciences and Innovation Department of the Ramon V. del Rosario College of Business, De La Salle University.

dennis.berino@dlsu.edu.ph

Amazon gold and army suspicion fuel Bolsonaro’s rainforest rage

By Simone Iglesias and Bruce Douglas

AMONG the tens of thousands of Brazilians who descended on the Amazonian goldmine of Serra Pelada in the 1980s was Percy Geraldo Bolsonaro, father of the current president, Jair Bolsonaro.

Bolsonaro senior was among the wildcat miners who endured brutal working conditions in the quest for riches. The rainforest suffered too, with widespread environmental degradation as miners ripped apart the Amazon in their desperate hunt for gold.

It’s an aspect of Brazil’s national psyche that resonates deeply with the president. “Gold mining is a vice; it’s in the blood,” he told miners from the region in a video posted to YouTube in July 2018. “We owe all we have to people with spirits like yours.”

Brazil’s president has been the subject of international opprobrium for fanning the flames of the Amazon’s destruction, with protests against his environmental policies both at home and abroad as well as interventions from celebrities like actor Leonardo DiCaprio and model Gisele Bundchen. But his upbringing and early career suggest that he’s not about to back down. Indeed, Bolsonaro initially rejected a pledge of €20 million from Group of Seven members to help fight the fires, sharpening a dispute with French President Emmanuel Macron, who said G-7 leaders must regard the Amazon’s plight as an “international crisis.”

WENT TOO FAR
All indications are that Brazil’s government is standing by Bolsonaro on substance, if not on every aspect of his abrasive style. There is consensus within the administration that Macron overstepped the mark with his criticism of Bolsonaro over the Amazon, said three officials familiar with the thinking in Brasilia, asking not to be named discussing political strategy. The fires currently burning through the Amazon are not significantly worse than those of previous dry seasons, they said.

Macron has to “take back the insults made against me” before there can be any discussion about aid to the Amazon, Bolsonaro told reporters Tuesday, adding that the money is a threat to Brazil’s sovereignty.

As well as affection for his father’s mining exploits, Bolsonaro’s formative years in the army shaped much of the president’s attitude toward the Amazon. In the 17th and 18th centuries, the Portuguese army established forts in the Amazon that marked the founding of cities like Belem, Sao Luis, and Manaus, while in the 19th century, General Claudio Rondon led military missions to establish contacts with Amazonian tribes, giving his name to one of the states currently ravaged by fire: Rondonia. Major modern development of the Amazon really took off during the period of the military dictatorship from 1964 to 1985.

That military legacy translates into Bolsonaro’s conviction that the region is a Brazilian and not a global asset; that its resources should be utilized and not left in the ground; and that any foreign interest stems from a desire to control the Amazon’s mineral wealth rather than preserve its ecosystem.

‘GRATUITOUS ATTACKS’
Given the context, Macron’s attempts to impose solutions on Brazil from outside were bound to raise hackles. Sure enough, Bolsonaro resumed the feud this week, lamenting Macron’s “unreasonable and gratuitous attacks on the Amazon” just hours after the French president responded angrily to Bolsonaro’s jibe about his wife.

Bolsonaro’s politics have remained remarkably consistent over the years, but they are increasingly out of step with global opinion: As the impact of climate change becomes more tangible, the rainforest’s significance has risen dramatically up the world’s political agenda. The risk for Brazil’s ex-Army captain leader is the more he digs in and rebuffs the global blowback, the greater the threat of economic damage from his intransigence.

France and Ireland both threatened to block the recent trade deal agreed between the European Union and Mercosur, the South American customs union, that could boost the Brazilian economy by $90 billion over the next 15 years. Finland, current holder of the EU’s rotating presidency, has floated the idea of banning Brazilian beef imports, and has proposed putting the matter on the agenda for a meeting of the bloc’s finance ministers in September. Brazil exported $13.6 billion in agricultural products to the EU last year.

“France and Ireland overstepped in coming out and saying they could break the EU-Mercosur deal,” said Tereza Cristina Dias, Brazil’s agriculture minister. “Brazil is worried about the fires that take place every year. It’s opportunism to say that this has anything to do with Brazilian products.”

IT’S PERSONAL
Still, there are differences of opinion within the administration over Bolsonaro’s aggressive and personal attacks on Macron, according to the people familiar with the thinking. Some argue that he missed an opportunity to isolate the French president diplomatically, given Germany and the UK’s reluctance to link trade deals with environmental policy.

