Sunday, October 09, 2005

Paper Survey

PDI still most read newspaper, says poll

Inquirer News Service

FOR THE fourth straight year since the survey went nationwide, the Philippine Daily Inquirer was the most read broadsheet in the country, according to the poll conducted by Nielsen Media Research.

The latest survey was conducted in the third quarter of 2004, covering 2,000 respondents aged 10 years and older from all socioeconomic classes in 31 cities in Luzon, the Visayas and Mindanao. The survey had a margin of error of plus or minus 2 percentage points.

Jay Bautista, Nielsen Media director, said the Inquirer was the choice of 55 percent of the respondents, who said they had read a broadsheet the day before. The Manila Bulletin came in second with 47 percent and the Philippine Star third with 27 percent.

The total exceeded 100 percent because some respondents read two or more broadsheets.

Of the 2,000 respondents, 25.2 percent read newspapers (either broadsheet or tabloid, or both) in 2004, down from 29.6 percent the previous year. Broadsheet readership dropped to 8.8 percent from 13.5 percent.

Bautista noted that broadsheets were generally read by members of the upper and middle classes. They accounted for 55 percent of the broadsheets' reader base.

Tabloids were more popular among the lower income classes. They represented more than 70 percent of the tabloids' reader base. Regional newspapers had the same reader profile as the tabloids.

Upper and middle classes

The Inquirer is popular among the upper and middle classes (the AB and C economic classes). They represent 56.2 percent of the newspaper's reader base, according to Nielsen Media.

More males (54.2 percent) read the Inquirer than females (45.8 percent). By age group, those between 20 and 39 years old accounted for 46.3 percent of the Inquirer's readers. Readers who were 50 and up accounted for 30.1 percent.

The most read sections of the Inquirer after the front page and local and foreign news included Sports, Editorial/Columns, Lifestyle and Business.

Reading habit

On the average, newspaper readers spent about 25 minutes going over their favorite broadsheet or tabloid. But Inquirer readers spent 32.2 minutes reading the broadsheet in 2004, up from 25.2 minutes the previous year.

Among the days of the week, Sunday had the highest broadsheet readership, according to the study. Other days of the week were consistent in terms of the number of readers. This demonstrated loyalty among readers.

In the survey, called the Media Index study, Nielsen Media Research used multi-stage random sampling.

Metro Manila had 1,000 respondents and the other urban centers also 1,000 respondents. Half of the respondents were female.

For Metro Manila, Nielsen allocated 200 respondents for each socioeconomic class (AB, C1, C2, D and E). For the rest of the urban centers, Class AB was allocated 100 respondents; C1, also 100; C2, 200; D, 400, and E, 200.

The Inquirer has been topping nationwide polls since 1993, like that conducted by Asia Research Organization, prior to the Nielsen surveys.

Youth readership program

To encourage newspaper reading among the youth, the Inquirer has launched various programs.

Its Youth Readership Program consists of fun and interactive events.

The Inquirer Seminar Series promotes youth empowerment and social awareness among college students and young professionals by bringing them together with experts from various fields.

The series allows the youth to discuss current concerns with leaders, opinion-makers, trendsetters and visionaries.

Debates

The Inquirer Intercollegiate Debating Championship (IIDC) is the country's largest and most prominent debate tournament. Using the Asian Parliamentary format, the IIDC seeks to involve the youth in challenges that confront them.

Aside from regular debate matchups between competing schools, an Issue Forum, which features a prominent Inquirer columnist and economic guru, discusses the country's economic situation.

2bU!

Then there's the Inquirer-2bU! Interschool Debating Championship, a competition for high school students using the British Parliamentary format. It encourages the youth to analyze what they read and what they know through their debating skills.

In addition, the newspaper has come up with educational tours in which young participants hold a dialogue with editors and business leaders. Participants also get to visit the newspaper's facilities, including its printing press.

Tuesday, September 20, 2005

EVAT Chronology


CHRONOLOGY OF EVENTS ON THE IMPOSITION OF VAT ON
POWER AND PETROLEUM:

1.  December 20, 2004, excerpts from the DOF
Presentation during the Committee on Ways and Means
Briefing:

Slide #4

“DOF supports the following measures:

ü                 Repeal of Certain VAT exemptions
                   (HB No. 3105 by Rep. Salacnib Baterina)
1.                 To increase revenues
2.                 To expand the VAT collection
3.                 To eliminate price distortions
4.                 To enhance collection of VAT and other taxes
Through the audit trail

ü                 Increase rate of Vat to 12%
1.                 To increase revenues

ü                 In addition, DOF proposes the repeal of zero-rating
of generation
Companies and NPC (Sec. 6, RA 9136 or EPIRA) and
Transco (EPIRA IRR)
1.                 To plug revenue leakage”

Slide #16

“Repeal VAT exemption of the following:

1.                 Sale or importation of coal, natural gas and
petroleum products
Rationale:  Petroleum industry has been deregulated
since 1996.  Previously, VAT could not operate as a
pass-on tax since industry was under price regulation.

Coal and natural gas are alternative sources of fuel.
Therefore, have to be treated similarly.

Estimated Revenue Impact = P8.332 B”

Slide #17

“Repeal VAT exemption of the following:

2.                 Sale or importation of raw materials used in the
manufacture of petroleum products
Rationale:  Previously, VAT could not also be imposed
to due to price deregulation of oil industry; Tax can
be claimed as credit.

Estimated Incremental Revenue = P11.588B”

2.  January 13, 2005, In his testimony in the 1st
public hearing-briefing of the Committee, USEC.
EMMANUEL BONOAN reiterated the position of DOF as
presented last December 20, 2004 to the Senate
Committee on Ways and Means, to wit:

·                 “USEC. BONOAN. So the DOF supports the following
measures  which are now pending in the House.  x  x  x
.     In addition, the DOF proposes the repeal of
zero-rating of generation companies and NAPOCOR, and
of Transco under the EPIRA, the purpose of which is to
plug leakage. x  x  x” (TSN, Pamorca, I-1, 10:23 am,
p2)


 
“x x x.  In the case of lifting the exemptions in
maintaining the VAT rate of 10%, this would be an
additional P28B.  For the full revenue potential of
increase of VAT rate to 12%, this would be P50.17B.
And in the case of repealing the VAT-exemptions and
increasing the VAT rate to 12%, we’ve estimated a full
potential of P86.74B.  x  x  x.  

“---the tax will hit the consumers only according to
their ability to spend.  x  x  x” (TSN, Pamorca,
III-1, 10:43 am, p1)

3.  January 27, 2005; The House of Representatives
transmitted to the Senate HBN 3555, increasing the
rate of VAT from 10% to 12%.

4.  February 02, 2005, 3rd public hearing, following
statements were made:

·                 Mr. Edgar Chua, President Shell Corporation and
Philippine Institute of Petroleum Corporation
(composed of Shell, Caltex, Petron, Flying V)

“MR. CHUA. x x x.  And our position is that we favor
VAT compared  to the specific tax. VAT is a  more
effective tax and in the petroleum industry right now,
one of the major problems is  smuggling. Fraud and tax
evasion.  We believe that it would be comparatively
more difficult to actually have this fraud happen
under a VAT system because it is self-policing. x x
x.”(TSN, Catadman, I-1, 1:22 p.m., p2)

                “x x x,. we know that one of the major concerns is
that it will hit the socially sensitive products. So
one compromise that we believe maybe considered by
government is that for products like diesel, kerosene,
and fuel oil, which currently have specific tax, LPG
is zero already, x x x, what the government can
consider is to zero out the specific tax on these
products and just impose VAT, similar to LPG.  x x x.

