Proposed VAT refund program for foreign tourists OK’d on 3rd reading

Published March 7, 2023, 11:29 AM

by Ellson Quismorio

The House of Representatives has overwhelmingly approved on third and final reading the measure creating a value-added tax (VAT) refund program for foreign tourists.

(Ellson Quismorio/ MANILA BULLETIN)

Passed on the strength of 304 affirmative votes during plenary session Monday night, March 6 was House Bill (HB) No.7143, titled, “An Act creating a VAT refund mechanism for non-resident tourists, adding for the purpose a new section 109A to the National Internal Revenue Code, as amended”.

Four House members voted in the negative during the conduct of nominal voting. There were no abstentions.

Deputy Speaker and Ilocos Sur 2nd district Rep. Kristine Singson-Meehan, who presided over plenary session Monday, subsequently announced the bill’s third-reading passage.

The proposal adds a new section to the National Internal Revenue Code.

Once this is enacted, any non-resident tourist would be able to avail of a VAT refund on goods that he or she purchased from accredited retailers. The per transaction value is set at P3,000.

The main beneficiaries of the VAT refund program are non-resident foreign passport holders and/or dual citizens, who are not connected with any businesses.

As per HB No.7143, the goods must be brought out of the country within 60 days from the date of  purchase.

The transaction value of P3,000 may be adjusted depending on the administrative cost of the refund, consumer index price, and other market conditions that will be specified by the Department of Finance (DOF) upon the recommendation of the Department of Tourism (DOT) secretary and Bureau of Internal Revenue (BIR) commissioner.

The measure also allows the VAT refund system to be administered by a service provider, as is the practice in most jurisdictions.

One of HB No.7143’s proponents, Albay 2nd district Rep. Joey Salceda, earlier pointed out during committee discussions that the Philippines, save for India and Cambodia, is the last major Asian country without an operative VAT refund system for tourists.

“That hurts our competitiveness for tourists with, say, Vietnam and Thailand, which now receive more tourists than we do,” said Salceda, an economist.

Free medical check-up bill to save lives and gov’t funds; Cong Duterte explains how

Published March 2, 2023, 9:43 AM

by Ellson Quismorio, MB

Davao City 1st district Rep. Paolo Duterte has highlighted the need to provide free annual medical checkups for all Filipinos to ensure that they get access to preventive care and are able to address potentially serious health issues early on.

Davao City 1st district Rep. Paolo Duterte (KEITH BACONGCO / MANILA BULLETIN) 

Duterte said that, with all Filipinos automatically becoming Philippine Health Insurance Corporation (PhilHealth) members under the Universal Health Care Act, free medical check-ups should form part of their benefits.

For this purpose, Duterte, Benguet Rep. Eric Yap and ACT-CIS Party-list Rep. Edvic Yap filed House Bill (HB) No.5074 with seeks to automatically entitle every Filipino to free blood sugar and cholesterol  tests each year.

The measure, titled, “An Act providing for a free annual medical check-up for Filipinos”, has already been approved by the House Committee on Health.

“To promote health, identify risks, and ensure early diagnosis, PhilHealth shall establish a system that allows access to a free annual medical check-up and ensure that Filipinos shall be accorded the quality health care services that they deserve,” read HB No.5074.

Duterte said that “Investing in free medical check-ups for every Filipino will help save lives and ensure that no one gets left behind when it comes to health care.”

Detecting potentially serious medical conditions in its early stages will not only benefit every Filipino but also PhilHealth, as this would bring down the costs of providing coverage for  expensive medical procedures that usually come with treating life-threatening diseases, Duterte added.

Under the bill, Filipinos can avail of the free medical check-up in any government-run  hospital or medical institution.

On top of free cholesterol and blood sugar tests, the three lawmakers also proposed the inclusion of expanded laboratory and diagnostic tests in the free annual medical check-up benefit “subject to the availability of Philhealth funds”.

“The State is tasked to institutionalize regular check-ups for its citizens in order to determine their potential health concerns and avoid further complications. Every citizen must be able to exercise his or her right to health without incurring any financial burden,” the bill’s authors said.

‘Hindi puro taxi’: Recto wants more buses deployed to NAIA for arriving passengers

by Ellson Quismorio, MB

House Deputy Speaker and Batangas 6th district Rep. Ralph Recto is calling on authorities to field more buses to the Ninoy Aquino International Airport (NAIA) from pick-up points like malls and a carousel system that will link NAIA’s terminals.

