Govt targets over P4-T tax revenues by 2022
»Story on B1
HH
Php20.00
•• 4 SECTIONS PAGES • VOL. 120 NO. 290 24
FRIDAY, AUGUST 2, 2019
Trusted since 1898
R w w w.manilatimes.net
PACC seeks death for P25-M plunder BY CATHERINE S. VALENTE
T
HE Presidential Anti-Corruption Commission (PACC) on Thursday said it would recommend to President Rodrigo Duterte the lowering of the threshold amount for plunder from P50 million to P25 million. “We are really in consonance with the proposal na ibalik ang (to revive the) death penalty sa mga (against) plunderers and we will be recommending babaan ‘yung (to lower the) threshold from P50 million to P25
äPlunderA2
n Sen. Christopher Lawrence ‘Bong’ Go confronts Jose Borbon after he and his cohort, who pretended to be Rep. Arnulfo Fuentebella, were hauled to Camp Crame. CONTRIBUTED PHOTO
n ‘Con lawyers’? Palacios and Diokno, who fraudulently claimed to represent fishermen in a suit at the Supreme Court.
Diokno et al. shouldn’t just be disbarred, they should be prosecuted and thrown in jail
L
AWYERS Jose Manuel Diokno and Andre Palacios claimed they were counsels for 20 Palawan and Zambales fishermen when they filed a writ of kalikasan with the Supreme Court to compel government agencies to rehabilitate and protect the West Philippine Sea from “environmental damage due to poaching and other illegal activities being undertaken by Chinese nationals.” äTiglaoA5
RIGOBERTO D. TIGLAO
Man arrested for swindling says he was hired to smear Bong Go ONE of the suspects arrested for identity theft and swindling claimed to have worked with opposition senators and was told to attack Senate candidates fielded by President Rodrigo Duterte on social media. Dennis Jose Borbon, 24, was arrested on Wednesday by the Philippine National Po-
lice (PNP) Regional Anti-Cybercrime Unit along with Edgar Paulo James Bularan, 30, his accomplice. They will be charged with estafa and identity theft. Borbon posed as Camarines Sur Fourth District Rep. Arnulfo Bryan Fuentebella
Flood control projects in NCR found wanting FLOODS take longer to subside in the National Capital Region (NCR) despite the existence of more than a hundred flood control projects in the metro, a report from the Commission on Audit (CoA) showed. According to the CoA audit report on the Metropolitan Manila Development Authority
äProjectsA8
What’s inside CAYETANO FILES MEASURE ON ABSOLUTE DIVORCE
NewsA2
CIMATU: EL NIDO, PALAWAN TO REMAIN OPEN FOR TOURISTS RegionsA7
RoS EYES TO FORCE DO-OR-DIE GAME 5
SportsC1
DENNIS TRILLO EYES FILM DIRECTING
EntertainmentD1
and asked for money from high-profile officials such as Sen. Christopher Lawrence “Bong” Go. In a news conference at Camp Crame in Quezon City, Go revealed that the suspects contacted him through Viber, asking for
äHiredA2
Palace backs lifting of visa upon arrival privilege MALACAÑANG on Thursday backed a proposal to remove the “visa on arrival” privilege for foreigners, in light of the reported influx of undocumented Chinese in the country. Palace spokesman Salvador Panelo said he agreed with Foreign Affairs Secretary Teodoro Locsin Jr.’s proposal that all visas should be vetted. “Kasi kapag tayo ang nanghihingi ng visa nahihirapan din tayo kumuha ng visa sa iba’t-ibang bansa because they vet. Tinitignan muna nila (If we’re the ones applying, we find it hard to obtain visas from other countries because of their vetting process. They are really looking at it),” Panelo told reporters. Locsin, in a tweet on Wednesday, recommended that visas should be issued by consular offices after vetting. “We need to put an end to visas upon arrival; all visas should be issued by consular offices after vetting. We must take extra care in outsourcing any part of the visa application process, picking only the most reputable worldwide,” Locsin said. He made the statement after National Security Adviser Hermogenes Esperon called the influx of Chinese a “security risk.” “I have the tendency to look at it as a threat… I’m on the cautious side. When foreigners, regardless of nationality, come in and their intent is not clear. Or when some of them are undocumented, or have false documentation,” Esperon said. Panelo said the government could “legally expel” Chinese who violate the country’s immigration laws. “Kung (If) they are undocumented, then we should really raise concern about them. Paano sila nakakapasok dito (How were they able to enter the country)?” he added. The Philippines has a visa upon arrival process for qualified visiting Chinese.
