SC voids DOF order limiting banks’ deductions ‘Close borders, cut Omicron exposure risk’ By Joel R. San Juan By Cai U. Ordinario
CT
@jrsanjuan1573 @caiordinario
HE Supreme Court has de-
LOSING the country’s borders clared void—for being issued is one of theits most immediate2011 beyond authority—a courses of action the revenue regulation of governthe Departmentment mustoftake to prevent the latFinance (DOF) that limited est Covid-19 variant,deductions Omicron, from the allowable for costs reaching Philippineofshores, accordand expenses banks and other fiing tonancial local economists. institutions for purposes of T he new vartaxable iant isincome. a threat, computing e s p e c i aThe l l y 22-page w it h tdecision he hol penned id ay s by Associate Justice Zalameda of coming up and moreRodil foreigners Court’s to Third Division denied beingthea llowed travel to the the DOF petition, represented Philippines, De La Sa lle Univer-by its secretary and theia Bureau of Internal y economist Mar Ella Oplas CHANGING OF THE GUARD Isuzu Philippines Corporation’s Outgoing President Hajime sit Revenue (BIR), seeking to annul and told BusinessMirror. Koso (left) hands over a souvenir token to IPC’s Incoming President Noboru Murakami during the setholidays aside theusually order issued The bringoninMay turnover of the leading truck maker’s presidency on Monday (May 16, 2022) at Okada Hotel in 25, 2018 by the Regional Trial Court Overseas Filipino Workers (OFWs) of Makati City which declared null Paranaque City. Story in B1, Companies. ROY DOMINGO who are eager to spend Christmas
and void Revenue Regulations (RR)
4-2011. withNo. their loved ones, while forSC order likewise regions made pereignersThe living in temperate manent the writs of preliminary usually want to relax in tropicalinjunctions issued on April 25, 2015 countries like the Philippines. This and February 28, 2018, enjoining the year’s influx of OFWs is expected to DOF and the BIR from enforcing the be heavier since many of them were said issuance. unable The to come home for the DOF issued RR holidays 4-2011 on in December 2020. March 15, 2011 prescribing the “My recommendation is to protect rules on “proper allocation of costs the borders. Do not allow people with and expenses amongst income earna history of banks travel to countries with ings of and other financial positive cases tofor enter,” Oplas institutions income taxsaid. report “Wepurposes.” should be more restrictive. [We RR, contested have toThe be] more protectiveby in over termstwo dozen of the nation’s leading banks of our measures.” in a lawsuit, that a be bank Oplas said thatprovides while this will may deduct only those costs a setback to some industries, thisand attributable to thethat operais a expenses fair measure considering tions of its Regular Banking Units this could help prevent placing the (RBU) to arrive at the taxable incountry in another strict lockdown,
come of the RBU subject to regular
income which, shetax. said, the economy can no further states that any cost or longerItafford. expense related or incurred for “It is better thatwith we do protective the operations of its Foreign Currenpreventive measures than get excy Deposit Units (FCDU)/ Expanded posed again. We have a lot to lose,” Foreign Currency (EFCDU) or OffOplas said. “We should do it now shore Banking Unit (OBU) are so not that we can open just before Christallowed as deduction from the RBU’s mas. If it gets contained, we can open taxable income. it again.” The RR prescribed that to comAteneo Economic Repute the Center amountfor allowable as deducsearch and Development (ACERD) tion from RBU operations, all costs Associate Director SerbePercival and expenses should allocated the RBU and closing FCDU/EFCDU K. between Peña-Reyes said the or OBU by way of specific identificacountry’s borders would be effection allocation. tive butand should still adhere to the Among banks that quesstandards setthe by the World Health tioned the legality Organization (WHO).of RR 4-2011 were A si a Un ited B a n k , told BDO What is needed, Peña-Reyes Unibank Inc., Bank of America, this newspaper, is for travel restricBank of Commerce, BDO Private tions to be put in place swiftly and
Bank Inc., Citibank, N.A., Philip-
pine Branch, China Banking Corpofor government to be proactive in ration, Chinatrust imposing them. (Phils.) Commercial Bank Corporation, Deutsche Previous instances when the Bank AG, Manila Branch, East West country had the opportunity imBanking Corporation, ING to Bank pose restrictions not preN.V.,travel Philippine Bank ofdid Communivent the spread of Covid-19. That was cations, Philippine National Bank, mainly because the decision wasSavnot Philippine Veterans Bank, PNB ings Bank, Rizal Commercial made immediately, he said. Banking Corporation, Security Bank “Kung papatay patay [If we’re Corporation, Standard slow] and we get caught Chartered flat-footBank, Philippine Branch, United ed, [that’s risky] We were too reCoconut, Bank of the Philippine active instead of proactive Islands, Development Bankbefore. of the We should learn from that,” Philippines, United OverseasPeñaBank Reyes said. “It’s a delicate Philippines, Land Bank ofbalancing the Philact. We need to push Bank testing and ippines, Metropolitan & Trust Company, of the Philiptracing to UnionBank be properly informed and BDO Capital and Investofpines, our decisions. Blanket/shotgun ment Corporation. approaches could have dire consequences on the economy.” See “SC,” A2 See “Omicron,” A2
MARCH REMITTANCES NATL GOVT BORROWINGS GROW 3.2%DIP TOTO $2.594B FOR 10 MOS P2.75T w w
n
n Tuesday, May 17, 221 Monday, November 29,2022 2021Vol.Vol.1717No.No.52
By Bernadette D. Nicolas
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P25.00 P25.00 nationwide nationwide || 22 sections sections 18 20 pages pages ||
risk ₧33 daily wage Omicron hike won’t spurs revival stoke inflation–Neda chief of quarantine
@BNicolasBM
HE national government’s gross borrowings as of end-October shrank by almost 6 percent year-on-year to P2.75 trillion.
