economy – Page 27 – Author Carlo Carrasco

Over 1,200 senior citizens of three Las Piñas City barangays receive pension from CSWDO

December 7, 2024December 2, 2024carlocarrasco

Recently in the City of Las Piñas, more than one thousand two hundred senior citizens of Barangay Almanza Uno, Barangay Talon Tres and Barangay Pilar Village received their pension from the City Social Welfare and Development Office (CSWDO), the City Government announced via social media.

To put things in perspective, posted below is an excerpt from the City Government’s social media post. Some parts in boldface…

The City of Las Piñas, through the City Social Welfare and Development Office (CSWDO), held a social pension pay-out on Wednesday, November 20, at the Almanza Uno Covered Court. The event catered to 1,240 senior citizens from Barangays Talon Tres, Almanza Uno, and Pilar, providing vital financial aid to support their daily needs.

Beneficiaries from Almanza Uno totaled 433, while 424 came from Talon Tres and 383 from Pilar. Each recipient received ₱6,000, representing their social pension for the second half of the year, July to December. The funds were allocated by the Department of Social Welfare and Development (DSWD) as part of the national government’s efforts to assist indigent senior citizens.

City representatives ensured the smooth delivery of financial assistance, engaging with the beneficiaries to address any concerns and streamline the process. This initiative underscores the city’s commitment to recognizing the contributions of senior citizens and providing meaningful support to improve their quality of life.

Through its collaboration with the DSWD, the city government continues to implement programs focused on addressing the needs of vulnerable groups.

Let me end this piece by asking you readers: If you are a resident of Las Piñas City, what is your reaction to this development? Has the CSWDO released pension funds to senior citizens of your local community already?

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 at https://www.instagram.com/authorcarlocarrasco

For more South Metro Manila community news and developments, come back here soon. Also say NO to fake news, NO to irresponsible journalism, NO to misinformation, NO to plagiarists, NO to reckless publishers and NO to sinister propaganda when it comes to news and developments. For South Metro Manila community developments, member engagement, commerce and other relevant updates, join the growing South Metro Manila Facebook group at https://www.facebook.com/groups/342183059992673

Las Piñas City Councilors Santos and Medina push for 2nd legislative district

December 3, 2024November 24, 2024carlocarrasco

Recently in the City of Las Piñas, City Councilors Mark Santos and Henry Medina pushed for the establishment of a 2^nd legislative district pointing to the growing population, the voice of the constituents, development of the city and other factors, according to a Manila Times news report.

For the newcomers reading this, Las Piñas City currently has one seat in the House of Representatives and its population has exceeded 600,000 since 2020.

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

LAS PIÑAS City leaders are pressing for the creation of a second legislative district, citing the local government’s growing population and the need for broader representation in the House of Representatives.

City Councilors Mark Anthony Santos and Henry Medina filed a resolution urging Congress to establish an additional congressional district for Las Piñas, a city that has seen significant population growth since it became a city in 1997.

According to the 2020 census conducted by the Philippine Statistics Authority, Las Piñas had a population of 606,293, way above the constitutional requirement of 250,000 residents to qualify for another legislative district.

Section 5, Article VI of the Philippine Constitution provides that each legislative district “shall comprise, as far as practicable, contiguous, compact, and adjacent territory. Each city with a population of at least two hundred fifty thousand, or each province, shall have at least one representative.“

Currently, Las Piñas is represented by a single congressional seat despite its population and administrative structure. The city has two councilor districts that are used for electing six city councilors from its 20 barangay (villages), but this bifurcation has yet to translate into additional representation in Congress.

Las Piñas’ journey to cityhood began in 1997 under then-president Fidel V. Ramos, with residents overwhelmingly supporting the change in a plebiscite.

Since then, the city has undergone rapid urbanization and population growth, further strengthening the case for additional representation.

Despite these developments, proposals for a second congressional district have not gained traction until now.

“With the creation of another congressional district representation in the House of Representatives, the voice of Las Pinyeros will be heard in a broader arena,” Santos said as he highlighted the benefits of increased representation.

Medina echoed this sentiment, emphasizing that an additional district could lead to improved public services, increased budget allocations and accelerated development for the city.

He pointed out that the establishment of a second district would allow the city’s growing population to have more direct representation in national governance.

This, in turn, could translate into better legislative focus on local issues, from infrastructure and education to health care and economic development.

