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CTA rejects BoC appeal on PAL P137.1-M tax refund

THE Court of Tax Appeals (CTA) has denied for lack of merit a motion for reconsideration filed by the Bureau of Customs (BoC) over the P137.1-million tax refund granted to Philippine Airlines, Inc. (PAL) in connection with the airline’s imports of aviation fuel.

In a seven-page resolution on June 4, the CTA sitting en banc affirmed a February decision which upheld the ruling of its third division, which found that PAL was exempt from paying excise taxes on Jet A-1 fuel imported between April and June 2010.

“After a careful examination of petitioner’s motion for reconsideration, the Court finds that the issues and arguments raised in said motion had already been sufficiently passed upon and fully discussed not only by the Third Division’s Decision dated April 5, 2017 and Resolution dated October 10, 2017 but also by the Court En Banc’s Decision dated February 7, 2019,” the court said.

“In sum, We found that no substantial argument was raised to merit reconsideration of our Decision promulgated on February 7, 2019,” it added.

In the motion the BoC maintained that the court in division had no jurisdiction over the case as there was still no decision from the bureau and the delay of the release of the decision does not justify the filing of administrative claims at the Bureau of Internal Revenue as well.

It also argued that the refund claim has no basis and lacked sufficient proof that PAL used the Jet A-1 fuel in its transport and non-transport operations.

The CTA reiterated that filing of administrative claim and judicial refund to forestall the running of the two-year prescriptive period for refund claims “is a taxpayer claimant’s right.”

“Thus, even if there is a pending administrative protest before the Collector of Customs, had respondent PAL awaited the action of the Collector of Customs and COC on its protest prior to taking court action pursuant to the NIRC (National Internal Revenue Code), knowing fully well that the prescriptive period was about to end, it would have lost not only its right to seek judicial recourse but its right to recover the excise taxes it erroneously paid to the government thereby suffering irreparable damage.”

The court also cited a ruling by the Supreme Court which states that once a written protest is filed with the Collector of Customs, its failure or inaction on the protest “should not be allowed to prejudice the right of the party adversely affected thereby.”

The court also upheld the division’s finding that PAL complied with the three requirements for its tax exemption under Section 13 of Presidential Decree (PD) No. 1950 which granted a new franchise to PAL.

The requirements for PAL to avail of the tax exemption under Section 13 of PD No. 1590 are the payment of basic corporate income tax, proof that the imported materials were used in its transport and non-transport operations, and were not locally available in reasonable quantity, quality, or price.

In the February decision, the CTA held that PAL paid its basic income tax and the Jet A-1 fuel were used in transport and non-transport operations through presentation of Authority to Release Imported Goods and witness testimony.

It also said PAL proved that the aviation fuel was not locally available in reasonable quantity, quality, or price through the certifications from the Air Transportation Office.

The decision was written by Associate Justice Cielito N. Mindaro-Grulla. — Vann Marlo M. Villegas

Foreign debt rises 1.9% in first quarter vs. end-2018

EXTERNAL debt rose 1.9% quarter-on-quarter to $80.4 billion in the first three months, equivalent to 24% of gross domestic product (GDP), according to the Bangko Sentral ng Pilipinas (BSP).

Year-on-year, external debt rose 9.9%, it said.

External debt includes all types of loans taken on by Philippine residents from non-residents, following the residency criterion for international statistics.

The increase in borrowings from overseas was mainly due to the national government’s raising of $1.5 billion from global bond issues, with net availments amounting to $1.8 billion. The proceeds funded the government’s general financing requirements and the totals also reflect audit adjustments, the central bank said.

“However, the rise in the debt stock was tempered by the increase in residents’ investments in Philippine debt paper including government bonds issued offshore,” the BSP said in a statement.

According to the BSP, borrowing by the government amounted to $40.2 billion, up 1.26% quarter-on-quarter.

“About $33.9 billion (84.5%) of public sector obligations were NG (national government) borrowings while the remaining $6.2 billion pertained to other government agencies’ loans,” the central bank said.

External debt by the private sector totaled $40.3 billion in the first quarter, up 2.5% quarter-on-quarter.

