economics – Page 18 – Author Carlo Carrasco

Proposed measure to increase tax on capital gains withdrawn by DOF

May 5, 2025April 30, 2025carlocarrasco

In recent times, the Department of Finance (DOF) has withdrawn the proposed measure on increasing taxes on capital gains pointing to certain economic factors according to a GMA Network news report.

To put things in perspective, posted below is an excerpt from the news report of GMA News. Some parts in boldface…

The proposed measure increasing taxes on capital gains, donor’s, and estate to 10% from 6% has been withdrawn as the Department of Finance (DOF) determined that there would be “no need” for additional revenue measures, citing the government’s robust fiscal position.

In a statement, Albay 2nd District Representative and House Ways and Means chairman Joey Sarte Salceda disclosed that the DOF pulled out the Government Revenues Optimization through the Wealth Tax Harmonization (GROWTH) Bill, which proposed a hike in tax rate for capital gains, donor taxes, and estate taxes.

The bill is the Marcos administration’s tweaked version of the Passive Income and Financial Intermediary Taxation Act (PIFITA), proposed by the Duterte administration as Package 4 of its Comprehensive Tax Reform Program (CTRP).

Citing a letter from the DOF, dated April 29, Salceda said the Finance Department is withdrawing the proposed measure, citing “stronger-than-expected revenue collections, a double-digit growth rate in tax collections, and steady progress toward the government’s fiscal consolidation goals.”

In a separate statement, Finance Secretary Ralph Recto said that “given our current strong fiscal performance, these are not needed at this time.”

“The government is properly managing its finances, ensuring that public needs are met without burdening the citizenry with new taxes,” he added.

‘More than sufficient’ – In particular, the Finance chief cited the 13.55% growth in total tax collections to P931.5 billion in the first quarter of 2025.

Broken down, the Bureau of Internal Revenue (BIR) posted P690.4 billion in collections, up 16.67% year-on-year; while the Bureau of Customs saw a 5.72% growth in collection to P231.4 billion during the same period.

“At this point, current revenues are more than sufficient to support our expenditure requirements. We are meeting our obligations, funding key programs, and growing the economy without having to impose new taxes on our kababayan,” Recto said.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think it was just right for the DOF to withdraw the measure? Do you thinking hiking capital gains tax, donor taxes and estate taxes are needed to ensure economic growth for the Philippines?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram athttps://www.instagram.com/authorcarlocarrasco

ANZ Research says Philippine economic growth for 2025 could slow down to 5%

May 2, 2025April 28, 2025carlocarrasco

By pointing to the trade policies of the United States and weak private spending, ANZ Research says that the economic growth of the Philippines for 2025 could slow down to 5%, according to a BusinessWorld news report. ANZ also downgraded its growth forecasts for many other Asian economies.

To put things in perspective, posted below is an excerpt from the news report of BusinessWorld. Some parts in boldface…

PHILIPPINE economic growth is expected to slow to 5% this year due to the fallout from the Trump administration’s trade policy and weak private spending, ANZ Research said.

In its latest Asia Insight report, ANZ cut its gross domestic product (GDP) forecast for the Philippines to 5% this year from 5.7% previously. It also lowered its 2026 GDP projection to 5.5% from 6% previously.

Both forecasts would fall short of the 6-8% growth target set by the Development Budget Coordination Committee from this year to the next.

“Our new forecasts incorporate our expectations of direct and indirect impact of tariffs, bilateral trade agreements between the US and individual economies, revised growth estimates for mainland China and the US and potential policy response,” ANZ Chief Economist for Southeast Asia and India Sanjay Mathur said.

The downward revisions constitute a “durable shock to regional growth as US tariffs imply a long-term reduction in global trade,” he added.

President Donald J. Trump slapped reciprocal tariffs on most of its trading partners earlier this month but suspended these higher tariffs for 90 days. Only the baseline 10% tariff remains in effect.

The Philippines was hit with a 17% reciprocal tariff, though this was the second lowest in Southeast Asia, just after Singapore.

