government – Author Carlo Carrasco

Commission on Audit (COA) tells local governments to limit expenses of discretionary funds to amounts under law

April 22, 2024April 10, 2024carlocarrasco

Recently the Commission on Audit (COA) reminded local government units (LGUs) to limit the expenses of discretionary funds as it cited the case of one particular town that exceeded its “prescribed statutory limitation” for extraordinary and miscellaneous expenses (EME) by millions of Pesos in 2023, 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…

The Commission on Audit (COA) has reminded local government units (LGUs) against exceeding the “statutory limitation” on disbursements for extraordinary and miscellaneous expenses (EME) or discretionary funds taken out of their collected real property taxes (RPTs).

It cited the case of Eastern Samar’s Guiuan town which exceeded its “prescribed statutory limitation” for EME by P6.53 million in 2023.

In its annual audit report (AAR), COA cited its Circular No. 85-55A and Section 325(h) of Republic Act No. 7160, the Local Government Code, which both provide the general limitation on the use of EME funding.

Section 325(h) of RA 7160 provides: “The annual appropriations for discretionary purposes of the local chief executive shall not exceed two percent (2%) of the actual receipts derived from basic real property tax in the next preceding calendar year. Discretionary funds shall be disbursed only for public purposes to be supported by appropriate vouchers and subject to such guidelines as may be prescribed by law. No amount shall be appropriated for the same purpose except as authorized under this section.“

COA said that under the law, Guiuan town should only have EME of P26,465.14, which is equivalent to two percent of the P1.323 million RPT collected in 2021. But, it said, the town used P6.56 million for its discretionary funds or an excess of P6.53 million.

It pointed out that discretionary funds are only supposed to be used by the Office of the Municipal Mayor, but Guiuan even allocated funds for different offices such as the Vice Mayor’s office, Municipal Investment and Tourism Office (MITO), and Municipal Treasurer’s Office, among other offices.

It said the Mayor’s Office used P2,611,254.77 EME in 2023, while the vice mayor used P500,000. MITO, it also said, spent P1,332,395, while the Municipal Treasurer’s Office used up P450,000 EME.

It noted that when its audit team confronted the municipal accountant about its excessive use of discretionary funds, the accountant explained that it committed an “honest error” in assuming that the EME account was a “misnomer for Other Maintenance and Other Operating Expenses account.”

Let me end this piece by asking you readers: What is your reaction to this recent development? Is your local government practicing a disciplined approach on spending and the alignment of funds?

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

DBCC revises Philippine economic growth targets for 2024 and 2025

April 17, 2024April 7, 2024carlocarrasco

As far as the Development Budget Coordination Committee (DBCC) is concerned, current domestic and global developments justified their recent revision of economic growth targets for the Philippines in 2024 and 2025, 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 Development Budget Coordination Committee (DBCC) has adjusted its economic growth targets for 2024 and 2025 due to current domestic and global developments.

The DBCC revised downward its gross domestic product (GDP) outlook for 2024 to 6 to 7 percent from the previous range of 6.5 to 7.5 percent, Socioeconomic Planning Secretary Arsenio Balisacan said in a Palace press briefing on Thursday.

For 2025, the DBCC narrowed the GDP target to 6.5 to 7.5 percent from the previous 6.5 to 8 percent. Balisacan said the growth projection of 6.5 to 8 percent for 2026 to 2028 was retained.

The revised targets growth targets were initially discussed during the DBCC’s 187th meeting on March 22.

The DBCC took into consideration the latest trade outlook of the Bangko Sentral ng Pilipinas (BSP) and the International Monetary Fund (IMF) amid global trade disruptions and geopolitical tensions.

President Ferdinand R. Marcos Jr. approved the latest GDP outlook when he presided over the 16th full Cabinet meeting at Malacañan Palace in Manila on Wednesday.

Balisacan said the Marcos administration remains steadfast in its commitment to sustaining the robust growth trajectory of the Philippine economy.

