RTL, schools’ clarificatory tax signed into law By Jovee Marie N. dela Cruz
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@joveemarie
RESIDENT Duterte has signed several laws, including the amendments to the Retail Trade Liberalization Act and the clarification on the income tax of proprietary educational institutions. The Palace on Thursday said Republic Act (RA) 11595, which amends the RA 8761 or the Retail Trade Liberalization Act of 2000 by lowering the required paid-up capital for foreign retail enterprises, and RA 11635 amending Section 27(b) of the National Internal Revenue Code of 1997, as amended, to clarify the income taxation of proprietary educational institutions were signed last
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December 10, 2021. R A 11595 lowers the paid-up capital threshold substantially, and allows foreign retail investors to participate in the country’s retail market with a P25-million paid-up investment, and a minimum requirement of P10 million per store. The law also directs the Department of Trade and Industry, Securities and Exchange Commission, and National Economic and Development Authority to review the required minimum paid-up capital every three years to ensure that the threshold upholds the spirit of liberalizing the retail sector. Earlier, House Committee on Ways and Means Chairman Joey Sarte Salceda, Deputy Speaker for
Trade and Industry Wes Gatchalian and Marikina Rep. Stella Luz Quimbo all agreed that the new RTL will help the country's economic recovery following this Covid-19 pandemic as it could bring more foreign investments. Gatchalian said “the first and most obvious effect of lowering the barriers to entry of foreign retailers is increasing competition.” Quimbo, for her part, said “because these new thresholds [provided under the law] are evidence-based, I am optimistic that this new version of the law will succeed in increasing foreign investments in retail trade.” Salceda said “the main impact [of this law] will be in the provinces. The RTL amendments will lower
minimum investment to just around P25 million, which practically opens the entire provincial retail market to foreign ownership.” A lso, President Duterte has signed RA 11635 or an act amending Section 27(b) of the National Internal Revenue Code of 1997, as amended. The Coordinating Council of Private Educational Associations of the Philippines (COCOPEA) said the law will provide the needed stability to education not only in this time of pandemic but also for generations to come, as it aligns with all existing and future initiatives to revive the battered economy. See “RTL,” A2
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NCR cities readying ordinances on unvaxxed
By Bianca Cuaresma @BcuaresmaBM
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ANGKO Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said the timing of their monetary policy support unwinding or, as he dubbed it—the BSP’s “pandexit”— remains “very much uncertain” at this time.
By Claudeth Mocon-Ciriaco
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‘DIGITAL DIASPORA’
In a dialogue with reporters on Thursday, the BSP governor said while they have already broadly outlined their exit strategy, the monetary authority’s subsequent moves will largely depend on economic outcomes and not anchored on calendar dates. “We would also like to emphasize that the timing of the exit remains very much uncertain at this time. The threat of further Covid-19 infections continues to pose a downside risk to both growth and inflation in the coming months,” Diokno said. “Therefore, we deem it prudent MPLOY ER- SPONSOR ED to leave some room for flexibility health-care benefit costs in policy-making to account for are expected to increase uncertainty and risk, especially as ByManuel Manuel Cayon by 14.4 percent on average in the By T.T. Cayon the situation remains very fluid,” Philippines in 2022, according to he added. the 2022 Global Medical Trends Survey. Record low rates Based on the survey, conductIn 2020, the BSP cut its main ed by leading global advisory, policy rates to record lows to broking and solutions company, provide massive support to the Willis Towers Watson (WTW), this is lower than the 16.4 percent See “Unwinding,” A2