“It is likely that some Asian economies will negotiate down or even do away with the April 2 reciprocal tariffs owing to the potential damage to US growth,” Mr. Mathur said. “Even so, the uncertainty around US trade policies will constrain business activity, including hiring and investment.”

ANZ slashed its growth projection for Asia, excluding China and India, to 2.9% this year from 3.4% previously. It also trimmed its 2026 forecast to 3.3% from 3.5% previously.

ANZ also downgraded its GDP projections for all countries it covers, namely India, Indonesia, Malaysia, Singapore, Taiwan, Thailand, South Korea and Vietnam.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the Philippines will be able to negotiate with the United States on tariff and trade matters soon?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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25-year infrastructure masterplan to be crafted by DEPDev

April 23, 2025April 21, 2025carlocarrasco

A 25-year infrastructure masterplan will be crafted soon by the Department of Economic Planning and Development (DEPDev) to ensure the continuation of critical projects even though government transitions happen, according to a Philippine News Agency (PNA) news article.

To put things in perspective, posted below is an excerpt from the report of the PNA news article. Some parts in boldface…

The Department of Economic Planning and Development (DEPDev) is set to craft the country’s first 25-year infrastructure masterplan to ensure that critical projects continue despite changes in administration.

National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said in a recent press chat that the Economy, Planning and Development Act, which reorganizes NEDA to DEPDev, mandated the agency to formulate the country’s first long-term infrastructure blueprint.

The law was signed by President Ferdinand R. Marcos Jr. on April 10 and would take effect on April 27.

“The law now tasks us to produce the first long-term framework for the period 2025 to 2050. And then it also tasks us to provide and to lead the efforts in coming up with this long-term comprehensive infrastructure development framework,” Balisacan told reporters.

Balisacan said this is the first time that a government agency is mandated by law to oversee and carry these plans forward, especially as administration changes.

“The new law gives that mandate to DEPDev, serving as link between the outgoing administration and the incoming administration,” he added, emphasizing the importance of continuity of key infrastructure projects.

Historically, infrastructure development in the Philippines has suffered from inconsistent implementation, with projects often stalled or abandoned due to shifts in leadership.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think that infrastructure development in the Philippines will change for the better once the 25-year masterplan becomes a reality in the near future? Are you sick and tired seeing infrastructure projects getting disrupted whenever a change of government happens?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Meralco and French firm sign nuclear power development agreement

April 18, 2025April 14, 2025carlocarrasco

The movement towards a nuclear-powered Philippines progressed some more as Meralco and the French energy firm Électricité de France SA (EDF) formally signed an agreement to explore nuclear energy development in the country, according to a news article by the Philippine News Agency (PNA).

To put things in perspective, posted below is an excerpt from the report of the PNA news article. Some parts in boldface…

Power utility giant Manila Electric Company (Meralco) has signed a strategic cooperation agreement with France’s state-owned Électricité de France SA (EDF) to explore the deployment of nuclear energy in the Philippines, an initiative aimed at bolstering long-term energy security.

EDF will provide Meralco with technical support and strategic guidance in conducting feasibility studies under the two-year memorandum of cooperation, according to a news release over the weekend.

Meralco revealed in November 2024 that it is in talks with the French government on research collaborations.

The studies will focus on evaluating site readiness, grid integration and the economic viability of nuclear energy in the Philippines.

“One of Philippine government’s key objectives is to achieve greater energy security for our country and nuclear power is one viable path toward that goal,” Meralco chair and chief executive officer Manuel V. Pangilinan said.

“We see this cooperation as a significant first step for Meralco, and we are committed to taking a leadership role in advancing nuclear energy in the Philippines,” he added.

EDF, one of the world’s largest nuclear power operators, will also offer tailored training on nuclear reactor technologies and project management.

It will support Meralco in preparing for potential deployment and in seeking financing options, including those from the French government.