According to the BSP, the major creditors were Japan with $14.4 billion; the US $3.7 billion; the Netherlands $3.7 billion; and the UK $3.4 billion.

Obligations to foreign banks and other financial institutions accounted for 33.2% of the total.

Bilateral sources provided $11.1 billion led by Japan with $8 billion; China $650 million; and South Korea $584 million.

Foreign holders of bonds and notes accounted for 27.7%, while 7.3% was owed to other types of creditors.

The Philippines’ debt stock consisted mostly of dollar debt (61.2%), followed by yen (12.7%).

“Key external debt indicators remained at prudent levels despite the rise in external debt,” the BSP said.

According to the central bank, gross international reserves (GIR) stood at $83.6 billion at the end of first quarter, which represented five times cover for short-term debt.

The debt-service ratio (DSR) improved to 5.1% from 8% in the first quarter of 2018. DSR measures the adequacy of foreign exchange earnings to meet maturing obligations.

The weighted average maturity for all medium and long-term (MLT) accounts declined to 16.8 years from the previous quarter’s 17 years, with public sector loans averaging 21 years compared with the 7.6 years average term for the private sector. — Reicelene Joy N. Ignacio

San Miguel Brewery excise tax refund partly granted

THE Court of Tax Appeals (CTA) has partially granted the excise tax refund claim of San Miguel Brewery, Inc. worth P44.5 million, which was erroneously collected on its beer products in 2015.

In a 25-page decision on June 13, the CTA special second division allowed P44.5 million out of the initial P48.3 million claim, with the difference not supported by required documents.

In granting the petition of the San Miguel, the court said the Bureau of Internal Revenue (BIR) erroneously charged the brewery a uniform excise tax of P22.25 on removals of San Mig Light (SML) in bottle and in can and other products as well as San Mig Light in Keg.

“(T)he Court finds that respondent erroneously imposed a uniform P22.25 excise tax on petitioner’s beer products,” the court said.

The CTA noted that Republic Act No. 10351, which amended Section 143 of the Tax Code, states that excise tax of P19 should be collected per liter on beer products with net retail price of P50.60 or less (Tier 1) and P22 per liter for products that are more than P50.60 (Tier2), effective 2015. Starting 2018, the tax is to increase by 4% every year.

RA No. 10351 revised the previous classifications of alcoholic beverages based on existing brands and new brands and simplified the tiers based on net retail price.

The BIR issued Revenue Regulations No. 17-2012, of which Section 5 prohibits downward reclassification, with the 4% annual hike to start Jan. 1, 2014. The BIR also issued Revenue Memorandum Circular (RMC) No. 90-2012 imposing the uniform excise tax of P22.25 on beer products.

“(T)he Supreme Court reiterated the hornbook doctrine that ‘in case there is a discrepancy between the law and a regulation issued to implement the law, the law prevails because the rule or regulation cannot go beyond the terms and provisions of the law,’” the court noted.

“In this case, the Court finds that there is no basis for imposing the additional four percent (4%) excise tax as explained above. At the time of effectivity of RA No. 10351 as well as at the time when petitioner’s cause of action arose, no downward reclassification, i.e., from Tier 2 to Tier 1, of petitioner’s beer products was made. Therefore, the BIR has no basis to impose additional excise taxes under Annex A-1 of RMC No. 90-2012,” the CTA said.

The court partially denied the refund claim for excise taxes on SML in kegs due to the lack of submission of a duly notarized sworn statement indicating its suggested retail price.

RMC No. 90-2012 provided list of locally manufactured fermented alcoholic beverages, with their corresponding net retail price and applicable excise tax per liter, but did not include SML in kegs. RMC No. 3-2013 clarified that net retail price of alcoholic beverages not on the list was to be based on the latest sworn statement by the manufacturer or importer.

“The submitted schedule of net retail price per liter does not constitute a sworn statement in accordance with the requirements under the rules. Consequently, the same cannot be used as basis of the net retail price of SML in kegs. For this reason, it is therefore deemed proper to deny petitioner’s claim for refund with respect to excise taxes on SML in kegs.” the court said.