“Robust macroeconomic fundamentals will support this growth trajectory. These growth targets will sustain the country’s position as one of the fastest-growing emerging economies in the Asia Pacific region,” Balisacan said.

“The government’s dedication transcends meeting statistical targets or numerical benchmarks. We direct our efforts toward realizing a strategic and compelling vision for our nation’s prosperity even as we navigate a global economic landscape marked by various challenges within and without,” he added.

Balisacan also assured the public that the government is still on track to achieving the upper middle income status by 2025.

Opportunities and risks – Balisacan said the country’s economic team discussed the possible opportunities and risk to growth outlook, adding that it identified several domestic and external challenges that are “on the horizon.”

These include climate change and extreme natural disasters such as El Niño that would “continue to pose risks to food security and the stability of food prices,” he said.

“Additionally, risks related to inflation, such as potential adjustments in transport fares, wages, and service utility fees higher than expected, could dampen household consumption,” he said.

Balisacan also cited that global economic slowdown may weaken external demand, while increasing geopolitical and trade tensions could disrupt supply chains.

He added that general elections in major economies could lead to political shifts that may disrupt trade and investment.

“Despite the anticipated risks, we remain optimistic about the country’s sustained growth momentum as we strive for better development outcomes. We aspire to position the Philippines as a frontrunner within our region and beyond—a beacon of inclusive progress and resilience,” Balisacan said.

Let me end this piece by asking you readers: What is your reaction to this recent development? Do you think the economy of the Philippines will end up growing at a lower-than-expected pace?

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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Scammers who pretended to be DBM personnel arrested by NBI

April 8, 2024March 27, 2024carlocarrasco

Here in the Philippines, scammers are almost everywhere. There are scammers who will send you direct electronic messages or call you with offers of job openings, promos, investment opportunities, subscriptions and the like. What caught my attention was the National Bureau of Investigation’s (NBI) recent apprehension of scammers who posed as personnel of the Department of Budget and Management (DBM), according to a news article published by the Philippine News Agency (PNA).

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

Operatives of the National Bureau of Investigation (NBI) arrested on Tuesday eight individuals pretending to be officials and employees of the Department of Budget and Management (DBM) in an entrapment operation in Mandaluyong City.

The DBM, in a news release Wednesday, said one of the suspects introduced herself to the complainant as an Undersecretary of the DBM supposedly in charge of the agency’s “special projects.”

The scammers promised the complainant, who is a project contractor, access to some PHP1.3 billion worth of government projects involving the construction of a dam.

The suspects assured the complainant that the project will be awarded to her once “grease money” was provided for the project’s “Blue Print” to initiate the processing of documents for the project award.

The illicit activity was uncovered after the contractor conducted an initial verification with the DBM.

After receiving and accommodating the complaint, the DBM sought the help of the NBI to carry out an entrapment operation where the suspects were arrested after accepting the PHP500,000 marked money.

“Mariin po nating kinokondena ang ganitong klaseng gawain. May proseso po tayong sinusunod na naaayon sa mga umiiral na batas (We strongly condemn this kind of activity. We have a process that is consistent with existing laws),” Budget Secretary Mina Pangandaman said.

She said the DBM is hoping that the incident will “send a strong statement to the public” that it will never tolerate fraudulent activities.

“Seryoso po ang DBM sa paglaban sa katiwalian gaya po ng ganitong mga gawain. Kaya naman po hinihikayat ko po ang taumbayan na agad magsumbong at i-report kung may mga mae-encounter sila na ganitong mga indibidwal (The DBM is serious about fighting corruption. That’s why I encourage the people to immediately report if they encounter scrupulous individuals),” Pangandaman added.

Let me end this piece by asking you readers: What is your reaction to this recent development? Are you concerned that there could be a lot more scammers out there pretending to be representatives or officials of government departments or corporations trying to deceive people over their money? Have you been scammed before?

