Tag: wealth

Proposed measure to increase tax on capital gains withdrawn by DOF

Proposed measure to increase tax on capital gains withdrawn by DOF

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In recent times, the Department of Finance (DOF) has withdrawn the proposed measure on increasing taxes on capital gains pointing to certain economic factors according to a GMA Network news report.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The proposed measure increasing taxes on capital gains, donor’s, and estate to 10% from 6% has been withdrawn as the Department of Finance (DOF) determined that there would be “no need” for additional revenue measures, citing the government’s robust fiscal position.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

IRR of the Maharlika Investment Fund finalized

IRR of the Maharlika Investment Fund finalized

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President Ferdinand “Bongbong” Marcos, Jr., announced through social media that the implementing rules and regulations (IRR) of the Maharlika Investment Fund (MIF) have been finalized, according to a GMA Network news report.

Take note that the implementation was previously suspended and things should move forward from this point on. Already there were business leaders of Saudi Arabia who expressed interest in the MIF.

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

President Ferdinand “Bongbong” Marcos Jr. said Monday that the implementing rules and regulations of the Maharlika Investment Fund (MIF) have been finalized, weeks after he said its implementation was suspended.

“The Investment Rules and Regulations of Maharlika Investment Fund have been finalized,” Marcos said on Instagram.

“Upon our approval, we’ll swiftly establish the corporate structure, getting the MIF up and running,” he added.

The IRR, which would spell the beginning of MIF’s operationalization, was released in August. Marcos announced the suspension of its implementation “pending further study” on October 18.

Before leaving for Saudi Arabia last month, Marcos clarified that the MIF was not put on hold, saying the government was still working to have it operational within the year.

“We are, the organization of the Maharlika Fund proceeds apace, and what I have done though, is that we have found more improvements we can make, specifically to the organizational structure of the Maharlika Fund,” the President had said.

Marcos had said the suspension of the IRR should not be misinterpreted as a judgement of rightness or wrongness of the MIF.

he President also maintained that economic managers and “personalities who will actually be involved in the fund” had been consulted regarding the MIF.

Marcos signed into law Republic Act No. 11954 or the Maharlika Investment Fund (MIF) Act of 2023 in July, with the aim to tap state assets for investment ventures to generate additional public funds.

The law creates the Maharlika Investment Corp. (MIC), a government-owned company that will manage the MIF — a pool of funds sourced from state-run financial institutions that will be invested in high-impact projects, real estate, as well as in financial instruments.

Under the law, the initial capitalization of the MIF would be sourced from Landbank at P50 billion, DBP at P25 billion, and the national government at P50 billion.

Let me end this piece by asking you readers: What is your reaction to this recent development? Do you think that there is no stopping the implementation of the Maharlika Investment Fund in the near-future?  

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

President Marcos signs Maharlika Investment Fund bill into law

President Marcos signs Maharlika Investment Fund bill into law

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A new economic age for the Philippines has started as President Ferdinand “Bongbong” Marcos, Jr., signed into law the Maharlika Investment Fund (MIF) bill which formally establishes the nation’s sovereign wealth fund, according to a Philippine News Agency (PNA) report.

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 Tuesday signed into law a bill establishing the Maharlika Investment Fund (MIF), the Philippines’ first-ever sovereign wealth fund.

Marcos signed Republic Act (RA) 11954 in a ceremony at the Kalayaan Hall of Malacañan Palace in Manila.

In a keynote speech, Marcos said the MIF is designed to drive economic development in the country.

“The MIF is a bold step towards our country’s meaningful economic transformation. Just as we are recovering from the adverse effects of the pandemic, we are now ready to enter a new age of sustainable progress, robust stability and broad-based empowerment,” Marcos said.

“We now have an available fund that will provide us the seed money for investments and to attract other foreign investments and for us to be able to participate in those operations, in those investments without additional borrowings,” he added.

Following the signing of RA 11954, Marcos said his administration would “go out to the world and do the changes that are necessary for the Philippines to become an investment-friendly nation.”

“The fund will fail if we do not make money on the fund. It’s that simple… That is why we put up a Maharlika Fund so as to be able to give us the capacity and the ability to join in those investments, be part of that,” he said.

He reiterated that he would make sure that the MIF would be “well-run” by professionals.