FTER the Metro Manila Council (MMC) agreed to impose enhanced restrictions on individuals who are unvaccinated against Covid-19, some of Metro Manila mayors have moved to have their city council pass an ordinance to ensure the limits are legally enforceable. The first was the Quezon City Council announced on Wednesday that an ordinance regulating the mobility of individuals unvaccinated for Covid-19 in the city was passed already. It was introduced by Councilors Eric Medina, Franz Pumaren, Donny Matias, and Jun Ferrer Jr. The MMC earlier issued ResoPOLICE checkpoints are back in force, as seen at the boundary between lution No.22-01, Series of 2022, Quezon City and San Jose del Monte in Bulacan, as Metro Manila and the urging local government units to provinces of Bulacan, Rizal and Cavite are placed under Alert Level 3 to enact ordinances for enhanced restrictions on unvaccinated instem the current surge in Covid-19 infections in the country. NONOY LACZA dividuals. On Monday, the Metro Manila mayors agreed that unvaccinated individuals in the NCR shall: 1. Remain in their residences at all times except for the procurement of essential goods and services such as, but not limited to, food, water, medicine, medical deand 2021, survey results showed portfolios in 2021. vices, public utilities, and energy, the pandemic’s asymmetrical arc This is followed by telehealth work, and medical and dental necreated considerable volatility in services at 26 percent, undercessities; Provided, however, that showsofofproducts, products, with hostsshall and healthcare utilization and costs scored by the potential for cost shows hosts and individual outdoorwith exercise guests providing more details and around the world,” WTW said in reductions that virtual healthguests providing more details and be allowed within the general area giving testimonies, Zalora said. giving testimonies, Zalora said. a statement. care creates. Half of the insurof their residence, e. g., within the would alsohelp helpbrands brandsininItItwould also The survey also showed that ers now offer telehealth across barangay, purok, subdivision, or novate on flexible sales promonovate on flexible sales promoalmost four in 10 insurers or 35 select plans, with 92 percent ofvillage subject to the guidelines tions, suchasManila asgiving giving discounts, tions, discounts, percent identified the addition fering these services at no addiof the such Metro local governand offering easier and attracand offering easier and attracof new wellbeing services as the tional cost. ment units (LGUs); tive payment options such asthe the tive payment options such as biggest change organizations in buy-now-pay-later (BNPL) opbuy-now-pay-later (BNPL) opSee “Health care,” A2 See “NCR,” A2 APAC have made to their medical tion,which, which,ititsaid, said,emerged emergedasas tion, themost mostpopular popularoption optionamong among the Asian shoppers. Asian shoppers. n singapore 37.6458 n australia 36.8949 n EU 57.8287 n SAUDI arabia 13.6078 Source: BSP (January 6, 2022) Indonesia, for for example, example, InIn Indonesia, Google saw saw a a “10x “10x increase increase inin Google searchesfor fore-wallet e-walletservices servicesand and searches 15xrise riseininBNPL BNPLservices servicesininthe the 15x lastfive fiveyears. years.Other Otherappealing appealing last payment options options like like monthly monthly payment installments,toto00percent percentinterinterinstallments, estfees feeson oncredit creditcards, cards,provide provide est access toto quality quality products products and and talsavviness savvinessand andtaste tastefor forluxury luxury Internetand andelectronic electroniccommunicommuniaccess tal Internet serviceswhile whilealso alsoimproving improvingfi-fiandsustainability. sustainability. cationgadgets gadgetsbybytheir theirside. side.Google Google services and cation nancialinclusion. inclusion. “Thereport reportisispositioned positionedasasa a trendshows showsMalaysian Malaysianshoppers shoppers nancial “The trend Zalora,for forinstance, instance,offers offers21 21 referencepoint pointthat thathelps helpsZalora’s Zalora’s spendclose closetoto99hours hoursonline onlineon on Zalora, reference spend paymentmethods methodsacross acrossthe therere900brand brandpartners partnersnavigate navigatethe the average,“and “andare arethe themost mostlikely likelytoto payment 900 average, gion, including including cash-on-delivery cash-on-delivery region’sdiversity diversityand andevolving evolvingrerevalue-driven.” gion, region’s bebevalue-driven.” andBNPL BNPLoptions optionsacross acrossthe themarmartaillandscape,” landscape,”Zalora’s Zalora’sCEO CEOGunGunSingaporean shoppers shoppers are are and tail Singaporean kets.ItItlaunched