The decision was written by Associate Justice Juanito C. Castañeda, Jr. and was concurred in by Associate Justice Catherine T. Manahan. — Vann Marlo M. Villegas

VAT refund claims under the TRAIN Law

Taxpayers are sometimes reluctant to file VAT refund claims because it triggers a mandatory VAT audit, not to mention the need to submit voluminous of documents and the uncertainty of when the processing will be completed. Any delay in the processing of a VAT refund claim may cause cash flow problems to the claimant because the input VAT remains unutilized when it could have been invested or used as working capital.

The recently enacted TRAIN Law, which aims to make the Philippines a more competitive investment destination, shortened the period within which the BIR is supposed to process VAT refund claims.

To implement the amendments introduced by the TRAIN Law, the BIR issued Revenue Memorandum Circular (RMC) No. 47-2019, providing revised guidelines and requirements for VAT refund claims within a 90-day period. The introduction of the 90-day period for applications lodged after the TRAIN Law took effect on Jan. 1, 2019, effectively removing the “deemed denied” provision under RMC No. 54-2014, which clarified the issues on the application for VAT refund under Section 112 of the Tax Code.

The standing rule is that the BIR must decide on the claim within 90 days from the filing of the application. If the 90 days lapse without a decision, the review shall continue and will not invalidate the belatedly issued report and findings of the BIR. However, the BIR examiner may be subject to administrative penalties, if warranted.

Nevertheless, however noble the intention of the legislature, one cannot discount the possibility that the imposition of sanctions is a two-edged sword. While it may in fact hasten the processing of VAT claims, BIR examiners may also be constrained to just deny the claim in order to comply with the 90-day deadline.

Notably, this is not the first issuance of the BIR that seeks to implement the 90-day processing of VAT refund claims. The BIR previously issued RMC No. 17-2018, effectively amending the provisions of RMC Nos. 89-2017 and 54-2014 on the processing of claims for the issuance of a tax refund/tax credit certificate, except for claims processed under the jurisdiction of the Legal Service.

CONSULARIZED DOCUMENTS
RMC No. 17-2018 has provided the list of requirements to prove the VAT zero-rating of sales of services to non-resident foreign corporations (NRFCs) covered under Sec. 108 (B) (2). The key is to prove that the NRFC-buyer of the services is not doing business in the Philippines, as certified by an authorized official of the NRFC. These requirements were reiterated in RMC No. 47-2019 and are as follows:

a. Original copy of the certification from the SEC that the NRFC buyer is not a registered corporation in the Philippines; and,

b. Consularized copy of the certificate of foreign registration/incorporation/association of the NRFC.

The BIR acknowledged the inherent difficulty in securing consularized documents. As such, the taxpayer-claimants are required to submit the original copies of the consularized documents on the first claim. The documents will be kept by the processing office on a separate file, a copy of which shall be attached to the docket of succeeding claims with a duly-signed notation by the head of the processing office that the documents are faithful reproductions of the original documents on file.

However, this RMC (issued on April 16, 2019) may have been effectively amended by the Apostille Convention, an international treaty drafted by the Hague Conference on Private International Law. The Apostille Convention abolishes the requirement of double verification of foreign public documents by both the originating and receiving country, and simplifies the procedure of authentication. Starting May 14, 2019, public documents executed in 117 Apostille-contracting countries and territories (except for Austria, Finland, Germany and Greece) no longer have to be authenticated by the Philippine Embassy or Consulate General once Apostilled for them to be used in the Philippines. For countries and territories that are not Apostille-contracting parties, the previous process of authentication applies.

Since this is a relatively new development, the BIR has yet to issue a clarification on the possible suspension of the consularization requirement for Apostille-contracting parties.

OTHER VAT REFUND CLAIM REQUIREMENTS
As to the verification requirement of the BIR, RMC No. 16-2019 clarified that the inter-office Request for Certification on Outstanding Tax Liability of Taxpayer and Certification on the Status of Cases Pending Legal or Judicial Resolution, for the specific purpose of satisfying the requirements of claims for VAT refund, shall now be valid for six months. As it is, all concerned revenue offices are ordered to indicate clearly in the Certification to be issued that the Certification validity is six months from the date of issuance.