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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P170.6-billion NAIA deal signed

March 28, 2024March 18, 2024carlocarrasco

Recently at Malacañang Palace, the ambitious P170.6 billion agreement to rehabilitate and modernize the Ninoy Aquino International Airport (NAIA) was formally signed in the presence of President Ferdinand “Bongbong” Marcos Jr., House Speaker Martin Romualdez and Executive Secretary Lucas Bersamin which symbolically starts the public-private partnership, 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 PHP170.6-billion Public-Private Partnership (PPP) agreement for the rehabilitation of the Ninoy Aquino International Airport (NAIA) is expected to herald economic growth through better collaborations with both local and foreign investors, Transportation Secretary Jaime Bautista said Monday.

At the signing of the concession deal between the Department of Transportation (DOTr) and the New NAIA Infra Corp. (NNIC) in Malacañang, Bautista said the PPP project would “open floodgates” of opportunities from investments, business, tourism, and employment.

“We welcome this development for the NAIA PPP Project as this will not only generate revenue for the government but it will also create opportunities for Filipinos. With a modernized NAIA, we are elevating the airport’s facilities and services to international standards,” he said.

The agreement, Bautista said, would send signal to the international business community about the viability of government infrastructure projects.

“This radical transformation comes at no small price Substantial investments in infrastructure and technology will necessitate collaborations with local and foreign partners,” he added.

San Miguel Corporation president and chief executive officer Ramon Ang, for his part, said the NNIC would not only rehabilitate but also improve the airport’s functionality and “establish a new standard in serving excellence.”

“Together with our partner, Incheon, we have assembled a team of experts, focused on implementing immediate improvement, and help us achieve our long-term goal for NAIA,” Ang said.

President Ferdinand R. Marcos who witnessed the signing described the pact as an “investment in our future.”

“This undertaking is not just about revenues that will be remitted to treasury alone, but resources invested in the airport,” Marcos said.

The agreement, signed by Bautista, Ang and Manila International Airport Authority (MIAA) General Manager Eric Ines, covers 15 years with an option for a 10-year extension.

Let me end this piece by asking you readers: What is your reaction about this recent development? Do you think this new public private partnership will succeed with achieving its goals of modernizing the NAIA, creating new jobs and attract both new investments and a higher number of foreign visitors in the years in the 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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COMELEC wants credible 2025 National and Local Elections, will enforce law against those who commit poll sabotage

March 20, 2024March 11, 2024carlocarrasco

Now that the P17.99 billion contract with new provider Miru Systems has been signed, the Commission on Elections (COMELEC) announced that it aims to ensure the integrity of the 2025 National and Local Elections and they will not hesitate to apply the full extent of the law against those who intend to commit irregularities and poll sabotage, according to a Philippine News Agency (PNA) news article.

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

The Commission on Elections (Comelec) on Monday warned it would not hesitate to apply the full extent of the law to those who are out to jeopardize the country’s electoral process.

Comelec chairperson George Erwin Garcia issued the warning during the signing of the contract for the Full Automation System with Transparency Audit/Count (FASTrAC) project with officials of South Korean firm Miru Systems Inc., headed by president Jinbok Chung, its service provider for the next polls.

Garcia said electoral sabotage is a non-bailable offense and can be meted with a penalty of life imprisonment under Republic Act 9369 or the Election Automation Law of 2007.

He also warned Miru and its Filipino partners against politicians and political parties who might approach them to rig the polls.

“Inemphasize ko sa kanila, kung kaya nyo gawin yan, huwag na huwag nyo gawin yan under the present leadership of this Commission. We want ang pinaka maayos na elections, credible, pinaka pinagkakatiwalaan election ng 2025. Sabi ko kung gusto nyo pa mag participate sa mga susunod na procurement ng Comelec, ayusin nyo 2025 elections (I emphasized to them ‘if you can do that, never do that under the present leadership of the commission. We want the 2025 elections to be most organized, credible and reliable. I told them, ‘if your want to participate in future procurements of the Comelec, make sure that the 2025 elections would be smooth),” he added on the sidelines of the signing rites.