“Through this important first step — and the opportunity to engage in meaningful discussions with you — we hope to make real progress at your site as well. This is the beginning of what we envision as a remarkable, long-term journey, one that could span the next hundred years,” EDF senior vice president for International Nuclear Development Vakisasai Ramany told Meralco officials.

The collaboration builds on Meralco’s nuclear energy strategic transition initiative and its ongoing engagements with France’s top research institutions.

Through its Meralco Power Academy, the company has partnered with Université Paris-Saclay under the Filipino Scholars and Interns on Nuclear Engineering program to develop future Filipino experts in the nuclear field.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think that a nuclear-powered Philippines will be realized in the years to come?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thai-led oil firm announces P1.5 billion, 5-year expansion in the country

April 17, 2025April 11, 2025carlocarrasco

The Thai-led oil firm PTT Philippines recently announced that it will expand its operations in the country over the next five years with P1.5 billion worth of investments, according to a Manila Bulletin news report. The expansion includes putting up new fuel stations.

To put things in perspective, posted below is an excerpt from the report of the Manila Bulletin news report. Some parts in boldface…

In a briefing on Friday, April 11, PTT Philippines officials said the company is eyeing to increase its fuel stations to 280 within the next five years.

Athiwat Rattanakorn, president and chief executive officer of PTT Philippines, stated that the oil firm aims to improve its nationwide presence, particularly focusing on establishing more stations in Luzon and Visayas.

Currently operating 170 stations throughout the Philippines, PTT plans to not only boost its pumping stations but also increase the brand’s presence.

The firm has also introduced a reformulated line of fuel brands, namely Power+ gasoline, Eco+ gasoline, Ultra+ diesel, and Save+ diesel.

“This is going to redefine high-performance fuels as they are intended to improve driving experience not only in terms of mileage but also the cleaning and protection formula for the engine to last longer,” Rattanakorn said.

Apichate Thipphayakosai, supply and logistics director of PTT Philippines, clarified that while they’re only aiming to add around 110 stations in the next five years, they’re focused on the aviation industry.

“We don’t go aggressively on the number of stations… We have to invest effectively in terms of that one,” he told reporters. “But one other thing that can be the mainstream of revenue of PTT Philippines is aviation. We can say that [for] most of the domestic flights.”

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think this new plan by PTT will make the Philippines a more attractive destination for foreign investors? Is there a PTT fuel station near you right now?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Philippines unemployment rate down in February 2025

April 14, 2025April 9, 2025carlocarrasco

The Philippine Statistics Authority (PSA) revealed recently that the unemployment rate of the Philippines fell down to 3.8% this past February from 4.3% the previous month, according to a Philippine News Agency (PNA) news article.

To put things in perspective, posted below is an excerpt from the report of the PNA news article. Some parts in boldface…

The country’s unemployment rate fell to its lowest level in three months, data from the Philippine Statistics Authority (PSA) showed.

In a briefing on Tuesday, National Statistician Dennis Mapa said preliminary results of the latest Labor Force Survey showed that the unemployment rate further declined to 3.8 percent in February this year from 4.3 percent the previous month. It was the lowest rate since the 3.1 percent recorded in December last year.

Mapa said the number of unemployed Filipinos declined to 1.94 million from 2.16 million in January this year.

Employment rate on the other hand, rose to 96.2 percent in February this year from 95.7 percent the previous month.

Mapa said the number of employed Filipinos went up to 49.15 million, higher than the 48.49 million and 48.95 million recorded in January this year and in February 2024, respectively.

Industries which recorded the largest increase in employment include accommodation and food service (+377,000), fishing and aquaculture (+365,000), public administration and defense (+330,000), construction (+258,000), and other service activities (+232,000).

Mapa said preparations for the midterm elections and summer holidays helped increase employment in accommodation and food service and other service activities.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think there will be more than enough job opportunities for the unemployed throughout the year? Do you think the Philippine economy will grow strongly to sustain new job creation until the end of 2025?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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DOT points to VAT refund for foreign tourists as factor for growth this year

April 13, 2025April 8, 2025carlocarrasco

By pointing to the VAT refund for foreign tourists (click here and here), the Department of Tourism (DOT) is looking forward to growth in tourism revenue this year, according to a BusinessWorld news report.