äVisaA8
NBA’S BOGUES:
Smaller players can excel bigtime RETIRED National Basketball Association (NBA) playmaker Muggsy Bogues said like him, smaller Filipino players could absolutely excel bigtime in n Retired National Basketball any competitive basketball league, Association player Muggsy Bogues. CONTRIBUTED PHOTO
äPlayersA8
REACH US AT: E-mail: newsdesk@ manilatimes.net Tel. Nos.: 524-5664 to 67 Address: 2/F Sitio Grande, 409 A. Soriano Avenue, Intramuros, Manila 1002
VISITING THE TIMES
Science and Technology Secretary Fortunato de la Peña (center) meets with representatives of The Manila Times TV and C&E Publishing on Thursday to explore joint projects with the two institutions. With him are Jennifer Jones, The Manila Times’ Chairman Emeritus Dr. Dante Ang, John Emyl Eugenio and Sheila Tagaro.
168 YEARS
The Bank of the Philippine Islands (BPI) kicks off its 168th anniversary with a Holy Mass celebrated by Manila Auxiliary Bishop Broderick Pabillo. With him are BPI Chairman Jaime Augusto Zobel de Ayala, BPI President and Chief Executive Officer Cezar Consing, members of the BPI Board and employees.
Please visit our website for more news www.manilatimes.net
ASIAN STOCKS: t
t
PSEi
8,098.16 UP 0.65%
P51.20 TO $1
Shanghai 0.81%
What’s inside ‘DOUBTFUL ACCOUNTS’ SETTLED – PEZA
»BusinessB2
FOREIGN-BUYING LIFTS PSEI AT LAST MINUTE
»BusinessB2
REVIEW FOR PPP PROJECTS SIMPLIFIED
»BusinessB2
BPI NET INCOME SURGES 24.5% TO P13.7B IN H1
»Corporate NewsB3
MPIC NET PROFIT FLAT AT P8.7B IN JAN-JUNE
»Corporate NewsB3
US FED CUTS KEY INTEREST RATE TO ‘INSURE’VS RISKS
»Foreign BusinessB4
www.manilatimes.net
S i n g a p o re 0 . 2 7 %
Seoul 0.36%
s
To k yo 0 . 0 9 %
t
Jakarta 0.14%
t
H o n g Ko n g 0 . 7 6 %
t
B2
B a n g ko k 0 . 7 1 %
Govt targets over P4-T tax revenues by 2022 BY MAYVELIN U. CARABALLO
T
HE government aims to raise more than P4 trillion in revenues by the end of the Duterte administration in 2022, with the bulk expected to be collected from the government’s comprehensive tax-reform packages. According to the Development Budget Coordination Committee’s (DBCC) medium-term program that reporters obtained on Thursday, the interagency body expects these revenues to increase by 10.5 percent to P3.149 trillion this year, 12.3 percent to P3.536 trillion next year, 11.8 percent to P3.953 trillion by 2021, and 11.7 percent to P4.416 trillion by 2022. The Bureau of Internal Revenue was
FMIC, U&AP: Inflation seen below 2% by Aug INFLATION in the country is forecast to ease below 2 percent this month and 1.3 percent in the fourth quarter of 2019, according to First Metro Investment Corp. (FMIC) and the University of Asia and the Pacific (UA&P). In the July edition of their Market Call report, FMIC and UA&P identified base effects, and lower prices of rice and other food items as contributors to the downtrend in consumer price growth. “As for oil prices, the current uptick looks transitory as the International Energy Agency, in its June report, stated that, despite the OPEC (Organization of Petroleum-Exporting Countries) output-cutback agreement extended to March 2020, ‘it does not change the fundamental outlook of an oversupplied market,’” they said. Inflation slowed to 2.7 percent in June from 3.4 percent in May and
t
FINEX FILES
t
FRIDAY AUGUST 2, 2019
Business Times
CURRENCY RATE
B1
5.8 percent a year ago. The figure is the lowest recorded since August 2017’s 2.6 percent. The Philippine Statistics Authority is scheduled to release official July inflation data on August 6. Decelerating inflation, the report said, would allow the Bangko Sentral ng Pilipinas (BSP) to further ease monetary policy in the second half, “with a further 50-basis-points (bps) policy rate cut, and at least another 200-bps cut in [banks’] reserve requirement ratio.” “This will not only provide liquidity to banks, but also spur private lending and exports,” it added. Lower inflation, coupled with robust government spending, would help economic growth in the country rebound in the second quarter, according to FMIC and UA&P. “Softer headline inflation and robust government spending is
tasked to collect P2.271 trillion this year, P2.576 trillion next year, P2.914 trillion in 2021, and P3.287 trillion in 2022. The Bureau of Customs was programmed to collect P661 billion this year, P731 billion next year, P813 billion in 2021, and P900 billion in 2022. Overall, tax revenues are seen to hit P2.995 trillion this year, P3.332 trillion next year, P3.754 trillion in 2021, and