Let me end this piece by asking you readers: If you are a resident of Las Piñas City, what is your reaction to this development? Do you believe it is high-time for Las Piñas City to have a 2^nd congressional seat? What do you think is the problem preventing Las Piñas City from having another seat in the House of Representatives?

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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BSP coin machines collection approaching P1.1 billion

December 3, 2024November 25, 2024carlocarrasco

The Bangko Sentral ng Pilipinas (BSP) revealed online recently that the collection of its coin deposit machines (CoDMs) is gradually approaching the P1.1 billion mark. The latest statistics are accurate of as November 15, 2024.

Based on the latest statistics, a total of P1,082,972,600.36 (7.34% higher than the previous count of P1,008,889,490.24) in coins got deposited into BSP machines on 255,906 transactions from customers. In terms of physical quantity, 280,173,379 coins were deposited.

Doing the math on the latest statistics, customers averaged P4,231.9156 per transaction at the machines. As for the grand total Peso amount divided by the number of coins deposited, the average is P3.8654 per coin deposited.

When it comes to the number of coins involved with each transaction, 280,173,379 coins divided by 255,906 transactions resulted in an average of 1,094.8293 coins per transaction. This result shows that a lot of people out there are making big deposits by the jars and bags at the coin deposit machines. I can only speculate that there are families or local businesses that have decided to collect all their loose change for deposit into BSP’s coin machines even if it means waiting long in the line.

Let me end this piece by asking you readers: What is your reaction to this recent development? If you were able to deposit coins in the BSP coin machine, how long did you have to wait for your turn? Did you notice anyone bringing bags or jars full of coins for deposit at the nearest BSP coin machine in your local community?

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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Have you been to the 2024 Christmas bazaar inside Alabang Hills Village?

December 1, 2024November 30, 2024carlocarrasco

Today is the first day of December. Not only does this reminds us that 2024 is coming to an end, it is also a reminder that Christmas is nearing. That being said, today is also the final day of the 2024 Christmas bazaar of Alabang Hills Village Association (AHVA) and there is still time for you to buy items for gift-giving.

The AHVA’s Christmas bazaar officially launched on the morning of November 29 at the Phase 2 park using the two covered courts – one covered court has the many sellers of assorted goods (bags, clothes, household items, toys, decorations and more) and the other has the small businesses that sell different types of food and beverages. The two covered courts are located along Legaspi street.

*This image shows some of the many sellers at the covered basketball court at the Phase 2 park inside Alabang Hills Village. A wide variety of items are being sold here.*

*Something caught the attention of many at this particular booth.*

*The smaller covered court is where the food and beverages are being sold.*

Meanwhile, there are other sellers of clothing and assorted items occupying spaces in close proximity to Don Jesus Boulevard. For the newcomers reading this, the office of the AHVA is located along Don Jesus Boulevard.

*A few of the other sellers occupying spaces in close proximity to Don Jesus Boulevard.*

If you are located within Alabang or in the nearby BF Homes communities, if your car has a valid AHVA sticker, and if you need to buy products for Christmas gift-giving, I encourage you to take the opportunity to visit the Alabang Hills Village Christmas bazaar today. The bazaar will end tonight at 9PM.

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For more South Metro Manila community news and developments, come back here soon. Also say NO to fake news, NO to irresponsible journalism, NO to misinformation, NO to plagiarists, NO to reckless publishers and NO to sinister propaganda when it comes to news and developments. For South Metro Manila community developments, member engagements, commerce and other relevant updates, join the growing South Metro Manila Facebook group at https://www.facebook.com/groups/342183059992673

Lower-than-expected economic growth for the Philippines until 2025

November 26, 2024November 19, 2024carlocarrasco

Based on the recent findings of Citigroup, Inc., the growth domestic product (GDP) of the Philippines will grow at a lower-than-expected rate until 2025, according to a BusinessWorld news report.

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

THE Philippines’ gross domestic product (GDP) is likely to expand slower than the government’s target until 2025, Citigroup, Inc. (Citi) said.

Citi cut its GDP growth forecast for the Philippines to 5.8% this year but kept its 6% growth forecast for 2025. This is below the government’s 6-7% target this year and 6.5-7.5% goal next year.

“We lowered 2024 GDP growth slightly from 6% to 5.8%, mainly due to a weak third-quarter outturn that had been a result of several temporary, weather-related factors,” Citi economist for Thailand and the Philippines Nalin Chutchotitham said in a report.