                “This is an option which can be considered  if the
government wants to mitigate the impact of VAT on
socially sensitive products. .x x x.”( (TSN, Catadman,
I-1, 1:22 p.m., pp3-4)

“x x x.  Now, if we actually impose a 10% VAT, our
computation is that it will be about P35B” (TSN,
Catadman, I-1, 1:22 p.m., p5)    

·                 Mr. Ernesto Pantangco, President, Philippine
Independent Power Producers Association (PIPPA), gave
the following statements:

“MR. PANTANGCO. x x x  fuel costs, which accounts for
40-60% of an IPP’s power cost, is already at an
all-time  high.  x x x

“However, if the Committee decides to reimpose VAT,
PIPPA strongly urges the Senate Committee to consider
a VAT coverage that will include all players of the
industry, both government and private.  NPC’s present
charter exempts it from all direct and indirect taxes.
If they are excluded from the VAT coverage, we will
have a distorted playing field in the power industry
because prior to full privatization of NPC, the
privately owned generators will actually be in
competition with a subsidized state-owned power firm,
over and above enjoying preferential tax treatment. x
x x” (TSN, Manuel, IV-1, 1:52 p.m., p2)  

·                 On the statement of Senator Recto that the Committee
is looking at about P40B just for the 48 IPPs alone if
a 10% VAT is imposed on their gross sales of P400B,
Usec. Bonoan replied:

“USEC.  BONOAN. That is correct, on the gross sales”
(TSN, Guinhawa, V-1, 2:02 p.m., p3)



5.  February 8, 2005, 4th public hearing, following
gave their statement on the imposition of Vat on power
and petroleum:

·                 Mr. Guillermo Luz, Makati Business Club:

“MR. LUZ.  On the question of oil products, Mr.
Chairman, we feel that maybe we should make the switch
and move to a VAT on oil products and make the proper
adjustment on the excise tax on finished oil products.
x x x.  But to mitigate the effect of the price
increase in oil, it make sense then on the socially
sensitive products such as diesel, LPG and other fuels
to reduce the excise tax or even eliminate the excise
tax outright.” (TSN, Tupaz, III-1, 2:01 p.m., p3)

                “x x x.  I’m talking of finished products on oil
because we have basically diesel, av gas, fuel oil,
kerosene ( premium and regular), and LPG. x x x. For
instance, diesel, there might be a good argument for
eliminating, go to zero excise rate on diesel and
replace it with VAT. x x x.” (TSN, Pamorca, IV-1, 2:11
p.m., p1)  

·                 “THE CHAIRMAN.  Secretary Purisima, on petroleum
products, are you suggesting that we tax coal, natural
gas, hydro, geothermal oil?  Are we talking about the
whole gamut?

“MR. PURISIMA. Yes, Mr. Senator, Mr Chairman.

“THE CHAIRMAN.  At 12%?

“MR. PURISIMA.  Yes.” (TSN, Tumampos, I-1, 2:31 p.m.,
p5)

6.  March 01, 2005, the House of Representatives
transmitted to the Senate HBN 3705, imposing a VAT on
power and petroleum products with the “no
pass-through” provision.

7.  March 04, 2005, 9th public hearing of the
Committee, considering HBN 3705, following statements
were made on power and petroleum:

·                 “MR. PURISIMA.  There’s also a provision, Mr. Chair,
of the repeal of the VAT exemption of Napocor and
amendment of the EPIRA law.  We agree with this
provision to level the playing field for power
industry participants and we believe this  help in the
privatization process. x x x

“THE CHAIRMAN.  Yes, with regard to the no pass
through provision, could you share your comments on
this Secretary Purisima?

“MR. PURISIMA.  Well, the no-pass through provision
basically goes against the basic logic of  the VAT
system, Mr. Chair, and I believe that as you make it
as complete as possible, we will maximize the
efficiencies of collection of the VAT system.  That’s
why I am in favor  of the approach of the Chair in
lifting as many of the exemptions as possible. x x x”
(TSN, Balagne, II-1, 1:54 p.m., p1)

·                 On the query of Sen. Arroyo on the proposal of the
House to repeal the VAT exemption of Napocor, which is
against the charter of Napocor:

“MR. PURISIMA.  Mr. Senator, I agree with your point
that these are issues that we need to consider.  On
the other hand, we are in the process of privatizing
Napocor and with EPIRA law opening up the power
industry to more competition and, therefore, keeping
Napocor  with its exemption, I think, we’ll have the
result of not having a completely level playing field.
x x x” (TSN, Balagne, II-1, 1:54  p.m., pp4-5)





·                 As regard the question of Sen. Arroyo on the
prohibition against the pass-on of VAT in the House
Bill:

“MR. PURISIMA.  We believe, sir, that the more
complete the pass on features of a VAT system, the
more efficient it is ‘no.  And therefore, any
provision  that prohibits the pass-on ability makes
the system less efficient. x  x x  So my suggestion is
to have that pass on provision.” (TSN, Dela Cruz,
III-1, 2:04 p.m., p1)

·                 In presenting the DOF comments on HBN 3705:

“MR. PURISIMA.  We would like to go through  the DOF
assumptions and DOF proposal as originally submitted.
Under that proposal, we expected to  about 90 or 89
billion pesos at a hundred percent efficiency.  And
the key components of these proposals included an
increase in the VAT rate from 10% to 12% where we
assume, based on certain model, that based on 100%
efficiency, we will raise P50B.

                “The next big component of this model is the VAT on
petroleum products and raw materials for petroleum
products, combined is about P29B at a hundred percent
efficiency.

                “The other large components  would be the lifting of
VAT on cooperatives of P5 to P7B and lawyers and
doctors, medical services and legal services of P2.5B
which leads to about 90B approximately, and at 70%
efficiency, P62B.” (TSN, Dela Cruz, III-1, 2:04 p.m.,
p4)

·                 “THE CHAIRMAN.  Just a final point, Secretary.  In
your original proposal to the Committee, you had every
intention of VATing a 12% petroleum products and
really no intention of VATing the power sector, with
the exception of the IPPs from zero rate to exempted.
May I find out why not the power sector, and why just
the petroleum industry, when I would presume that the
petroleum industry is actually more inflationary than
the power sector?

“MR. PURISIMA. As originally submitted, Mr. Chair,
that is, in fact, correct, `no. And as we refined our
thinking through the process with inputs from the
House and the Senate and from the industry and other
entities, we have made adjustments in our thinking in
this area, and we do support your approach of having
as complete VAT system as possible.  and we believe
that is the way to go.

x x x.

“THE CHAIRMAN.  x x x. And it is not the intention of,
at least, the Chair of this Committee to impact
consumers by a full 10% on both power and petroleum,
especially petroleum because we know that world oil
prices are going up, and we know that petroleum is
more inflationary actually than power.  In fact
petroleum, with our assumptions here, 55% goes to the
final consumer, unlike power which is 35%.  x x x.
then  the Committee can look or play around with P17B
to mitigate the impact on power increases and
petroleum increases, x x x.  So we might have to
reduce excise taxes on petroleum products,
particularly for the socially sensitive products, such
as diesel, bunker fuel, kerosene, LPG and for power,
to mitigate, I suppose, certain inputs with regard to
indigenous resources, and to take away the franchise
tax in lieu of the VAT. x x x.” (TSN, Gonzales, VI-1,
2:14 p.m., pp3-5)
       
·                 On the query of Senator Osmena as to the preference
of Secretary Purisima assuming that the pocket of
Napocor is the  same as the pocket of the government
which Secretary Purisima confirmed:

“SEN. OSMENA.  If in that case,  what would you
prioritize – the increase in rates for Napocor which
is a kind of tax also, the universal levy or EVAT? x x
x (TSN, Cajandab, VI-1, 2:34 p.m., p8)

“MR. PURISIMA. Senator, as we privatize Napocor, that
assumption of the same  pocket diminishes and
therefore, the majority of the power  sector would be
less government, more, hopefully private  players.
And therefore, we prefer a VAT on this.” (TSN, Baisa,
VII-1, 2:44 p.m., p1)

8.  March 07, 2005, press release of RGR in Business
World:

“Noting that electricity and fuel prices will likely
increase once VAT is imposed on them, Mr Recto said
the Committee would remove the franchise tax of power
companies as well as cut the excise tax on socially
sensitive oil products”

9.  March 09, 2005, press release of GMA in the Manila
Bulletin:

“President Gloria Macapagal-Arroyo yesterday pressed
Congress to legislate a Value-Added Tax (VAT) law that
will cover “higher rates, wider coverage” and will be
“easier to administer” to convince the international
community, including the country’s multinational
donors led by the World Bank, about the government’s
determination to improve its fiscal position this
year”.          

