I was fortune enough to watch feature films at this year’s Cinemalaya independent film festival at the Cultural Center of the Philippines yesterday. (I was fortune because I had the luxury of time to travel from the hilly North Eastern Metro Manila to Manila Bay.  My friends and I jokingly dub the event as “cinemalayo” because of its very far venue.)

A film worth mentioning and is worth recommending is the digital film, “Namets!”  Namets is the Hiligaynon word for masarap/sarap in Filipino, yummy in English or sedap in Bahasa Malaysia.  The film was mainly in Hiligaynon (with English subtitles), a regional language (not a dialect) spoken in Western Visayas (Panay, Negros and Guimaras Islands).  As a Tagalog/Filipino speaker, I did not have any problem in watching the movie since Hiligaynon for me has similarities to Tagalog.

From the Cinemalaya programme:

Namets by Emilio “Jay” Abello is a colorful celebration of food as well as love, and the love of food above all, which is central to being Negrosanon and being Filipino. It follows the flirtation between Jacko and Cassie, two Negrenses who grew up in Bacolod, and whose lives revolve around food.

Aside from the main story, the movie interjects funny, delightful and amusing side stories in between scenes which are (not in order of appearance):

1. Negros cavemen from pre-history accidentally discovering how to roast chicken while having a brawl.
2. A young boy saving his pet chicken named Leonard, pet goat (I forgot it’s name) and his pet dog named Raymond.  He was saving them from his father who was starving for meat.
3. A siopao maker who kneads his dough by squeezing it in between his hairy and sweaty armpits. He also sold an highly potent aphrodisiac to a wife of a security guard.
4. The café manager who finds out why his Bacolod branch consumes the most sugar than other branches in the Philippines.
5. The dialysis patents who is dying to eat his favorite Napleones (a famous pastry in Western Visayas) during his treatment sessions.
6. The father who teaches his kids the proper and systematic way of eating Chicken Inasal (a barbecue chicken delicacy).

I learned about Negrense cuisine and contemporary culture. It made me realize that the 7,107 islands of the Philippines is unique and has its unique taste.  (In nearby places like Metro Manila and Rizal Province, local dishes such as Adobo and Menudo have their own twist.)

The acting of Angel Jacob and Christian Vazquez, while not worth an Oscar was good.  There was chemistry between the two.  

I would also commend the supporting role of Peque Gallaga. who played Boss Dolpo, mob boss.  His character did not speak at all except for his gibberish in between munching on his food and shouting “namet” in a scene while sitting in his pool.  He made his character funny and despicable yet memorable.  If Dame Judy Dench won a supporting actress Oscar for Shakespeare in Love while delivering a few lines, Peque Gallaga perhaps deserves a similar accolade.

I encourage everyone to watch and support the film.  It was worth my time and the 100 pesos I paid for the ticket.  The film is not only recommended but also memorable.  I will not forget the funny scenes, how it made my mouth water and how hungry I was for Negrense food after watching the show.  I hope there really was a La Cucina Negrense in Bacolod.  It would have been a good excuse to fly to Bacolod City just to taste the dishes featured in the movie.

While I am not a film or entertainment professional who would know what makes a good film, Namets! is surely a good film and is perhaps one of the best and most unique Pinoy films this year.  The story telling, execution and technical aspects was superb.  

Namets has local commercial potential and is a nice entry for international film festivals.  It would be a big hit from the millions of Hiligaynon speakers alone.  It would be a great introduction to Pinoy food and culture abroad.  I hope the producers make DVDs soon.  A coffee table book or cookbook featuring Negrense recipes and food should also be developed.  I will be the first ones to buy them for myself and for my family and friends overseas.  

For more info on the movie please visit the official website (http://nametsmovie.com) and Multiply.com site (http://namets.multiply.com).  The film will be shown on 30 July 2008 at 7:00 PM at the Cine Adarna (UP Film Institute), University of the Philippines Diliman.