Deputy Speaker and Batangas 6th district Rep. Ralph Recto (Facebook) 

Recto, in a statement Saturday, Feb. 25, said the proposal to deploy more buses to NAIA are inexpensive “low-hanging fruits like curbside improvements”.

“Kung kaya nating umutang ng P356 bilyon at hukayin ang ilalim ng lupa para sa isang subway, siguro naman mas madali ang pag-deploy ng maraming bus (If we can borrow P356 billion and dig the earth for a subway, then I guess deploying additional buses is easier),” Recto said.

Recto said government should bring affordable mass transportation at NAIA’s doors, “and in the absence of trains, buses are the next best choice”. 

In the Philippines, taxis–although potentially expensive–are the easiest way to get from point A to B once land at the airport, particularly NAIA.

“Sa lahat ng airports sa buong mundo, ang buses ay bahagi ng isang integrated transportation system servicing an airport,” Recto said.

“This is so because an air passenger’s experience and comfort extend beyond an airport’s gate. The global trend in airport management is how to make it easier and faster for people to go to an airport,” he noted.

He said the choices of an arriving air passenger should not be limited to taxis and other vehicles-for-hire. “If we have liberalized the air industry, then we should do the same for land transportation to and from the airport.”

The former Senate President pro tempore said government should bring affordable mass transportation at NAIA’s doors, “and in the absence of trains, buses are the next best choice”.

He said that in all parts of the world, buses are part of the integrated transportation system servicing an airport. 

“This is so because an air passenger’s experience and comfort extend beyond an airport’s gate. The global trend in airport management is how to make it easier and faster for people to go to an airport,” Recto said.

He said the choices of an arriving air passenger should not be limited to taxis and other vehicles-for-hire.

“If we have liberalized the air industry, then we should do the same for land transportation to and from the airport,” the House leader further said.

House leader warns Pinoys vs cryptocurrency scams

Published February 21, 2023, 7:47 AM

by Ellson Quismorio

If it’s too good to be true, then it probably is. 

Kabayan Party-list Rep. Ron Salo (center)

Kabayan Party-list Rep. Ron Salo gave this reminder to Filipinos here and abroad amid reports that foreign criminal syndicates have been exploiting some of them in so-called cryptocurrency scams.

“We must continue to educate our fellow Filipinos against these illegal activities so we can minimize the victims of these criminal syndicates. We need to remind everyone that when the offer is too good to be true, then it must be a red flag,” said Salo.

The solon works closely with overseas Filipino workers (OFWs) in his capacity as chairman of the House Committee on Overseas Workers Affairs.

Department of Foreign Affairs (DFA) Undersecretary Eduardo De Vega recently stated that criminals, particularly the Chinese mafia, operating cryptocurrency scams in Southeast Asia are targeting Filipinos due to their English proficiency and computer skills.

The Filipinos are then forced to trick individuals to invest in cryptocurrency.

“I strongly condemn the illegal trafficking of our fellow Filipinos allegedly being carried by a Chinese mafia operating in Southeast Asia. Taking advantage of the desperation of our kababayans looking for job opportunities is the peak of injustice and cruelty,” Salo said.

“I am calling on the National Bureau of Investigation (NBI) to investigate and build the appropriate case against these unscrupulous individuals,” he said.

The Kabayan lawmaker also urged the Inter-Agency Council Against Trafficking (IACAT) to strengthen their monitoring and implementation of the Anti-Trafficking in Persons Act of 2003.

PNR to get temporarily shut down this year; here’s why

by Ellson Quismorio, MB 

The Philippine National Railways (PNR) will be temporarily shut down later this year, perhaps by the summer. 

PNR (Wikipedia)

This was confirmed by Department of Transportation (DOTr) Undersecretary for Railway Cesar Chavez during a public hearing of the House Committee on Transportation on Thursday, Feb. 16.

Antipolo 2nd district Rep. Romeo Acop chairs the committee, which organized the hearing in order to get an update on all of the DOTr’s ongoing railway projects.

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Chavez said the planned closure of the PNR will allow for the faster construction of the South Commuter Railway Project.

According the DOTr official, the continued operation of the PNR has actually been delaying the South Commuter Railway Project.

“Kailangang ihinto ang operasyon ng PNR sapagkat gusto nating matapos ang proyektong ito (We need to stop the operations of PNR because we want to finish this project),” Chavez said. 