To be sure, Macron’s domestic opponents have long accused him of arrogance. One Brazilian presidential aide said that diplomatic efforts to contain the fallout from last Friday’s spat came undone as the two leaders continued their public feud into the weekend.

Another adviser linked to the presidential cabinet said that moderates in the administration had abandoned earlier attempts to school Bolsonaro in diplomatic niceties, or even basic etiquette, due to his explosive reactions. Ministers now take care to avoid any statements that contradict the president.

Bolsonaro risks a political as well as an economic cost. A poll published Monday showed the president’s approval rating had fallen from 57.5% in February to 41% in August. Respondents judged his government’s environmental policies as one of the worst performing areas, while more than 93% of Brazilians said preserving the environment was “very important.”

FEELING THE HEAT
Despite Bolsonaro’s rhetoric, there are signs that his administration may be feeling the heat. In a break with his usual, weekly tradition of holding Facebook Live chats, Bolsonaro gave a nationally televised address to set out his plans to tackle the Amazon fires, declaring a state of emergency in the region, dispatching troops and disbursing financial aid.

He is still far from isolated in his views on the Amazon. It’s a stance shared by the military men who make up almost one third of his cabinet and by many of his civilian supporters, some of whom believe that any economic pain from international sanctions would be worth the price of defending Brazilian sovereignty.

“Brazil is an example to the world,” General Augusto Heleno, the Institutional Security Minister, wrote on Twitter. “Our people know that the Brazilian Amazon belongs to us and its riches will be utilized, in a sustainable way, for our benefit.”

 

BLOOMBERG

Gilas Pilipinas eager to prove it belongs on the world stage

By Michael Angelo S. Murillo
Senior Reporter

FOR THE SECOND straight time the Philippine men’s national basketball team is playing in the FIBA Basketball World Cup. It is something it views with much significance and with pride even as it buckles down to work to prove it belongs on the world stage.

Set to start its campaign in the global basketball spectacle this weekend in Foshan, China, Gilas Pilipinas feels privileged to have the opportunity to once again play in the Worlds and vows to give its all for flag and country once it takes the hard court.

“It’s just awesome to know that you’re world-class. You always want to be the best in your sport, the best in any activity that you do. To be one of the few teams that make it to this point in international competition, it’s pretty awesome. It should be fun for everybody, myself included,” Gilas veteran Gabe Norwood was quoted as saying by the official FIBA Website.

Mr. Norwood is one of the returning players from the 2014 Gilas team that saw action in the World Cup in Spain.

The others are naturalized player are Andray Blatche, June Mar Fajardo, Japeth Aguilar and Paul Lee.

Other members of the Yeng Guiao-coached team for World Cup China are qualifier stalwarts Troy Rosario, Mark Barroca, Roger Pogoy, Raymond Almazan and Kiefer Ravena as well as newbies CJ Perez and Robert Bolick.

The Philippines begins its campaign in Group D along with teams from Serbia, Italy and Angola.

Gilas plays its first game on Aug. 31 against Italy, which boasts of National Basketball Association players Danilo Gallinari and Marco Belinelli.

Mr. Norwood said they are expecting a tough campaign in the World Cup but they are not allowing such thoughts to consume them and are instead focusing on what they have to do and giving their best.

“[The] Guys are competing and take a lot of pride in their opportunity to represent the flag. The goal is to continue to prove that we are world-class, and Lord willing, improve on our finish from the previous World Cup,” Mr. Norwood, 34, said.

In 2014, the Philippines finished with an overall record of 1-4 but not after giving teams from Greece, Croatia, Argentina and Puerto Rico a scare and beating Senegal, 81-79, in overtime in its final game of group play.

HIGH ON BOLICK AND PEREZ
Meanwhile, having made the Gilas 12 seeing action in the World Cup, the coaches that handled Messrs. Bolick and Perez in college could not be prouder and believe that their former wards would do well in the tournament.

In separate interviews over Radyo Pilipinas 2 early this week, Boyet Fernandez of San Beda University and Topex Robinson of Lyceum of the Philippines University shared they were happy when they heard the news of the two Philippine Basketball Association rookies making it to the team.

