Businesses, government team up to lift small traders

At least 37 of the country's biggest business organizations on Friday pledged to help the government attain inclusive growth for micro, small and medium enterprises (MSME). During a conference simultaneous with MSME Summit 2022, the Kapatid Angat Lahat Program, led by Go Negosyo of Jose Maria "Joey" Concepcion 3rd, vowed to help attain "the overall goal of shared prosperity" by working to "harness public-private partnership to help MSME development." The partnership will establish linkages, pool business opportunities and support government policies and programs to create a sustainable business environment for MSMEs. Aside from Concepcion, the other signatories of the covenant included Lars Wittig of the European Chamber of Commerce.

DTI wants tax perks for small businesses

The Department of Trade and Industry (DTI) is contemplating giving newly registered small businesses exemption from various regulatory requirements, including payment of income tax for several years. “For large investors, we are prepared to give them incentives, [such as a 10-year] tax holiday. How can we not consider giving the same thing to small businesses,” Trade Secretary Alfredo Pascual said. He said the department has already consulted with the Bureau of Internal Revenue (BIR) and was now drafting a framework of tax perks for small businesses.

PEZA defers approval of WFH extension for BPOs

THE PHILIPPINE Economic Zone Authority (PEZA) board has deferred the approval of the extension of the work-from-home (WFH) arrangement for information technology and business process outsourcing (IT-BPO) firms to March 2023. Tereso O. Panga, PEZA officer-in-charge and deputy director-general for policy and planning, said that the WFH extension for IT-BPOs until March 2023 has been “approved in principle,” but the final approval was deferred by the PEZA board at its Aug. 26 meeting. “The WFH 30% limit extension is approved in principle. We just need to revise our memo to include the inputs of the PEZA board — that the 30% WFH is a long-standing policy of PEZA and not just as a business continuity plan measure. We will pursue that in the ad referendum and there is no need for the PEZA board to convene,” he said. Mr. Panga also said the PEZA board wants to get “further clarification” from the Department of Finance (DoF) and the Board of Investments (BoI) regarding the extension. However, he said they will push to approve the extension before the earlier resolution expires on Sept. 12.

Elevated inflation, rising rates to drag growth, says Medalla

ELEVATED INFLATION and rising interest rates will drag Philippine economic growth this year, the central bank chief said. Bangko Sentral ng Pilipinas (BSP) Governor Felipe M. Medalla said inflation is “very high” this year, but the Philippines will likely be “less affected” than other countries. “Nonetheless, it will affect the growth because if people are spending more money on transport, fuel, food, they will have less money for other things,” he said during the Development Budget Coordination Committee’s (DBCC) briefing for the House Committee on Appropriations. The consumer price index quickened to 6.4% year on year in July, the fastest in nearly four years, amid the continued climb in global prices of fuel and other commodities. It exceeded the central bank’s 2-4% target band for a fourth straight month. Inflation averaged 4.7% in the first seven months, still below the central bank’s 5.4% inflation forecast for this year.

CHED to remove vaccination requirement for face-to-face classes

The Commission on Higher Education (CHED) said it would no longer require students and personnel of higher education institutions (HEI) to be vaccinated against COVID-19 before attending face-to-face classes. CHED Chairman Prospero de Vera made the announcement at a briefing, saying the change in policy must be explained to all stakeholders. "We are changing it because vaccination levels are already high in higher education institutions. The percentage of the at-risk individuals is significantly lower now and therefore easier to control on the part of our HEIs," he said. De Vera added that they learned from the best practices of other countries that have done away with the requirement.

Bill grants perks to CSR programs

A lawmaker is pushing for the passage of a bill encouraging the grant of incentives to Corporate Social Responsibility (CSR) programs initiated by private firms. In view of the recent Covid-19 pandemic and  rising inflation, which hamper the socioeconomic development of the country, Rep. Leody “Odie” Tarriela of the Lone District of Occidental Mindoro said it is now, more than ever, that the government should recognize the vital role of private sectors in contributing to the socioeconomic development of the country. House Bill 3627 or the Corporate Social Responsibility of 2022 defines CSR as a concept wherein companies integrate social and environmental concerns in their business operations. The bill encourages business establishments to create CSR programs by giving incentives to corporations for creation of excellent, unique, and world-class CSR services, projects, and programs. Furthermore, the bill also provides leeway for stock corporations to retain profits of more than 100 percent of their paid-in capital stock as provisions for expansions or CSR programs.

Budget for aviation infrastructure down to P2.5 billion next year

The Department of Transportation (DOTr) wants to develop at least 50 airports nationwide next year, but can only proceed with five projects due to limited budget for aviation facilities. Transportation Secretary Jaime Bautista informed lawmakers that the DOTr can only pursue five airport projects in 2023 as the Department of Budget and Management (DBM) gave the agency just P2.5 billion for the development of aviation infrastructure. “We are really looking at developing and improving airports in the Philippines,” Bautista said.

Business groups back removal of PPA’s commercial functions

Local business groups are supporting a proposed law that seeks to remove the Philippine Ports Authority’s (PPA) revenue-generating function, saying this “problematic mandate” has led to a steady rise in cargo-handling rates that affected the country’s competitiveness. The Philippine Chamber of Commerce and Industry (PCCI), Philippine Exporters Confederation, Inc. (Philexport), and Supply Chain Management Association of the Philippines (SCMAP) said that they support House Bill (HB) No. 1400 or the proposed Philippine Ports Corp. Act, which seeks to “decouple” the PPA’s regulatory and commercial functions and convert the agency into the Philippine Ports Corp. (Philports).  

DOE, ERC review CSP rule amid rate hike bid

THE Department of Energy (DOE) and the Energy Regulatory Commission (ERC) are reviewing the competitive selection process (CSP) policy in order to address current and future concerns on unforeseen challenges that affect electricity prices. As the policy-making body of the energy sector, Energy Secretary Raphael Lotilla said his office is carefully reviewing the DOE’s mandate, and so as the ERC’s. The review, he added, might include additional guidelines the ERC can issue regarding the conduct of CSP. “I am confident that the ERC will come out with the proposed solutions in due time,” said the energy chief.