“To contextualize, we need to stop the operation of PNR because our objective is to construct the South Commuter Railway in sustainable focus and speed based on the timeline and at a minimal cost,” he noted.

He said that, based on a study, shutting down PNR would save the government P15 billion in the construction efforts. This is because there would no longer be a need to relocated the needed utilities electricity and water, he said.

At any rate, Chavez said the riding public will be informed in advance about when the train line will be closed.

“In due time we will inform the public [about its closure]…sa operasyon nito sa loob ng taong ito at baka ho ngayong summer ho (about its operation within this year, maybe this coming summer),” he told the House panel.

House leader eyes $25 entry tax on foreign tourists

Published February 9, 2023, 9:23 AM

by Ellson Quismorio, MB

A $25 entry tax on foreign visitors to the Philippines that would be set aside and used to improve tourist welfare services.

Boracay, arguably the crown jewel of Philippine tourism. (RJ Baculo/ Unsplash)

That, in a nutshell, is the proposal of Camarines Sur 2nd district Rep. LRay Villafuerte, as contained in House Bill (HB) No.5285.

“Tourism has been a growing force in the Philippine economy. The industry has contributed a total of P2.85 trillion to the local economy in 2016, almost 20 percent of our GDP (gross domestic product,” said the veteran solon, whose province was at one time declared by the Department of Tourism (DOT) as the country’s top destination on his watch as governor.

“In 2017, the DOT recorded over 6.6 million tourist arrivals, posting an 11 percent growth from the previous year. The industry performed well in 2018 and 2019 with a respective rise of 16 percent and 17 percent in tourist arrivals, but the momentum was disrupted the following year with the advent of Covid-19,” he said.

Under the proposed Tourist Welfare Tax Law, $25 will be collected from every foreigner visiting the Philippines for tourism and leisure, and staying here for a period of not more 60 days, This levy shall be tucked in the cost of his or her airline ticket.

“This tourist tax shall be reflected in official receipts (ORs) issued by international and domestic carriers, and which shall then be handed over to the ]DOT] for the development of tourist welfare services, improvement of TIEZA’s (Tourism Infrastructure and Enterprise Zone Authority) services in tourism infrastructure, and for upgrading the programs of LGU (local government unit) tourism offices in their respective localities,” read the Villafuerte bill.

Villafuerte, president of the National Unity Party (NUP), said the fixed rate of $25 is “proposed to be competitive with that of the current taxes other countries have set. “This is mainly based on the average rates of entry and exit taxes imposed by Asian countries such as Thailand, Indonesia, Brunei, Sri Lanka, Cambodia, Hong Kong and China.”

He explained that the collection of entry and exit taxes has been imposed by other countries on visiting foreign nationals in order to boost their respective tourism development funds.

HB No.5285 recognizes Philippine tourism as “an indispensable element of the national economy and an industry of national interest and importance, which must be harnessed as an engine of socioeconomic growth and cultural affirmation to generate investment, foreign exchange and employment, and to continue to mold an enhanced sense of national pride for all Filipinos.”

The bill also includes a tax refund option for tourists erroneously charged as well as for those who have each spent over $10,000 or its peso equivalent in tourism receipts during their stay in the Philippines.

The measure is currently pending with the House Committee on Ways and Means.

Minority congresswoman only has good things to say about VP Sara

Published February 1, 2023, 9:44 AM

by Ellson Quismorio

A member of the House minority bloc is backing the efforts of Vice President and Department of Education (DepEd) Secretary Sara Duterte in addressing the challenges hounding the country’s basic education system. 

BH Party-list Rep. Bernadette Herrera (left) and Vice President Sara Duterte

“I personally laud and support the Vice President for her commitment to improve the quality of basic education in the country in her capacity as the Secretary of the Department of Education,” Deputy Minority Leader and Bagong Henerasyon (BH) Party-list Rep. Bernadette Herrera said in a statement Wednesday, Feb. 1. 

The minority bloc in the House of Representatives are traditional composed of government critics. But in this case, Herrera only has good things to say about the former Davao Ciity mayor.

“I have absolute confidence in her ability to institute much needed reforms to make the Philippine basic education system competitive and at par with other countries,” Herrera added of Duterte.

The party-list solon issued the statement after Duterte launched the “MATATAG” agenda, which would serve as the DepEd’s roadmap in addressing the challenges in the basic education sector under her term as education chief. 