The Philippine economy slowed to 5.2% in the July-to-September period from 6.4% in the second quarter and 6% a year ago. This was also the weakest growth since the 4.3% expansion in the second quarter of last year.

“Nonetheless, we think it would be misleading to view the weaker third-quarter expansion as the start of a slowdown as several negative factors in the third quarter are one-off events,” Ms. Chutchotitham said.

She said the weakness in third-quarter economic growth mainly stemmed from the drop in agriculture production, construction activity and net exports.

Despite the weak third quarter, Citi expects growth to accelerate in the fourth quarter as domestic demand is seen to pick up due to easing inflation and lower rates.

“We expect fourth-quarter 2024 GDP growth to accelerate to 6% year on year. Household consumption is expected to continue improving, supported by lower interest rates and improved consumer sentiment as inflation continues to stabilize.”

In the first nine months, GDP grew by 5.8%. The economy would need to grow by at least 6.5% in the fourth quarter to meet the lower end of the government’s 6-7% target.

“With the storm season passing soon, we also expect infrastructure projects’ progress to proceed at a faster clip in the fourth quarter and first quarter of 2025,” Ms. Chutchotitham said.

Domestic demand will also likely be sustained by improving employment conditions, remittance growth and bank lending.

“The RRR (reserve requirement ratio) cut of 250 basis points (bps), effective on Oct. 25, would also release more liquidity into the banking system and likely continue to support strong credit expansion,” Ms. Chutchotitham added.

The central bank last month reduced the RRR for universal and commercial banks and nonbank financial institutions with quasi-banking functions by 250 bps to 7%.

“We also maintain our expectation of 6% growth in 2025 but see some upside risks due to tailwinds from more rate cuts,” Citi said.

The Bangko Sentral ng Pilipinas (BSP) will likely cut by 25 bps in December and by a total of 75 bps next year, according to Citi.

This year so far, the central bank has reduced interest rates by 50 bps since August. The Monetary Board is set to hold its last rate-setting meeting of the year on Dec. 19.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the economy of the Philippines still has enough momentum to exceed the 4^th quarter growth targets of economists?

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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CREATE MORE bill signed into law

November 17, 2024November 11, 2024carlocarrasco

In a move to make the Philippines a prime investment destination, President Ferdinand “Bongbong” Marcos, Jr., recently signed into law the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, according to a Philippine News Agency (PNA) news article.

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

President Ferdinand R. Marcos Jr. on Monday signed the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act to promote the Philippines as a prime investment destination.

CREATE MORE Act or Republic Act (RA) 12066, signed by Marcos in a ceremony at Malacañan Palace in Manila, builds on the game-changing economic reforms introduced under the CREATE law by making the country’s tax incentives regime more globally competitive, investment-friendly, predictable and accountable.

Marcos said the signing of RA 12066 signifies his administration’s unwavering commitment to empowering the business sector and enhancing their growth prospects.

“We cannot emphasize enough the important role of the business sector in shaping this law. Your feedback has been essential in our efforts to craft policies that make our country truly competitive on the global stage,” Marcos said.

“As we open new doors of opportunity, we drive businesses to reinvest their capital, build upon the workforce, and initiate a ripple effect that will be felt across generations,” he added.

Marcos said the new law is a reflection of the government’s resolve to foster a climate where businesses will flourish and continue to meaningfully contribute to the Philippine economy.

“By establishing clear timelines and deadlines and by limiting compliance requirements to those mandated by law, we are promoting transparency and predictability. And in so doing, we create a more reliable process that instills confidence in investors and in partners alike,” he said.

“To our investors and development partners, let this be our pledge: The Bagong Pilipinas (New Philippines) continues to foster an economy where businesses and investments remain at the heart of our progressive development.”

Under the CREATE MORE Act, the maximum duration of tax incentives availment is extended by 10 years to 27 years from 17 years, to attract strategic and high-quality investments.

Registered business enterprises (RBEs) under the enhanced deductions regime will benefit from a reduced corporate income tax rate of 20 percent.

The new law also grants a 100-percent additional deduction on power expenses to cut the costs for the manufacturing sector.

It also further streamlines the value-added tax (VAT) refund process by limiting the documentary requirements and addressing the VAT concerns raised by export-oriented enterprises.