“I was expecting him to be included as I really believed he had a chance, especially after Jayson Castro and Scottie Thompson backed out and he was invited along with CJ Perez. I just felt coach Yeng had a plan when he took them. We in San Beda are proud of Robert just being invited for Gilas, more so now that he is part of the final roster,” said Mr. Fernandez, who won National Collegiate Athletic Association titles with Mr. Bolick.

“I saw Robert play in college and competed in international competitions and he did well and I’m certain he’ll do well at the World Cup,” he added.

The same goes for Mr. Robinson on his former player Perez.

“It’s a great honor for CJ to be part of the Gilas team since he is only new in the PBA. We are proud of that having had chance to handle him in the past,” said the Lyceum coach, whose team made it to back-to-back NCAA finals appearances with Mr. Perez in tow.

“Apart from talent, I think CJ’s commitment to the Gilas program and the team allowed him to be noticed and considered for the World Cup,” Mr. Robinson said.

Both Messrs. Fernandez and Robinson said the inclusion of their former players speaks well of the programs they have as institutions.

US Open: Holder Osaka survives Blinkova test

NEW YORK — Naomi Osaka was given a testing workout by Anna Blinkova as she began the defense of her US Open title on Tuesday but the world number one’s power and shot making ultimately proved too much as she prevailed 6-4 6-7(5) 6-2.

The unseeded Blinkova raced into a 4-1 lead in the first set and a shock appeared to be in the works but Osaka cut down her errors to win five straight games and take the opener.

The tenacious Blinkova refused to back down, however, saving a match point on Osaka’s serve in the second before breaking her to set up a tiebreak, which the Russian won when Osaka sent a return into the net.

The 21-year-old Japanese responded by looking to her box and mimicked putting a gun to her head and pulling the trigger.

Osaka stayed composed in the third, however, breaking Blinkova to take a 3-1 lead before sealing the first-round win with a blistering forehand that caught the line.

It was an erratic performance for Osaka, who committed an unsightly 50 unforced errors, 28 more than her opponent, but also blasted 44 winners and pounded eight aces.

Osaka said the nerves that come with being a first-time defending champion played a part in her slow start and also gave credit to Blinkova for an impressive performance.

NERVOUS OSAKA
“I don’t think I’ve ever been this nervous in my life,” she said in an on-court interview at Arthur Ashe Stadium.

“She played really amazing. And for me, I came off really slow. I never really found my rhythm. I fought as hard as I could and I managed to win.”

Osaka chose to look on the bright side of her unexpectedly competitive match against the world number 84.

“It helps me a lot because I learn from the tougher matches. It helps me prepare to have to adjust my gameplan throughout the match.”

The good news for Osaka is that her left knee, on which she wore a black compression sleeve, did not appear to bother her as she raced around the court to track down balls.

The injury forced her to retire in the third set of her Cincinnati Open quarterfinal against Sofia Kenin this month.

She told reporters the knee was feeling better but stopped short of saying the problem was completely behind her.

Osaka, who is still managing the transition from being the hunter to being hunted, said she expected to see the best version of her opponents when she steps on the court nowadays.

Next up for Osaka is a second round meeting with Poland’s Magda Linette. — Reuters

Gauff delivers on the hype in first-round thriller

NEW YORK — Teen sensation Cori “Coco” Gauff lived up to the hype surrounding her US Open debut on Tuesday, battling back to beat Anastasia Potapova 3-6 6-2 6-4 in a back-and-forth thriller.

The outlook appeared bleak for the 15-year-old American when she was broken to open the second set but Gauff broke back in the next game to seize the momentum and ultimately level up the contest in front of a supportive crowd.

But hard-hitting 18-year-old Potapova, despite needing medical attention to her shoulder, refused to go down without a fight and Gauff had to earn her place in the second round.

Gauff entered this year’s tournament amid high expectations after reaching the last 16 at Wimbledon earlier this year.

She next faces 26-year-old Timea Babos of Hungary in the second round at Flushing Meadows. — Reuters

Mass exodus opens up bottom half of men’s draw

NEW YORK — The bottom half of the US Open men’s draw, where three-times champion Rafael Nadal resides, was blown wide open on Tuesday after four of the top-10 seeds crashed out at the first hurdle of the year’s final Grand Slam.

Austria’s Dominic Thiem, Greek Stefanos Tsitsipas, Russian Karen Khachanov and Spaniard Roberto Bautista Agut were all sent packing before Nadal restored some semblance of order to his half of the draw.

