Chambers urge BIR to revoke cross-border service tax rule
“Once the tax costs do not justify doing business with Philippine clients … then foreign entities will more than likely look for other jurisdictions where the tax costs are lower,” they said.. “In this light, it is respectfully submitted that subjecting the income of NRFCs (non-resident foreign corporation) on services rendered abroad will lead to an increase in the tax cost of doing business, which may drive away foreign entities from conducting business in the Philippines,” they added.
Local, foreign businesses buck legislated wage hike
In a draft position paper by roughly 15 businesses groups–including the ECCP–-addressed to Senate President Juan Miguel Zubiri, Filipino and foreign business organizations in the country urged to adopt a more comprehensive approach to addressing economic inequality instead of focusing solely on legislated wage increases. Sen. Juan Miguel Zubiri recently enjoined his colleagues to support the passage of the P100 Daily Minimum Wage Increase Act of 2023.
Economic liberalization trio of laws not good enough–solons
Despite the passage of news laws which liberalized the economy, the entry of more investments in the country remained limited due to “restrictive” economic provisions of the Constitution and vague economic policies, members of the House of Representatives insisted on Monday. The congressmen said they will be pushing to finally remove the said issues, especially in foreign ownership of land and telecommunications ownership, through a “constructive” engagement with the Senate.
Food sufficient, worst of El Niño yet to come
The Department of Agriculture yesterday assured supply of rice and corn, pork and chicken are very stable and that it does not expect any problem in the coming months. This developed as the Task Force El Niño reported the worst of the effects of the phenomenon is expected this month and will persist until May. The task force said a sudden oscillation neutral will be felt starting June.
Refined Package 4 to yield P12B
The Department of Finance’s proposed Package 4 of the Comprehensive Tax Reform Program (CTRP) is now expected to yield revenues of 2.2 billion Php for the government instead of initial estimates of revenue loss of 83 billion Php. Revisions include frontloading the implementation of revenue-increasing provisions in 2024 and backloading some of the revenue-eroding provisions in 2028.
Senate, House leaders settle Cha-cha feud
Senate President Juan Miguel Zubiri and Speaker Martin Romualdez yesterday shook hands before President Marcos Jr. as they agreed to “work professionally” and stop the bickering among lawmakers over the people’s initiative (PI) campaign to amend the 1987 Constitution. The Senate President, however, said he cannot order the committee of Sen. Imee Marcos to stop its investigation on the PI signature campaign.
PSAC offers ways to retain, hone talent
PSAC-Jobs said it has proposed to President Marcos a scholarship program in the healthcare and digital industry that will tie them to working locally before exploring opportunities abroad, expanding accelerated certificate programs through the Technical Education and Skills Development Authority, exploring alternative solutions such as shared vessels for quality training, and studying the Global Minimum Tax’s implications for the Philippines.
Economists ask Marcos gov’t to push easing foreign ownership cap while cutting red tape
The Marcos administration should push easing foreign ownership restrictions in the 1987 Constitution while cutting bureaucratic red tape to attract foreign direct investments (FDI), according to economists. “Removing the specific restrictive provisions in the 1987 Constitution is a necessary but not a sufficient condition to encourage more foreign direct investments,” Former Finance Secretary Margarito B. Teves said, noting that the Philippines has one of the most restrictive economies in Southeast Asia.
All eyes on Naia rehab: Private partner coming
The winner of the bidding for the P170.6-billion Ninoy Aquino International Airport (NAIA) rehabilitation contract will soon be named after the Manila International Airport Authority gives its stamp of approval, allowing the bid winner control over NAIA and the New Manila International Airport in Bulacan. Ramon Ang-led SMC SAP & Co. Consortium, which includes San Miguel Corp., has emerged as the front-runner after putting forward an 82.16-percent revenue share with the government.
P244B RE projects endorsed for green lane
The Board of Investments (BOI) has granted Green Lane Certificate of Endorsement to seven renewable energy (RE) projects with a combined cost of P244 billion, the biggest of which are the P221.6 billion projects of the partnership of the Triconti Windkraft and Sea Wind Holdings AG. The green lane processing will ensure local and national agencies will facilitate the completion of these projects’ permitting requirements.
Coordinated action needed to address P250-B water project needs — DENR
The Philippines needs coordinated efforts among stakeholders to address its water supply challenges, with an estimated investment of 250 billion Php needed to serve 40% of the population, DENR Undersecretary Carlos Primo C. David said. The DENR announced last year that there are 135 potential water projects to be offered in 2024 and an additional 112 water projects as part of the second batch that is up for public-private investments.
Senate OK’s P100 wage increase on 2nd reading
The Philippine Senate on Wednesday approved on second reading a bill calling for a P100 ($1.78) across-the-board minimum wage increase for workers in the private sector. The increase will ensure a “living wage” for the Filipino workforce, according to Senate Bill No. 2534 or the proposed Wage Increase Act of 2023. The Senate president expects the bill to be approved on third and final reading next week.
PHL household goods sector may grow by 7.5%, says BMI
The Philippines’ household goods sector may grow by 7.5% this year to P270.4 billion ($4.8 billion) from last year as rising incomes boost consumer spending, BMI Country Risk & Industry Research said. In a report dated Feb. 13, BMI said spending on household goods would likely grow by 7.1% in the next five years to P354 billion by 2028 due to additional expenditures on aspirational products like electronics and furnishings.
DPWH ramps up road improvements in Mimaropa
Motorists in Oriental Mindoro can expect safer driving in the province as the Department of Public Works and Highways (DPWH) has completed a P34-million road rehabilitation project on a 1.4-kilometer km paved corridor. The DPWH said in a statement it had upgraded the Calapan South Road Junction-Minas Road in Victoria town funded through the 2023 General Appropriations Act.
