BIZ BUZZ: A DARn good mystery

Bank executives are still wondering why they somehow got dragged into the burning issue involving Roxas and Company, Inc. (RCI) and some agrarian reform beneficiaries (ARBs) from Nasugbu, Batangas.

To recall, Nasugbu local officials had contacted banks, and even issued a resolution, asking them to refrain from facilitating RCI’s loans on grounds that RCI had unpaid property taxes.

One banker felt that the banks were put in an “uncomfortable position” since there was no proof of unpaid taxes. And true enough, it was later found that RCI had no obligations. Plus, it was only last January that the Department of Agrarian Reform (DAR) finalized its December 2023 order, ruling a 50-50 allocation of 2,644 hectares of land between RCI and farmer-beneficiaries.

So how could RCI pay (or even be assessed) for real property taxes, when the very ownership of the land was not even finalized yet?

“Why would they involve the banks? If the Nasugbu LGU had unpaid real property taxes, then their treasurer’s office should have written and billed the landowner, not the directors of their servicing banks. If the ARBs are not happy with the DAR ruling, that’s between them and the government agency. Bakit kami nadamay?” a senior bank executive told Biz Buzz.

Why indeed. —Tina Arceo-Dumlao

Brouhaha over tariffs

Industry stakeholders have had enough as they bring the battle to the high court today to stop the implementation of reduced import duties on various products.

Various agricultural groups will file at the Supreme Court a petition for certiorari and prohibition with urgent prayer for status quo ante order and/or temporary restraining order (TRO) against Executive Order No. 62.

President Ferdinand Marcos Jr. recently signed EO No. 62 to retain lower tariff rates on various commodities until 2028, in a bid to temper food prices. In the case of rice, a staple food among Filipino households, the levy was decreased to 15 percent from 35 percent.

Industry stakeholders lamented that the Marcos administration’s economic managers had bypassed legal procedures. No prior consultations had been conducted before the EO issuance, they said.

Petitioners include Samahang Industriya ng Agrikultura, Federation of Free Farmers, United Broiler Raisers Association, Sorosoro Ibaba Development Cooperative and Philippine Maize Federation Inc., FFF chair Leonardo Montemayor told the Inquirer in a message.

They also claimed that the lowering of tariffs on food items over the past years had failed to bring down retail prices and contradicted efforts to perk up the farm sector.

Agriculture Secretary Francisco Tiu Laurel Jr., for his part, has said the EO is not “anti-farmer,” adding that the Department of Agriculture itself would recommend raising tariff rates on rice if retail prices ease to P42 and P45 a kilo. The EO mandates a review of rice tariff rates every four months.

For now, we can only wait for events to unfold and see if food prices will decrease. —Jordeene B. Lagare

Fly to Batanes from Clark

Philippine Airlines (PAL) has resumed its Clark-Basco routes, providing more options for passengers to go to the northernmost province in the country.

The flag carrier provides four weekly flights for the restored route.

“It gives us great pride to meet the demand for flights out of Central Luzon, a strategic gateway to Northern, Central and Southern Philippines,” PAL Express president Rabbi Vincent Ang said.

“This flight not only opens up opportunities to explore this unique destination but also strengthens our commitment towards convenient travel options for all,” said Noel Manankil, president and CEO of Clark airport operator Luzon International Premiere Airport Development Corporation.

The route expansion is in line with PAL’s goal of servicing around 16 million passengers this year as it targets to restore volume to prepandemic level. Its passenger volume improved 58 percent to 14.68 million last year.—Tyrone Jasper C. Piad