RA 12066 also introduces various reforms such as the rationalization and streamlining of incentives-related processes to address investors’ pain points and cultivate an investment-friendly climate.

It likewise simplifies local taxation by imposing a local tax on RBEs in lieu of all other local taxes, fees, and charges.

The CREATE MORE law also strengthens the respective mandates of the Fiscal Incentives Review Board (FIRB) and the investment promotion agencies (IPAs).

It institutionalizes the adoption of flexible work arrangements as a business model for RBEs operating inside economic zones and freeports, without disruption in the enjoyment of their tax incentives.

Marcos said the Filipino people would benefit from the passage of the CREATE MORE Act through more and better economic opportunities that uplift their lives, such as high-quality jobs.

The signing of CREATE MORE law is consistent with the Marcos administration’s 8-point socioeconomic agenda.

Lawmakers lauded President Marcos for signing the measure, saying it would stimulate economic growth by attracting foreign direct investments (FDIs).

“With more foreign direct investments that CREATE MORE is expected to generate, more Filipinos will have better employment opportunities that will, in turn, redound to stronger domestic consumption, one of the major drivers of the local economy,” Senator Sherwin Gatchalian said in a statement.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the CREATE MORE law will succeed in attracting more foreign investments into the Philippines? Do you expect to see results related to the new law over the next eighteen 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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Filipinos illegally staying in America told not to wait to be deported

November 16, 2024November 15, 2024carlocarrasco

It has been over a week since Donald Trump pulled off the greatest American comeback ever when he got elected again as President of the United States and he also won the popular vote. He already promised that once he takes office, the US Government will make serious moves to solve the illegal immigration crisis and that includes mass deportation.

That being said, Filipinos who are illegally staying in the United States have been advised not to wait to be deported and they better act fast before it is too late, according to a GMA Network news report.

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

Philippine Ambassador to the United States Jose Manuel “Babes” Romualdez on Friday advised Filipinos illegally staying in the US not to wait to be deported following the victory of President-elect Donald Trump.

In an online forum hosted by the Foreign Correspondents Association of the Philippines (FOCAP), Romualdez stressed that Trump has “won on the basis that he will deport all immigrants in the United States.”

While there is a smaller number of Filipinos illegally staying in the US at around 250,000-300,000 compared to other countries, Romualdez said those who are still in America without “any kind of status” should voluntarily return to the Philippines or start working on their documents.

“My advice to many of our fellowmen who actually are still here but cannot get any kind of status. My advice is for them not to wait to be deported,” he said.

“Because I can see that the administration of President Trump is really going to be very strict with the immigration policy that he intends to put in place because that is the promise he made to the American public,” he stressed.

Once deported, Romualdez said there is 99% (chance) that they cannot come back to the US.

“You can never come back to the United States. At least, if you leave, there is always the opportunity or a chance that you’ll be able to file,” he said.

Filipinos who are illegally staying in the US could seek help through the attaché from the Department of Migrant Workers at the Philippine Embassy in Washington, Romualdez said.

However, he clarified that the “only assistance” that they can provide is “to give them advice.”

“If they have a potential roadblock to be able to stay in the United States legally, then we tell them to get the right person to help you– a lawyer or whoever it is– and start the process. But if there is none, it’s clear that there’s only one way so that you will have a chance to be able to apply legally but do not allow yourselves to be deported,” he said.

He warned that Filipinos cannot continue to hide from authorities because the exchange of information among US agencies is much easier today.

In his victory speech, Trump reiterated that he would close borders in the US and would impose stricter laws against illegal aliens.

“We gonna have to seal up those borders, we are gonna have to let people come into our country. We want people to come back in, but they have to come in legally… We are gonna start by putting America first,” he said.

Data gathered by the GMA Integrated News Research showed that there are 4,640,313 Filipinos in the US as of last year, according to the latest figures by the US Census Bureau.

For the newcomers reading this, I am not an American citizen and I am based here in the Philippines. I should also state that I personally oppose illegal immigration and I believe that US President-elect Trump (who will formally take office again on January 20, 2025) will do what Americans voted him for and that means securing the border, going after illegal aliens and deporting a lot of them. It is an undeniable fact that illegal immigration adds to crime as well as the rising costs of housing and government spending. Illegal aliens are consuming taxpayers’ funds which is very unfair to the Americans.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think all Filipinos illegally staying in America should surrender themselves and come back home before it is too late? Are there Democrats or any Leftist in your local community who continues to promote illegal immigration, criminal and terrorists? Did the Democrats brainwash a member of your local community into believing that illegal immigrants are refugees?