USAID to launch $30 million initiative to boost higher education in Philippines
NEDA Undersecretary Rosemarie Edillon said the US Agency for International Development (USAID) is about to launch a $30-million, five-year initiative to help strengthen the country’s higher education system. The US-Philippines Partnership for Skills Innovation and Lifelong Learning (UPSKILL) program involves strengthening higher education capacity for innovation and entrepreneurship by training faculty and staff, improving curriculums and increasing technology transfers.
PHL privatization office eyes easier rules to meet target
The finance department’s Privatization and Management Office (PMO) wants to revise the guidelines on the sale of Philippine government assets to help meet its “hefty” targets this year. PMO expects to boost its revenue through state asset sales in 2024, without providing exact figures. She said the guidelines prevent them from selling assets at prices lower than the base price, which is set by two independent appraisers.
IPOPHL: Copyright registration nearly doubled to 6,522 in 2023
Copyright registrations at the Intellectual Property Office of the Philippines (IPOPHL) nearly doubled in 2023, with the writings category, such as books, articles, novels, among others accounting for over half of the copyright registrations. Data from IPOPHL showed that copyright registrations reached 6,522, 76 percent up from the 3,706 registrations in 2022.
Group backs PBBM’s cybersecurity plan
Consumer advocacy group CitizenWatch Philippines on Tuesday said it fully supports President Ferdinand R. Marcos Jr.’s approval of the five-year National Cybersecurity Plan 2024-2029 to address the rising incidence of cyberattacks targeting the government and private sector. According to a Globe Telecom report, 1.1 billion scam and spam messages were blocked in the first quarter of 2023, showing a staggering increase of about five times compared to the same period in 2022.
The Asia and the Pacific region is not expected to meet any of the 17 sustainable development goals (SDGs) by the 2030 deadline, the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) said on Thursday. “At the current pace, the Asia and the Pacific region will not achieve the 17 SDGs before 2062, making it a 32-year delay,” ESCAP Deputy Executive Secretary Lin Yang said.
PHL foreign investment pledges rise to record
Approved foreign investment pledges in the Philippines almost quadrupled last year, buoyed by economic growth that was one of the best performing in Asia last year, according to data from the local statistics agency. Pledges hit a record P889.07 billion ($15.9 billion), about 3.7 times higher than a year earlier and the highest since 1996. Investment pledges rose 2.3 times year on year to P394.45 billion in the three months to December, the largest in three quarters.
Monetary Board keeps rates steady
The Monetary Board decided to keep the Bangko Sentral ng Pilipinas’ Target Reverse Repurchase (RRP) Rate steady as the outlook for inflation for this year slightly eased from the previous meeting.The key rate remains at 6.50 percent. The interest rates on the overnight deposit and lending facilities were kept at 6 percent and 7 percent, respectively. Iluminada Sicat, BSP senior assistant governor, said the latest risk-adjusted inflation forecast for 2024 eased to 3.9 percent from 4.2 percent in the previous meeting in December.
‘Senate assembly’ eyed for Cha-cha
Senate President Juan Miguel Zubiri yesterday said the upper chamber will convene as a “Senate Assembly” once the sub-panel committee spearheading discussions on proposed Resolution of Both Houses (RBH) No. 6 submits its committee report containing its recommendations to the Senate plenary. Zubiri said this will be the first time that a Senate Assembly will be convened, and that the Senate will “amend the rules to allow this.” He said the word Senate Assembly was a term coined by senators and does not appear in the Constitution.
2023 OFW remittances hit all-time high
Cash remittances rose to another record last year as overseas Filipino workers (OFW) sent more money to their families who struggled with spiraling prices, the Philippine central bank said on Thursday. Money sent home by OFWs through banks increased by 2.9% to $33.491 billion, falling short of the Bangko Sentral ng Pilipinas’ (BSP) 3% estimate and slower than the 3.6% expansion in 2022. Remittance growth could have been tempered by a weaker global environment and restrictive borrowing costs, the BSP said in a statement.
House looking at wage hike of as much as P400
The House of Representatives is seeking to pass an across-the-board wage increase for workers in the private sector that is higher than the Senate’s P100 proposal, according to a lawmaker. Congressmen are studying a proposed P350 to P400 wage hike, House Deputy Majority Leader and Iloilo Rep. Janette L. Garin told a news briefing on Thursday, citing instructions from Speaker Ferdinand Martin G. Romualdez.
BCDA seeks UK funding for P13B Clark City projects
The Bases Conversion and Development Authority (BCDA) sought the support of the United Kingdom (UK) government and UK-based investors for the financing and implementation of two major sustainability projects in New Clark City with a combined project cost of P13.26 billion.At a UK Familiarization Visit on Financing and Delivering Sustainable Infrastructure Projects, BCDA presented the proposed 33.89-hectare mixed-income housing project costing P10.68 billion and the New Clark City Central Park, with a project cost of P2.58 billion.
Infra bodies expedite convergence projects
The Department of Public Works and Highways (DPWH) and the Department of Transportation (DOTr) have agreed to develop a joint memorandum of agreement that will establish clear guidelines to expedite the implementation of their infrastructure projects. Officials from DPWH and the DOTr in a meeting recently agreed to enhance collaboration on the implementation of their respective infrastructure projects under the “Build Better More” agenda of the administration. Discussions during the meeting included a DOTr proposal to devise a DPWH-DOTr Clash Resolution Agreement for appropriate adjustment on their projects whenever needed between the two agencies.
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