It is a long-standing rule that tax refunds, like tax exemptions, are construed strictly against taxpayer-claimants. Thus, taxpayers should ensure the completeness and authenticity of the documentary requirements upon filing of the application for VAT refund. Failure to submit the complete documents in support of the claim shall result in non-acceptance of the application.

Moreover, due to the very limited time for processing the VAT refunds, the BIR clarified under RMC No. 47-2019 that no additional documents shall be subsequently requested from the taxpayer-claimant. Any unsupported claim shall be disallowed outright, in full or in part as the case may be.

While there is certainly still much room for improvement in the processing of VAT refund claims, this is a good first step taken by government to help exporters ease their cash flow issues caused by input VAT accumulation.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinion expressed above are those of the authors and do not necessarily represent the views of SGV & Co.

 

Karen Mae Calam-Ibañez is a Director of Business Tax Services of SGV & Co.

Cabinet clusters to tackle Filipino boat’s sinking

By Arjay L. Balinbin and Vince Angelo C. Ferreras
Reporters

CABINET Secretary Karlo Alexei B. Nograles on Sunday said there will be a joint cluster meeting on Monday to tackle the reported sinking of a Filipino fishing boat by a Chinese vessel.

The incident occurred on June 9 near Recto Bank in the disputed West Philippine Sea.

For its part, a Chinese-Filipino business group has expressed interest to offer assistance and support to the 22 Filipino fishermen rescued by the crew of a Vietnamese ship.

Mr. Nograles said the incident will be discussed by the Security, Justice and Peace Cluster under Defense Secretary Delfin N. Lorenzana and the Economic Development Cluster under Finance Secretary Carlos G. Dominguez III.

Mr. Nograles also clarified reports that the Palace had canceled a special Cabinet meeting on the matter.

FULL SCHEDULE
“Ang alam naman po natin na ang puwede lang magpatawag ng meeting ay si President (What we know is that the only official who can call a Cabinet meeting is the President). So siyempre (of course), it is up to his availability…. But meron kaming ini-schedule na meeting ngayon (we are scheduling a meeting now), it’s a cluster meeting,” Mr. Nograles said in an interview with DZBB on Sunday afternoon.

He added that the meeting can be considered a Cabinet meeting if the President is present. “I don’t think makaka-attend siya (he can attend). Puno ‘yong schedule niya tomorrow (His schedule tomorrow is full),” the cabinet secretary said, as he cited the President’s scheduled attendance at an event in Cavite City on Monday afternoon commemorating the 121st anniversary of the Philippine Navy.

“Kaya hindi siya pwede doon sa proposed time ng cluster [meeting] (That is why he is not available at the proposed time of the cluster meeting),” Mr. Nograles said.

“He (the President) will process whatever itong mapagkasunduan namin or kung ano po ‘yong mga rekomendasyon namin (The President will process whatever decisions or recommendations will be made),” Mr. Nograles also said.

“Ultimately si Pangulo ang magdedesisyon (it is the President who will decide on the matter),” he added.

Mr. Nograles also appealed to the public to allow the diplomatic process to work in resolving the issue.

“Kasi kailangan siyempre ng diplomasya, kailangan ng mga experts on diplomacy ang mga mag-uusap usap dito (Because, of course, we need diplomacy, experts on diplomacy need the [inputs of the clusters involved]). Ang pakiusap lang po natin sa publiko (Our appeal to the public is) let the process work,” he said.

Mr. Nograles said it is too early to conclude that the Chinese government is not cooperating with the Philippines in resolving issues in the West Philippine Sea.

“Huwag naman tayo magmadaling humusga rin na hindi sila susunod or hindi nila nirerespeto ‘yan….Hayaan na lang po siguro natin ang DFA na magsabi sa ating taumbayan (Let us not judge right away that they will not follow or they will not respect…. Let us wait for the Department of Foreign Affairs to update the public [what is going on]).”

The military earlier said the collision was “accidental,” but also confirmed that the Chinese vessel immediately left after the collision.