launchedits itsfirst firstco-brandco-brandjanSoni Sonisaid. said. mostlikely likelytotoinvest investininluxury luxurypurpurkets. jan most creditcard cardininpartnership partnershipwith with Aside from from digital digital partners partners chases, with with Google Google search search data data ededcredit Aside chases, RCBCand andMastercard Mastercardininthe thePhilPhillike Google, Google, Mastercard, Mastercard, H&M, H&M, showinga a21-percent 21-percentyear-on-year year-on-year RCBC like showing ippines,the thefirst-ever first-everfashion fashionand and Lush,Paula’s Paula’sChoice, Choice,HABIB, HABIB,AtAtincreaseininSingaporeans’ Singaporeans’searches searches ippines, Lush, increase
AVAOCITY—A CITY—Aleading leading AVAO onlinebrand brandretailer retailerin inAsia Asia online seeingaasharp sharpbehavioral behavioral isisseeing shiftamong among consumers consumersand andbrand brand shift makersthat thatmay mayreinvent reinventand andinnovate innovate makers approaches, especially from thenlatter, latter, approaches, especially PESO exchange rates from n US 51.1the 080 japan 0.4402 n asdata dataanalytics—since analytics—sincethe theonset onsetof ofthe the as pandemic—indicatethe theemergence emergenceof of pandemic—indicate morediscerning discerningconsumers consumersadaptive adaptiveto to more electronic,or oronline, online,shopping shoppingexperience. experience. electronic,
For one, one, the the Southeast Southeast Asia Asia For Trender Report Report 2021 2021 byby Zalora Zalora Trender showsthat that40 40million millionAsians Asiansmade made shows theirdebut debutininInternet Internetuse useand and70 70 their millionhave havemade madetheir theirfirst firstonline online million purchasewithin withinthe the2020 2020and and2021 2021 purchase period, many many ofof them them attracted attracted period, anddrawn drawninto intoactual actualpurchase purchasebyby and productsales salespromotion promotionand anddisdisproduct countofferings. offerings. count
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average in 2021 but higher than the 6.4 percent posted in 2020. The health-care benefit cost consumers becomemore more discernin the Philippines is the third consumers become discerningand andconnected, connected, weare areseeing seeing highest in the Asia-Pacific reing we incredible innovations happening incredible gion afterinnovations India whichhappening will see a inthe theretail retailsector sector thatand completely in that completely 23.5-percent growth Malayreimagine the shopping shopping experireimagine the experisia, 16.2-percent growth in 2022. ence,” Gunjan Soni,chief chief executive ence,” “InGunjan Asia, Soni, costs are executive expected officer theZalora Zalora Group,told told an officer ofofthe an to increase by 7.6 Group, percent. With online presentation of its Trender online presentation of its Trender Covid-19 surging in different Report2021. 2021. Report countries at various times in 2020 Shedescribed describedthe the“shoppers “shoppersofof She tomorrow”asas“digital “digitaland anddiverse diverse tomorrow” across Southeast Asia.” across Southeast Asia.” UK 69.2973 n HK 6.5551 n CHINA 8.0299 “It’s a a digital digital diaspora,” diaspora,” she she “It’s said,citing citingGoogle Googletrend trendmonitormonitorsaid, ingthat thatshows shows40 40million millionnew newInIning ternetusers userscame cameonline onlineinin2021, 2021, ternet “bringingthe theinternet internetpenetration penetration “bringing SoutheastAsia Asiatoto75 75percent.” percent.” ininSoutheast “Infact, fact,eight eightout outofof10 10InterInter“In netusers usersininthe theregion regionare aredigidiginet talconsumers. consumers.Recognizing Recognizingthis this tal shiftininadoption, adoption,brands brandsquickly quickly shift expandedtheir theironline onlinepresence presencetoto expanded reachthese thesenew newdigital digitalconsumconsumreach ers,and andZalora Zalorareported reporteda a19-per19-perers, centincrease increaseininnew newbrands brandsthat that cent joinedthe theplatform platforminin2021,” 2021,”she she joined added. added. Withmore moreSoutheast SoutheastAsians Asians With browsingnow nowand andgetting gettingthemthembrowsing selves more more online, online, the the average average selves
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Onlineshopping shopping platform notes behavioral shift Online platform notes behavioral shift Health-care benefit costs seen up in 2022 amongconsumers, consumers,brand brandmakers makersamid amidCovid Covid among