MATATAG aims to focus on making curriculum relevant to produce competent and job-ready, active, and responsible citizens; taking steps to accelerate delivery of basic education facilities and services; taking good care of learners by promoting learner well-being, inclusive education, and a positive learning environment; and give support to teachers to teach better.

These key strategies, according to Herrera, would “surely help the basic education sector continue to recover from the pandemic and address the problems that have long existed in our education system.”

Herrera said she is also ready to support whatever laws or policies that the Vice President wants Congress to prioritize for the basic education sector.

Herrera said she was particularly amazed by the Vice President’s determination to get children’s education back on track with the resumption of full face-to-face classes after two years of intermittent distance learning during the pandemic.

“We have seen the tremendous work VP Sara has done to help schools reopen for in-person learning and allow our children to safely return to school,” she pointed out.

“I believe this is just a preview of how she will lead the DepEd in the next six years. With her strong leadership and firm political will, people can expect VP Sara to undertake some bold reforms that will help improve and transform our country’s basic education system,” she added.

Ouch! P10,000-device caused P100-M airport crisis

by Ellson Quismorio

A device worth just P10,000 ended up causing P100 million in damages on New Year’s day when the operations of the Ninoy Aquino International Airport (NAIA) was paralyzed by a “trip” within its Communications, Navigation and Surveillance Systems for Air Traffic Management (CNS/ATM). 

(Noel Pabalate/ MANILA BULLETIN)

This was learned Tuesday, Jan. 10 during a briefing on the disastrous New Year flight cancellations by the House Committee on Transportation chaired by Antipolo 2nd district Rep. Romeo Acop.

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The meeting was attended by officials of the Department of Transportation (DOTr), Civil Aviation Authority of the Philippines (CAAP) and Civil Aeronautics Board (CAB), just to name a few.

During the panel briefing, CAAP Director General Manuel Antonio Tamayo pinpointed the cause of the CNS/ATM glitch to one its four circuit breakers.

In the immediate aftermath of the NAIA crisis last Jan. 1, aviation officials blamed something else, especifically the uninterruptible power supply (UPS) of the CNS/ATM for the problem. 

Senior Deputy Minority Leader and Northern Samar 1st district Rep. Paul Daza was conducting an interpellation on the resource persons when he suddenly became curious and asked: “The UPS and the circuit breaker, how much did you spend for that?”

“The UPS is P13 million and the circuit breaker is P10,000,” answered CAAP Air Traffic Service Officer-in -Charge (OIC), Engineer Arnold Balucating.

“For a circuit breaker that disrupted, caused P100 million worth at least, and you’re spending how much? Again? P10,000?” said Daza in an incredulous tone. A total of 414 flights were cancelled on Jan. 1, a Sunday.

“And you’re now asking for a budget of P13 billion for a new system? There’s gonna be a lot more questions,” the Visayas solon added.

A resource person in the briefing, CAB Executive Director Carmelo Arcilla, pegged the losses from the airlines at P100 million. But he said the damages suffered by the estimated 65,000 affected passengers were much more worse and hard to calculate.

NAIA’s entire CNS/ATM, which was turned over to CAAP over just five years ago, would cost the government P13 billion to replace.

It was also established during the hearing that on Jan. 5 or four days after the crisis, CAAP sought the purchase of a new UPS–which has a P13-million price tag–under emergency procurement.

Tamayo justified this move by saying that the UPS, which was one of the key components of the CNS/ATM, was already in the middle of its lifespan and thus needed to have “redundancy” in place. He says the new UPS is an “upgraded” version.

This caused 1-Rider Party-list Rep. Ramon Gutierrez to comment in Filipino, “We only suffered a flat tire. Why do we need to buy a new motorcycle?”

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“Forgive this representation for finding it quite alarming that we would categorize it as emergency [purchase]…we did not have to really fast-track the purchase of the UPS and simply focus on the fixing of the circuit breaker,” Gutierrez told Tamayo.

Balucating later told the panel that circuit breakers need to be replaced once they become faulty, since they cannot be “opened and fixed”.

Daza said that CAAP’s takeaway from Jan. 1 should be to improve their maintenence protocols.

Gatchalian warns Pinoys about new GCash scam ahead of SIM registration

by Ellson Quismorio

Senator Sherwin Gatchalian has cautioned Filipinos on a recently discovered GCash scam ahead of the start of SIM card registration on Dec. 27. 