10.  April 15,2005, 1st Bicameral Committee Conference:

·                 “REP. SALCEDA. x x x. Ang kailangan is, i-konekto pa
rin natin kung ano talaga ang target. Ang target
talaga sisenta, kasi otsenta iyong – we need 80
billion to restore primary surplus to 3.5% percent
GDP. XXX, so kailangan  natin ng otsenta para maging
3.5 percent of GDP iyong primary surplus, so otsenta.
Nakagawa na tayo ng deciseis sa sin taxes although
hindi natin nakukuha iyan ngayong first three months
gawa nga ng frontloading, so  ang minimum ditto
sisenta, sisenta bilin para ma-final natin talaga
iyong ating VAT x x x. (TSN, Masicap,  IV-3, 4:29 pm,
p.4)

·                 “THE CHAIRMAN (SEN. RECTO).  Yeah, Joey, I think our
commitment to the President, as far as the
administration Congressmen and Senators are concerned
is 80 billion for all the tax measures, x x x.” (TSN,
Masicap, IV-3, 4:29 pm, p.9-10)

11.  April 21, 2005, 4th Bicameral Committee
Conference:

·                 “THE CHAIRMAN (SEN. RECTO). On the executive because
this is an administration measure to begin with. So,
Secretary Purisima, could you please tell us, for the
record, in this Bicameral Conference Meeting, the
position clearly, the position of the executive on the
matter.” (TSN, Cajandab, II-1, 2:32 pm,  p.4)

“MR. PURISIMA. x x x.  When the President made her
speech in July last year, the environment was not as
bad as it is now, at least, based on the forecast of
most financial institutions. So, we were assuming that
raising 80 billion would put as in a position where we
can then convince them to improve our ability to
borrow at a lower rates. But conditions have change on
us because interest rates have gone up.
               
·                 “THE CHAIRMAN (SEN. RECTO). Secretary Purisima,
since we’re already at this, my impression is, correct
me if I’m wrong, but my impression is that the
President wants to lift all exemptions and she is
suggesting that it be raised to 12%.  Please correct
my impression,(TSN, Vicedo, IV-1, 2:52 pm, p9)

“MR. PURISIMA. I would like to confirm that sir.
Yeah.”

x x x.

“THE CHAIRMAN (SEN. RECTO).  x x x.  –when we talk
about lifting of exemptions, the principal items are
the power and  petroleum.  So that let’s not confuse
the other items, `no, at this point, `no. (TSN,
Guinhawa, I-2, 3:02 pm, p1)



·                 “MR. PURISIMA.  Yes sir, we prefer 12% rate, x x x.
We prefer  lifting the exemptions on fuel and
minimizing the reduction of excise taxes from the
present proposal of bringing down the excise tax on
diesel, kerosene to zero, to maybe halfway that amount
because we’re planning to reduce the duties from 5 to
3%.  On power, our first option really was moving the…

“THE CHAIRMAN (SEN. RECTO). Secretary Purisima, let’s
talk about the position of the President today.

“MR. PURISIMA.  For power, lifting the exemptions on
power  and  VATing it at 12% with pass through
provision, and with the provision that, and I think
it’s assumed that exporters don’t have to pay  the VAT
because they’re zero-rated so it will not be collected
anymore so that they don’t have to claim a tax credit.
(TSN, Guinhawa, I-2, 3:02 pm, pp2-3)

·                 “MR. LOTILLA. x x x. If NPC, as a generator of
electricity, is not allowed to pass on its VAT burden,
the estimated loss of the NPC proper is P15.3B  Now
Transco also which is a government entity will also
have to absorb the P2.7B.
x x x.

“MR.  LOTILLA. Mr. Senator, precisely, that reinforces
the position  explained by Secretary Purisima that we
need to pass this.  We need to allow the VAT to be
passed  through, because…..(TSN, Guinhawa, I-3, 3:42
pm, p1)

·                 “SEN. ARRROYO.   x x x, You confirmed that if the
President – what the President is asking now  would
yield  from P117or P118 to P133B, all right.

                “During all the deliberations that we had, we were
made to believe that what the President needed was
P80B.  x x x.   So for all the tax measures, all she
cared for was P80B.  x x x.

                “Now you say now, Secretary  Purisima, that the
President’s position, as of today, is  P118 to P133.

x x x.  Why, x x x.  So please explain because it kind
of bothers us.

“MR. PURISIMA.  First the P133B, sir.  We at the DOF
do not agree with this accounting in concept because,
as I stated, this assumes a 100% efficiency.  x x x.
Our efficiency is at 70%, x x x. (TSN, Cajandab, II-3,
3:52 pm, pp4-5)  

·                 “THE CHAIRRMAN (SEN. RECTO).  x x x. Secretary
Purisima, could you shed light on the no pass through
provision, again. Just to clarify once and for all.

“MR. PURISIMA. On fuel and power, Mr. Chairman, we
prefer a pass through provision. (TSN, Sotto, III-5,
5:44 pm, p2)

12.  April 25, 2005, 5th Bicameral Conference
Committee:

·                 “SEN RECTO. Then therefore, we should not take away
the excise taxes on petroleum products.  But then
again, the effect is, you want a 10 percent increase
on petroleum prices.  Is the Executive Administration
willing to take the responsibility and accountability
for, let’s say, increasing diesel prices by 10
percent? Are you willing to accept the accountability
and responsibility?

“SEC. PURISIMA.. Yes.

“SEN RECTO. Yes. Okay.  x x x. . You should because at
12 percent, you are willing.  So at 10, you are
willing as well.  Right? Okay.  Same thing with 11.
Same thing at 12.  Are you proposing at 12 percent we
reduce excise taxes or 11 percent we reduce excise
taxes or not?


“SEC. PURISIMA. Sir, let me x x x   Before I answer
your question, point out to the fact that the gravity
of our financial situation is such that this measure
whether it generates 60, 80, 90 or a 100, is not
enough to close the hole we are in.  And therefore, I,
as Secretary of the Department of Finance, would be
more than willing to accept a version that generates
more revenue because that accelerates the
consolidation of our problem.  As to our willingness
to accept the political responsibility for the cost of
this - - yes, because the option on the other side if
we don’t do anything will be more costly for our
consumers.  As I mentioned in the session last week, 2
percent increase in VAT is just equivalent to a P2
depreciation of the peso, two at the peso exchange
rate.  And if this problem is not dealt with, the peso
will depreciate more than P2, more than the cost of a
2 percent increase in the VAT rate.  So, that’s why,
we’re willing to accept the burden, sir. x x x” (TSN,
Dizon, IV-1, 12:20 pm, pp.6-7 up to TSN, Alger, V-1,
12:30 pm, p.1)

13.  May 09, 2005, SP Drilon’s press release in the
Manila Times:

“Passing the VAT bill will help close the gaping
fiscal deficit.  We just have to pass this VAT to
serve the purpose of this taxation, that is to collect
enough taxes so that we can provide services to our
people”.

