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A broader look at today’s business Thursday 18, 2014 Vol. No. 40 Friday, December 25,102015 Vol. 11 No. 78
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Sweetened drinks to duck excise tax T By Jovee Marie N. dela Cruz
he proposal to impose a P10 excise tax on sugar-sweetened beverages also appears headed for the trash bin in the current Congress due to lack of time, just like other key reform measures.
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Speaker Feliciano Belmonte Jr. said on Thursday the chances of the bill hurdling the House of Representatives and the Senate in the 16th Congress are getting dimmer. “Pag-uusapan namin ng Senate [We
will discuss it with the Senate]. Kung ’di nila kaya [if they can’t do it], we won’t push it due to limited time available,” Belmonte said in a text message. House Bill 3365, which seeks to add a P10 levy to sugar-sweetened
beverages, is currently awaiting plenary deliberations. Under the law, all tax-related bills must be passed first by the lower chamber before they can be approved by the Senate. Congress went on a Christmas break on December 19, and is scheduled to resume session on January 18, 2016. The third and last regular session of the 16th Congress is expected to be cut short, as the two chambers will take a break again on February 6, 2016, for the national and local elections in May. Also considered as “dead” measures are Resolution of Both Houses 1, or the Economic Charter Change; Rationalization of Fiscal Incentives, Incomes and See “Excise tax,” A2
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AMERICANS FIND MORE REASONS TO SPEND BIG
Shoppers walk in front of a holiday display in San Francisco. A lack of must-have items, big discounts on winter clothes and pricey toys are defining this year’s holiday season. AP
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onfidence ended the year on a brighter note, as low prices put US consumers in the holiday spirit. The University of Michigan said on Wednesday that its final sentiment index for the month climbed to 92.6, the highest since July, from 91.3 in November. The median projection in a Bloomberg survey of economists called for a reading of 92, after December’s preliminary figure of 91.8. Cheap gasoline prices and a labor market that’s added millions of Americans to payrolls have buttressed sentiment this year, while demand picked up enough to help convince the Federal Reserve that the economy could withstand higher interest rates. The conversion of job growth into bigger wage gains will be needed in the months ahead to further boost confidence and spending, which accounts for almost 70 percent of the economy. “The latest gain was largely due to lower inflation, which bolstered real incomes and brightened buying plans for household durables,” Richard Curtin, director of the Michigan survey, said in a statement. “Given the continued weakness in the global economy and the strong dollar, consumers can be expected to become even more demanding of price discounts in the year ahead.” Estimates for the Michigan survey in the Bloomberg survey of 56 economists ranged from 90 to 93.4. Wednesday’s consumer-sentiment figure almost reached the 92.9 average for this year, which is the highest since 2004.
Current conditions
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P-NOY visitsNonavictimsPresident Aquino arrives at Morente Elementary School in Pinamalayan, Oriental Mindoro, to inspect and lead the distribution of relief goods to the victims of Typhoon Nona (international code name Melor) after visiting Catarman, Northern Samar. Also in photo is Oriental Mindoro Gov. Alfonso Umali Jr. (third from left). A total of 17,209 families, or 67,508 persons, were displaced by the typhoon. Robert Viñas/Exequiel Supera/Malacañang Photo Bureau
The sentiment survey’s current conditions index, which measures Americans’ assessment of their personal finances, rose to 108.1 in December, the highest since June, from 104.3 last month. The measure of expectations six months from now decreased to 82.7 from 82.9. Americans anticipated an inflation rate of 2.6 percent in the next year, down from 2.7 percent in November. They expect prices also to rise 2.6 percent over the next five to 10 years, the same as the previous month. Continued on A2
MRT Line 3 commuters to see ‘improved service’ by Q1 2016 By Lorenz S. Marasigan
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OMMUTERS riding the Metro Rail Transit (MRT) Line 3 will experience “significantly improved service level” starting in the first quarter of 2016, after the transportation department awarded on Thursday the contract to rehabilitate and maintain the line to a Filipino-South
Korean joint venture (JV). The P3.81-billion contract—bagged by the JV of Busan Transportation Corp., Edison Development Construction, Tramat Mercantile Inc., TMI Corp. Inc. and Castan Corp. through a negotiated scheme—covers the general maintenance requirements of the train line for three years. It also requires the concessionaire to refurbish the
PESO exchange rates n US 47.2980
16-year-old trains of the railway line. “The long contract period will allow the new service provider to procure the necessary spare parts needed to increase the number of operating trains, especially during peak hours,” the transport department said in a statement on Thursday. The transport agency resorted to the negotiated scheme after two failed auctions
last year. To recall, the agency launched the bidding for the contract in early September last year, but no private company wanted to take the risk of maintaining a system so degraded, it has been tagged by railway experts as a “danger” to the riding public. In the hopes that companies would be enticed to vie for the much-needed project, the department decided to sweeten the
terms of the deal. But, despite the relaxing of rules and the improvement in cost, railwayupkeep services companies still decided to evade a “potential risk”. The risk, industry observers said, is obvious: The train system itself is already dilapidated. Hence, “maintaining” it, in the literal sense, would mean risking the lives Continued on A2
n japan 0.3907 n UK 70.1193 n HK 6.1013 n CHINA 7.3004 n singapore 33.6809 n australia 34.2293 n EU 51.8055 n SAUDI arabia 12.6087
Source: BSP (23 December 2015)