Image by Getty Images via Daylife

Oil and Gas Reserves by Company - Country:

1. Saudi Aramco -  Saudi Arabia (more than 300 billion barrels)
2. National Iranian Oil Company - Iran
3. Qatar Petroleum - Qatar
4. Abu Dhabi National Oil Company - UAE
5. Iraq NOC - Iraq
6. Gazprom - Russia
7. Kuwait Petroleum Corporation - Kuwait
8. Petróleos de Venezuala S.A. - Venezuela
9. Nigerian National Petroleum Corporation - Nigeria
10. National Oil Corporation - Libya
11. Sonatrach - Algeria
12. Rosneft - Russia
13. Petroliam Nasional Berhad (Petronas) - Malaysia
14. Exxon Mobil - USA (about 20 billion barrels)
15. Lukoil - Russia
16. Petróleos Mexicanos - Mexico
17. Petrochina - China
18. BP - Britain
19. Chevron - USA
20. Petróleo Brasileiro S.A. - Brazil
21. Roya Dutch Shell - Britain/Netherlands
22. Total S.A. - France
23. ConocoPhilips - USA
24. ENI - Italy
25. Oil and Natural Gas Company - India
26. Sinopec - China

Source:
Oil and Gas Reserves by Country or Company, Data360.org

Ninety five percent of of these companies are state owned while only five percent are private corporations.  With the high oil prices who do you think are raking in more billions in profits?

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(Per RA 8293 Sec. 176.1 works of the Government of the Philippines can be used freely for non-commercial purposes. Feel free to copy the following text:)

An Act Amending Sections 22, 24, 34, 35, 51 and 79 of Republic Act No. 8424, as Amended, Otherwise Known as the National Internal Revenue Code of 1987. 

Begun and held in Metro Manila, on Monday, the twenty-third day of July, two thousand seven.

Be it enacted by the Senate and House of Representatives of the Philippine Congress assembled:

Section 1.  Section 22 of Republic Act No. 8424, as amended, otherwise known as the National Internal Revenue Code of 1997, is hereby further amended by adding the following definition after Subsection (FF) to read as follows: 

“Sec. 22 Definitions.  – When in this Title:

“(A)  x  x  x

“x  x  x

“(FF) x  x  x

“(GG)”  The term ‘statutory minimum wage’ shall refer to the rate fixed by the Regional Tripartite Wage and Productivity Board, as defined by the Bureau of Labor and Employment Statistics (BLES) of the Department of Labor and Employment (DOLE).

“(HH)” The term ‘minimum wage earner’ shall refer to a worker in the private sector paid the statutory minimum wage, or to an employee in the public sector with compensation income of not more than the statutory minimum wage in the non-agricultural sector where he/she is assigned.”

Sec. 2.  Section 24(A) of Republic Act No. 8424, as amended, otherwise known as the National Internal Revenue Code of 1997, is hereby further amended to read as follows: 

“Sec. 24.  Income Tax Rates. – 

“(A)” Rates of Income Tax on Individual Citizen and Individual Resident Alien of the Philippines. – 

“(1)  x  x  x

“x  x  x; and

“(c) On the taxable income defined in Section 31 of this Code, other than income subject to tax under Subsections (B), (C) and (D) of this Section, derived for each taxable year from all sources within the Philippines by an individual alien who is a resident of the Philippines.

“(2)  Rates of Tax on Taxable Income of Individuals.  – The tax shall be computed in accordance with and at the rates established in the following schedule:

“Not over P10,000 ………………………………………. 5%

“Over P10,000 but not over P30,000 ……………… P500 + 10% of excess over P10,000

“Over P30,000 but not over P70,000 ……………… P2,500 + 15% of the excess over P30,000

“Over P70,000 but not over P140,000 ……………. P8,500 + 20% of the excess over P70,000

“Over P140,000 but not over P250,000 ………….. P22,500 + 25% of the excess over P140,000

“Over P250,000 but not over P500,000 ………….. P50,000 + 30% of the excess over P250,000

“Over P500,000 ………………………………………….. P125,000 + 32% of the excess over P500,000

“For married individuals, the husband and wife, subject to the provision of Section 51(D) hereof, shall compute separately their individual income tax based on their respective total taxable income:  Provided, That if any income cannot be definitely attributed to or identified as income exclusively earned or realized by either of the spouses, the same shall be divided equally between the spouses for the purpose of determining their respective taxable income.

“Provided, That minimum wage earners as defined in Section 22(HH) of this Code shall be exempt from the payment of income tax on their taxable income:  Provided, further, That the holiday pay, overtime pay, night shift differential pay and hazard pay received by such minimum wage earners shall likewise be exempt from income tax.