14.  May 09, 2005, statement of Asst. Secretary Gil
Beltran of DOF in the Business World:

“Underscoring the urgency of the VAT bill, Finance
Assistant Secretary Gil S Beltran said every day of
delay in the passage of the measure is costing the
government P167 billion to P222 billion.”

15.  May 12, 2005, press statement of Undersecretary
Bonoan in the Business World:

“The bill would even increase VAT collection
efficiency beyond the current 70% with the scrapping
of exemptions”.

16.  May 12, 2005, press statement of Secretary
Purisima in the Business World:

“The VAT bill would let the government keep its budget
deficit this year to below P180 billion.  For next
year, the deficit ceiling is P161 billion, or 2.7% of
gross
domestic product.”

17.  September 02, press statement of GMA in the
Philippine Daily Inquirer:

“Malacañang rejected anew proposals from legislators
of both chambers of Congress to defer the
implementation of the value-added tax law on fuel and
electricity.  President Gloria Macapagal-Arroyo has
remained bullish on implementing the crucial law once
the Supreme Court decides to lift the freeze order on
e-VAT.”

18.  September 03, 2005, statement of Renato Pizarro of
BSP in the Philippine Daily Inquirer:

“The financial markets Friday cheered the Supreme
Court’s affirmation of the constitutionality of the
expanded value-added tax (VAT) law, the single biggest
tax measure needed to keep the government on track
with its program to reduce its budget deficit and
debts.

This improves confidence in the country’s ability to
pursue its fiscal program “

19.  September 07, 2005, DOF statement in the
Philippine Daily Inquirer:

“Oil prices will further increase by an average of 6.4
percent when the expanded value-added tax (VAT) law
takes effect.”

20.  September 11, 2005, DOF Secretary Teves statement
in the Philippine Daily Inquirer:

“The Department of Finance said the national
government’s debt would likely go down to only 50.5
percent of the country’s gross domestic product by
2010.  This projection was made following the Supreme
Court’s decision upholding the constitutionality of
the Value-Added Tax Reform law and on the assumption
that the law would be implemented soon.”.

21.  September 16, 2005, GMA’s statement in the
Philippine Daily Inquirer:

“President Gloria Macapagal-Arroyo is not at all
worried even if Congress succeeds in deferring the
implementation of the expanded value-added tax (VAT)
on petroleum products and electricity, saying it would
not affect the government’s goal to reduce the budget
deficit.

In fact, she said, the VAT on fuel products and
electricity were not included in the proposal that
Malacañang submitted to Congress.

She said she only asked for P80 billion in revenues
from the new tax measures, but revenues from the VAT
law was estimated at 120 billion pesos.”

22.  September 17, Usec. Bonoan’s statement in the
Philippine Daily Inquirer:

“The government will have to trim its proposed
P1.09-trillion budget for 2006 if the plan to exclude
oil and electricity from VAT pushes through.  Finance
U/Sec Emmanuel Bonoan told reporters the proposed
budget already incorporated in it the entire P86
billion worth of expected incremental revenues from
the VAT reform law”

23.  September 18, 2005, GMA’s press statement in the
Philippine Daily Inquirer:

“President Macapagal-Arroyo yesterday reiterated her
stand that the Expanded Value-Added Tax Law be
implemented fully amid proposals from legislators to
defer the 10-percent VAT on oil and electricity.

The new revenue law should be implemented in its
entirety if we are able to achieve our economic reform
and deficit reduction goals in a timely manner.

But she cautioned Congress that if it should decide to
exempt fuel and electric power from VAT, then we hope
they will seriously consider the significant
implications for our country in the international
financial markets and limit the scope of these
exemptions.”

Monday, September 19, 2005

Rice Numbers

Hike in prices of government rice on hold
Christine A. Gaylican
Inquirer News Service

THE National Food Authority (NFA) has postponed a plan to raise the price of its rice by P1 per kilogram of milled rice, which is supposed to reduce the NFA net loss this year, Agriculture Secretary Domingo Panganiban said Monday.

The postponement was made on an instruction President Gloria Macapagal-Arroyo gave at a meeting with Cabinet officials last Sunday to help consumers cope with the rising cost of living amid soaring fuel prices, Panganiban said.

NFA regular rice will still stay at P16 per kilogram and well-milled rice at P19.50 per kilogram, he said.

With its price increase postponed, the NFA is expected to register a net loss of P8 billion this year. It is one of the government corporations that have been ordered to trim losses this year.

"The President decided to maintain prices for the sake of the consumers, but the NFA will definitely be incurring more losses this year," NFA Administrator Gregorio Tan Jr. told the Inquirer.

The NFA council led by the Department of Agriculture earlier proposed an increase in NFA retail prices by P1 per kilogram for both well-milled and ordinary rice to cut the NFA net loss by at least P1.5 billion a year.

The NFA is importing 1.8 million metric tons of rice this year, compared with 990,000 metric tons in 2004.

It has so far spent P28 billion this year, a 100-percent increase from P14 billion in the same period last year, because of the increased volume, price and freight costs of imported rice.

The price in the international rice market ranges from $320 to $350 per metric ton, held steady by the decision of leading exporters like China to stockpile additional supplies for their growing demand.

Tan said the NFA decided to keep a 90- to 120-day rice inventory buffer by increasing imports while domestic production remained weak.

Typhoons have cut the country's agricultural output, highlighting the need to import rice as early as January to prevent shortages because of a delayed summer harvest. With INQ7.net

Tuesday, September 13, 2005

Unicef on RP

At a glance: Philippines
Statistics
Basic Indicators | Nutrition | Health | HIV AIDS | Education | Demographics | Economics | Women | Child Protection | Rate of Progress


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RP's 84th

PHILIPPINES RANKED 84TH IN 2005 UN HUMAN DEVELOPMENT REPORT
The Philippines has been ranked 84th out of the 177 countries in the United Nations' Human Development Report (UN HDR), a notch lower from its 83rd ranking in 2004.
The Philippines' ranking places it within the medium development bracket alongside other Asian countries like Malaysia, Thailand, Western Samoa, China, Vietnam and Indonesia.
Dr. Arsenio Balisacan, president of the Human Development Network, said the results are "very disappointing." "We expect improvement. We have all the basic ingredients but somehow we can't put them altogether," Balisacan told reporters.
The HDR 2005, which uses 2003 data, is released annually by the UN Development Programme (UNDP).
It measures a country's broader development performance using the Human Development Index that covers not only income but also life expectancy, education and literacy.
Balisacan said the country has been stuck in its bracket unlike neighboring countries who have done well in advancing through development.
Neighboring countries' Malaysia and Thailand continue to be higher than the Philippines at 61 and 73, respectively, with Western Samoa overtaking it at 74, while China is closing in right behind at 85.
China, Asia's economic powerhouse, made a big leap from 94 last year.
Timor Leste, which was the only Asian country in the low development bracket last year moved to the medium development bracket this year at rank 140 from 158 last year.
Vietnam and Indonesia still trail the Philippines at 108 and 110, respectively.
"At the end of the day, it's governance, it's leadership that should be blamed for the results," Balisacan said.
"What we should do is to put together all potential resources that we have, get them to work and solidify them," he added.
The top five countries with the best standards of living are Norway, Iceland, Australia, Luxembourg and Canada while the bottom five are African nations Chad, Mali (174), Burkina Faso, Sierra Leone and Niger.
Japan is the only Asian country included in the top 20. It ranks 11th.

