Category Archives: Business

Government Defers Unsolicited Airport Project Proposals

The government plans to develop Sangley Point in Cavite (an old US Air Force base just south of Metro Manila) into an airport for smaller planes in order to decongest the main airport. Four multi-billion unsolicited proposals from the private sector will be deferred in the meantime, with the Department of Transportation claiming that the government has the funds to undertake the project… Continue reading

PPP for Regional Airports Cancelled

In a further sign that the government is reversing the previous administration’s public private partnership (PPP) policy, the Department of Transportation terminated the auction for the modernization of five regional airports that had been on the pipeline for several years already. President Rodrigo Duterte’s economic team has preferred a hybrid approach, in which the government would make use of cheaper official development… Continue reading

BPO VAT-Exemption to be Lifted?

The Department of Trade and Industry said it would not support the move of the BPO sector asking for exemption from provisions of the tax reform proposal. Without the exemption, certain sales and imports would be subject to a 12%-VAT; the industry claims that it would put the country at around a 30%-cost disadvantage when compared to India, as well as lessen our edge against China, Vietnam, and Thailand. The DTI,… Continue reading

Government Mandates Concessionary Tariffs for Agriculture Products, IT, Capital Equipment

President Rodrigo Duterte issued three executive orders (EO) mandating concessionary tariff rates for certain products. EO 21 modifies the rates of import duty on certain information-technology products in order to implement tariff commitments under the WTO. However, it does not specify the covered IT products. EO 22 imposes zero-percent duty for importations of principal assets made by new and expanding firms under the… Continue reading

Duterte Orders Cimatu to Follow Mining Law, Allow Extraction Operations

In sharp contrast to his earlier anti mining stance in which he stated that he would follow all of Gina Lopez’ recommendations, President Rodrigo Duterte is now telling incoming environment chief Roy Cimatu that while he should ensure that environmental concerns are addressed, he must also respect the rights of mining companies. He said that one could not just ignore the mining law that allows extraction operations, and that… Continue reading

After Criticizing Aquino’s Tax Waiver for Power Producers, Duterte Releases Similar Order

In 2016, President Rodrigo Duterte sharply criticized former president Benigno Aquino III for waiving tax liabilities amounting to P6 billion of a company running a power plant in southern Luzon. Aquino had issued an order in 2011 that condoned the company’s real property taxes related to the power plant because it would trigger massive tax liabilities on the part of the National Power Corporation, trigger cross-defaults, and… Continue reading

Insurance Commission Orders 2% Increase in Investment Threshold Allocation of Pre-Need Firms

The Insurance Commission has authorized a 2-percent increase in the investment threshold allocation for the pre-need sector. This upward adjustment increases the allowable investment in long-term commercial paper from 15 percent to 17 percent of the total amount of the trust fund; in direct loans from 5 percent to 7 percent; in equities from 30 percent to 32 percent, and in real estate from 10 percent to 12 percent. The… Continue reading