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Business

House for the people

HIDDEN AGENDA - Mary Ann LL. Reyes - The Philippine Star

People can’t help but compare the performances of the two houses of Congress.

They say that the House of Representatives in the 18th Congress is now emerging as the more productive and better chamber in the bicameral Congress,  acting swiftly on President Duterte’s tax reform agenda, passing a national budget in record time, and  becoming a proactive and constructive partner of Malacañang in the country’s COVID-19 response efforts.

Some  have observed that many of the current House members are young, offering a fresh perspective on politics. Even House Speaker Allan Peter Cayetano is relatively young compared to his predecessors and has the energy to work even on weekends and holidays.

For instance, after the eruption of Taal Volcano, the House acted swiftly to determine how to assist in the government’s rehabilitation efforts. It announced that it would  develop a rehabilitation plan for the cities and municipalities in Batangas, Cavite and Laguna affected by the eruption. It was only after the House proposed rehab plan that the Senate prepared a long-term rehabilitation plan for the victims of the volcanic eruption.

All tax reform measures of the Duterte administration were passed by the House last year. These include reforms in the corporate tax system under the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE), the property valuation reform bill, and the Passive Income and Financial Intermediaries Act (PIFITA).

Unfortunately, the Senate has yet to approve these measures despite President Duterte’s appeal.

The CREATE bill would have provided for an outright reduction in the corporate income tax from 30 to 25 percent, and one percent thereafter until it reaches 20 percent by 2027. The Department of Finance was hoping to have the bill enacted into law last July to help rescue businesses and retain employees as it would have freed up to P42 billion in business capital this year to aid in the recovery of businesses, especially micro, small and medium enterprises (MSMEs), had it been passed on time.

Finance Secretary Carlos Dominguez said the business sector would have started to enjoy the benefits of CREATE in the second half of 2020, which also included an extended net operating loss carryover (NOLCO) for 2020 of five years for non-large taxpayers and an improved incentives system had the Senate approved the bill in June.

When Congress resumed its session last July 27, Senate President Vicente Sotto III said the CREATE bill was one of the Senate’s priorities, but up to now, the Senate has not  acted on the measure.

The early passage into law of measures like the postponement of the May 2020 Barangay and Sangguniang Kabataan Elections; establishment of Malasakit Centers;  increasing and restructuring the excise tax rates on alcohol, heated tobacco, and vapor products; creation of the National Academy of Sports; the Salary Standardization Law of 2019 which increased the salary of teachers and nurses, have also been credited to the House of Representatives’ swift action.

The Lower House has also approved on third and final reading the CITIRA, PIFITA, the Real Property Valuation and Assessment Act, and a bill creating the Department of Filipinos Overseas and Foreign Employment, so hopefully the Senate can follow through.

Observers have also noted that many of the provisions in the Bayanihan 2 Act were adopted from the House version. Among these are the retroactive application of the P100,000 hazard duty pay for health workers and P1 million compensation for surviving family members of health workers who die from COVID-19; authorizing LGUs to realign funds for their COVID-19 response programs; use of the unutilized Municipal Development Fund for the national government’s pandemic response efforts; creation of a national online electronic application system to provide contact tracing; 60-day grace period on the payment of loans; documentary stamp tax exemption for loan term extensions or restructured loans; two-year exemption from compulsory notification for mergers and acquisitions with transaction values below P50 billion and one-year exemption from motu proprio investigation; mandating the DBM and DPWH to reinstate and proceed with the implementation of discontinued infrastructure programs; removal of  the initial public offering tax; exemption from import duties for PPEs; and priority lending for MSMEs, cooperatives, hospitals, tourism industry, and overseas Filipino workers (OFWs) through GFIs.

Farm to table

One company that has successfully adopted the farm-to-table concept, or bringing the produce directly from the farmer to the end-consumer, is BA Farms which has now grown into a 31-hectare property in Indang, Cavite.

When the farm started in the early 1990s, it only had a small area planted to a few crops, with a few animals, and a log cabin. BA Farms mainly served as a weekend getaway place for the family.

Now, the farm produces and sells pineapples, bananas, dragon fruit, papayas, lettuce, and other vegetables and has becomes a fully integrated property, selling some of its products to restaurants, but mostly to direct consumers.

According to marketing head Melvin Mendoza, BA Farms has served close to a thousand customers since they started their farm to table model and has, in fact, doubled its business in three months’ time. Initially catering to Metro Manila households, the farm has now expanded its client base to Bulacan, Rizal, Cavite and Laguna. From an initial offering of 13 crops, BA Farms has sold over 28 different products in a span of four months. In fact, it is now bringing in mangoes from Guimaras and pomelos (Nenita’s) from Davao.

Plans are now afoot to construct 15 greenhouses to increase product assortment, improve output, and ensure quality and consistency of the crops. Soon, we might be seeing their products in the supermarkets.

For comments, e-mail at [email protected]

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