Poverty: An Unwinnable War

Posted by Vinia Datinguinoo 
PCIJ

EVERY hour, around the world, more than 1,200 children die of causes related to poverty; it is the equivalent of three tsunamis hitting every month, of the kind that swept across the Indian Ocean in December 2004 and left some 300,000 people dead in its wake. And in the next decade, at least 4.4 million more of the world's poorest children will die of preventable causes, unless governments fulfill the promises they made at the start of the millennium to work to end hunger and inequality.

"The global community will likely fail to achieve the Millennium Development Goals," said Dr. Manuel Montes of the United Nations Development Programme ( UNDP), at the Philippines launch of the 2005 Human Development Report.

The MDGs are a set of targets agreed to by UN member states in 2000, outlining the most urgent development needs for the world's poorest populations. The Goals are used by the international community as benchmark for measuring successes—or failures—in human development.

The Goals include eradicating extreme hunger; achieving universal primary education; improving maternal health; and reducing child mortality. They were set out to be attained by 2015.

The Human Development Report says the world now stands "at a crossroads" as it begins a countdown to 2015: it can either seize the moment and make 2005 "the start of a decade for development," or choose instead "to continue on a business as usual basis and make 2005 the year in which the pledge of the Millennium Declaration is broken."

The 2005 HDR is being released on the eve of the World Summit to be held in New York on September 14 to 16. The Summit will gather heads of state and government to review developments since the Millennium Declaration and draw up a course of action for the coming decade.

Using the Human Development Index (HDI) as tool, the HDR tracks the performance of countries toward achieving the development goals. The HDI looks beyond per capita income as a measure of progress and assesses factors such as life expectancy, education, and literacy.

Of 177 countries monitored using latest available data for 2003, Norway is at the top, with the highest HDI; Niger is at the bottom.

Between those two ends, on average, the HDR says, people are healthier, better educated, less impoverished, and more likely to be living in a multi-party democracy.

The Philippines is ranked 84, a notch lower than its slot in the last Report. Although its HDI has hovered in the area of middle-level development, other countries have overtaken it. In the region, Malaysia (61) and Thailand (73) continue to be higher than the Philippines; Vietnam (108) and Indonesia (110) are behind. (View the Asia-Pacific list.)

Yet whatever gains in human development have been made in the last 15 years should not be exaggerated, the Report warns, as hunger and inequality continue to hurt huge populations around the world.  

The tasks have remained gargantuan:

  • Life expectancy in developing countries has increased by two years since 1990. But the HIV/AIDS pandemic claimed some three million lives and infected five million more just in 2003. Other preventable diseases such as malaria have not been eradicated.
  • More than 130 million people have been lifted out of extreme poverty since 1990. But more than 1 billion people still live in abject hunger, surviving on less than US$1 a day. And the rate of poverty reduction has slowed down in the 1990s, compared with the more optimistic rates in the previous decade.
  • There are three million fewer child deaths annually. But 10.7 million children every year do not live to see their fifth birthday.
  • In the 1990s, 1.2 billion people gained access to clean water. Still, more than 1 billion people have no access to safe water.

Overall, the HDR says, human development has been too slow. The lag has been most pronounced in the poorest regions, among them sub-Saharan Africa and the independent states that succeeded the Union of Soviet Socialist Republics (USSR).

  • Fifty countries with a combined population of almost 900 million are falling backwards on at least one of the Goals. Twenty-four of these countries are in sub-Saharan Africa.
  • Eighteen countries with a total of 460 million people have moved backwards on their HDI. Twelve of these countries are in sub-Saharan Africa. 
  • Goal to cut poverty: In 2015, on current trends, there would be 827 million people living in extreme poverty, or on less than US$1 a day. Another 1.7 billion people would be living on US$2 a day.
  • Goal to reduce child deaths by two-thirds: On current trends, the goal to reduce the deaths of children under five years of age would be met in 2045, not 2015, or 30 years late.
  • Goal of universal primary education: In 2015, 47 million children would still be out of school, 19 million of them in sub-Saharan Africa.

The Report makes a specific argument for the global community to work together for the resolution of domestic conflicts, as it offers evidence of the link between poverty and violent conflict. "Indeed," say the Report's authors, "violent conflict is one of the surest and fastest routes to the bottom of the HDI table."

Of the 32 countries at the bottom of the HDI rankings, the Report notes, 22 have experienced conflict at some point since 1990. Responding to conflicts thus becomes more than an immediate peacekeeping initiative, but "a long-term reconstruction challenge."

The Report makes other recommendations that it says the world must take seriously in negotiations in the coming World Summit:

  • Improve the level and quality of aid to levels required by the MDGs. Too little aid is given; and of those that are given, much of it is either poorly targeted. High levels of aid also continue to be tied to conditionalities that are disadvantageous to the receiving countries.
  • Reform international trade policies and rules to make international integration productive for poor countries. International trade rules must be made more equal and fair.
  • Cooperate to redistribute income. The poorest 40% of the world's poor—or 2.5 billion people—account for less than 5% of all global income. Genuine human development targets must thus use the inequality lens as a guide so that the poorest populations are not left behind.  

"In the end," UNDP's Montes said at the Report's public launch, "MDGs should not simply be a way of picking up the wounded but as a way of rethinking policies."

Read the 2005 Human Development Report.

SWS Survey

Posted by Yvonne Chua
PCIJ

NET satisfaction with Vice President Noli de Castro and three other top government officials has gone up, according to the Social Weather Stations' third quarter survey.

Their ratings:

  • De Castro: +39 in August this year, from +22 last May
  • Senate President Franklin Drilon: +22, from +8
  • Speaker Jose de Venecia: 0, from Net -2
  • Supreme Court Chief Justice Hilario Davide Jr.: +13, from +1

Nearly three-fourths of the 1,200 adults polled by SWS from Aug. 26 to Sept. 5 also say De Castro is definitely or somewhat capable of governing in case President Arroyo resigns or is removed from office.

 
The Social Weather Survey of August 26-September 5, 2005 found 60% of Filipinos satisfied, and 22% dissatisfied, with the performance of Vice-President Noli de Castro, giving him a Net Satisfaction Rating of +39.

This compares with 52% satisfied and 30% dissatisfied, or Net +22, in the SWS 2nd Quarter 2005 Survey of May 14-23, 2005 [Table 1, also Chart 1].

The new SWS survey also found 74% saying Vice-President de Castro is Definitely/Somewhat Capable, versus 23% saying he is Not Capable, of governing the country in case Pres. Gloria Macapagal-Arroyo resigns or is removed from her position.

Ratings of other Top Officials Improve

The latest SWS survey showed the Net Satisfaction Rating improving for Senate President Franklin Drilon, at Net +22 now, from Net +8 in May 2005.

Speaker Jose de Venecia held steady at Net 0 now, from Net -2 before.

Supreme Court Chief Justice Hilario Davide Jr. recovered to Net +13 now, from Net +1 before [Charts 2-4].

Three-Fourths Say Noli is Capable

The August 2005 Social Weather Survey found 74% calling Vice-President Noli de Castro Definitely/Somewhat Capable, and 23% Not Capable, of running the country in case Pres. Arroyo resigns or is removed from office [ Table 2].

The Vice President's Capable-Not Capable scores are 85-14 in Mindanao, 83-14 in Visayas, 68-27 in the Balance of Luzon, and 59-39 in Metro Manila.

By socioeconomic class, his Capable-Not Capable scores are 80-16 among class E, 72-25 among class D, and 72-27 among classes ABC.