He added that the country has the “best” economic managers both in government and the private sector to ensure the proper management of the MIF.

“Let us make sure that the decisions that are being made for the fund are not political decisions, that they are financial decisions because that is what the fund is,” Marcos said.

The MIF is established to optimize national funds by generating returns to support the Marcos administration’s economic goals laid out in the Medium-Term Fiscal Framework, the 8-point Socioeconomic Agenda, and the Philippine Development Plan 2023-2028.

In a separate statement, Budget Secretary Amenah Pangandaman said the Department of Budget and Management (DBM) will continue to provide support and technical assistance in the formulation of the implementing rules and regulations of RA 11954.

“The creation of this development fund is very good news because this means we now have an opportunity to expand our fiscal space for the government’s priority programs,” Pangandaman said. “Of course, we fully support this as it will help expand our fiscal space. So we at the DBM remain committed to helping ensure that this development fund will be a success and implemented with utmost integrity.”

Under RA 11954 , the MIF will be used to invest in a wide range of assets, including foreign currencies, fixed-income instruments, domestic and foreign corporate bonds, joint ventures, mergers and acquisitions, real estate and high-impact infrastructure projects that contribute to the attainment of sustainable development.

The establishment of the MIF will provide the government with a long-term source of income, as well as ease the burden on the national budget by providing additional funding for other priority projects of the government.

Unlike other government-owned or -controlled corporations (GOCCs), the MIF will be able to maximize government assets through its investments in projects that generate bigger returns.

The proposed measure seeks the establishment of the Maharlika Investment Corp. (MIC), which will act as the “sole vehicle for the purpose of mobilizing and utilizing the MIF for investments in transactions in order to generate optimal returns on investments (ROIs).”

The MIC is expected to have at least PHP75 billion in paid-up capital this year, with PHP50 billion sourced from the Land Bank of the Philippines and PHP25 billion from the Development Bank of the Philippines.

The law prohibits government agencies and GOCCs that provide for social security and public health insurance to contribute to and invest in the Fund.

These include the Social Security System, Government Service Insurance System, Philippine Health Insurance Corporation, Home Development Mutual Fund, Overseas Workers Welfare Administration, and Philippine Veterans Affairs Office pension fund.

For the newcomers reading this, if you want to understand what a sovereign wealth fund is and how it would work with the Philippines in mind, watch the video below…

Let me end this piece by asking you readers: What is your reaction to this recent development? What do you think about the Maharlika Investment Fund that is now officially a law? Do you expect financial or economic breakthroughs to happen for the Philippines 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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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

HSBC sees Philippine economy growth of 4.4% for 2023 due to key factors

HSBC sees Philippine economy growth of 4.4% for 2023 due to key factors

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HSBC, one of the biggest players of the global financial industry, recently made its forecast of the Philippines growing economically at 4.4% for the year 2023, according to a news article by the Philippine News Agency (PNA). There are certain factors mentioned in HSBC’s assessment for the nation.

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

Hikes in the Bangko Sentral ng Pilipinas’ (BSP) key policy rates are expected to dampen the strong domestic output for 2023, with an executive of HSBC forecasting a 4.4 percent expansion this year.

In a virtual briefing on Thursday, HSBC chief investment officer for Southeast Asia, Global Private Banking and Wealth, James Cheo, said private consumption contributed to the strong recovery of the domestic economy last year but this is seen to be limited by the monetary tightening aimed to temper the elevated inflation rate.

Other factors that boosted gross domestic product (GDP) last year include investments, higher government spending on infrastructure and increased mobility following the resumption of face-to-face schooling, he said.

“Looking into 2023, the country’s growth will slow and the recovery is going to be more gradual as the reopening boost fades and monetary tightening weighs on domestic demand,” Cheo said.

As of the third quarter of last year, growth, as measured by gross domestic product (GDP), rose by 7.76 percent, exceeding the government’s 6.5 to 7.5 percent growth assumption for this year.

The BSP’s key rates have been hiked by 350 basis points from May to December last year, after being at record-low of 2 percent in 2020, as monetary authorities help address the elevated inflation rate.

Last December, domestic rate of price increases further accelerated to 8.1 percent, the highest since November 2008, due to faster annual jumps in goods and energy prices.

Cheo said “household’s consumption in 2023 will likely be curtailed” given the elevated inflation rate.