The poll body chief also said Miru must prove to Filipinos that it deserves to bag the poll automation deal by establishing a highly credible and transparent system.

At the same time, Garcia acknowledged the support of the South Korean government for the poll automation project.

“We are pleased with the presence of the South Korean ambassador (Lee Sang-hwa) because it proves that he is supportive of this endeavor and we can trust the company that we have as partners simply because the government of Korea is very supportive of this endeavor,” he said.

Hackers – Garcia, meanwhile, said they are coordinating with law enforcement authorities against hackers who might manipulate the polls.

“Sumulat na kami sa National Bureau of Investigation asking for assistance para maaresto or mapigilan mga taong ito. So siguro napreempt na kanilang plano (We have sent a request to the NBI asking them to arrest or prevent these people from carrying out their illegal acts. I think their plans were preempted),” he said.

The poll body is looking to start the customization of the automated counting machines (ACMs) next month. Garcia said this customization process usually takes six months.

“If we can have it shortened, it would be better. But in our experience, it’s really six months. If we start by April, six months from April. We have two months for international certification and one month for source code review,” he added.

Meanwhile, Chung vowed they would comply with the rules set by the Philippine government.

“Our goal is also to build up our company and to expand and we’re looking towards the future. We will not do anything that will jeopardize our future and also the election process of the Philippines. We promise, we can guarantee that we will be transparent all throughout the process. We will abide by the rules of the Comelec, of this nation,” Chung said in Korean and was translated to English by Miru overseas sales representative Jason Lee.

Under the contract, the joint venture (JV) of Miru Systems Co Ltd, Integrated Computer Systems, St. Timothy Construction Corporation, and Centerpoint Solutions Technologies, Inc. (MIRU-ICS-STCC-CPSTI) will provide 110,000 ACMs, ballot boxes; laptop and printer; and ballots.

Let me end this piece by asking you readers: What is your reaction about this recent development? Do you think Miru Systems will remain laser focused on doing its part in the contract and help the COMELEC preserve the integrity of the 2025 National and Local Elections? Do you think Miru Systems will do a better and more efficient job than Smartmatic?

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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Measures for elderly citizens and Philippine products signed into law

March 1, 2024February 26, 2024carlocarrasco

Recently Philippine President Ferdinand “Bongbong” Marcos, Jr., signed into law two measures concerning the benefits of senior citizens and investing in Filipino competence, 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 into law Republic Act (RA) 11981, or the Tatak Pinoy (Proudly Filipino) Act, and RA 11982, granting benefits to octogenarians and nonagenarians.

“Today, it’s my honor to sign into law two bills which not only honor two key sectors of society, but mandate measures that protect their rights and promote their development,” Marcos said in his speech during the signing of the two bills at Malacañan Palace’s Ceremonial Hall.

“Each of these laws encapsulates the merits that the Bagong Pilipinas uphold toward building a strong nation. For example, the Tatak Pinoy Act is about investing in Filipino competence and talent. That genius and gift must be supported, not by exhortation alone but by true, tangible support,” he added.

The Tatak Pinoy (Proudly Filipino) Act aims to strengthen the partnership between the government and the private sector towards promoting Philippine goods and services by making these increasingly diversified and globally competitive.

Marcos said Tatak Pinoy gives incentives to local products that deserve to carry the “Made in the Philippines” trademark, showing the creativity and skills of the Filipino worker.

“It is about creating products and services of the highest quality, because Tatak Pinoy is also about excellence, and as a seal of great workmanship, it must only be applied to those that meet this high standard. As such, we shall give preference and priority to our products,” he said.

RA 11982 or the Amendments to the Centenarians Act of 2016, meanwhile grants monetary benefits to octogenarians and nonagenarians.