“x  x  x.”

Sec. 3.  Section 34 (L) of Republic Act No. 8424, as amended, otherwise known as the National Internal Revenue Code of 1997, is hereby amended to read as follows:

“Sec. 34.  Deductions from Gross Income. – Except for taxpayers earning compensation income arising from personal services rendered under an employer-employee relationship where no deductions shall be allowed under this Section other than under Section (M) hereof, in computing taxable income subject to income tax under Sections 24(A); 25(A); 26; 27(A), (B) and (C); and 28(A)(1) there shall be allowed the following deductions from gross income:

“(A)  Expenses. – 

“x  x  x

“(L) Optional Standard Deduction. – In lieu of the deductions allowed under the preceding Subsections, an individual subject to tax under Section 24, other than nonresident alien, may elect a standard deduction in an amount not exceeding forty percent (40%) of his gross sales or gross receipts, as the case may be.  In the case of a corporation subject to tax under Sections 27(A) and 28(A)(1), it may elect a standard deduction in an amount not exceeding forty percent (40%) of its gross income as defined in Section 32 of this Code.  Unless the taxpayer signifies in his return his intention to elect the optional standard deduction, he shall be considered as having availed himself of the deductions allowed in the preceding Subsections.  Such election when made in the return shall irrevocable for the taxable year for which the return is made.  Provided, That an individual who is entitled to an claimed for the optional standard deduction shall not be required to submit with his tax return such financial statements otherwise required under this Code:  Provided, further, That except when the Commissioner otherwise permits the said individual shall keep such records pertaining to this gross sales or gross receipts, or the said corporation shall keep such records pertaining to this gross income as defined in Section 32 of this Code during the taxable year, as may be required by the rules and regulations promulgated by the Secretary of Finance, upon recommendation of the Commissioner. 

“(M) x  x  x. – 

“x  x  x.”

Sec. 4.  Section 35(A) and (B) of Republic Act No. 8424, as amended, otherwise known as the National Internal Revenue Code of 1997, is hereby amended to read as follows:

“Sec. 35.  Allowance of Personal Exemption for Individual Taxpayer. – 

“(A)  In General. – For purposes of determining the tax provided in Section 24(A) of this Title, there shall be allowed a basic personal exemption amounting to Fifty thousand pesos (P50,000) for each individual taxpayer.

“In the case of married individuals where only one of the spouse is deriving gross income, only such spouse shall be allowed the personal exemption.

“(B)  Additional Exemption for Dependents. – There shall be allowed an additional exemption of Twenty-five thousand pesos (P25,000) for each dependent not exceeding four (4).

“The additional exemption for dependents shall be claimed by only one of the spouses in the case of married individuals.

“In the case of legally separated spouses, additional exemptions may be claimed only by the spouse who has custody of the child or children: Provided, That the total amount of additional exemptions that may be claimed by both shall not exceed the maximum additional exemptions herein allowed. 

“For purposes of this Subsection, a ‘dependent’ means a legitimate, illegitimate or legally adopted child chiefly dependent upon and living with the taxpayer if such dependent is not more than twenty-one (21) years of age, unmarried and not gainfully employed or if such dependent, regardless of age, is incapable of self-support because of mental or physical defect.

“x  x  x”

Sec. 5.  Section 51(A)(2) of Republic Act No. 8424, as amended, otherwise known as the National Internal Revenue Code of 1997, is hereby further amended to read as follows:

“Sec. 51.  Individual Return. – 

“(A)  Requirements. – 

“(1)  Except as provided in paragraph (2) of this Subsection, the following individuals are required to file an income tax return:

“(a) x  x  x;

“x  x  x.

“(2)  The following individuals shall not be required to file an income tax return:

“(a) x  x  x;

“(b)  An individual with respect to pure compensation income, as defined in Section 32(A)(1), derived from sources within the Philippines, the income tax on which has been correctly withheld under the provisions of Section 79 of this Code:  Provided, That an individual deriving compensation concurrently from two or more employers at any time during the taxable year shall file an income tax return:

“(c) x  x  x; and

“(d)  A minimum wage earner as defined in Section 22(HH) of this Code or an individual who is exempt from income tax pursuant to the provisions of this Code and other laws, general or special.