“Strong employment, tourism recovery, expanding production and retail sales, and public investment will continue to support growth in 2023,” he said.

With inflation expected to remain high, Cheo projects the BSP to make three consecutive 25 basis point increases this year, “pausing at 6.25 percent by Q2 (second quarter) 2023” and keeping this decision until at least the second half of 2024.

The above article ended with HSBC predicting that the Philippine Peso will weaken to the United States Dollar at a rate of US$1 = P56.50.

Let me end this piece by asking you readers: What is your reaction to this recent development? Do you believe that inflation and interest rates will somehow slow down the ongoing economic growth later this year? Do you think that Philippine tourism will become a factor to help the Philippine economy grow at least 5% this year? What do you think the national government and its economic managers should do to maintain strong growth as the nation keeps on recovering from the depression of the COVID-19 crisis? Have you been managing your personal or business finances carefully recently?

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

San Miguel Corporation to speed up work on completing Skyway Extension

San Miguel Corporation to speed up work on completing Skyway Extension

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You must have heard about the opening of the northbound section (entry point at Susana Heights part of the South Luzon Expressway) of the Skyway Extension Project that happened just days ago with the presence of San Miguel Corporation (SMC) president Ramon S. Ang and Department of Highways and Public Works (DPWH) secretary Mark Villar who made final inspections that day. That’s really great news!

Here are more good news! SMC announced that it will do more with the construction of the Skyway Extension Project’s southbound section (exit also in the Susana Heights area of SLEX) and things will move at a faster pace with a 3rd quarter completion in mind.

To put things in perspective, below is the excerpt from the press release published through Philippine News Agency (PNA)…

“It’s only been a number of days since we opened the northbound section, free to the public until further notice, and already we have seen a huge improvement in traffic flow, particularly on SLEX (South Luzon Expressway) and the Alabang viaduct. That makes us even more determined to complete construction of the southbound section so this project can fully serve motorists and improve traffic and connectivity to and from the south,” SMC president Ramon S. Ang said in a statement Wednesday.

Ang said the soft-opening of the first two of the three lanes of the northbound Skyway Extension from Susana Heights to Sucat, Paranaque proved to be timely, as it coincided with the easing of quarantine restrictions.

Despite the higher volume of vehicles on the expressway, traffic has been smooth because many Class 1 vehicles now use the Skyway Extension. 

“We’re already seeing how convenient and much faster travel is now, and it will become even more evident when traffic volume picks up and starts to normalize. That is why we’d again like to ask for our motorists’ cooperation and understanding as we move towards completion of the southbound Skyway Extension,” Ang said.

As part of the next phase of construction, Ang said the Hillsborough off-ramp of the elevated southbound Skyway will be closed to traffic permanently starting April 19 at 6 a.m.

As such, vehicles coming from the elevated Skyway will now exit at the steel ramp in Alabang. Heavy traffic is expected in this area.

“Unfortunately, there is no way around it, we need to close this portion to secure the staging ground for equipment and workers and to accelerate construction and ensure the safety of our motorists. I appeal to our motorists again for their patience and understanding. We expect heavy traffic to persist for the duration of the construction, but rest assured we will do everything we can to help mitigate this, and complete the project within the timetable,” Ang said.

With this, SMC Infrastructure is advising motorists to take the following alternative routes:

Class 1 vehicles from Pasay, Makati, Manila, and Quezon City bound for SLEX and farther South

• From Skyway Elevated, keep left to Steel Ramp towards destination.

Class 1 vehicles from Pasay, Makati, Manila, and Quezon City bound for Alabang

• From Skyway – Elevated, keep right to Alabang-Zapote off-ramp.

The Skyway Extension southbound section has two lanes and runs from the Skyway Main Toll Plaza to Soldier’s Hills in Muntinlupa, with a total distance of four kilometers. 

Meanwhile, Ang reiterated that use of the northbound Skyway Extension will remain free for motorists until further notice. 

The Skyway Extension project is part of the 38-kilometer elevated Skyway System, which includes the newly-opened Skyway Stage 3, also fully-funded by SMC.