By Cai U. Ordinario @caiordinario
T
HE decision of the Regional Tripartite Wage Board to raise the minimum wage by P33 per day would not be inflationary, according to the National Economic and Development Authority (Neda). Socioeconomic Planning Secretary Karl Kendrick T. Chua told the BusinessMirror that the increase in wages would only lead to a 0.15-percentage point impact on inflation. Chua said this only represented a 6.1-percent increase in wages, which have not increased in the past three years. “It was a balancing act between [the] concerns of employers and employees and [addressing the absence of a wage] increase in three years,” Chua told the BusinessMirror. However, Ateneo Eagle Watch Senior Fellow Leonardo A. Lanzona Jr. told the BusinessMirror that the country would again see inflation reach double digits because of the combination of higher wages and the Department of Trade and Industry (DTI) decision to allow price increases for 82 basic commodities. programs as President Duterte T he DTI approved a miniis expected to sign the industry mum increase for 82 basic nedevelopment plan in early 2022. cessities and prime commodities Rosales said the PCA will not (BNPCs) in its latest suggested stop updating its list of coconut farmers and enjoined them to register in order to reap the benefits of the decades-long idled coconut levy fund. “We will not stop at 3.1 million. We hope that more individuals will register in our coconut farmers registry,” he said. The updating of the coconut farmers registry is mandated by Republic Act (RA) 11524 or the Coconut Industry Trust Fund Act.
rules in PHL By Samuel P. Medenilla @sam_medenilla
I
NTER NATIONA L concerns over the possible spread of the more infectious Omicron Covid-19 variant prompted the government to reimpose mandatory facility-based quarantine for all “Probably the issue is not the inflationary arriving passengers in the country. impact of [minimum wage] but the limited Acting Presidential spokespercoverage and limited impact on purchasing son Karlo B. Nograles announced power of the workers.”—Former Labor on Sunday that the Inter-Agency Undersecretary Rene Ofreneo Task Force for the Management of Emerging Infectious Diseases retail price (SRP) list. (Story (IATF) suspended the implemenhere: https://businessmirtation of its Resolution No. 150ror.com.ph/2022/05/13/dtiA (s.2021), effectively imposing okays-srp-increase-for-82-bastricter protocols for all inbound sic-commodities-and-primetravelers. necessities/) To note, IATF Resolution 150These products include bread, A had allowed fully vaccinated canned fish, potable water in non-visa travelers from Green List bottles and containers, processed areas to enter the country withmilk, locally manufactured instant out the need for facility-based noodles, coffee, salt, laundry soap, quarantine as long as they secure detergent, candles, flour, processed negative Reverse Transcriptionand canned pork, processed and Polymerase Chain Reaction (RTcanned beef, vinegar, fish sauce PCR) test within 72 hours prior (patis), soy sauce, toilet soap, and to their departure. batteries. The guide includes addi“Except for countries classified tional stock keeping units (SKUs) as ‘Red,’ the testing and quarantine such as Bareta Bar White (360g) protocols for all inbound internaand Bareta Bar FabCon (360g). tional travelers in all ports of entry See “Wage hike,” A2 shall comply with the testing and quarantine protocols for ‘Yellow’ list countries,” Nograles said, citing the provision of IATF Resolution No. 151-A. He noted Hong Kong, which has confirmed a case of the Omicron variant, will also fall under the Yellow list countries. The suspension of the rules for “Green List” countries will be in effect from November 28, 2021 to December 15, 2021.