Survey Background

The Social Weather Surveys of May 2005 and August 2005 both used face-to-face interviews of 1,200 adults divided into random samples of 300 each in Metro Manila, the Balance of Luzon, Visayas, and Mindanao (sampling error margins of ±3% for national percentages and ±6% for area percentages).

In the new Social Weather Survey, all interviews outside Metro Manila were completed during August 26-31. In Metro Manila, 259 interviews were done over August 26-31; the balance of 41 interviews were completed over September 1-5.

The items described in this release were not commissioned, but were included on SWS's own initiative. The quarterly Social Weather Surveys are supported by subscribers, who have no proprietary rights over the data. The Fourth Quarter 2005 Social Weather Survey will be fielded sometime in November.
 
 
 
 
 
 
 
 

Sunday, September 11, 2005

Debt Down

National debt seen going down to 50% of GDP
Michelle V. Remo
Inquirer News Service

THE DEPARTMENT OF FINANCE said the national government's debt would likely go down substantially to only 50.5 percent of the country's gross domestic product by 2010.

This projection was made following the Supreme Court's decision upholding the constitutionality of the Value Added Tax Reform Law and on the assumption that the law would be implemented soon.

As of end-2004, the national government's outstanding debt reached P3.81 trillion, or 80.4 percent of GDP.

The debt level started rising drastically in the late 1990s because of weak government revenue collection, which forced it to incur huge borrowings to finance requirements.

Finance Secretary Margarito Teves said that expected lifting of the VAT law suspension would help the government wipe out its budget deficit by 2008, or earlier than the original target of 2010.

He said that with a zero deficit by 2008 and a budget surplus starting 2009, the government would be able to begin reducing its debt to only 50.5 percent of GDP by 2010.

The government's budget deficit in 2004 stood at P187 billion, or 3.9 percent of GDP.

Without the VAT law, the DOF estimated that the debt figure would decline at a much slower pace, only hitting 71.2 percent of GDP by 2010.

GDP is the total amount of goods and services produced domestically in a given period.

The VAT law will expand the coverage of the tax to include others products and services, including electricity and oil, and will increase the VAT rate from 10 to 12 percent starting 2006. The law will also increase corporate income tax rate from 32 to 35 percent.

Assuming the VAT law is implemented starting Oct. 1, the government could generate P9 billion in additional revenue this year and more than P80 billion yearly beginning 2006.

House Vote

How the House voted

INQ7.net

AFTER a marathon overnight session, 158 lawmakers in the 236-seat House of Representatives voted Tuesday to ratify the justice committee's decision last week effectively junking the three impeachment complaints against President Gloria Macapagal-Arroyo.

Fifty-one lawmakers, firmly resolved Arroyo should be impeached for electoral fraud, corruption, and human rights violations, voted 'No.' Meanwhile, six lawmakers abstained.

Below is the list showing how the House legislators voted:

YES VOTES

Kabalikat ng Malayang Pilipino (KAMPI) 1. Rep. Rodolfo Albano (Isabela) 2. Rep. Felix Alfelor Jr. (Camarines Sur) 3. Rep. Antonio Alvarez (Palawan) 4. Rep. Genaro Alvarez Genaro (Negros Occidental) 5. Rep. Rodolfo Antonino (Nueva Ecija) 6. Rep. Ignacio Arroyo (Negros Occiedental) 7. Rep. Luis Bersamin Jr (Abra) 8. Rep. Narciso Bravo Jr. (Masbate) 9. Rep. Tranquilino Carmona (Negros Occidental) 10. Rep. Victor Dominguez (Mountain Province) 11. Rep. Tomas Dumpit (La Union) 12. Rep. Consuelo Dy (Pasay) 13. Rep. Amado Espino Jr. (Pangasinan) 14. Rep. Peter Paul Falcon (Surigao del Sur) 15. Rep. Eduardo Firmalo (Romblon) 16. Rep. Oscar Gozos (Batangas) 17. Rep. Corazon Malanyaon (Davao) 18. Rep. Suarto Mangudadatu (Sultan Kudarat) 19. Rep. Alfredo Maranon III (Negros Occidental) 20. Rep. Anthony Miranda (Isabela) 21. Rep. Ronaldo Puno (Antipolo) 22. Rep. Nerissa Corazon Soon-Ruiz (Cebu) 23. Rep. Victor SUmulong (Antipolo) 24. Rep. Generoso Tulagan (Pangasinan) 25. Rep. Luis Villafuerte (Camarines Sur) 26. Rep. Ma. Amelita Villarosa (Occidental Mindoro)

Koalisyon ng Nagkakaisang Pilipino 27. Rep. Catalino Figueroa (Western Samar) 28. Rep. Danilo Lagbas (Misamis Oriental)

Lakas 29. Rep. Benjamin Abalos (Mandaluyong) 30. Rep. Bienvenido Abante, (Manila) 31. Rep. Roque Ablan (Ilocos Norte) 32. Rep. Anuar Abubakar (Tawi-Tawi) 33. Rep. Almario Mayo (Davao Oriental) 34. Rep. Ma. Angelica Amante (Agusan del Norte) 35. Rep. Prospero Amatong (Compostella) 36. Rep. Hussin Amin (Sulu) 37. Rep. Trinidad Apostol (Leyte) 38. Rep. Rey Aquino (Pampanga) 39. Rep. Munir Arbison (Sulu) 40. Rep. Leovigildo Banaag (Agusan del Norte) 41. Rep. Salacnib Baterina (Ilocos Sur) 42. Rep. Belma Cabilao (Zamboanga) 43. Rep. Roberto Cajes (Bohol) 44. Rep. Carmen Cari (Leyte) 45. Rep. Bobbit Carlos (Valenzuela) 46. Rep. Nanette Castelo-Daza (Quezon City) 47. Rep. Eufrocino Codilla(Leyte) 48. Rep. Arthur Celeste (Pangasinan) 49. Rep. Edgar Chatto (Bohol) 50. Rep. Antonio Cuenco (Cebu) 51. Rep. Samuel Dangwa (Benguet) 52. Rep. Simeon Datumanong (Maguindanao) 53. Rep. Del De Guzman (Marikina) 54. Speaker Jose de Venecia (Pangasinan) 55. Rep. Arthur Defensor (Iloilo) 56. Deputy Speaker Raul Del Mar (Cebu) 57. Rep. Abdullah Dimaporo (Lanao del Norte) 58. Rep. Mauricio DOmogan (Baguio) 59. Rep. Faysah Dumarpa (Lanao del Sur) 60. Rep. Felix Durano (Cebu) 61. Rep. Glenda Ecleo (Surigao del Norte) 62. Rep. Eileen Ermita-Buhain (Batangas) 63. Rep. Gerardo Espina Jr. (Biliran) 64. Rep. Edgard Espinosa, (Guimaras) 65. Rep. Orlando Fua (Siquijor) 66. Rep. Albert Garcia (Bataan) 67. Rep. Constantino Jaraula (Cagayan) 68. Rep. Raul Gonzalez Jr. (Iloilo) 69. Rep. Eladio Jala (Bohol) 70. Rep. Carlos Lacson (Negros Occidental) 71. Rep. Exequiel Javier (Antique) 72. Rep. Reylina Nicolas (Bulacan) 73. Rep. Prospero Pichay (Surigao del Sur) 74. Rep. Monico Puentebella (Bacolod) 75. Rep. Herminia Ramiro (Misamis) 76. Rep. Isidro Real Jr. (Zamboanga del Norte) 77. Rep. Ma. Milagros Magsaysay (Zambales) 78. Rep. Marcelino Libanan (Eastern Samar) 79. Rep. Roger Mercado (Southern Leyte) 80. House Majority Floor Leader Prospero Nograles (Davao) 81. Rep. Arrel Olano (Davao del Norte) 82. Rep. Eduardo Roquero (Del Monte City) 83. House Deputy Speaker Gerry Salapuddin (Basilan) 84. Rep. Joey Salceda (Albay) 85. Rep. Lorna Silverio (Bulacan) 86. Rep. Jose Solis (Sorsogon) 87. Rep. Mary Ann Susano (Quezon City) 88. Rep. Wilhelmino SY-Alvarado (Bulacan) 89. Rep. Herminio Tevez (Negros Oriental) 90. Rep. Aurelio Umali (Nueva Ecija) 91. Rep. Edwin Uy (Isabela) 92. Rep. Eduardo Veloso (Leyte) 93. Rep. Eleuterio Violago (Nueva Ecija) 94. Rep. Manuel Zamora (Compostela Valley) 95. Rep. Eduardo Zialcita (Parañaque) 96. Rep. Juan Miguel Zubiri (Bukidnon) 97. Rep. Antonio Floirendo Jr. (Davao del Norte)