Through the expanded Centenarian Act, senior citizens aged 80, 85, 90 and 95, whether residing in the Philippines or abroad, will receive PHP10,000 cash incentive every age milestone and will still receive PHP100,000 upon reaching 100 years old.

Marcos said the expansion of the coverage of the Centenarians Act is a homage to the Filipino trait of compassion, and in the Philippine culture, this shows more kindness and compassion to the elderly.

“But they deserve more than cash in an envelope. What they should get is a support infrastructure that every society owes to its greying population. There were already close to 10 million seniors two years ago … But as this demographic enlarges, the societal facilities that attend to them should be expanded as well,” Marcos said.

Honoring the elderly – Senators believe that the Expanded Centenarians Act shall have a huge impact on the lives of elderly Filipinos.

“Malaking bagay iyon para sa kanila lalo na’t may mga pangangailangan din sila at gastos para sa gamot, vitamins, supplement, pagkain at iba pa (It is a big thing for them especially for their expenses in medicine, vitamins, supplement, food, among others),” Senator Ramon Revilla Jr., who authored the law, said in a statement.

Revilla explained the new law intends to provide cash benefits for Filipino octogenarians and nonagenarians “so that they would get to enjoy it more.”

He recalled filing the measure during the start of the 18th Congress in 2019 but failed to be passed into law.

The lawmaker assured that he will continue to push for the expansion of the 20 percent discount of senior citizens and exemption from value-added tax to include supplements, vitamins, herbal products, formulated milk, among others.

Revilla said he is also proposing to bring the age down to 56 years old to be considered as a senior citizen.

Let me end this piece by asking you readers: What is your reaction about this recent development? Do you think the two new laws will make positive impact on the nation’s economy and society 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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BI reminds travelers that eTravel registration is free of charge and they should avoid scammers

February 22, 2024February 15, 2024carlocarrasco

With renewed focus on the safety of travelers in mind, the Bureau of Immigration (BI) announced that registration with the eTravel system (electronic travel declaration system) is free of charge and people should avoid scammers who have been targeting travelers using fake websites, 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 Bureau of Immigration (BI) on Wednesday warned travelers against scammers purportedly charging fees for the electronic travel declaration system or eTravel.

Commissioner Norman Tansingco clarified that registration in the eTravel platform is free of charge, thus travelers should be wary of unscrupulous elements who charges fees from passengers via fake websites.

“The eTravel registration process is absolutely free of charge. We, therefore, advise the traveling public to register only in the government’s official website at https://etravel.gov.ph,” he said in a statement.

Fees allegedly collected from the passengers amount to between PHP3,000 to PHP5,000 when converted to peso as the fees charged by the scammers are usually in US dollars.

The BI chief urged the public to beware of the such fraudulent websites or entities which require any form of online payment.

Likewise, he asked them to report to the Cybercrime Investigation and Coordinating Center (CICC) via its website at https://cicc.gov.ph/report/.

Tansingco issued the warning following reports of passengers at the airports who claim they have already registered in the eTravel platform and “paid” the supposed fees that were charged to them.

BI officers at the Ninoy Aquino International Airport (NAIA) have reported instances of many passengers who were surprised when informed that they have to register in the eTravel as the digital QR code they presented could not be accessed in the system.

“It is only when they encounter our officers at the airport that these passengers would realize they have been duped by these fraudsters and scammers in the internet,” he added.

The eTravel was launched earlier this year, and serves as the single data collection platform for arriving and departing passengers. It establishes an integrated border control, health surveillance and economic data analysis.

It is a joint project of the agency with the Department of Tourism (DOT), the Department of Information and Communications Technology (DICT), the Bureau of Quarantine (BOQ), the Bureau of Customs (BOC), the Department of Health (DOH), the Department of Transportation (DOTr), the Department of Justice (DOJ) and the National Privacy Commission (NPC).

The project abolished the paper-based arrival and departure cards, as well as the quarantine form.