‘SHIFT IN POLICY’
For her part, Vice-President Maria Leonor G. Robredo said in a statement on Sunday: “We strongly urge the Department of Foreign Affairs to demand from the Chinese government to find those responsible and recognize Philippine jurisdiction, so they can face trial before our courts. Justice for the 22 Filipino fishermen requires that our courts assume jurisdiction.”

She added, “Now is the time for a shift in policy, from being passive to being more courageous in asserting our rights. From bowing our heads in subservience, to holding our heads up high as a free and independent people. This is the time where our patriotism, Filipino pride, and love of country should come to the fore. This is the time where we expect our leaders to be true to their oath and speak, act, and do what is needed to defend the dignity of our nation, and every Filipino.”

Senate Minority Leader Franklin M. Drilon, for his part, said in an interview with DZBB, “Ito’y hindi lang isang banggaan ng dalawang fishing vessels. Sa akin, ito ay nagpapakita ng nakakabahalang mindset ng China na apihin ang Pilipinas dahil sa ating claims sa West Philippine Sea (This is not just a collision of two fishing vessels. To me, this revealed the alarming mindset of China, which is to bully the Philippines because of our claims in the West Philippine Sea).”

The senator added, “It should be taken in that context. This is not just an isolated incident. I see a clear pattern of bullying and intimidation.”

ASSISTANCE
Federation of Filipino Chinese Chambers of Commerce and Industry (FFCCCII) President Henry Lim Bon Liong in a press conference on Sunday said, “The FFCCCII (Federation of Filipino Chinese Chambers of Commerce and Industry, Inc.) wishes to offer our sincere assistance and support to our fellow countrymen the 22 fishermen in the immediate rehabilitation of their damaged fishing boat, so that they can resume their livelihood.”

“This is not an admission of guilt of any party, who is telling the truth or not. This is something we cannot ascertain. Ang target ng federation dito is really humanitarian so they can get back on their feet as soon as possible,” Mr. Lim Bon Liong also said.

“Right now we are coordinating with the proper authorities. Actually, we are talking also the Secretary of National Defense, [Delfin] Lorenzana whether the [Philippine] Navy can give us more information.”

“We will keep in touch with the fishermen to be able to estimate all the damages, kung magkano talaga [ang kailangan] (to know how much is needed)…I think kaya pa natin i-rehabilitate ‘yan (I think we can still rehabilitate).”

“I hope this isolated incident will not hamper the friendship between two countries….I think it will be a good idea to come up with a joint investigating panel. Whatever will…come out, I hope that the two countries will be prepared to bring back the friendship we have and preserve that friendship.”

Top diplomat to UN: Respect sovereignty

By Charmaine A. Tadalan
Reporter

FOREIGN Affairs Secretary Teodoro L. Locsin Jr. renewed the Philippines government’s commitment towards keeping international order, but advised the United Nations (UN) to respect sovereign principle.

“If the UN is to endure, it must remember that it is a collection of sovereignties but not itself a sovereign collective,” Mr. Locsin said in his speech to diplomats at the 2019 Philippine Independence day diplomatic reception in New York City on June 14.

“It is only as effective as members cooperate to make it so. And it should not presume to threaten states with accountability for taking a tough approach to crushing crime,” he added.

This followed a recent call made by eleven Special Rapporteurs of the UN to conduct an international probe on the Philippines as regards the administration’s war against the illegal drug trade.

The UN Human Rights Council has also been vocal against the detention of opposition Senator Leila M. de Lima and even called for her release.

“It is true that much harm is done to people by states, even their own — though nowhere near as much as non-state actors have inflicted as we have seen. But only states have the wherewithal to protect people — their own and in extreme cases those of other states,” Mr. Locsin said.

He cited the Philippines as being among the founding members of the UN.

“In the exercise of this sovereignty, the Philippines renews its solemn responsibility to protect the law-abiding against the lawless by any means efficient to achieve the defining purpose for the existence and expense of a state: defense of nation, protection of people,” Mr. Locsin said.

CoA flags PNOC receivables

By Vince Angelo C. Ferreras
Reporter

LOANS amounting to P70.090 million from the Natural Resources Development Corporation (NRDC) have remained uncollected by the Philippine National Oil Company (PNOC) for more than 10 years, the Commission on Audit (CoA) said in a report.