P4.217 trillion in 2022. Non-tax collections, meanwhile, are seen to hit P192 billion this year, P201 billion next year, P196.976 billion in 2021 and P196.179 billion in 2022. Revenues would be sourced from Packages 1A, 1B and 2 Plus of the state’s Comprehensive Tax Reform Program, as well as the fuel-marking program. Package 1A — better known as Republic Act 10963 or the Tax Reform for Acceleration and Inclusion (Train) Act, implemented at the start of 2018 — exempts those earning annual taxable incomes of P250,000 and below from paying personal income taxes. In exchange, excise taxes o n
certain products, including fuel, automobiles, sugar-sweetened beverages and non-essential cosmetic procedures, were raised. Package 1B proposes adjustments to the Motor Vehicle Users Charge, while Package 2 Plus — or Republic Act 11346, which President Rodrigo Duterte signed on July 25 — imposes higher taxes on cigarettes and a new tax on e-cigarettes and other alternative devices for smoking. Launched in February, the fuelmarking program is designed to check oil smuggling by marking imported and refined gasoline, diesel and kerosene using a covert and sophisticated marking and testing technology. This is to ensure that all downstream fuels are tax- and duty- paid.
UP TO HERE
US Federal Reserve (Fed) Chairman Jerome Powell speaks during a news conference after attending the American central bank’s two-day meeting in Washington, D.C. on Wednesday (Thursday in Manila). Powell announced that the Fed agreed to cut interest rates by a quarter of a point, which is the first rate cut since 2008. AFP PHOTO See story on B4
»
äInflation B2
Calata’s public investors PH manufacturing improves in July June infra, capital in limbo spending W HAT happened to the public stockholders of listed companies that used to be listed but were either suspended or ordered closed by regulatory agencies? They now find themselves in limbo not knowing what to do with their ownership of common shares. This usually happens to the public who invest on listed stocks only to find themselves holding on to them but without a stock market to sell their holdings if trading on them are indefinitely suspended by regulatory authorities. Should they go to the Securities and Exchange Commission (SEC) or to the Philippine Stock Exchange (PSE)? Demrod Schroth wrote to air this predicament. He could be one of the public investors who may have been duped into buying Calata’s initial public offering (IPO). Maybe he acquired his present Calata common shares hoping to cash in on them when the stock’s price rose. As everybody in the market knows, the price of Calata common shares did not appreciate. Instead, regulatory authorities suspended the trading on them. What fate now awaits Mr. Schroth and others like him if they don’t have a market? He may be only one of the public
investors who do not know where to go to liquidate their Calata common shares. Will SEC officials help Mr. Schroth? Mr. Schroth’s email to Due Diligencer illustrates the public investors’ frustration over listed companies that were either suspended or permanently closed by the SEC and PSE. He may not be alone. The contents of Mr. Schroth’s email to Due Diligencer are self-explanatory. “I read your column in The Manila Times . I always see that you are writing about shares of stocks in every listed company in [the] Philippines. I wonder if you could help what to do with my shares of Calata Corp., a company which used to be listed on the Philippine Stock Exchange. It’s been a year and I am still holding the Calata certificate. Do you know how I could sell my Calata shares? I do not have information about what is happening now to Calata. Do you know which government offices I could approach
äPerez B4
FILIPINO manufacturers saw business conditions improve last month as sales grew significantly, an IHS Markit survey has found. Results of the poll released on Thursday showed that the seasonally adjusted manufacturing Purchasing Managers’ Index (PMI) rose to 52.1 in July from 51.3 the month before. This signaled a “moderate improvement in the health of the sector that was the strongest seen since the start of the year,” IHS Markit said, noting, however, that it was still weaker than the average recorded in the survey’s history so far. The PMI is a composite index that represents the weighted average of new orders, output, employ-
