BIR: Polls may stall key tax reform measures By Reine Juvierre S. Alberto
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HE upcoming elections could delay the passage of key tax reform measures crucial for the Bureau of Internal Revenue (BIR) to hit its P3.2-trillion tentative target collection this year. Speaking to reporters on the sidelines of the International Tobacco Summit, Internal Revenue Commissioner Romeo D. Lumagui Jr. said that while the BIR could again reach its higher target this year, uncertainties remain due to the upcoming elections, which may stall tax
WORLD » A9
INDIA DELIVERS $12 BILLION IN TAX CUTS TO SPUR ECONOMIC GROWTH
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reform efforts. “Assuming that everything will be passed, I think that’s why I’m very optimistic that we’ll be able to do a very historic year this year,” Lumagui said. The BIR is expected to collect P3.232 trillion this year, assumed by the economic managers, based on the state’s budget documents. This comes after the BIR declared a feat in its collections in 2024, hitting the lofty P2.848trillion revenue goal. Although Lumagui sees the BIR post a “back-to-back” victory in reaching its revenue targets this year, economic managers should also take into
account the pending tax measures. “It’s fair to have the goal to be adjusted if that doesn’t happen,” Lumagui said, because the tax measures were taken into account in formulating the revenue target. “So, for us, if it’s like that, it’s not right.” “Hopefully it will be passed because it’s a big help for us and we want to achieve that collection target for 2025,” the BIR chief added. Apart from the passage of tax measures, the BIR expects the withholding tax on online transactions through electronic marketplaces and digital financial service providers
to shore up tax collections this year. “Our aim here is to capture the entire digital transactions because there are trillions of transactions online,” Lumagui said. Aside from all of these, the BIR is also faced with the rampant illicit trade of tobacco and vape products, causing the agency to miss its excise tax target on tobacco further last year. Lumagui said the BIR is receptive to the moratorium on the annual increase of tobacco tax rates, along with stricter enforcement, to fight illicit trade.
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INDUSTRY GROUPS PIN HOPES ON U.S. GSP, FTA BSP chief: Likely rate cut for ’25
By Andrea E. San Juan
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@andreasanjuan
HILIPPINE exporters of hard goods and garments are hoping for the reauthorization of the United States’ Generalized Scheme of Preference (GSP) and the start of negotiations for a free trade agreement (FTA) with the US to increase their export revenues to the US, according to the Foreign Buyers Association of the Philippines (Fobap).
Fobap President Robert Young said this as industry players are projecting only a flat growth in 2025 to about $900 million as industry. “[If the GSP is not reauthorized], we will just be flat, we will just survive. See “Industry,” A2
is 50 bps
B
AGUIO CITY—The Bangko Sentral ng Pilipinas (BSP) is sticking with its measured approach to monetary policy easing, likely reducing key policy rates gradually by 50 basis points (bps) this year. BSP Governor Eli M. Remolona Jr. said a 75-bps rate cut “might be too much” as the BSP needs some policy insurance against inflation. “So 50 bps is possible. Inflation might suddenly rise,” Remolona, who also sits as chairman of the Monetary Board, told reporters. An initial 25-bps policy rate cut could be delivered in the first half of the year while another 25-bps will follow in the second half. “Not every meeting we’ll see a policy rate decline,” Remolona added. Earlier, the governor said the central bank is cutting in “baby steps” and not keen on making aggressive policy rate reductions this year. (See: https://businessmirror.com. ph/2024/12/20/bsp-unlikely-tocut-key-rates-by-100-bps/). Last year, the Monetary Board
INFLATED DEMAND A delivery worker
transports a bundle of colorful party balloons to a customer along Urban Avenue in Makati City, with a helping hand quietly in the background. The balloon industry continues to thrive as demand for event decorations remains strong in the country. BERNARD TESTA
See “BSP,” A2
Amid DA warning, group says no egg shortage By Ada Pelonia
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@adapelonia
HE Philippine Egg Board Association (PEBA) assured the public of sufficient egg supply for the year amid concerns about a possible shortage of the cheapest protein source. This, after Agriculture Secretary Francisco Tiu Laurel Jr. recently said the agency forecasts a potential shortage of eggs by April due to an overproduction last year that dragged down farmgate prices to as low as P4 per piece and pushed producers to cull their chickens to offset losses. “We don’t project a shortage [of eggs]. On the contrary, we proj-
ect an oversupply this year,” PEBA President Francis Uyehara told reporters in an interview on Friday. Uyehara explained that while producers did incur losses during the summer of last year, they started to repopulate after a price hike in eggs was seen from June to September. “Because prices rose during those months, our industry friends started to repopulate...So, in November [and] December the prices of eggs started to stabilize,” he said, speaking partly in Filipino. However, Uyehara noted the eroding demand for eggs following the holiday season, which left a huge supply from last month. “Because demand significantly
declined for table eggs [after new year], the supply of eggs remained high coming from December.” Despite this, Uyehara mentioned that the country’s egg supply could be compromised if there were massive local outbreaks of avian influenza (AI), stressing the need to fast-track the availability of bird flu vaccines. “For this year, we don’t see a shortage of table eggs unless we experience local massive outbreaks of bird flu, which we don’t have now,” he said. “That’s why it’s important to us, that for the layer industry, that availability of the AI vaccine...is ensured; that’s our security.” The agency recently said that the
long-awaited bird flu vaccines are expected to hurdle field trials by the end of March this year. Agriculture Assistant Secretary Arnel de Mesa said the trial results for AI vaccines would be presented to the Bureau of Animal Industry (BAI) through the Veterinary Technical Advisory Committee (VTAC), which would then be endorsed to the Food and Drug Administration (FDA). “By the end of this quarter, the two trials would be concluded and then the application for approval will be sent to the FDA,” de Mesa said. He noted that the vaccines undergoing field trials came
»EXPLAINER | B4
TRUMP’S CRACKDOWN HOW HIS POLICIES TARGET TRANSGENDER RIGHTS
See “DA,” A2
PESO EXCHANGE RATES n US 58.3620 n JAPAN 0.3782 n UK 72.5031 n HK 7.4904 n CHINA 8.0633 n SINGAPORE 43.1352 n AUSTRALIA 36.2253 n EU 60.6440 n KOREA 0.0404 n SAUDI ARABIA 15.5591 Source: BSP (January 31, 2025)