ECCP at Work

PH seeks renewal of trade privileges

The Philippines is seeking renewal of the European Union (EU) generalized system of preferences plus (GSP+) ahead of the duty-free scheme’s expiry at the end of 2023 while pursuing a possible free trade agreement (FTA) with the bloc. “We must be able to renew and extend (EU GSP+), and in the long term… we could think about the FTA,” said Angelo Benedictos, director of the DTI-Bureau of International Trade Relations. Two rounds of Philippines-EU FTA negotiations have been conducted.

BIR collections hit P2T

The Bureau of Internal Revenue (BIR) has generated gross collections of P2.08 trillion in 2021, the agency said in a statement yesterday. The BIR said that based on its tentative report, the bureau’s total collections inclusive of tax refund last year has exceeded the 2020 revenues of P1.95 trillion by 6.48 percent. The gross tax collection is also slightly higher than the full-year collection goal by P 1.95 billion or .09 percent.

COVID-19 slashes tax take by P1.7T as of end-2021

Tax revenue losses resulting from the COVID-19 pandemic have reached a total of P1.72 trillion as of end-2021, according to the Department of Finance (DOF). The new coronavirus inflicted a P785.6-billion dent in 2020 tax revenues, which widened to P929.9 billion in 2021. Even then, the DOF said in a statement the tax effort was pegged at 15.6 percent over a five-year period since the Duterte administration took over in mid-2016. 

PH growth may not reach 7% in ’22, says ING

The growth rate for the Philippine gross domestic product (GDP) in 2022 might not reach 7 percent as the government hopes, and instead slow down to 5.3 percent even if it’s an election year because of a surge in cases linked to the Omicron variant of COVID-19. Nicholas Mapa, ING Bank senior economist in the Philippines, in a research note urged state economic managers to “curb your enthusiasm” as they gun for economic expansion of 7 to 9 percent.

IATF issues new foreign entry guidelines

The Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF) released yesterday the requirements and protocols for arriving tourists from non-visa-required countries. Secretary Karlo Nograles, IATF co-chairman and acting presidential spokesman, said that beginning Feb. 10, fully vaccinated nationals from visa-free countries may enter the Philippines for business and tourism purposes.

Local gov’ts urged to ramp up spending

Local government units (LGUs) need to set up a strong pipeline of projects and improve their implementation processes to support spending as their share in national taxes expands this year, the Department of Finance (DoF) said. “LGUs need to brush up on project planning and implementation so that projects are efficiently implemented and finished on time,” Finance Undersecretary and Chief Economist Gil S. Beltran said in a Viber message.

GDP nearing pre-pandemic level, NAP4 scorecard up

The Philippines’s GDP last year already represents 99.4 percent of the country’s pre-pandemic figure, which explains the improvement in the country’s National Action Plan (NAP) Phase 4 Scorecard, according to the National Economic and Development Authority (Neda). In a recent presentation, Neda Undersecretary for Planning and Policy Rosemarie G. Edillon said the NAP4 scorecard showed that the country’s score has further improved to 7.63 out of 9 in December 2021.

Vaxxed tourists exempt from Naia arrivals cap

Fully vaccinated foreign tourists are exempt from the arrivals cap currently being implemented at the Philippines’s premier gateway. This as the Civil Aeronautics Board (CAB) informed the foreign and local carriers that “international inbound arrivals at Manila’s Ninoy Aquino International Airport (Naia) shall be increased to a maximum of 5,000 passengers per day beginning 4 February 2022.” The advisory was signed by CAB Executive Director Carmelo Arcilla on February 2, 2022, a copy of which was sent to the BusinessMirror.

Reopening of economy benefits domestic inflation: NEDA

Ensuring the continued reopening of the economy will benefit domestic inflation rate, which further slowed down to 3 percent in January 2022, an official of National Economic and Development Authority (NEDA) said on Friday. The sustained deceleration of domestic rate of price increases in January, from month ago’s 3.2 percent, is among the positive economic developments in the domestic economy to date, according to NEDA Undersecretary Rosemarie Edillon during the Palace virtual briefing

Cargo traffic back to pre-COVID level

Cargo traffic has returned to pre-pandemic levels in 2021 and grew 9.4 percent from 2020, data from Philippine Ports Authority (PPA) showed. PPA said cargo throughput in 2021 stood at 267 million metric tons (MMT) from 244 million MT volume in 2020. The cargo traffic last year was also slightly higher than 266.4 million MT in 2019. The cargo traffic growth, which was higher than PPA’s 7 percent projection, was driven by 12.9 percent increase in foreign cargo traffic to 169.9 MMT from 150.4 MMT the previous year.