ment, suppliers’ delivery time, and stocks. Readings above 50 signal an expansion; below that; a contraction. According to IHS Markit, the increase in new orders contributed to the growth upturn in July, with companies reporting higher demand for manufactured goods and some attributing the growth to new projects and the higher spending power of customers. “New order growth was up notably in July, easing some worries in recent months that the manufacturing environment was facing a slowdown,” IHS Markit economist David Owen said. “Output, meanwhile, increased at a solid rate, albeit one that was weaker-than-average for the
Filipino goods-producing sector,” he added. The results, however, also showed that the increase in demand was largely domestic, as new export orders fell for the second consecutive month, albeit at a slightly softer rate than in June. A number of firms blamed the decline on the lack of orders from foreign clients. Production of Filipino goods manufacturers also “increased solidly” during the month, but the rate of expansion was still softer than in June. Employment in manufacturing increased for the first time since February, as companies opted to expand their workforce to meet
äManufacturing B4
‘Share prices to keep rising in H2’ THE stock market is likely to sustain its bull run in the latter half of the year amid more favorable macroeconomic conditions, according to a report by the First Metro Investments Corp. (FMIC) and the University of Asia and the Pacific (UA&P). FMIC and UA&P, in their latest joint report released on Thursday, said market sentiment will be buoyed by the expected easing of inflation to below 2 percent beginning this month, coupled with further interest rate cuts, and the boost in government spending. It added that its crawl back to the 8,400 level last month raised the likelihood of the bull run’s
resumption. “The latter’s 8.9 percent growth in May (excluding interest payments) a month after the … 2019 budget approval and its record of over 20 percent expansion in infrastructure spending for a 13-month period in 2017-2018 provide evidence of [government’s] ability to ramp up spending for the rest of 2019,” the report read, adding that such factors will help buoy corporate earnings. “Once PSEi (Philippine Stock Exchange index) breaches definitely the resistance level of 8,200, coupled with large volume, its upward trend should resume only in the latter half of the [second
half] amidst MSCI rebalancing in August,” it added. As of Thursday, the PSEi has already risen by 8.13 percent to 8,098.16 with growth attributed to the dovish tone from the Federal Reserve coupled with positive signals on the US-China trade talks. The benchmark index first entered the bull market on July 15, having risen by 22.2 percent, slipped out, and clawed back to the said territory for the second time on July 25. As of Thursday, PSEi was only up by 18.4 percent from its lowest level of 6,843.83 in November. ANGELICA BALLESTEROS
falls to P44B
THE delayed implementation of projects caused government infrastructure and capital spending to drop to P43.5 billion in June, the Department of Budget and Management said on Thursday. In a report, the Budget department said the amount was a 39.5-percent decrease from P71.9 billion in the same month last year. “This is largely due to the delayed implementation of various infrastructure projects following the late approval of the FY (fiscal year) 2019 General Appropriations Act and the election ban,” it explained. A dispute between the Senate and the House of Representatives over alleged insertions resulted in a four-and-a-half-month delay before legislators finally agreed to approve the 2019 outlay. The government was forced to operate on last year’s budget, unable to spend on projects and programs supposed to be implemented this year. Meanwhile, government spending was banned from March to May because of the May 13 midterm elections, which saw many pro-administration candidates winning. Spending growth in June dragged down the year-to-date
äSpending B4
Please visit our website for more news www.manilatimes.net