“x  x  x.”

Sec. 6.  Section 79(A) of Republic Act No. 8424, as amended, otherwise known as the National Internal Revenue Code of 1997, is hereby further amended to read as follows:

“Sec. 79.  Income Tax Collected at Source. – 

“(A)  Requirement of Withholding. – Except in the case of a minimum wage earner as defined in Section 22(HH) of this Code, every employer making payment of wages shall deduct and withhold upon such wages a tax determined in accordance with the rules and regulations to be prescribed by the Secretary of Finance, upon recommendation of the Commissioner.

“x  x  x.”

Sec. 7.  Separability Clause.  – If any provision of this Act is declared invalid or unconstitutional, other provisions hereof which are not affected thereby shall continue to be in full force and effect. 

Sec. 8.  Repealing Clause. – Any law, presidential decree or issuance, executive order, letter of instruction, administrative order, rule or regulation contrary to or inconsistent with any provision of this Act is hereby amended or modified accordingly. 

Sec. 9.  Effectivity Clause.  – This Act shall take effect fifteen (15) days following its publication in the Official Gazette or in at least two (2) newspapers of general circulation. 

Approved:

PROSPERO C. NOGRALES
Speaker of the House of Representatives

MANNY VILLAR
President of the Senate

This Act which is a consolidation of House Bill No. 3971 and Senate Bill No. 2293 was finally passed by the House of Representatives and the Senate on May 28, 2008 and May 27, 2008, respectively.

MARILYN B. BARUA-YAP
Secretary General
House of Representatives

EMMA LIRIO-REYES
Secretary of the Senate

Approved: June 17, 2008

GLORIA MACAPAGAL-ARROYO
President of the Republic of the Philippines

Diabetasol

I have discovered a possible alternative for the very expensive Glucerna SR of Abbot that my parents drink. I saw this new product while shopping at Robinsons Supermarket. For those who are unaware, Glucerna SR is a meal replacement or food supplement for those with Type 2 Diabetes Mellitus.

This new product called, Diabetasol is quite similar because it claims to also offer controlled glucose release. According to my mom the taste of the product is quite different if one was used to only drinking Glucerna SR.

The image that you see above contains 180 grams and costs about PHP 200.  Glucerna SR can cost twice as much.  Available flavors are vanilla, cappuccino an chocolate.

Diabetasol is made by Kalbe Nutritionals, a division PT Sanghiang Perkasa of Jakarta, Indonesia.  It is distributed in the Philippines by Getz Bros. Philippines Inc.

Smart Money cards that start with 5299 are having problems.  Not all merchants are able to accept the new card series because Smart says it is quite new.

I encountered the problem when I was trying to add my Smart Money card to my PayPal account.  I received an error message that my card is already expired, however my card’s expiry date is on 06/2010

According to Smart Money, they’re are still working on the universal acceptance of the card by all Mastercard merchants.

–

The fact that Del Monte Philippines is using Endosulfan on its crops should be alarming.  Since this is a very toxic substance I am sure that we may have indirectly ingested this chemical by eating Del Monte produce.

Image by A Look Askancevia Flickr

I saw the question (in Filipino) on a discussion thread in an internet forum called Pinoyexchange.com.  It asked why Filipinos are not rich.  I don’t post there however I’d like to explore the idea of being rich.

How does one define “rich” or being “rich?”  Must we put a dollar figure to determine which individual is rich or not?

Anyway, for discussion’s sake, Merriam-Webster defines the word rich as, just to name a few, (1) having abundant possessions and especially material wealth, (2) having high value or quality, and (3) well supplied or endowed.

For me, being rich is really just a state of mind.  People equate being rich as being successful, content and having a high quality of life.  If people think that way then it is like saying money buys happiness, which seems very materialistic. People say they want to be rich but really all they want is to feel successful, content and enjoy a high quality of life.

If we define conentment and success just by being materially rich then the four to five billion of us who do not belong to the 10 million who are worth a million dollars or more are misarable but I’m sure we’re not.  Some very wealthy people can even be the most disturbed, the most disgusting and the most immoral.