Liberal Party (LP) 98. Rep. Harlin Abayon (Northern Samar) 99. Rep. Rolando Andaya (Camarines Sur) 100. Rep. Danton Bueser (Laguna) 101. Rep. Fredenil Castro (Capiz) 102. Rep. Solomon Chungalao (Ifugao) 103. Rep. Junie Cua (Quirino) 104. Rep. Rodriguez Dadivas,(Capiz) 105. Rep. Matias Defensor (Quezon City) 106. Rep. Antonio Diaz (Zambales) 107. Rep. Abraham Mitra (Palawan) 108. Rep. Rafael Nantes (Quezon) 109. Rep. Ernesto Nieva (Manila) 110. Rep. Miles Roces (Manila) 111. Rep. Federico Sandoval II (Malabon) 112. Rep. Eric Singson (Ilocos Sur) 113. Rep. Danilo Suarez (Quezon) 114. Rep. Judy Syjuco (Iloilo) 115. Rep. Rodolfo Valencia (Oriental Mindoro) 116. Rep. Joey Hizon (Manila) 117. Rep. Laurence Wacnang (Kalinga)

Nacionalista Party 118. Rep. Eduardo Gullas(Cebu) 119. Rep. Jesus Crispin Remulla (Cavite)

Nationalist People's Coalition 120. Rep. Alipio Badelles (Lanao del Norte) 121. Rep. Roseller Barinaga (Zamboanga del Norte) 122. Rep Anna York Bondoc (Pampanga) 123. Rep. Elias Bulut Jr. (Apayao) 124. Rep. Douglas Cagas (Davao del Sur) 125. Rep. Antonio Cerilles (Zamboanga) 126. Rep. Faustino Dy (Isabela) 127. Rep. Michael Duavit (Rizal) 128. Rep. Emilio Espinosa Jr. (Masbate) 129. Rep. Conrado Estrella (Pangasinan) 130. Rep. Uliran Joaquin (Laguna) 131. Rep. Josefina Joson (Nueve Ecija) 132. Rep. Simeon Kintanar (Cebu) 133. Rep. Vincent Garcia (Davao) 134. Rep. Gregorio Ipong (North Cotabato) 135. Rep. Jesli Lapus (Tarlac) 136. Rep. Benasing Macarambon (Lanao del Sur) 137. Rep. Francis Nepomuceno (Pampanga) 138. Rep. Manuel Ortega (La Union) 139. Rep. Isidro Rodriguez Jr. (Rizal) 140. Rep. Jurdin JEsus Romualdo (Camiguin) 141. Rep. Rizalina Seachon-Lanete (Masbate) 142. Rep. Emmylou. Talino_santos (North Cotabato) 143. Rep. Gilbert Teodoro (Tarlac) 144. Rep. Renato Unico JR (Camarines Norte)

Partido Demokratiko Sosyalista ng Pilipinas (PDSP) 145. Rep. Cesar Jalosjos (Zamboanga del Norte) 146. Rep. Cecilia Jalosjos-Carreon (Zamboanga Del Norte)

Reporma Party 147. Rep. Ernie Clarete (Misamis Occidental Reporma)

Independent Representatives 148. Rep. Edcel Lagman (Albay) 149. Rep. Florencio Vargas (Cagayan)

Partylist Representatives 150. Rep. Edgar Valdez (APEC) 151. Rep. Sunny Rose Madamba (APEC) 152. Rep. Ernesto Pablo (APEC) 153. Rep. Leonila Chavez (BUTIL) 154. Rep. Guillermo Cua (COOP NATCCO) 155. Rep. Representative Ernesto Gidaya (Veteran Freedom) 156. Rep. Eulogio Magsaysay (AVE) 157. Rep. Acmad Tomawis (ALIF) 158. Rep. Rene Velarde (BUHAY)

NO VOTES

Lakas 1. Rep. Robert Ace Barbers (Surigao del Sur) 2. Rep. Robert Jaworski (Pasig) 3. Rep. Clavel Martinez (Cebu) 4. Rep. Edmund Reyes (Marinduque)

Laban ng Demokratikong Pilipino (LDP) 5. Rep. Juan Edgardo Angara (Aurora) 6. Rep. Erico Basilio Fabian (Zamboanga) 7. Rep. Teofisto Guingona III (Bukidnon) 8. Rep. Jacinto Paras (Negros Oriental)

Liberal Party (LP) 9. Rep. Henedina of the Liberal Party (Batanes) 10. Rep. Joseph Emilio Abaya (Cavite) 11. Rep. Juan Romeo Nereus Acosta (Bukidnon) 12. Rep. Benjamin (Laguna) 13. Rep. Proceso Alcala (Quezon) 14. Rep. Benigno Aquino III (Tarlac) 15. Rep. Rodolfo Bacani (Manila) 16. Rep. Rozzano Rufino Biazon (Muntinlupa) 17. Rep. Justin Chipeco (Laguna) 18. Rep. Manuel Mamba (Vagayan) 19. Rep. Hermilando Mandanas (Batangas) 20. Rep. Antonino Roman (Bataan) 21. Rep. Lorenzo Tanada III (Quezon) 22. Rep. Alfonso Umali Jr. (Oriental Mindoro)

Nacionalista Party (NP) 23. Rep. Gilbert Remulla (Cavite) 24. Rep. Cynthis Villar (Las Piñas) 25. Rep. Alan Peter Cayetano (Taguig-Pateros)

Nationalist People's Coalition (NPC) 26. Rep. Darlene Antonino-Custodio (South Cotabato) 27. House Minority Floor Leader Francis Escudero (Sorsogon) 28. Rep. Arnulfo Fuentebella (Camarines Sur) 29. Rep. Arthur Pinggoy Jr. (South Cotabato) 30. Rep. Rodolfo Plaza (Agusan del Norte) 31. Rep. Ruy Elias Lopez (Davao City)

Partido Demokratikong Pilipino-Lakas ng Bayan (PDP-Laban) 32. Rep. Teodoro Locsin (Makati)

Partylist Representatives 33. Rep. Ana Theresia Hontiveros-Baraquel (Akbayan) 34. Rep. Loretta Ann Rosales (Akbayan) 35. Rep. Mario Aguja (Akbayan) 36. Rep. Rodante Marcoleta (Alagad) 37. Rep. Mujiv Hataman (Anak-Mindanao) 38. Rep. Crispin Beltran (Anakpawis) 39. Rep. Rafael Mariano (Anakpawis) 40. Rep. Florencio Noel (AN WARAY) 41. Rep. Teodoro Casiño (Bayan Muna) 42. Rep. Joel Virador (Bayan Muna) 43. Rep. Satur Ocampo (Bayan Muna) 44. Rep. Hans Christian Seneres (Buhay) 45. Rep. Emmanuel Joel Villanueva (CIBAC) 46. Rep. Liza Maza (Gabriela) 47. Rep. Renato Magtubo (Partido ng Manggagawa)