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 October 2024 inflation rate settles at 2.3%

November 14, 2024November 5, 2024carlocarrasco

Recently it was announced that the inflation rate of the Philippines for October 2024 settled at 2.3%, according to a Philippine News Agency (PNA) news article. By comparison, the nation’s inflation rate was at 4.9% in October 2023.

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

Inflation continued to settle within the government’s 2 to 4 percent target despite a slight uptick in October this year.

In a briefing on Tuesday, National Statistician Dennis Mapa said headline inflation during the month was at 2.3 percent, slightly higher than the 1.9 percent recorded in September this year. Inflation in October last year, however, was higher at 4.9 percent.

The latest data brings the national average inflation rate from January to October 2024 to 3.3 percent.

Mapa said the higher inflation in October was primarily influenced by the faster increase in food and non-alcoholic beverages at 2.9 percent from 1.4 percent in September 2024.

Despite the increase, the National Economic and Development Authority (NEDA) and the Bangko Sentral ng Pilipinas (BSP) are optimistic that inflation will remain within target this year.

“The latest inflation figures confirm that we are on track to keep inflation within target. The government is fully committed to ensuring price stability and protecting Filipino households from undue shocks,” NEDA Secretary Arsenio Balisacan said in a statement.

Balisacan assured the public that while recent weather disturbances posed challenges to the country’s food supply and logistics, the government will work “relentlessly to keep food available and prices steady, particularly for essential commodities.”

“With targeted support and streamlined food supply chains, we aim to ensure that food is affordable and accessible for Filipino families, especially those most vulnerable to price shocks when disasters hit us,” Balisacan said.

To mitigate the impact of natural disasters, Balisacan said the Department of Social Welfare and Development is implementing the Building on Social Protection for Anticipatory Action and Response in Emergencies and Disasters Program.

The program provides social safety nets and capacity-building measures to support affected communities.

The Philippine Atmospheric, Geophysical, and Astronomical Services Administration earlier forecast that La Niña will persist until the first quarter of 2025, with two to eight tropical cyclones expected to affect the country until April 2025.

“The President has mobilized all of government to ensure relief efforts are comprehensive and delivered on time. In addition, he has directed us to craft a robust solution to build the resilience of families and communities amid the onslaught of severe typhoons,” Balisacan said.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the inflation rate of the nation will end up between 2% to 4% for the final two months of the 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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Philippines 3rd quarter economic growth settles at 5.2%

November 12, 2024November 8, 2024carlocarrasco

Recently it was announced that the economy of the Philippines expanded by 5.2% in the 3^rd quarter of 2024, according to a Philippine News Agency (PNA) news article.

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

The Philippines remains one of the fastest growing economies in the region despite the slowdown in the third quarter of the year, National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said on Thursday.

Philippine economic growth settled at 5.2 percent in the third quarter, lower than the 6 percent recorded in the same period last year.

The latest data brought the year-to-date gross domestic product (GDP) expansion to 5.8 percent, slightly under the 6-percent lower end of the government’s growth target for this year.

“Our economy continues to grow steadily; the latest GDP figures indicate continuous expansion. Of the countries that have reported their third-quarter GDP growth rates, we remain one of the fastest-growing Asian economies,” Balisacan said in a briefing at the Philippine Statistics Authority (PSA) office in Quezon City.

“We follow Vietnam, which posted a 7.4 percent growth rate, and are ahead of Indonesia (with 4.9 percent), China (4.6 percent), and Singapore (4.1 percent), ” he added.

Among the major economic sectors, industry and services grew by 5 percent and 6.3 percent in the third quarter.

National Statistician Dennis Mapa said, however, that agriculture, forestry, and fishing sector contracted by 2.8 percent.

Balisacan explained that the contraction in the agriculture sector was due to the effects of El Niño, seven typhoons, and Habagat. He added the fishing ban in Cavite and Bataan due to the oil spill, and cancellation of fishing trips due to bad weather conditions, also affected fishing and aquaculture.

“Likewise, livestock production decreased due to the recent outbreaks of African swine fever (ASF), such as in Batangas last August,” he said.

Balisacan said the successive typhoons also suspended classes and work in government and some private offices, resulting in administrative delays.

