Senator Gatchalian pushes for postponement of implementation of coal tax

Senator Sherwin “Win” Gatchalian, who chairs the Senate Committee on Energy, is pushing to postpone raising taxes on coal until a policy allowing consumers to choose their energy source has been adopted. The proposed coal tax is included in the pending tax reform bill or Senate Bill 1592 which is up for discussion at the Congress bicameral conference committee.

SB 1592 proposes raising coal excise tax from the current ₱10 per metric ton to ₱100 in 2018, ₱200 in 2019, and ₱300 in 2020. If the excise tax is approved, an average consumer using 200kwh/month will have to pay an extra ₱4.78 per month in the first year. This will increase to ₱14.35 per month in the second and ₱28.70 per month in the third year. He added that compared to other tax hikes in the TRAIN bill, consumers do not have a choice when it comes to using electricity.

Senator Gatchalian noted that the government can implement the Senate’s proposed coal tax increase once the retail competition and open access (RCOA) system is in place. RCOA is the retail competition open access in which when the consumer will be given the power to choose, to buy wherever he wants. The RCOA is one of the provisions under the Electric Power Industry Reform Act of 2001 (EPIRA).

Senator Gatchalian cited the proposal as an unfair imposition since there will be a slowdown in the growth of manufacturing sector with its dependency on electricity.  – Ma. Divine Grace T. Derez

Philippine export sector to celebrate the 2017 National Export Congress

The Department of Trade and Industry (DTI) through the Export Marketing Bureau, the Philippine Exporters Confederation, Inc. (PHILEXPORT) and the Export Development Council leads the conduct of the 2017 National Export Congress (NEC). NEC is the highlight of the week-long celebration of the National Exporter’s Week (NEW). This year’s theme: “Innovate. Collaborate. Export!” aims to encourage exporters to enhance their entrepreneurial capabilities through innovation and collaboration.

Over 700 delegates including exporters business support organizations, policy makers, and academe will convene at the Philippine International Convention Center (PICC), Pasay Manila on 05 December 2017 for the annual NEC. The event will also have panel discussions on various topics such as expansion of the global market through innovation and addressing industry challenges through collaboration.

The NEC is the main activity of the National Exporters’ Week (NEW). The first week of December is declared as the Exporters’ Week per Presidential Proclamation 931, Series of 1996 and House Resolution 33, in order to obtain total commitment of the government and the private sector to continuously work together to sustain and maintain export promotion and development.- Piercy Kieth Cezar

EDC revises Vision and Mission

The Export Development Council (EDC) issued Resolution No. 04, series of 2017 adopting the revised EDC Vision which envisions “Philippines as a a competitive, intelligent, and innovation-driven exporting nation”. To reach this vision, the EDC adjusted its mission to “Nurturing an environment for exporters to thrive, enabling them to contribute to inclusive, sustainable, and equitable growth”.

The resolution also includes the adoption of EDC core values which are: trailblazing, an innovative key player in the export arena; collaborative, as a public-private partnership, consultation among relevant stakeholders is observed; and resolute which signifies EDC’s strong determination to achieve its goals.

As a response to the strategic external trade policy regime emphasized in the Philippine Development Plan (PDP) 2017-2022, EDC looked to develop the abilities of Philippine enterprises to efficiently compete in the global markets through engaging in policy reforms for trade facilitation and ease of doing business. The vision, mission, and core values serve as a framework on how the different government programs, activities and projects (PAPs) will be aligned with the Philippine Export Development Plan (PEDP) 2018-2022. -Ma. Divine Grace T. Derez

DTI-DOLE issues Joint Order on guidelines for garment industry availing GSP

The Department of Trade and Industry (DTI) and Department of Labor and Employment (DOLE) recently signed Joint Department Order No. 01 of 2017 which sets guidelines in the issuance, suspension or revocation of certificates of accreditation to garment manufacturers, exporters and sub-contractors who would want to avail preferential tariff under the Generalized System of Preferences (GSP). The said DO also creates a Workers’ Rights Review Committee.

The DTI- Accrediting Board through the Board of Investments- Incentives Administration Service shall issue the Certificate of Accreditation provided that the applicant complies with the prescribed labor standards. The accreditation shall be mandatory and has a validity period of three (3) years from its issuance. An applicant whose accreditation is suspended may request to lift the suspension after three (3) months. Accreditation that had been revoked may reapply after six (6) months.

The Workers’ Rights Review Committee will be chaired by DOLE. The Committee shall conduct an audit of the applicant’s compliance with labor standards.- Ma. Divine Grace T. Derez

Revised Application Form for Travel Tax Exemption to be implemented in September 2017

Exporters are advised to use the new Travel Tax Exemption Form starting September 2017. Said form can be downloaded at www.edc.net.ph/travel-tax-exemption

The Technical Working Group of Executive Order (EO) 589, recently approved the new Travel Tax Exemption Application Form. An additional feature will help exporters to find new buyers through the online business matching system of the DTI-Export Marketing Bureau. Exporters are encouraged to register/ update their company profile thru http://businessmatching.dti.gov.ph, for real time online business matching of exporters with foreign buyers.

EO 589 Exempts Exporters from paying the travel tax when joining international trade fairs, exhibitions, selling missions, conferences, among others. For queries, please contact Ms. Mafe Largo through telephone no. 465.3300 local 303 or email at exportdevelopmentcouncil@edc.net.ph. – Marife G. Largo