Independent Representatives 48. Rep. Agapito "Butz" Aquino (Makati) 49. Rep. Roilo Golez (Parañaque) 50. Rep. Rolex Suplico (Iloilo) 51. Rep. Ronaldo Zamora (San Juan)

ABSTENTIONS

1. Rep. Ferjenel Biron (Kampi, Iloilo) 2. Rep. Baisendig Dilangalen (PMP, Maguindanao) 3. Rep. Augusto Baculio (Lakas-CMD, Misamis Oriental) 4. Rep. Janette Garin (Lakas-CMD, Iloilo) 5. Rep. Jaime Lopez (Lakas-CMD, Manila) 6. Rep. Florencio Vargas (Lakas-CMD, Cagayan)

FAILED TO VOTE

Rep. Imee Marcos (KBL, Ilocos Norte) Rep. Pedro M. Pancho (KNP, Bulacan) Rep. Juan Miguel "Mikey" Macapagal Arroyo (Lakas, Pampanga) Rep. Remedios "Matin" L. Petilla (Lakas, Leyte) Rep. Victoria H. Reyes (Lakas, Batangas) Rep. Erwin L. Chiongbian (Lakas, Sarangani) Rep. Oscar G. Malapitan (LDP, Kaloocan) Rep. Rodolfo Q. Agbayani (LDP, Nueva Vizcaya) Rep. Florencio T. Miraflores (LP, Aklan) Rep. Reynaldo S. Uy (LP, Western Samar) Rep. Luis A. Asistio (NPC, Kaloocan) Rep. Claude P. Bautista (NPC, Davao del Sur) Rep. Carlos O. Cojuangco (NPC, Negros Occidental) Rep. Mark O. Cojuangco (NPC, Pangasinan) Rep. Emilio C. Macias II (NPC, Negros Oriental) Rep. Juan C. Ponce Enrile Jr. (NPC, Cagayan) Rep. Joseph A. Santiago (NPC, Catanduanes) Rep. Antonio M. Serapio (NPC, Valenzuela) Rep. Antonio Jr. P. Yapha (NPC, Cebu) Rep. Carlos R. Imperial (NPC, Albay) Rep. Romualdo T. Vicencio (NPC, Northern Samar)

Tuesday, September 06, 2005

Inflation Higher

Inflation 7.2% in August

Inquirer News Service with XFN-Asia

PRICES of basic commodities, as measured by the consumer price index, rose 7.2 percent year-on-year in August, faster than the 7.1-percent rise in July, due to dearer housing-related costs and services, the National Statistics Office said.

August prices were up 0.5 percent from July, after rising 0.9 percent in July from June.

Economists polled by XFN-Asia expected inflation at 6.8-7.3 percent in August. The central bank was looking at 6.6-7.1 percent.

For the January-August period, inflation averaged 8.1 percent, much higher than the government's full-year target of 5.0-6.0 percent.

All commodity groups posted lower inflation in August, except for housing and repairs and services.

Core inflation, which excludes selected food and energy items, eased to 6.6 percent in August from 6.8 percent in July, the NSO said.

Food prices alone rose at a slower rate of 5.8 percent from 5.9 percent.

Prices for housing and repairs increased 4.8 percent against July's 4.7 percent, while cost of services grew 10 percent compared to 9.9 percent.

Inflation for food, beverage and tobacco dipped to 5.8 from 5.9 percent, while that of fuel, light and water eased to 18.7 from 18.9 percent, miscellaneous items to 3.3 percent from 3.4 percent, and clothing unchanged at 3.5 percent.

"High oil prices still have got to do with the latest inflation figure," said Victor Abola, an economist at the University of Asia and the Pacific. He said the impact of oil prices on inflation was reflected not only in the movement of prices under the commodity group fuel, light and water, but also in services.

Dennis Arroyo, director of the policy and planning staff of the National Economic and Development Authority (NEDA), inflation would be slower in the second half of the year than in the first half, not only because of the expected improvement in agricultural output but also of the high base in the second half of last year.

The agriculture, fisheries and forestry sector is targeted to grow by 5.1 percent in the second half, compared with 0.7 percent recorded in the first half.

"Bad weather results in supply shortage, and so the rainy months of July, August and September would help improve production and slow down increases in food prices," Abola said.

Abola said average inflation for the full year was likely to settle at between 7.8 and 8.0 percent, assuming that Dubai crude would stay at $56 a barrel in the second half and post a full-year average of $50 a barrel, 48 percent higher than in 2004.

The NEDA projects the full-year inflation for the year at 8.0 percent, while the central bank estimates it at 7.9 percent.

The central bank said that with the level of inflation, it was not ruling out the possibility of again tightening up its monetary policy. With INQ7.net

Oil Prices Soar

Oil, power costs to rise 6.4% with new VAT law

Inquirer News Service

OIL prices will further increase by an average of 6.4 percent when the expanded value-added tax (VAT) law takes effect, Department of Finance officials said Tuesday.

The Supreme Court recently declared the new VAT law, which removes exemptions of certain sectors, including oil and electricity, as constitutional. Opponents of the law are expected to ask the court for reconsideration, pending which the court's temporary restraining order on implementation of the law stays in force.

Finance officials are hopeful the court will lift the restraining order before the end of the month.

The officials said government simulations based on oil prices as of Monday showed the price of unleaded gasoline would rise P2.76 or 8.3 percent when the VAT is applied.

Electricity prices are expected to inch up 6.0 percent, they said.

The price of regular gasoline will go up P2.23 or 6.9 percent, diesel by P0.72 or 2.3 percent, kerosene by P1.87 or 6.0 percent, bunker fuel by P1.31 or 6.5 percent, and liquefied petroleum gas (LPG) by P30.97 or 7.8 percent, they added.

RVAT, the name preferred by the Department of Finance to identify the new VAT law, has been suspended following complaints raised by opposition lawmakers and petroleum dealers.

The expanded VAT law gives President Gloria Macapagal-Arroyo conditional authority to raise the VAT rate to 12 percent, from the present 10 percent, in January.

The law also removes exemptions of medical and certain other services. With INQ7.

More Debts

Gov't to borrow P532B next year; debt P3.9 trillion in June

Inquirer News Service

THE NATIONAL government will borrow P531.6 billion next year from local and foreign creditors to finance spending requirements and pay maturing debts that cannot be covered by revenues, Finance Secretary Margarito Teves said.

Next year's borrowings will be 58 percent (P310.2 billion) domestic and 42 percent (P221.4 billion) foreign, he said.

The Department of Finance has adopted a policy of borrowing more locally to lessen foreign exchange risks.

The Bureau of Treasury meanwhile said the national government's outstanding debt reached P3.89 trillion at end-June, of which P1.86 trillion was to foreign creditors.

With a national population of 85.2 million, the debt amounts to P45,699 per person.

Domestic debts were down P1.6 billion or 1.3 percent from end-May, following net redemptions of government securities.

Foreign debts increased by 29.82 billion pesos, the Treasury said. It said the depreciation of the peso against the US dollar resulted in an increase of P55 billion in the foreign debt, but net repayments and the appreciation of other foreign currencies against the US dollar reduced the foreign debt by P8 billion and P17 billion, respectively.

The debt figure does not include contingent liabilities, composed mainly of government guarantees, which rose to P612 billion in June from P604 billion in May, mainly as a result of the peso's depreciation.

The peso fell to 56.05 to the dollar at end-June from 54.40 to the dollar at end-May. With INQ7.net