Let me end this piece by asking you readers: What is your reaction to this recent report? Does this latest development make you feel safer to be online? If you had traveled overseas and came back home within the past six months, how was your experience registering with the eTravel system? Did you encounter any scammer online?

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 wins CROWN award

February 21, 2024February 14, 2024carlocarrasco

Recently in the progressive City of Muntinlupa, the City Government announced that it won the prestigious Consistent Regional Outstanding Winner in Nutrition (CROWN) award and a cash incentive of half-a-million Pesos during the National Nutrition Awarding Ceremony, according to a Manila Bulletin news report.

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

The Muntinlupa City government bagged the Consistent Regional Outstanding Winner in Nutrition (CROWN) award given by the National Nutrition Council (NCC).

Mayor Ruffy Biazon received the CROWN award and a cash incentive of P500,000 during the National Nutrition Awarding Ceremony on Feb. 12.

Muntinlupa received the award for the effective implementation of nutrition programs for three consecutive years.

According to Biazon, Muntinlupa previously received the Green Banner Seal of Compliance Award, the highest award given to LGUs for effective nutrition programs, in 2017, 2019, 2021, and 2022.

In addition, Alicia Tanabe of Barangay Alabang was named 2022 National Outstanding Barangay Nutrition Scholar awardee for implementing nutrition programs and improving the nutritional status of malnourished children in the barangay.

“Maraming salamat sa ating City Nutrition Committee at sa lahat ng nagtulung-tulong para makuha natin ang award na ‘to (Thank you to our City Nutrition Committee and to everyone who cooperated for us to receive this award),” said Biazon.

The CROWN award is given “to a municipality, city, or province that has been adjudged by the interagency regional nutrition evaluation team as outstanding in the region in the implementation of its nutrition action plan for three consecutive years.”

To date, 170 local government units (LGUs) have been given the CROWN award. Each awardee also gest P500,000 cash incentive and trophy.

LGUs that were able to maintain scores of at least 90 percent and 93 percent in the monitoring and evaluation of local level plan implementation (MELLP!) are conferred the first and second year CROWN Maintenance Award, respectively.

The CROWN Maintenance Award recipient gets P100,000 for first year maintenance. This year, the awardee for the second year CROWN Maintenance will receive P200,000 and certificate of recognition.

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, are you delighted over this newest achievement by the City Government?

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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DTI intensifies scrutiny of online sellers who engaged with offering mystery boxes to customers

February 16, 2024February 8, 2024carlocarrasco

If you are fond of ordering items online, better stay away from those mystery boxes offered to you because the Department of Trade and Industry (DTI) is closely watching online sellers offering those things, according to a Philippine News Agency (PNA) news report.

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

The Department of Trade and Industry (DTI) has intensified its scrutiny of online sellers, particularly those offering mystery boxes or parcels, to ensure consumer protection and uphold fair trade practices.

In an interview with Bagong Pilipinas Ngayon Wednesday, DTI Assistant Secretary Amanda Nograles said all online shops selling mystery items are subject to stringent verification procedures requiring them to provide evidence regarding the sourcing of the items they offer on their platforms.

Nograles said sellers must substantiate the items’ origin, demonstrating that they have acquired them through legal means. This could include proof of purchase from valid auctions or confirmation that the items were legally obtained from sources such as the Bureau of Customs (BOC) or through legitimate means like through abandoned parcels or “balikbayan” boxes.

“Kailangan iyong online seller ay makapagbigay ng ganoong ebidensiya; ngayon kung hindi, puwede natin siyang ipa-takedown doon sa platform – we have a good relationship with most online shopping platforms and kapag ni-request po ng DTI, napapakiusapan po natin na tini-takedown iyong mga seller na ganito at nang hindi po makabiktima ng mga consumers natin (The online seller needs to provide such evidence; now if not, we can have them taken down from the platform – we have a good relationship with most online shopping platforms, and when requested by the DTI, we ask them to have such sellers taken down so that they cannot victimize consumers),” she said.