Senator Sherwin Gatchalian (Facebook)

Gatchalian cited a fraudulent email apparently coming from GCash Promotions advising recipients that their transactions have been restricted and to reinstate the said feature, recipients have to pre-register by simply clicking a link, a process that could potentially compromise their online security. This has been confirmed by the GCash Team as a scam.

SIM stands for subscriber identity module. It is used on mobile devices such as phones and tablets. 

“Ipinaglaban natin ang pagsasabatas ng SIM registration sa nakalipas na maraming taon dahil gusto nating protektahan ang mga gumagamit ng SIM laban sa panloloko ng cyber criminals (We fought for SIM registration enactment in past years because we want SIM users to be protected from cyber criminals),” Gatchalian said.

“Kailangan nating abisuhan ang ating mga kababayan na mag-ingat nang husto laban sa mga sari-saring pambibiktima ng mga kawatan (We need to warn our countrymen to be careful against these fraudsters’ various schemes),” he added.

GCash is a popular e-wallet maintained by one of the country’s major telecommunications companies. 

Starting Dec. 27 this year, SIM users need to register their SIMs within 180 days or six months, or else have their SIM cards deactivated from their respective service providers.

A co-author of Republic Act (RA) 11934, or the SIM Registration Act, Gatchalian also urged SIM users to register their respective SIMs as soon as possible, emphasizing that doing so would enable authorities to track criminal-minded individuals who take advantage of unsuspecting customers.

Gatchalian also said the law includes provisions that would ensure the protection of customers’ personal information.

“Identity theft is precisely one of the online schemes that we want to prevent relative to the enactment of the SIM registration law. The process for the disclosure of personal information is a rigid one that necessitates a court order,” he emphasized.

Gatchalian said SIM users need to make sure that they register only through a secure platform or website provided by their respective service providers. The process of registration requires the following information including full name, date of birth, gender, address, and valid government ID or similar documents with a photo, while business users must provide their business name, business address, and the full name of an authorized signatory.

Climate change causing ‘economic devastation’ to PH, says ranking solon

Published November 17, 2022, 9:42 AM

by Ellson Quismorio

A House leader has highlighted the annual economic losses that the Philippines suffer from natural calamities, even as she called on government and stakeholders to immediately address the issue of climate change. 

(Unsplash)

San Jose Del Monte City lone district Rep. Florida “Rida” Robes said in a privilege speech earlier this week that the country loses around $3.5 billion yearly from natural calamities based on World Bank (WB) estimates.

“We can definitely feel the economic devastation of climate change. To illustrate, recently, [super typhoon] Karding alone destroyed at least P160 million worth of high-value crops,” Robes said.

She said no less than 5,239 Bulakenos–1,571 families, including 1447 children and 231 senior citizens–were displaced and forced to evacuate due to the floods, which also cost the lives of five emergency volunteers.

“In the aftermath of super typhoon Karding, this representation would like to spark an honest dialogue to three inconvenient—yet vital—truths that affect our nation and humanity as a whole…The pressing and urgent need to strengthen our policies on environmental protection and adapting to climate change,” noted Robes, who chairs the House Committee on Good Government and Public Accountability.

She said it is lamentable and alarming to know that the Philippines, in terms of global metrics, ranked second in the 2018 Climate Risk Index among countries heavily affected by extreme weather events.

She said the Philippines is also 11th out of 180 nations in the 2020 Environmental Performance Index (EPI).

Robes reckoned that climate change is no longer imminent. “We are already in a state of climate emergency,” she said.

“Our President Ferdinand “Bongbong” Marcos Jr. addressed the UN (United Nations) General Assembly who declared that the country is the fourth most vulnerable country to climate change…This injustice must be corrected, and those who need to do more must act now,” she said.

Robes described the floods caused by Karding in her home province of Bulacan as “unparalleled and alarming”. She said significant areas in San Miguel, San Ildefonso, and San Rafael—areas not typically prone to flooding—were engulfed in deep floodwaters due to heavy rains.

The ranking solon also gave honor to the five emergency responders who died while saving residents who were stranded in a flood.

Robes said the “Bulacan Five”–George Agustin, Troy Justin Agustin, Marby Bartolome, Narciso Calayag Jr. and Jerson Resurreccion died “in the line of duty and service to our country.” She said they were ordinary men who displayed extraordinary acts of service.

Robes has already filed two measures empowering emergency volunteers with House Bill (HB) No.5584, or the Emergency Volunteer Protection Act of 2022; and HB No.5650 or Magna Carta for Public Disaster Risk and Emergency Responders.