Maniolas

No less than the Constitution has declared that cooperatives are instruments for social justice and economic development. Pursuant to the policy of the state to promote social justice in all phases of national development, Republic Act (RA) No. 9520, otherwise known as the Cooperative Code of the Philippines, was enacted to foster the creation and growth of cooperatives. They are granted tax incentives, some of which are the exemption to pay taxes and fees for transactions with its members. To avail of such exemptions, a cooperative must apply for a certificate of tax exemption (CTE) following the guidelines for the issuance thereof in Revenue Memorandum Order (RMO) No. 76-10. The same RMO specifically states that a cooperative’s authorized official must prepare a certification under oath of the list of cooperative members with their respective TIN and their capital contributions. For the issuance of the corresponding CTE, the original copy of said certification along with a duly-accomplished BIR Form No. 1945 (Application for Certificate of Tax Exemption for Cooperatives version 2016) and the other documentary requirements must be submitted to the Revenue District Office (RDO) having jurisdiction over the principal place of business of the cooperatives. Pertinent to the TIN requirement, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 102-16 on Oct. 24 to clarify that a cooperative may choose to submit an original copy of certification under oath of the list of its members with their full name and capital contribution. In doing so, the RDO Read More …

MANILA, Philippines – Total investments registered with the Philippine Economic Zone Authority (PEZA) plunged 38 percent in the 10 months to October as political uncertainties created at the start of the Duterte administration likely put a damper on investor interest. Data provided by the office of new PEZA director general Charito Plaza yesterday showed investment pledges approved by the agency as of end-October this year reached P107.34 billion, lower than the P174.27 billion recorded by the agency in the same period last year. Property consultants interviewed by The STAR agreed the slowdown may have been caused by President Duterte’s rhetoric. Duterte early in his term had unleashed verbal assaults against long-time Philippine allies such as the US and the European Union which, in turn, caused concern from investors in these parts of the world. Plaza, who assumed office only a little over a month ago, is confident investment pledges would pick up in the coming months, especially after Duterte’s successful state visits in countries like China, Japan, Malaysia and those in the Middle East. Plaza said the investment approvals could also easily grow to P300 billion to P500 billion annually in the next two to three years following the agency’s new thrusts in ecozone development under her watch. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “Investors are really waiting to invest in the Philippines, an example of which is when I went to the Middle East. Almost all countries in the world want to invest outside,” she said. Read More …

A recent study completed by the International Energy Consultant (IEC) for Meralco showed that the distribution company’s customers over the last four years have enjoyed some of the largest tariff reductions compared to other countries in the region. As a result, Meralco’s average tariff improved from its ranking of 9th highest in 2012 to 16th this year in a survey that included 44 countries. While Meralco’s rates are still 11 percent higher than the average tariffs of the surveyed countries, this is definitely an improvement from four years ago when its charge was 24 percent higher than others. For residential consumers, electricity charges have dropped by 25 percent since 2012 despite an increase in the consumer price index of 7.5 percent. More importantly, Filipino households within the Meralco franchise area now pay close to what other households included in the survey are charged. It must be underscored that not all components of the electricity price charged by Meralco to its customers pertain to distribution costs, which comprises 17 percent of the total cost in its customer billings. All other charges, like the generation and transmission charges, are simply passed on by Meralco to its consumers. Reasons Overall, including generation costs which account for 59 percent of total charges, Meralco’s charges have likewise seen substantial decreases due to three factors. The first was attributed to successive declines in the cost of crude oil and oil products like diesel and bunker and coal; the second was due to increased competitive supply contracts Read More …

According to Senator Ralph Recto, the Energy Regulatory Commission (ERC) does not need to be abolished, only have the people changed. Philstar.com/File MANILA, Philippines — Sen. Ralph Recto says that the Energy Regulatory Commission (ERC) should not be abolished and instead have its officials replaced. Recto released a statement saying abolishing the ERC might “electrocute” the Filipino consumer since it needs an agency to watch the electricity market. “Improve it, reform it, but do not dismantle it. Change the software, upgrade the hardware. Then reboot,” Recto said. Recto released his statement after President Rodrigo Duterte warned that he will ask Congress to shut down the commission if officials does not resign as ordered. Duterte made the thread after ERC bids and awards chairman Francisco Jose Villa Jr. committed suicide, reportedly over pressure to rig bids.. READ: Duterte demands resignation of ERC execs According to Recto, the president should appoint known consumer advocates to the body to reform the ERC. Recto added that the ERC proved how vital it is through three main missions of the commission in promoting competitive markets, enforcing rules and regulations in relation to operations, and regulation of fees and charges related to transmission and distribution of electricity. In a separate statement, Senator Win Gatchalian added that the ERC is the body responsible for granting several types of critical permits necessary for power industry players to operate. Gatchalian also said that it would be wise for the Senate Committee on Energy to investigate the allegations made by Villa. “The Read More …

President Rodrigo Duterte and Chinese President Xi Jinping greet each during a bilateral meeting at the sidelines of the Asia-Pacific Economic Cooperation (APEC) Leaders’ Summit in Lima, Peru on November 19. REY BANIQUET/ Presidential Photo MANILA, Philippines – Credit Suisse said President Duterte’s pivot to China would bring in more investments as well as tourists and is positive for the sustained economic growth of the Philippines. In a report, Michael Wan, economist at Credit Suisse, said the country’s pivot toward China is net positive for the gross domestic product (GDP) growth as well as balance of payments (BOP) position for next year.  Wan explained the strategy of the Duterte administration would bring in more foreign direct investments and tourism from China next year and outweigh the potential decline in flows from the US in the near term.  Credit Suisse sees the country’s GDP expanding 6.4 percent next year.  The report said around $1-to $4-billion or 0.3 to 1.2 percent of GDP of the $15 billion investment pledges made during Duterte’s visit to China have the potential to start in 2017.  Likewise, Credit Suisse said it does not expect a sharp slowdown in US investments due to the pivot toward China strategy as well as the shocking victory of Republican Donald Trump. Business ( Article MRec ), pagematch: 1, sectionmatch: 1  “This implies a two-to six-fold increase in current investments from China, and compares with the Philippines’ typical annual total FDI inflows of $6-to $8-billion. While the US is still the Read More …