“That’s tennis,” Nadal, who used a clinical display to beat John Millman in his New York opener, told reporters when asked about the slew of upsets.

Spanish 10th seed Roberto Bautista, who reached the semifinals at Wimbledon last month, was the first top-10 casualty as he lost 3-6 6-1 6-4 3-6 6-3 to Kazakhstan’s Mikhail Kukushkin.

Eighth seed Tsitsipas, who reached this year’s Australian Open semifinal, was the next out the door as he fell 6-4 6-7(5) 7-6(7) 7-5 to Russian Andrey Rublev during a match in which the Greek lashed out at the umpire.

Austrian fourth seed Thiem, who was projected to meet Nadal in the semifinals, then followed his peers to the exits as he suffered a 6-4 3-6 6-3 6-2 loss to unseeded Italian Thomas Fabbiano, making him the highest-seeded casualty.

“I mean, congratulations to him and I’m happy for him. But it was not the real me there on the court,” said Thiem, who prior to the tournament downplayed his chances because of a virus he picked up in the build-up to the US Open.

Russian ninth seed Khachanov, who could have faced Nadal in the quarterfinals, was the final victim, falling 4-6 7-5 7-5 4-6 6-3 to Canada’s Vasek Pospisil, who recorded his first win this year after missing several months after surgery.

“If you play bad, you can lose,” said Nadal. “Tsitsipas had a very tough first round.

“Of course, Karen is a surprise. I think Thiem has been very sick for the last 10 days. I feel very sorry for him.

“Roberto was a surprise. Honestly, I’m very sad for him.” — Reuters

Philippine national rugby teams find steady supporter in bed mattresses maker Tempur

By Michael Angelo S. Murillo
Senior Reporter

THE national rugby teams of the Philippines have been doing a good steady job in carving a mark for the country in the sport internationally and they continue to be inspired doing so with support from various groups which believe in them, including Tempur, the maker of high-quality bed mattresses and pillows.

Renewed as brand ambassadors, the Philippine Volcanoes and Lady Volcanoes shared that they are very appreciative of the support they have been getting from Tempur through the travel sets they have been furnished which come very handy in training.

“We are happy with the support they give us. It is a recognition of the progress we have made in our program. It really inspires to do better as it shows our sacrifices to raise the level of play of Philippine rugby are not being laid to waste with groups like Tempur coming on board to support us,” said Jake Letts, General Manager of the Philippine Rugby Football Union Inc., in an interview with BusinessWorld during their renewal of partnership with Tempur in its showroom in Greenbelt 5 on Aug. 27.

Mr. Letts, who previously played for the Volcanoes, shared that their partnership with Tempur is a “perfect fit” with the two groups sharing a common vision of only delivering the best even as he said that Tempur products have been a big help with their players’ recovery and rest after every training.

“Tempur and us are a perfect fit because what we do is a high-performance sport and our athletes train a lot especially if they are in a national training camp for international competition and rest for us is very important to recover and give us that edge. And we get that from Tempur,” Mr. Letts said.

“It’s just the way they (Tempur) are put up and the way that we are built. It’s important for us to partner up with companies that share our vision and share our values of only putting out the best,” he added.

On the part of Tempur, it said that it is satisfied with its partnership with the Volcanoes, which started in 2017, seeing how it communicates well what it is about as a brand.

“The Volcanoes are the first team we have sponsored and we find many commonalities with the team as well as it caters to our target market. While rugby is not yet popular here, the Volcanoes are doing well in international competitions and in introducing the sport to the Filipinos. It is definitely enhancing the brand,” said Mayen Yuzon, business manager at Focus Global, Inc. (FGI) handling Tempur, in a separate interview.

FGI is the distributor of the United States-based Tempur brand of mattresses and pillows known for high-quality memory foams.

Mr. Letts said they would continue to bank on the support of Tempur as they compete internationally in the coming months.

The Philippine Volcanoes are gearing up for qualification in the Asia Rugby Seven Series happening in September in Korea, China and Sri Lanka.

They are also preparing for the Olympic Qualifiers in November in Korea as well as the Southeast Asian Games in December happening here in the country.

The Lady Volcanoes, meanwhile, recently bagged the gold in the 2019 Asia Rugby Women’s Sevens Trophy in Indonesia.