The many Catholic religious people I know who took the vow of poverty and are celibate seem happy and content serving God and the needy.  My grand mother, a sari-sari store owner who died last year seemed happy and content to know that her children are living comfortably.

The truth is not every one will become a highly paid singer, actor, artist, dancer or athlete.  Neither will all of us become successful businessmen or entrepreneurs.  We must accept that fact however, not achieving those aforementioned is not terrible at all.

There is nothing wrong with creating and seeking material wealth as long as the means are legal, moral and ethical.  However, society and media should stop measuring a person’s success by their net worth. We should all strive to acheive a better quality of life for all.

In the end, people should really do some soul searching in finding out what really would make them happy, content and provide a high quality of life in order to feel “rich.”  In the end, when we all die people will remember us more on how we touched their lives and not how wealthy we were.

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New Zealand Herald Your Views: Have you moved to New Zealand? How do you like it?

The link above brings you to answers of New Zealanders and immigrants to New Zealand on their experience on moving to New Zealand. The reactions of people are mixed.

Man arrested in connection with murder of missing Korean tourist
By TV3 News - 3news.co.nz | 06/24/2008

Excerpt:

Police have arrested a man in connection with the murder of Korean backpacker Jae Hyeon Kim, who went missing in the South Island five years ago.

A 28-year-old Nelson fisherman will appear in Nelson District Court this afternoon and police said a 31-year-old Westport man was assisting them with their investigation.

Detective Inspector John Winter said Mr Kim’s death had now been confirmed with the Korean Consulate, which had contacted his family in Pusan, South Korea.

Man arrested in relation to murder of missing tourist
By NZ Herald Staff - The New Zealand Herald | 06/24/2008

Excerpt:

A man has been arrested today in connection with the murder of a backpacker who went missing five years ago.

Inquiry head Detective Inspector John Winter said a 28 year-old fisherman will appear in the Nelson District Court this afternoon and a 31 year-old is “helping police with inquiries”.

Mr Winter said: “Police engaged on the inquiry into missing Korean backpacker Jae Hyeon Kim have today arrested a man in connection with his murder.”

Tourist murder accused in custody
By One News - tvnz.co.nz | 06/24/2007

Excerpt:

The man charged with the murder of a Korean tourist five years ago has been remanded in custody.

Jae Hyeon Kim was visiting New Zealand for a year’s travel and adventure when he disappeared in 2003.

Earlier this month police re-opened the case after a tip-off led police to resume a search for him in scrubland just south of Westport.

Twenty eight-year-old Nelson fisherman, Shannon Flewellen, entered no plea when he made a brief appearance in the Nelson District Court on Tuesday afternoon.

May the arrest finally give the victim justice and the victim’s family some closure.

Items needed:
used clothes, canned goods, rice, bottled water, instant noodles, blankets, old/new clothes, sleeping mats/banig, cash donations

You can send these to the following organizations:

ABS-CBN Foundation - Sagip Kapamilya
13 Examiner Street, West Triangle, Quezon City
Telephone: (632) 411-4995

Cash Donations:
ABSCBN Foundation - Sagip Kapamilya
> Bank: BDO 
Account Number: 5630020111 (Peso)

GMA Kapuso Foundation
GMA Kapuso Center
Samar St. corner 11th Jamboroo St., Quezon City
Telephone: (632) 982-7777 ex. 9901-9905
Direct Line: (632 )928-9361 / 928-4299

Cash Donations:
GMA Kapuso Foundation
> Bank: United Coconut Planters Bank (UCPB)
Account Number: 16011112777 (Peso)
Account Number: 011603004276 (US Dollar) Swift Code/Routing: UCPB PH MM
> Bank: Metropolitan Bank and Trust Company (Metrobank)
Account Number: 3098510347 (Peso)
Account Number: 2098002442 (US Dollar) Swift Code/Routing: MBTC PH MM

Philippine National Red Cross
donations are accpeted in all Red Cross chapters in the Philippines please see:
http://www.redcross.org.ph/Site/PNRC/Chapters.aspx

Cash Donations (online via credit card):
http://www.redcross.org.ph (click on the link on Donate Now link on the left of website)

ABS-CBN News Channel reports that the Department of Social Welfare and Development (DSWD) has designated all Petron gas stations nationwide to accept donations of non-perishable goods.