Did you enjoy the above news and details? I sure did. What San Miguel Corporation (in coordination with the national government) has been doing is already benefitting people of Metro Manila and those from both the north and south of the National Capital Region (NCR) who need to travel great distances efficiently and faster. The results will be even greater once the entire project has been completed and the benefits will be available not only to travelers and motorists today, but also for future generations of people. Check out the related Skyway video below.

That being said, SMC and the Skyway projects are great examples of capitalism making great improvements to the national infrastructure. It is clear that the private sector is essential as it has the technologies, the expertise and resources to improve the quality of life (apart from providing good paying jobs) here in the Philippines. Capitalism is essential and good, and socialism (and all its related Leftist garbage) sucks. For more insight about capitalism and socialism, watch these videos from John Stossel plus another video that debunks the Left’s propaganda that the poor got poorer.

In closing this piece, let me ask you what you do think about the latest developments about the Skyway project? If you actually traveled via the Skyway lately, how was your travel experience?

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Thank you for reading. If you find this article engaging, please click the like button below and also please consider sharing this article to others. 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 as well. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me at HavenorFantasy@twitter.com

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

Muntinlupa City Seen To Benefit From DTI-BOI Investment Promotion

Muntinlupa City Seen To Benefit From DTI-BOI Investment Promotion

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041619
The local government of Muntinlupa entered a partnership with the Department of Trade and Industry – Board of Investments in boosting Muntinlupa City as an investment destination. DTI Undersecretary and BOI Managing Head Ceferino Rodolfo signed a memorandum of agreement with Muntinlupa Mayor Jaime Fresnedi for the investment promotion endeavor at Muntinlupa City Hall, Putatan last April 16. Also witnessing the signing ceremony were DTI-BOI Investments Assistance Service Director Atty. Bobby Fondevilla, Muntinlupa City Administrator Engr. Allan Cachuela, Philippine Chamber of Commerce and Industry – Muntinlupa President Elvie Sanchez-Quiazon, and other local officials. (from Muntinlupa PIO press release)

The City Government of Muntinlupa continues to move forward and gain recognition for governance, cooperation and a continued business-friendly approach. For those who are unaware, Muntinlupa was named as the Most Business-Friendly City in 2017 and 2018 and judging from the other kinds of awards it won these past years it proved to be a highly competitive city nationwide.

Very recently I received a press release from the Muntinlupa Public Information Office (Muntinlupa PIO) in which the City Government (led by incumbent Mayor Jaime Fresnedi) announced that it has sealed a partnership with the Department of Trade and Industry – Board of Investments (DTI-BOI).

What’s the partnership about? Specifically the DTI-BOI will promote the city as an investment destination. Already DTI Undersecretary and BOI Managing Head Ceferino Rodolfo signed a memorandum of agreement (MOA) with Muntinlupa Mayor Jaime Fresnedi for the investment promotion endeavor at Muntinlupa City Hall on April 16.

What does this mean? It means the DTI-BOI will assist in boosting Muntinlupa City as an investment destination by providing relevant information on available incentives to potential local and foreign investors.

The investment board shall also provide assistance in the implementation of policies geared towards improvement of processes in starting a business. BOI aims to create an environment conducive to the expansion of existing investments or attracting prospective investments in the city. Further, the board will also conduct a mentoring program for the City Government’s frontline personnel.

During the MOA signing ceremony, Usec. Rodolfo lauded local initiatives and ease of doing business in Muntinlupa City. The BOI exec recognized some innovations facilitated by the City Government and its assistance in Micro, Small, Medium, and Large Enterprises and locators in Muntinlupa.  He also stated that Muntinlupa City is a business destination for high-value investments.

The mayor expressed his thanks to BOI for its assistance and said that the partnership will ripple to significant employment opportunities and the continuous development of local economy.

The way it is right now, Muntinlupa has arguably the most modern business and commercial zones in South Metro Manila. Already many companies have set up offices or corporate headquarters in Filinvest City, Madrigal Business Park, and Northgate Cyberzone in the Alabang area. When it comes to travel, the local connection to the Metro Manila Skyway is a big boost to the city as it allowed countless motorists to travel faster to and from Makati, Manila, Pasay City and the airports.

Things continue to look bright for Muntinlupa.

Thank you for reading. If you find this news article engaging, please click the like button below and also please consider sharing this article to others. Also my fantasy book The World of Havenor is still available in paperback and e-book format. 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 as well. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me at HavenorFantasy@twitter.com