philstar.com - Business

Cigarette maker pays P8 B in excise tax

 General
Jan 082014
 
Cigarette maker pays P8 B in excise tax

MANILA, Philippines – Cigarette manufacturer Mighty Corp. has paid an excise tax of P8 billion for the year 2013, a quantum leap from the modest P300 million it shelled out the previous year. Oscar Barrientos, Mighty Corp. executive vice president said the tax payment for last year should put to rest false accusations that their company has not been paying its correct duties and taxes. “The tax we paid for the year 2013  reflects the jump in our market share and our fair share in the increased taxes on “sin” products during last year,” said Barrientos, a retired regional trial court (RTC) judge. He pointed out that despite charges in the news media and by some members of Congress against the company for non-payment of taxes, no case has been filed in court. In fact, Barrientos pointed out, the BIR and the Bureau of Customs have cleared his company of any tax deficiency until February of this year. The company paid P300 million in 2012, the former judge explained, when its share of the local market of cigarette was a measly three percent. However, their market share shot up since the government put into effect Republic Act 10352, otherwise known as the new sin tax law. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The said law has synchronized a five-year adjustment of taxes on cigarettes for it to become a uniform P30 per pack in five years, covering all brands. BIR records shows that excise taxes from both cigarettes Read More …

Global tech spending seen slipping 1 pct in 2014

 Economy
Jan 052014
 
Global tech spending seen slipping 1 pct in 2014

LAS VEGAS — The Consumer Electronics Association estimates that global spending on technology will slip 1 percent this year to $1.06 trillion as the lower average selling price of smartphones and tablets offsets unit growth in markets like China. The decline is off the peak of $1.07 trillion estimated this year. Steve Koenig, the association’s director of industry analysis, issued the forecast at the opening of the annual International CES gadget show on Sunday. The retreat doesn’t reflect less consumer appetite for what Koenig called the “dynamic duo” of tech gadgets. Spending on smartphones and tablets is still expected to account for some 43 cents of every dollar spent on technology this year. But the average price of smartphones, for example, will fall from $444 in 2010 to an estimated $297 this year.

Phl lags behind in use of latest technology for tax administration

 Economy
Jan 052014
 
Phl lags behind in use of latest technology for tax administration

MANILA, Philippines – The Philippines is lagging behind its Asian neighbors in utilizing information and communications technology (ICT) for its tax administration. Based on a report released by the Asian Development Bank (ADB), personal income tax statements that are electronically-filed account for only 0.3 percent of the total filed in the Philippines, as against Malaysia, (69 percent), Thailand, (45 percent), India, (26 percent) and Hong Kong (14 percent). The Philippines is also behind Japan, (44 percent), New Zealand, (71 percent), Taipei, (82 percent), Korea, (87 percent), Australia, (92 percent) and Singapore, (96 percent). For corporate income tax, a mere six percent is electronically-filed in the Philippines as against India’s 100 percent, Taipei’s 98 percent, Malaysia’s 49 percent and Thailand’s 10 percent. Curiously, the value-added tax accounted for highest percentage of electronically-filed returns for the Philippines at seven percent but it is still the lowest among its Asian neighbors, Singapore (100 percent), Taipei (94 percent), Korea (79 percent) and Thailand (14 percent). What may be the edge in the Philippines’ tax administration environment is the use of mobile phone technology for tax payments. In Quezon City, for example, real estate tax can be paid through a mobile platform introduced by telecommunications company (telco). Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “In the Philippines, individual taxpayers can pay tax through an electronic cash service provided by a mobile phone company. Under this electronic cash service, consumers without a bank account can deposit electronic cash at mobile phone shops or shopping Read More …

Local furniture industry seen to grow 10%

 Economy
Jan 052014
 
Local furniture industry seen to grow 10%

MANILA, Philippines – The local furniture industry is projected to grow by 10 percent this year, largely driven by strong demand expected from both local and export markets. Philippine Exporters Confederation, Inc. trustee for the furniture sector Myrna Bituin said in a statement there is room for the industry to grow as furniture makers can serve the strong demand from the domestic market. “The local market buys billions of pesos (worth) of furniture overseas… Majority of companies that do researches, are open to the market, invest in design and in their people, (and) they have always survived,” she said. Bituin said there are already some local companies which focus on the domestic market, particularly on hotels and resorts. “You save on your freight cost and you are here… serving your country. For those who are mechanized, for those who know about design, they can serve the local market,” she said. She noted that the export market is still growing despite the slowdown in demand from the US. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 She said the Middle East is one of the growing markets for the local wood sector. In Japan, there is strong demand for prefabricated housing components.