I did not realize that my Tuesday post about Republic Act 9504 will be the most popular in my rather unknown blog. As of now, based on WordPress.com stats it has had 10,886 hits since it was published.

I am very surprised since I’ve never had any audience in this blog since I started to blog August 23, 2003 from a small cold damp room I rented in the Southern Hemisphere.

However, I realized that there are people who are so interested in that post that they copy my work without acknowledging me as the author.  Such an action is an infringement of my Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 Philippines License.  Some have even hotlinked my illustrations, its a good thing that these were watermarked.

UPDATE (6/28/2008): The Bureau of Internal Revenue (BIR) has recently published its draft Revenue Regulation for the implementation of Republic Act 9504 (RA 9504).  It is also conducting a public hearing July 1, 2008 (Tuesday), 8:00 to 12:00 Noon at the BIR National Training Center Auditorium, BIR National Office Compound, Quezon City.

You can download the draft here (via RapidShare). Source: BIR

UPDATE (7/10/2008): Full text of RA 9504 is now posted here. 

(If you are copying this entire post please credit the author and the blog.)

IT’S NOW A LAW–President Gloria Macapagal-Arroyo shows off a copy of the Tax Relief for Minimum WageEarners Act after she signed it into law Tuesday (June 17, 2008 ) at Malacanang’s Reception Hall. With the President in photo are (standing, first row, from left) Senator Manuel Mar Roxas, Senator Juan Ponce Enrile, and Francis Escudero, Reps. Ma. Amelita Villarosa, Edcel Lagman, and Mary Anne Susano, House Speaker Prospero Nograles, and Rep. Exequiel Javier and other legislators. (Rey Baniquet/OPS-NIB Photo)
Photo from the Office of the Press Secretary

President Gloria Arroyo has signed Republic Act 9504.  Its official title is, An Act Amending Sections 22, 24, 34, 35, 51 And 79 of Republic Act 8424, As Amended, Otherwise Known As The National Internal Revenue Code Of 1987.” This new law will exempt minimum wage earners from paying income tax, increasing tax exemption for all earners and additional exemptions for individuals with dependents/children.

This means that anyone earning at least the minimum wage in his/her region will not pay income tax.  The exemption extends to overtime pay, holiday pay, night shift differential and hazard pay of minimum wage earners only. Below is an quote from the law’s text:

All individuals will have a maximum of P50,000 annual income tax exemption.  This simply means that a person earning a gross annual salary of P180,000 (excluding the mandatory 13th month pay, which is tax free) per year will only pay income tax on the P130,000.  The new exemption is for all persons whether single, married or head of the family.  In the old tax code, RA 8284 it gave single individuals only a P20,000 exception, head of families P25,000 and married individuals P32,000.

For married couples, the new law increase the additional exemptions based on the number of their children. In the old law, each couple is allowed an exemption of P8,000 per child up to 4 children. The new law increases the exception to P25,000 per child up to 4 children.   Therefore, a family with four children will have a maximum exemption of P200,000.  It is a substantial increase from the previous P96,000 per family with four children.  In theory, a family with four children earning exactly or below P200,000 per year will not be subject to income tax.

The law simply means more take home or net pay for minimum wage earners and lower taxes for the middle class.  This is a much welcomed relief from the higher cost of living.

The government, however, estimates a revenue loss of about P14 billion per year.  With the increased spending due to higher net pay VAT collections may offset the loss in revenue.

[The new act also changes how professionals or non employees pay their tax.   I personally don't have knowledge on this particular item so I won't attempt to discuss it.]

The new law will benefit income earners from this year (2008 ) onwards.  To be more specific, RA9504 Section 9 states that, “This Act shall take effect fifteen (15) days following its publication in the Official Gazette or in at least two (2) newspapers of general circulation.”

Please contact your respective employers on how they will adjust your withholding tax payment for 2008.

Below is an illustration on how it affects take home/net pay:

Notes:

(1) The illustration will not apply to everybody’s case.  Please consult a licensed accountant, tax advisor or your human resources department to know how the new law will affect you specifically.

(2) The SSS, Pag-IBIG Fund and Philhealth contributions are based on a monthly salary of P15,000 per month.

(3) Statutory Exemption: In RA 8424 single income earners get only a P20,000 personal tax exemptions. RA 9504 grants a P50,000 tax exemption regardless of status.