Household final consumption expenditure grew by 5.1 percent, which Balisacan attributed to the slower consumer price inflation. Government final consumption expenditure slowed to 5 percent from 6.7 percent.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the economy of the Philippines will grow much faster in the 4^th quarter?

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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Computer and Communications Industry Association (CCIA) expresses concern over Philippines’ digital tax and regulations

November 6, 2024October 28, 2024carlocarrasco

The Computer and Communications Industry Association (CCIA) – a Washington, DC-based group whose members include several prominent technology companies – expressed concern over the Philippines’ 12% value-added tax (VAT) on foreign digital services plus rules on online transactions, according to a Manila Bulletin news report.

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

US-based tech giants are worried that the 12-percent value-added tax (VAT) to be collected from digital services providers (DSPs), plus more stringent rules on internet transactions under two new Philippine laws, could make it harder for global firms to operate here.

While this law imposing VAT on DSPs does not discriminate between US non-resident DSPs (or other foreign DSPs) and local DSPs, industry is concerned that (its) implementing rules and regulations, which are currently being developed, could impose unworkable requirements on foreign DSPs similar to what has happened for [non-resident] income-tax payers,” the Washington, DC-based Computer and Communications Industry Association (CCIA) told the Office of the United States Trade Representative (USTR) in an Oct. 17 submission for its 2025 National Trade Estimate (NTE) Report on Foreign Trade Barriers, which also covers digital trade.

CCIA is referring to Republic Act (RA) No. 12023 enacted into law by President Ferdinand R. Marcos Jr. last October, whose implementing guidelines are due before this year ends in order to collect VAT next year.

CCIA’s member-companies include Amazon, Apple, Cloudflare, Coupang, eBay, Google, Intel, Meta, Opera, Pinterest, Rakuten, TSMC, Uber and X (formerly Twitter), among other global tech firms.

Arlington, Virginia-based Consumer Technology Association (CTA) also flagged RA 12023 as a barrier to US electronic commerce in its USTR submission, citing that this new Philippine law encompasses not only digital goods and marketplaces but also cloud services as well as online advertising, media and search engines.

Back in 2021, the Washington-based multilateral lender International Monetary Fund (IMF) warned that slapping digital services taxes (DSTs) may “open the door to retaliatory trade measures” from the US, as it did with India’s DST.

CCIA pointed out to the USTR that implementation of the Income Tax Convention of 1976, in which both the Philippines and the US are parties, has been “challenging” due to “complex and burdensome documentation procedures” or so-called request for confirmation (RFC) required by the Bureau of Internal Revenue (BIR) from income taxpayers.

“The BIR has not established standard processing timelines, and businesses are subsequently required to wait indefinitely without any commitment toward a resolution of the filing. These requests are required of all US non-resident service providers operating in the Philippines and, therefore, this policy is not limited to digital services and impacts members of all industries seeking to provide their services and goods to the Philippine market,” CCIA noted.

CCIA added that the BIR revenue memorandum circular (RMC) issued in January of this year “added further confusion to income-tax obligations of non-resident suppliers of cross-border services.”

Referring to RMC No. 5-2024, CCIA said it “appears to depart from established principles of income taxation of cross-border services (using the place where the services are performed to determine if the transaction is income-taxable) and treats the place of receipt of the services as being crucial in determining the taxability of the transaction.”

As such, CCIA called upon the Philippine government and the BIR, in particular, to hold comprehensive industry consultations, “including with US non-resident service providers, to clarify the income-tax position under Philippine law in line with well-recognized and established international practices.”

Like CCIA, the also Washington-based National Foreign Trade Council (NFTC) bewailed in its comment to the USTR that “there is significant ambiguity on how long the BIR will take to review the RFC and there is no guarantee of a positive outcome.”

“Such requests have to be made by each and every income payor (customers) of US non-resident service providers selling to the Philippines,” NFTC lamented.

Also, CCIA expressed concern about the Internet Transactions Act signed by President Marcos Jr. last year.

“Industry is concerned that the [Internet Transactions Law] would introduce obstructive requirements on electronic commerce platforms to have regulatory oversight such as mandatory collection of valid business certificates of merchants and subsequent submission to the government authority,” CCIA explained

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the national government should respond to the concerns of the CCIA? Do you think the digital tax and current laws will turn away technology giants?

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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