Megawide seeks Stan Chart loan for classrom proj

 Economy
Jan 052014
 
Megawide seeks Stan Chart loan for classrom proj

MANILA, Philippines – Megawide Construction Corp. is arranging a financing deal with Standard Chartered bank for the construction of almost 10,000 classrooms nationwide. The listed contractor will tap the British lender’s innovative loan structure to manage risks and exposure in the Public-Private Partnership (PPP) for School Infrastructure Project (PSIP). Megawide chief financial officer Oliver Tan said the company is in talks with Standard Chartered bank for a loan whose amount has yet to be finalized. “Whatever structure they offered to BF Group,” Tan said. Megawide plans to monetize its long-term receivables to maintain a respectable debt ratio. In November, BF Group of businessman Bayani Fernando agreed to buy a portion of the contractor’s P3.44 billion in receivables. It ensured that BF Group’s debt ratios will remain low enough to venture into other projects. In 2012, BF Group won the build-lease-transfer contract for PSIP Phase 1, with the Department of Education (DepEd) committing to P344.6 million in lease payments for the new classrooms for the next 10 years. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 For its part, Megawide earlier won two school infrastructure projects involving the construction of 7,144 classrooms in Central and Southern Luzon. “The total contract is around P12.1 billion for 10 years for Phase 1. For Phase 2, the contract is P2.2 billion,” Tan said. The DepEd earlier signed a build-transfer deal with representatives of Megawide, and the BSP and Co. Inc. and Vicente Lao Construction joint venture, the winning bidders for the PSIP Phase Read More …

Two and a half years!

 Economy
Jan 022014
 
Two and a half years!

That’s right… P-Noy only has two and a half years left in his term. But in practical terms, he has less time than that. He only has this year and the first half of 2015 to get any thing worthwhile done… one and a half years to go. Election fever will afflict the country starting the second half of next year and through the first half of 2016. Based on past experience, nothing much for the good of the country gets done during an election year. P-Noy started off his term on a very high note. There was hope that finally the country’s economy has a good chance to become a tiger like its neighbors in Asean. And things started well as P-Noy was seen as the exact opposite of the immediate past president, Gloria Arroyo on that long festering problem of corruption. P-Noy’s credibility in the good governance arena was enough to gain the confidence of the foreign economic and political analysts. Even if the Daang Matuwid battle cry has not produced palpable results beyond the Presidential pronouncements, folks were ready to take P-Noy at his word. Indeed, we found ourselves among those considered as a most promising emerging economy in no time. It was as if everyone had always recognized the outstanding economic potential of the Philippines and it was only the sheer corruption of its governing politicians that is holding us back. We got successive credit rating upgrades. Foreign investors looking for alternatives to the developed world’s equity markets Read More …

Market up 94 pts, posts best start since 2009

 Economy
Jan 022014
 
Market up 94 pts, posts best start since 2009

MANILA, Philippines – The Philippine Stock Exchange index (PSEi) rallied 94.43 points to 5,984.26, marking its best start since 2009. It was also the highest closing for the main index since ending at 6,008.94 on Dec. 9, 2013. “We played catch up with the regional markets because for a few days we were on holiday,” said Astro del Castillo, managing director of First Grade Finance Inc. Financial markets just opened yesterday following the New Year holidays. Justino Calaycay Jr., an analyst at Accord Capital Equities Corp., said yesterday’s run-up beat the 1.2-percent gain on the first trading day of 2013, 0.6 percent in 2012 and 0.3 percent in 2011. It is the best start for the main index since rallying 5.4 percent in the first trading day of 2009. The broader all shares index gained 1.23 percent or 44.51 points to 3,658.83. “Market breadth stayed widely positive the entire day, the bears  hardly  making a dent on the bull’s lead,” Calaycay said. Local shares bucked the downtrend in Asia, weighed down by the slower-than-expected manufacturing numbers out of world’s second largest economy China in December. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Locally, all counters were in the green, paced by property firms that rallied 2.29 percent or 50.53 points to 2,255.98. However, turnover remained thin as most investors were still on holiday mode, del Castillo said. The value of shares traded declined to P3.81 billion from P6.38 billion on Dec. 27, the final trading day for 2013. Read More …