More investments seen with easing int'l arrival protocols

Potential investments to the Philippines that were set aside amid the pandemic are expected to push through with the easing of restrictions for foreign travelers, a trade official said Monday. During the Laging Handa briefing, Department of Trade and Industry (DTI) Undersecretary Ruth Castelo said many investments were put on hold since the coronavirus disease 2019 (Covid-19) pandemic struck, and among the reasons is the strict policy in the country for foreign travelers. Starting this week, the country will scrap the facility-based quarantine for foreign nationals arriving in the Philippines.

Gov't to develop 'new normal' roadmap vs. Covid-19 pandemic

Presidential adviser on Covid-19 response, Vince Dizon, said the government mulls the development of a strategic roadmap to the new normal so that the country can start "beating" the coronavirus disease (Covid-19) pandemic. During the Talk to the People of President Rodrigo Duterte on Monday night, Dizon said they are now discussing with key officials of the National Task Force (NTF) against Covid-19, including NTF chief Secretary Carlito Galvez Jr., Health Secretary Francisco Duque III, Interior and Local Government Secretary Eduardo Año, and NTF chairperson Delfin Lorenzana, about the crafting of the new normal roadmap, a way forward to dealing with the dreaded virus, and finally exit to the pandemic.

Gameplan to raise productivity needed

Government economic planners in the National Innovation Council (NIC) must work together to promote innovative solutions and raise the country’s overall productivity, Socioeconomic Planning Secretary Karl Kendrick Chua said. The NIC is the agency mandated to develop the country’s strategic vision, goals, and strategies for innovation. It has 25 members, namely the President of the Philippines as the chairperson; the Secretary of the National Economic and Development Authority as the vice-chairperson; heads of 16 other member agencies and seven executive members from the private sector.

5 agencies lead accord forcrafting local EODB report

The localized ease of doing business (EODB) report should cover the business sustainability aspect and the impact of streamlining the government transaction processes, the Department of Trade and Industry (DTI) said. On Monday, the joint memorandum circular (JMC) on the establishment of the Philippine Ease Of Doing Business and Efficient Government Service Delivery Reporting System was launched and signed by the DTI, Anti-Red Tape Authority (Arta), Department of Finance, Department of Information and Communications Technology and the Department of the Interior and Local Government, among others.

BIR, BOC told: Boost cybersecurity systems

The recent spate of cybersecurity breaches has prompted the Department of Finance (DOF) to ensure that online defenses of the government’s revenue-generating agencies are up to date. Finance Secretary Carlos G. Dominguez III said the recent hacking incident involving BDO Unibank and the Union Bank of the Philippines (UnionBank) should serve as a warning to Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) to beef up their cybersecurity measures.

PHL drops in global opportunity index

The Philippines continues to lag behind other Asian countries in terms of potential in attracting foreign investors, the Milken Institute Global Opportunity Index showed. Based on the Global Opportunity Index 2022, the Philippines ranked 83rd out of 126 countries, slipping one spot from the 82nd spot out of 145 countries in 2021. Some countries were excluded in the 2022 index due to insufficient data. Malaysia ranked 25th, taking the top spot in “emerging Southeast Asia.” Thailand followed at 34th spot, while Indonesia and Vietnam ranked 57th and 67th place, respectively. The Philippines was only ahead of Cambodia and Laos, which ranked 95th and 98th, respectively.

Pandemic clouds BSP exit strategy

The timing of the Bangko Sentral ng Pilipinas’ (BSP) exit strategy remains clouded by the uncertainty over the coronavirus pandemic, BSP Governor Benjamin E. Diokno said. “Under current circumstances, the timing and pace of the BSP’s exit plans remain uncertain. While recent indicators point to a recovery in economic activity, the recent new coronavirus disease 2019 (COVID-19) cases while receding are still high and could represent a downside risk to the outlook for growth and inflation,” Mr. Diokno told Global Source Partners in a report released on Feb. 4.