To put things in perspective, posted below is an excerpt from the report of the BusinessWorld news report. Some parts in boldface…

THE Department of Tourism (DoT) said tourism revenue is expected to rise this year, aided by the new tax refund for tourists.

“2024 was a banner year for Philippine tourism, with international spending reaching around P760 billion, a 126% recovery rate (from pre-pandemic levels). Our goal was always to exceed that, which we achieved the previous year,” Tourism Secretary Ma. Esperanza Christina G. Frasco said on Monday.

She said that the value-added tax (VAT) refund for foreign tourists and DoT’s collaboration with the Department of Trade and Industry (DTI) will encourage more visitor spending.

She added such measures will allow the country “to exceed its international visitor receipts as well as domestic tourism receipts from the year before.”

On Monday, the DTI and DoT signed a memorandum of agreement (MoA) to strengthen coordination in promoting tourism-related industries, participate in joint trade and tourism missions, develop sustainable tourism-related enterprises, and encourage the growth of micro, small and medium enterprises (MSMEs).

“Through this MoA, we will give our tourism MSMEs the platform to avail of the programs of the DTI, especially in supporting the expansion of their livelihood and businesses,” Ms. Frasco said.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the VAT refund for tourists will actually result in an increase of tourism revenue in the Philippines this year?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Muntinlupa City Government approves new ordinance versus fake PWD IDs

April 10, 2025April 5, 2025carlocarrasco

Recently in the City of Muntinlupa, the City Government passed a new ordinance against the use of fake person with disabilities (PWD) identification cards, according to a GMA Network news report. The move was done in response to the rise of fraud related to the proliferation of fake PWD IDs.

To put things in perspective, posted below is an excerpt from the GMA news report. Some parts in boldface…

The city government of Muntinlupa has approved an ordinance penalizing the use of fake person with disabilities (PWD) identification cards.

City Ordinance No. 2025-325 imposes a fine ranging from P2,000 to P5,000 to persons who use or owns fake PWD IDs; tamper, alter, or produce fake IDs; declare false information in the application, renewal, and update of PWD ID; and issue fake certificate of disability and other medical documents.

The local law also imposes penalties to those who give or receive money or any exchange for a PWD ID; phishing and scamming through text, email, or other online methods; and the use of PWD ID by other persons.

Business establishments that do not post the ordinance in their establishments, as well as those that do not verify the PWD IDs of the customers will likewise face penalties under the local law.

Individuals who violate the ordinance would be fined P2,000 for the first offense, P4,000 for the second offense, and P5,000 for third offense.

If applicable, violators will face one-year ineligibility on all the benefits, services, and programs of the city government of Muntinlupa.

Stiffer penalties will be imposed to those who sell, produce, and proliferate fake PWD ID. They will face P5,000 fine, imprisonment of up to six months, and one-year ineligibility on all the benefits, services, and programs of the Muntinlupa City government.

Let me end this post by asking you readers: What is your reaction to this recent development? If you are a resident of Muntinlupa City, do you approve of the newest ordinance against fake PWD IDs? Did you notice a local surge of fraud related to the use of fake PWD IDs?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Philippines inflation rate lands at 1.8% in March 2025

April 10, 2025April 4, 2025carlocarrasco

The inflation rate of the Philippines settled at 1.8% for the month of March this year based on the latest details released by the Philippine Statistics Authority (PSA), according to the news article by the Philippine News Agency (PNA). The confirmed inflation rate was the lowest since June 2020.

To put things in perspective, posted below is an excerpt from the report of the PNA news article. Some parts in boldface…

Inflation rate in March 2025 settled at 1.8 percent, marking a nearly five-year low, mainly due to slower price increase in food and non-alcoholic beverages, particularly lower prices of rice.