In its 2018 annual audit report on PNOC, CoA said NRDC entered into two loan agreements with PNOC-Energy Development Corporation (PNOC-EDC) on March 9 and June 11, 2004.

NRDC entered the said loan agreements “to advance NRDC’s portion of its equity investment in the capital stock of the then Natural Resources Mining and Development Corporation, now Philippine Mining Development Corporation.”

“The first loan agreement was executed on March 9, 2004 wherein PNOC-EDC agreed to loan an amount of P10,000,000 to NRDC, with 6% interest rate per annum, net of any tax, and payable within 7 years,” said the state auditors.

They added, “The second loan agreement was executed on June 11, 2004 wherein PNOC-EDC agreed to loan an additional amount of P45,000,000 to NRDC. Of the agreed loan amount of P45,000,000, P10,000,000 (was) released on July 1, 2004 and another P10,000,000 on September 2, 2004 or a total of P20,000,000 only, also subject to 6% interest, net of any tax, and payable within 7 years.”

CoA said receivables from NRDC in the amount of P30,000,000 and interest amounting to P40,089,649.48 or a total of P70,089,649.48 as of December 31 last year remained uncollected for more than 10 years.

“Management [of PNOC], in its effort to settle the issue with NRDC, sent various letters to coordinate with the latter,” said CoA.

State auditors also noted NRDC’s February 10, 2017, letter to PNOC, claiming that its contract with the latter has no provision on the 6% interest.

Auditors also cited three follow-up letters by PNOC dated March 26, July 18, and December 12 last year, requesting a meeting with NRDC to resolve this matter.

“As of this date, there is no concrete agreement yet between PNOC and NRDC. PNOC is still awaiting…the response of NRDC regarding its request to hold a meeting in order to resolve the issue,” said CoA.

CoA has recommended that PNOC “file appropriate legal charges against NRDC, if necessary.”

Manila Water issues advisory on water service

SEVERAL barangays in the cities of Manila, Pasig, and Makati may experience water supply interruptions due to valve and line maintenance to be conducted by Manila Water, the company said in an advisory. Affected areas at 6:00 p.m. of Monday, June 17, until 6:00 a.m. the next day are Barangays Kasilawan, Tejeros, Carmona, Singkamas, Olympia, Valenzuela, Poblacion, and Sta. Cruz in Makati and many barangays in Sta. Ana, Manila. Affected areas at 10:00 p.m. of June 18 until 6:00 a.m. the next day are Barangays 896 to 905 in Sta. Ana. Affected areas in Makati at 10:00 p.m. of June 19 until 6:00 a.m. the next day are Guadalupe Viejo, Guadalupe Nuevo, Cembo, south Cembo, and Pitogo. Affected areas in Pasig at 10:00 p.m. of June 21 until 6:00 a.m. the next day are Kapitolyo, San Antonio, Pineda, and Bagong Ilog. Affected areas in Makati at 6:00 p.m. of June 27 until 6:00 a.m. the next day are Barangays Kasilawan, Tejeros, Carmona, Singkamas, Olympia, Valenzuela, Poblacion, and Sta. Cruz.

See more service advisories at www.manilawater.com and see the full story at https://qrgo.page.link/kj7PD

Expropriation hearing continues on July 2 as Iloilo court denies PECO’s motion to suspend proceedings

THE REGIONAL Trial Court Branch 37 in Iloilo City has set on July 2 the continuation of the hearings on the application for writ of possession of MORE Electric and Power Corp. (MORE Power), after it denied Panay Electric Co.’s (PECO) plea to stop the proceedings. The order was issued by Pairing Judge Victor E. Gelvezon on June 13. One of the grounds cited by PECO in seeking a suspension of the expropriation case is its petition before the Supreme Court seeking the transfer of the case to a Metro Manila court. PECO said the case has become controversial and local media commentaries could affect the judge’s decision. On the other hand, MORE Power’s lawyer, Hector P. Teodosio, said they will oppose PECO’s plea to transfer the proceedings. “We will file an opposition (to) their motion to transfer the venue on the ground that the expropriation case should be here because the properties are here in Iloilo,” he said in an interview. On the application for a writ of possession, the court gave MORE Power 10 days to submit the necessary documents and determine the updated total assessed value of PECO’s distribution assets. MORE Power has been granted the franchise to distribute electricity in Iloilo City through Republic Act No. 11212. PECO’s congressional franchise expired on Jan. 19 while its Certificate of Public Convenience and Necessity (CPCN) expired on May 25. PECO, however, continues to distribute power on the basis of a provisional CPCN issued by the Energy Regulatory Commission. — Emme Rose S. Santiagudo