Latest data from the Bureau of the Treasury showed that the government’s gross borrowings during the 10-month period fell by 5.99 percent from P2.92 trillion a year ago. With only two months left for this year, the latest figure is already equivalent to 89.6 percent of its P3.07-trillion borrowing program. Broken down, gross domestic borrowings from January to October settled at P2.23 trillion, down by 5.08 percent from P2.35 trillion in 2020. The bulk of the amount was PEOPLE walk past the mural of Gat Andres Bonifacio at Manila City Hall Underpass. sourced from Fixed Rate Treasury The country will celebrate the 158th birth anniversary of Filipino revolutionary CARLOS EDRIEL YULO could very Bonds (P1.19 trillion), followed by hero Gat Andres Bonifacio on Tuesday, November 30. ROY DOMINGO well be the best male athlete of short-term borrowings from Bangthe 31st Southeast Asian Games in ko Sentral ng Pilipinas or BSP (P540 Vietnam. Retail NONIE REYES/CANON EOS R6 Bonds/Prebillion), Treasury myo Bonds (P463.3 billion), Retail Onshore Dollar Bonds (P80.84 bilBy Bianca Cuaresma @BcuaresmaBM lion). In the same period, there was By Jasper Emmanuel Y. Arcalas dating its registry following the them. This allows everyone to see also a net redemption of Treasury @jearcalas enactment of the Coconut Farmwho are listed in the registry and if Bills amounting to P43.94 billion. ers and Industry Trust Fund law. farmer doesn’t see his name then he Net debt redemption means By Jun Lomibao gold, five silver and one bronze ORE than 3 million Rosales explained that about shall coordinate with the PCA imthere were more debts repaid comSports Editor medals. coconut farmers and 500,000 coconut farmers and mediately,” he explained at a recent pared to the amount borrowed dur“I would have wanted to win workers are now regisworkers were added to the PCA’s dialogue with coconut farmers. ing the period. A NOI— Carlos Edriall the medals in all the event,” tered with the government’s reg2018 list that had about 2.5 million “On the other hand, if people Meanwhile, gross foreign borel Yulo was a world-class said the 22-year-old Yulo, who istry, which serves as the basis coconut farmers and farm workers. would see names on the list and rowings in the same period also act at the 31st Southwon world championships gold for the number of people to be The PCA’s next step is to conthey think they are not coconut contracted by 9.7 percent to P518.7 east Asian Games as he won medals in floor exercise in 2019 covered by the utilization of the duct an exclusion-inclusion profarmers or their details are incorbillion from last year’s P574.4 billion. two more gold medand vault last year. P75-billion coconut levy fund. cedure by making the updated rect, they can report it to the PCA This was raised through global als to emerge with After sending the Philippine Coconut Authority farmers’ registry public, providfor immediate action,” he added. bonds (P146.17 billion), program a total of five titles crowd into a fren(PCA) Deputy Administrator Roel ing everyone the opportunity to The PCA official noted that loans (P139.98 billion), euro-dein men’s gymnastics zy w ith a remarkM. Rosales said about 3.11 million check the veracity of the list, Rothe completion of the initial list nominated bonds (P121.97 billion), competitions. able victory in the coconut farmers and farm worksales added. of coconut farmers registry would a project loan (P86.41 billion), and With three in the vault where he scored ers have been registered with the “The list will be posted in public be just in time for the expected yen-denominated samurai bonds bag that were enough 14.700 points, Yulo, government since it started upspaces where people can easily see rollout of coconut levy-funded See “3-M farmers,” A2 (P24.19 billion). to cement his name as returned hours later See “Borrowings,” A2 Continued on A2 one of the best to see and tied for first in action in the regional the horizontal bars dominated the vault with Din Phuong Thanh Vietn US 50.4600 n JAPAN 0.4374 n UK 67.2329games, n HKYulo 6.4722 n CHINA 7.9013 n SINGAPORE 36.8968 n ofAUSTRALIA 36.2807 n EU 56.5758 n SAUDI ARABIA 13.4531 Source: BSP (November 26, 2021) Cash remittances sent by Filiwas faster in March compared to and added the horizontal bars to nam on similar scores of 13.867 pino migrant employees coursed the 1.3 Tpercent in the previous his collection to prime himself points. through banks grew 3.2 percent to month. It is, however, slower than up as a potential best male athThe horizontal bars gold was $2.594 billion in March this year the 4.9-percent growth in March lete awardee of the games. the fifth gold medal by Yulo, from $2.514 billion registered in last year. Yulo clinched a medal in all who also triumphed in men’s the same month in 2021. Governor Benjamin Dionko three events he took part in on all-around, floor exercise and The total cash remittances reearlier said that they expect remitthe last day of gymnastics at rings. He also had silver medal ceived by the country in the first tance growth to “stabilize” at 4 perthe Quan Ngua Sports Palace finishes in the men’s team event quarter now stands at a total of cent for this year after an annual to propel the Philippines to its and parallel bars. $7.77 billion. growth rate of 5.1 percent in 2021. best finish in years -- seven Continued on A7 The growth in remittances See “Remittances,” A2
R
OVER 3-M FARMERS LISTED FOR P75-B COCO LEVY FUND
EMITTANCES to the Philippines grew below the annual projected expansion rate for the third consecutive month in March, data from the Bangko Sentral ng Pilipinas (BSP) showed.
M
YULO’S GOLD HAUL: GIMME 5!
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PESO EXCHANGE RATES
PESO EXCHANGE RATES n US 52.4340
n JAPAN 0.4053 n UK 65.2526 n HK 6.6797 n CHINA 7.7222 n SINGAPORE 37.6087 n AUSTRALIA 36.3368 n EU 54.5314 n SAUDI ARABIA 13.9794
Source: BSP (May 16, 2022)