Philippine Statistics Authority (PSA) Undersecretary Claire Dennis Mapa said in a press briefing Friday that last month’s inflation was lower than the rate in February 2025 at 2.1 percent and the 3.7 percent in March 2024. PSA data showed that the inflation last month was the lowest since June 2020.

The PSA attributed the slower pace of price increases in March 2025 to the easing of food and non-alcoholic beverages inflation at 2.2 percent from 2.6 percent a month ago. Mapa said this commodity group shared 50.2 percent to the downtrend in inflation.

In particular, cereals and cereal products recorded a deflation, or decrease in prices, of 5.2 percent last month from a deflation of 3 percent in February 2025.

This commodity group includes rice, which recorded negative inflation for the past three months: -2.3 percent in January, -8.4 percent in February, and -7.7 percent in March.

Mapa said that since the Executive Order 62 took effect in July 2024, which reduced the tariff on imported rice, prices of the staple have substantially declined.

“Kung i-compare natin noong—say, base natin noong July 2024, kung saan nagsimula ‘yong reduction sa tariff, bumaba na rin substantially ‘yong presyo ng bigas per kilo [If we compare it to—(let’s) say, based on July 2024, when the tariff reduction started, the price of rice per kilogram has substantially decreased],” he said.

Citing PSA data, Mapa said comparing the prices from July 2024 to March 2025, average price reduction for regular milled rice was at PHP4.90, or from PHP51.11 per kilo to PHP46.09 per kilo.

Well milled rice also declined in the same period by PHP4.19 per kg., or from PHP56.44 per kg. to PHP52.25 per kg., and by PHP2.60 per kg. for special rice, or from PHP64.75 per kg. to PHP62.15 per kg., the national statistician added.

Aside from food and non-food beverages, inflation in transport group recorded -1.1 percent in March 2025 from -0.2 percent in February 2025.

Let me end this post by asking you readers: What is your reaction to this recent development? Were you surprised that the inflation rate of the country settled at less than 2% for the month of March 2025? Do you think inflation will remain stable for the next six months?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Mitsubishi and Ayala seal P18 billion GCash deal

April 8, 2025April 2, 2025carlocarrasco

Finally, the P18 billion GCash deal was sealed by Ayala Corp. and Mistubishi Corporation resulting in equal ownership of AC Ventures Holding Corp. which itself has a stake in the e-wallet giant’s operator, according to a Daily Tribune business news report. Take note, however, that the big deal is still subject to approval by regulators. The deal between the two corporations was previously disclosed last October.

To put things in perspective, posted below is an excerpt from the report of the Daily Tribune. Some parts in boldface…

Ayala Corp. (AC) and Japan’s Mitsubishi Corp. (MC) have finalized a P18.4-billion agreement that will give them equal ownership of AC Ventures Holding Corp. (ACV), which holds a stake in GCash operator Mynt.

In a disclosure to the stock exchange on Wednesday, Ayala said it formally signed an investment agreement with Mitsubishi last 31 March for the subscription to 18,033,946 common and redeemable preferred shares of ACV.

AC noted that the agreement amends a previous disclosure from 18 October 2024, which outlined a binding term sheet between the two firms. The proceeds of the transaction will be used to redeem AC’s redeemable preferred shares in ACV and cover related costs.

The deal, however, remains subject to regulatory approvals, including amendments to ACV’s articles of incorporation by the Securities and Exchange Commission and clearance from the Philippine Competition Commission.

Ayala President and CEO Cezar Consing previously said that the tie-up with Mitsubishi “can add meaningful value to Mynt, which will allow Mynt to deliver significant value to its over 94 million registered users.”

Ayala announced plans to bring in a strategic investor in August last year to strengthen GCash, which saw a surge in popularity during the pandemic. The conglomerate invested P22.4 billion in Mynt, increasing its stake in Globe Telecom, Inc.’s fintech arm.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think improvements with GCash will be realized under the Ayala-Mistubishi deal? Do you think the sealed deal will eventually get approved by the regulators? If you are a GCash user, what kind of improvements do you hope to see?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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