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n Thursday, July 4, 2019 Vol. 14 No. 267
Govt starts taxing, sets database of alien labor ₧24 billion T By Rea Cu
recent executive committee (Execom) meeting that revisions were made to a draft joint memorandum circular (MC) being crafted with the DOLE on the issuance of work permits to foreigners, to include a provision on setting up the database.
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HINA’S increasing demand for food will deplete marine resources in the West Philippine Sea and wreak havoc on the country’s fish supply in the near future, an expert has warned. The loss is not just on account of China’s rapid devouring of Philippine fish. Its massive reclamation and artificial island building has destroyed vital coral reefs that provide habitat to marine resources. According to estimates by marine experts, the Philippines is losing at least $647.5 million (P33.67 billion) annually from the marine resources—within the country’s exclusive economic zone (EEZ)—that were destroyed by China. The figure is expected to grow as China’s population is anticipated to expand exponentially due to its two-child policy, driving demand for food including fisheries products further in the future. “Definitely China has a huge demand for fishery products [because] fish has become like [an object of] prestige for them. If you eat fish you are rich,” Institute for Marine Affairs and Law of the Sea Executive Director Jay Batongbacal said.
“To effectively pursue our mandate [of taxing foreign workers], we need accurate data on foreigners working in the Philippines,” Dulay said. He explained that the DOLE had invited the BIR to a meeting to discuss the joint MC on the is-
The amount of taxes expected to be collected from the Pogo sector a year, at P2 billion a month of income tax collections
PESO EXCHANGE RATES n
See “China,” A2
PHILIPPINE STATISTICS AUTHORITY
DATA CHAMPION
Rene E. Ofreneo
LABOREM EXERCENS
suance of work permits to foreign nationals. “Revisions were made to develop an interagency database to be administered by the DOLE,” he added. Dulay also pointed out that some of the 15,176 foreign nationals working in 174 establishments, mostly (Pogos), that the DOLE said had no working permits, were subsequently determined by the BIR to have the proper working permits and visas.
HE Philippine minimum-wage fixing system has always been divisive. The parties involved rarely arrive at a consensus. The unions always ask for wage rates that approximate what they consider as the “decent living wage.” At the moment, they are asking for a P750 minimum, which is still lower than P1,000 daily, which they claim is the ideal. On the other hand, the employers usually use the inflation index as the guide for any adjustment, or to counter any demand for higher wages. Which means a low 2-3 percent inflation rate is no excuse for any minimum-wage adjustment. Neda economists tend to support the employers’ position because they fear that higher wages are a disincentive for investments.
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BOC to MDM traders: Tell us your concerns
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give rise to establishments or units that are qualified to choose their own retail electricity supplier, not necessarily the joint-venture firm. Given the development of New Clark City, the PCC sees an influx of locators, particularly agro-industrial and institutional clients, to qualify as contestable customers whose average monthly consumption reach at least 750 kilowatts.
HE Bureau of Customs (BOC) has insisted that its collection of proper duties and taxes on shipments of mechanically deboned meat (MDM) of chicken, particularly the 35-percent tariff difference, is legal. BOC Assistant Commissioner Vincent Philip C. Maronilla of the Post Clearance Audit Group (PCAG) also said the bureau is open to a dialogue with importers of chicken MDM. Maronilla’s statement was issued after the Meat Importers and Traders Association (Mita) warned that many of their members could go bankrupt if the BOC pursues the collection of the 35-percent tariff difference. “Pursuant to Section 430 of the Customs Modernization and Tariff Act [CMTA], the assessment on the said imported goods is not yet final and therefore is still subject to the proper collection of the rightful duties and taxes on the imported goods. And it is a bigger neglect on the part of BOC not to collect the legally prescribed duties in behalf of the government,” the bureau’s statement read. The BOC also said it is amenable to holding a dialogue with importers and to discussing their concerns.
See “Clark power,” A8
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Losses
THE losses are also a conservative estimate due to lack of proper value estimation on the worth of the country’s marine ecosystems. However, UP Marine Science Institute Deputy Director for Research Deo Onda said a scientific journal article published in 2012 estimated the global average worth of a coral reef based on the services that it provides to consumers. The study, titled “Global estimates of the value of ecosystems and their services in monetary units” said a hectare of coral reef provides an annual income of $350,000 due to its potential services. These potential services include provisioning (food, raw materials, genetic resources), regulating (climate regulation, etc.), habitat
2018 BANTOG MEDIA AWARDS
Divisiveness in the wage fixing system, and missing attention on industrial development
“The depletion of our fish stocks would be faster if poaching wouldn’t be restricted, with the West Philippine Sea being the first victim followed by our internal waters. Because they would follow where the fishes are—that is why it is important to stop them now.”—Batongbacal
@jearcalas
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China fast outstripping PHL fish catch in EEZ, maritime experts warn By Jasper Emmanuel Y. Arcalas
BUSINESS NEWS SOURCE OF THE YEAR
@ReaCuBM
HE Bureau of Internal Revenue (BIR) and Department of Labor and Employment (DOLE) are working on developing an interagency database of foreign nationals working in the country, to ensure they pay the correct amount of taxes to the Philippine government.
This, as the BIR will start collecting income taxes from foreign workers employed in Philippine Offshore Gaming Operators (Pogos) this month. BIR Commissioner Caesar R. Dulay reported to Finance Secretary Carlos G. Dominguez III at a
2018 EJAP JOURNALISM AWARDS
THE 20,000-seater stadium in New Clark City, one of the main venues for the 30th Southeast Asian Games this November, is seen in this June 1, 2019, BusinessMirror file photo, nearly finished except for some minor sprucing up. The Philippine Competition Commission (PCC) has approved the joint venture of the Bases Conversion and Development Authority (BCDA) and the consortium of Manila Electric Co. (Meralco) and its Japanese partners for the development of a power distribution system in what is slated to become the first smart, green and sustainable metropolis in the Philippines. BERNARD TESTA
Clark power distribution deal gets PCC’s nod By Elijah Felice E. Rosales @alyasjah
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HE Philippine Competition Commission (PCC) has approved the joint venture of the Bases Conversion and Development Authority (BCDA) and the consortium of Manila Electric Co. (Meralco) and its Japanese partners for the development of a power distribution system in New Clark
City. In a commission decision last week, the PCC authorized the BCDA and the Meralco-Marubeni Consortium to carry out its project. It said the transaction will not result in a substantial lessening of competition in the retail electricity supply market within New Clark City and the distribution utility market of generated power through a supply deal in the Luzon and Visayas grids. The PCC argued New Clark City will
US 51.1060 n JAPAN 0.4738 n UK 64.3680 n HK 6.5537 n CHINA 7.4349 n SINGAPORE 37.6916 n AUSTRALIA 35.7435 n EU 57.6833 n SAUDI ARABIA 13.6297
Source: BSP (3 July 2019 )