Nograles said the DTI is regularly monitoring online stores.

Some items inside mystery boxes or parcels are illegally sourced, such as stolen products from warehouses, which is against the Anti-Fencing Law, the DTI official said.

The Anti-Fencing Law prohibits the selling of stolen goods or items obtained through illicit means. Both sellers and buyers can be charged if these items were stolen.

The DTI’s move to tighten regulations on online sellers aims to safeguard consumers from potentially fraudulent or unsafe products while also promoting transparency and accountability within the e-commerce sector, Nograles said.

Let me end this piece by asking you readers: What is your reaction to this recent report? Are you concerned that mystery boxes are harmful to consumers who are often looking for the best deals online? Do you think that items placed inside mystery boxes may have been stolen or smuggled? How many times have you availed of mystery boxes offers online?

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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BIR clarifies that small online sellers are exempted from 1% withholding tax

February 6, 2024January 30, 2024carlocarrasco

In response to growing concerns related to the recent implementation of the 1% withholding tax on online merchants with annual earnings of over P500,000, the Bureau of Internal Revenue (BIR) clarified that small online sellers are exempted from it, 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 BUREAU of Internal Revenue (BIR) on Monday clarified that small online sellers are exempted from the payment of the creditable withholding tax imposed on online marketplaces but would still need to register their business.

“Small-scale online sellers are exempted from withholding tax. The BIR is sympathetic to small businesses in its approach to taxing online sellers/merchants,” BIR Commissioner Romeo D. Lumagui, Jr. said in a statement.

BIR Revenue Regulations No. 16-2023, which took effect on Jan. 11, imposes a withholding tax of 1% on one-half of the gross remittances by e-marketplace operators and digital financial service providers to the sellers or mer-chants for the goods and services paid or sold through their platforms or facilities.

The BIR said that the withholding tax is not imposed if the annual total gross remittances to an online seller for the past taxable year has not exceeded P500,000; if the cumulative gross remittances to an online seller in a taxable year has not yet exceeded P500,000 or if the seller is duly exempt from or subject to a lower income tax rate pursuant to any existing law or treaty.

“For those who are above the threshold of P500,000 annual gross remittance, it is only fair that they will be subjected to withholding tax. We have to be fair to the retail sector and brick and mortar stores who are regularly pay-ing their taxes,” Mr. Lumagui said.

The tax covers marketplaces for online shopping, food delivery platforms, platforms to book lodging accommodations, and other similar online service or product marketplaces.

E-marketplace operators and digital financial service providers were given a 90-day transitory period to comply with the order.

The BIR in a separate circular said all online sellers and merchants need to register with the BIR and submit documentary requirements, even if their annual gross remittance is below the P500,000 threshold.

The circular also noted that sellers and merchants are not allowed to receive payments through a personal account and instead must use a BIR-registered account.

“If you have a business, you have to register and pay your taxes. It doesn’t matter if it’s an actual store or an online store. It is your responsibility to pay taxes like everyone else,” Mr. Lumagui said.

In a press conference last week, Mr. Lumagui told reporters that the measure will help the BIR better gauge the impact of the digital economy.

“We gave the online platforms a grace period of 90 days. With that, we are still checking on which are already capable of complying… During our discussions with online platforms, they’re cooperative. With this development, we’re hoping to get the entire picture on online transactions,” he said.

In 2022, the digital economy contributed P2.08 trillion or equivalent to 9.4% of the gross domestic product.

A report by Google, Temasek Holdings and Bain & Company showed that the Philippines’ digital economy is projected to reach as high as $150 billion by 2030.

The BIR also earlier clarified that the withholding tax is not a “new” tax as it is just a measure that will allow for an advance payment of income tax.

Let me end this piece by asking you readers: What is your reaction to this recent development? Do you think the newest clarification made by the BIR will end the confusion or concerns regarding the 1% withholding tax? If you are aspiring to sell items online, does the 1% withholding tax discourage you?

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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