Not Business as Usual: 29 years later

29 years later

MAYBE, it’s the stricter enforcement of required documents before an overseas Filipino workers (OFW) can open a bank account or remit through the banking system. Maybe, it’s the strong peso that has increased by almost 20 percent the amount of remitted dollars needed for an OFW family to keep pace with its normal monthly expenses. Or maybe July and August are just traditionally slow months for the retail industry. Whatever the combination of factors are, consumers aren’t spending as much.    **** Let’s compute the impact of new Bureau of Internal Revenue (BIR) regulation on public utility vehicles (PUV) that took effect last Wednesday. The 3-percent common carriers tax, of course, remains unchanged. What has changed after 29 years is the minimum gross revenue or benchmark the BIR will base the tax on. For example, the BIR assumed before that a passenger bus with a seating capacity of more than 50 grossed at least P7,200 a month. Starting August 1,the BIR is assuming the same bus generates sales of at least P197,100 a month, said another way, the BIR used to collect P648 every quarter from every passenger bus with a seating capacity of more than 50, whether it charges a fare minimum of eight for non-air or P10 for air-con. Now, the BIR will be collecting P17,739 every quarter. Assuming that all the 3,400 passenger buses being monitored by the Metro Manila Development Authority have a 50-plus seating capacity, that means the BIR will be able to collect P60.3 million every quarter from Metro Manila buses alone compared to the P2.2 million in previous quarters. Naturally, PUV operators (read: owners of taxis, jeepneys and buses) would rather pass off some of that additional BIR payment to commuters. The go-to guy here is Land Transportation Franchising and Regulatory Board chairman Thompson Lantion, a former spokesman of the Armed Forces of the Philippines.  **** Did you know 1: In death of former Bangko Sentral ng Pilipinas (BSP) Governor Rafael Buenaventura will live on in the microfinance center put up by the Bankers Association of the Philippines. Paeng Buenaventura was so passionate about microfinancing that BSP initiatives in that direction was headed by Ateneo classmate and former Monetary Board member Antonino Alindogan.   Did you know 2: Presidential adviser for mining Jose Cortez Jr. passed away early yesterday afternoon. Like many of Mike Arroyo’s Rotarian buddies, he was a fun person to be with. More importantly, he got foreign companies to invest in the country’s nickel industry. Oh yes, he also managed government’s Northrail project, which is funded by China money.

 

http://www.businessmirror.com.ph/08062007/companies05.html