Bombardier said to win order for $2.2B in jets

 Economy
Dec 312013
 
Bombardier said to win order for $2.2B in jets

NEW YORK  — Bombardier Inc. said Tuesday it has received a firm order for 38 business jets with a combined list price of about $2.2 billion. Bombardier didn’t disclose the precise value of the deal — customers such as airlines routinely get discounts from plane manufacturers — and didn’t identify the buyer. The Canadian plane maker said the order covered 28 Global jets and 10 Challenger 605 aircraft. The Global line includes four models capable of carrying up to 19 passengers on flights as long as 7,900 nautical miles. The Challenger jet can carry 12 passengers and a crew of three up to 4,000 nautical miles. Separately, Bombardier announced that its transportation division ended a contract for new signaling equipment for the London Underground. The subway system said it would re-bid a contract that was awarded to Bombardier in 2011 and valued at $577 million at the time. The company didn’t provide a detailed explanation, but The Telegraph of London reported that Bombardier determined that its signaling system wasn’t compatible with the Underground’s old infrastructure. A spokeswoman for the Montreal-based company did not immediately return a call for comment. 

YEARENDER: Typhoons blow away early gains in DA’s food sufficiency program

 Economy
Dec 312013
 
YEARENDER: Typhoons blow away early gains in DA’s food sufficiency program

MANILA, Philippines – The series of strong typhoons that entered the country in the second semester of the year dented the production of several industrial and staple crops, prompting the Agriculture department to review its flagship program on food staple production and institute various interventions for the subsector. Significant expansion opportunities in the fisheries and animal industry sectors, however, have opened this year as the Philippines remained free from, avian influenza, foot-and-mouth disease and early mortality syndrome (EMS) that devastated the poultry, livetstock and shrimp industries of neighboring Asian countries. After the onslaught of Typhoon Yolanda in November, the Agriculture department conceded that self-sufficiency in rice would not be attained this year. Under the FSSP, self-sufficiency entails covering the annual domestic per capita consumption of 115 kilograms per year while still providing for the 90-day buffer stock requirement. After the super typhoon pummeled Visayas, the country is seen to attain a sufficiency level of 97 to 98 percent this year. To beef up the country’s buffer stock, the National Food Authority Council approved the importation of 500,000 metric tons (MT) of rice from Vietnam which would be shipped in tranches until the end of the first quarter of 2014. Even before Yolanda demolished rice cultivation areas in Visayas, Typhoon Santi battered  in October 214,640 hectares of rice lands in central Luzon, putting pressure on the country’s rice production target of more than 20 million metric tons this year. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Agriculture Secretary Proceso Read More …

LTO-IT project cost slashed to P3.44B after 2 failed bids

 Economy
Dec 312013
 
LTO-IT project cost slashed to P3.44B after 2 failed bids

MANILA, Philippines – The Department of Transportation and Communications (DOTC) has decided to slash the cost of the Land Transportation Office (LTO) information technology system project to P3.44 billion from the original P8.2 billion after two failed biddings. The DOTC said it would hold a pre-bid conference on Jan. 20 and open the bid documents on Feb. 18 for the DOTC Road Transportation IT Infrastructure project. It added that the project involves the customization, development, integration, procurement, supply, delivery, installation, implementation, service and maintenance of the information and communications technology system of the agency. The winning bidder would design and implement the required databases; establish or set up the LTO Data Center; supply, deliver, test, document, and install appropriate computing products and other resources relative to the implementation of the project on DOTC or LTO IT infrastructure and environment facilities; and deliver all hardware peripherals with software and corresponding licenses in the name of DOTC and warranties to efficiently run the system. Likewise, the winning bidder would also operate and maintain the IT service delivery for LTO within the period of the contract and identify key processes and systems for the improvement, efficiency, and security of the DOTC or LTO processing. Once the system is put in place, the DOTC said it would be easier for authorities to recover stolen vehicles, trace smuggled vehicles, prevent double registration, and monitor unregistered vehicles. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The agency added that the project would implement a server-based Read More …

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