Region eyed as tourist attraction

THE DEPARTMENT of Tourism (DoT) is looking at transforming Region 4-B or the Mimaropa Region 9 Mindoro Occidental, Mindoro Oriental, Marinduque, Romblon, and Palawan) into a world-class tourist attraction through adding more airline flights and water routes in the area. “The private entities, including flag-carrier Philippine Airlines and four other airlines and five shipping companies, pledged to comply immediately with accreditation requirements. Transport services are considered ‘primary tourism establishments’ that need accreditation, pursuant to Republic Act 9593 or Tourism Act of 2009,” DoT said in a statement on Saturday, which cited a recent meeting with, among others, AirAsia Inc., Air Juan Aviation Inc (Air Juan), AirSWIFT Transport Inc., Magnum Air Inc. (Skyjet), 2Go Group Inc., Montenegro Shipping Lines Inc., Navios Shipping Lines Inc., Starhorse Shipping Lines Inc., and Starlite Ferries Inc. For his part, DoT Mimaropa Director Danilo B. Intong said, “We are elated as we share the renewed optimism over the continued growth of (the) tourism industry, which proves to be a key economic driver that can help uplift the lives of the poor in the countryside.”

Moratorium on oil projects may not be lifted soon

ALMOST two years after President Rodrigo R. Duterte said he might order the lifting of the moratorium on all oil and gas projects in the West Philippines Sea, including Service Contract 72 in the highly disputed Recto Bank, the Palace is unsure whether the lifting will still push. “‘Di natin alam kung ma-lift (We do not know if it will be lifted),” Presidential Spokesperson Salvador S. Panelo told BusinessWorld in an ambush interview last Thursday when asked regarding the request by the Department of Energy (DoE) to lift the moratorium on Service Contract 72 or the Recto Bank concession. “‘Di natin alam kung malabo, basta kung iyan ang sitwasyon, talagang wala pa (We do not know if it is unlikely, but if that is the situation, there is really no [decision] for now).” The Service Contract 72 is west of Palawan and southwest of the Shell-operated Malampaya Gas field, a deepwater gas-to-power project in Service Contract 38. The Department of Energy (DoE) issued a moratorium on all exploration and drilling activities in Service Contracts 72 and 75 in 2014 and 2015, respectively, due to the dispute between the Philippines and China over the West Philippine Sea. After his meeting with Chinese Premiere Li Keqiang in Manila in Nov. 2017, Mr. Duterte said the lifting of the moratorium was a possibility. “It’s one of the possibilities that will happen or can happen or will happen in South China Sea,” he said. Sought for comment, DoE Undersecretary Felix William B. Fuentebella said in a phone message: “The request to lift the moratorium at WPS has been submitted to OP (Office of the President) last February. Apparently, the same has been referred to the different cabinet clusters for the ‘whole of government’ decision on the matter.” — Arjay L. Balinbin

Drug rehab program gets boost

INDIVIDUALS in the Davao Region who have themselves in for drug rehabilitation will soon get help from the Yakap Bayan Framework Intervention whose P57.3-million financial assistance will help them start livelihood activities and capacity building, said Dahlia S. Padillo of the Department of Social Welfare and Development. Ms. Padillo said the DSWD will also extend technical assistance to local government units for their rehabilitation programs. She cited further a “case management system for social workers handling recovering drug dependents.” Ronaldo a. Rivera, technical adviser of the City Anti-Drug Abuse Council, said for his part, “We teach them to lead a lifestyle that would make it difficult for them to go back or use drugs again.” — Carmelito Q. Francisco

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