(4) This is how the income tax is computed for single person as per RA8424 Chapter 3 Section 24 (see below):
Then: P22,500 + ((P150,550 - P140,000) x 25%)
Now: P8,500 + ((120,550 - P70,000) x 20%)

RA8424 Chapter 3 Section 24:

“The tax shall be computed in accordance with and at the rates established in the following schedule:

“Not over P10,000 –> 5%

“Over P10,000 but not over P30,000 –> P500+10% of the excess over P10,000

“Over P30,000 but not over P70,000 –> P2,500+15% of the excess over P30,000

“Over P70,000 but not over P140,000 –> P8,500+20% of the excess over P70,000

“Over P140,000 but not over P250,000 –> P22,500+25% of the excess over P140,000

“Over P250,000 but not over P500,000 –> P50,000+30% of the excess over P250,000

“Over P500,000 –> P125,000+34% of the excess over P500,000 in 1998

Please see the text of Senate Bill 2293 which has been signed into law and has become Republic Act 9504. Download/Read it here. Please check the Senate, House and Bureau of Internal Revenue(BIR) websites from time to time for the official text of the law.

Read the press release from the Office of the President here.

UPDATE (6/28/2008): The Bureau of Internal Revenue (BIR) has recently published its draft Revenue Regulation for the implementation of Republic Act 9504 (RA 9504).  It is also conducting a public hearing July 1, 2008 (Tuesday), 8:00 to 12:00 Noon at the BIR National Training Center Auditorium, BIR National Office Compound, Quezon City.

You can download the draft here (via RapidShare). Source: BIR

UPDATE (7/10/2008): Full text of RA 9504 is now posted here. 

Media Coverage:
Arroyo signs tax exemption measure for minimum wage earners (1:43 p.m.)
By Sun Star Network Online | June 17, 2008

Minimum wage earners get tax relief
By Michael Lim Ubac - Philippine Daily Inquirer | 06/18/2008

Tax relief package favors middle class, says Monsod
By Doris Dumlao - Philippine Daily Inquirer | 6/18/2008

GMA signs tax-exemption bill into law
By Mia M. Gonzales - Business Mirror | 6/18/2008

I came across this Canadian Broadcasting Corporation (CBC) documentary about the state of news media in the United States. By the way, the CBC is akin to the British Broadcasting Corporation (BBC).

I was shock to have learned of the biases allowed on American media. Such biases would not be even acceptable in other countries.

Yesterday, the bicameral conference of the Senate and the House of Representatives has approved the passage of the Personal Equity and Retirement Account (PERA) Act. It is similar to the Individual Retirement Account/Annuity (IRA) in the United States.

The bill is just waiting the signature of the President Arroyo to come into effect. Once enacted, it will allow individuals and married couples to contribute P100,000 and P200,000 per year, respectively. Contributors will be given up to five percent tax credit based on the amount of annual contributions.

Like the IRA, the PERA can be used to invest in a number of investment products like unit investment trust funds (UITFs), stocks, bonds, mutual funds and savings accounts. I speculate that exchange traded funds (ETFs) and real estate investment trusts (REITs) will also be allowed once the appropriate laws and regulations would be passed to enable them.

Individuals can open up to five accounts but with only one administrator.  Funds invested in a PERA will be free of taxes on dividends and interest provided that they will not be withdrawn until retirement age. Capital gains is not covered since in the Philippines capital gains for investment products (except for UITFs) are tax free.

The investment scheme will be regulated the the Bangko Sentral ng Pilipinas (Philippine Central Bank).  There are provisions in the law for heavy penalties and jail terms for erring fiduciaries.

Sources:
Lawmakers approve private pension schemes
By Bernard U. Allauigan - BusinessWorld/GMANews.tv | 11 June 2008

Bill on retirees’ pension fund passed at bicam
By Maila Ager - Inquirer.net | 10 June 2008 

Arrests over race-hate attacks on Asians [in New Zealand]
By Kiran Chuh - The Nelson Mail | Monday, 09 June 2008

Nelson police say two “skinheads” have been arrested following two unprovoked racist attacks in the central city, which left the victims terrified and shaken on Sunday.

Senior Constable Phil Wylie of Nelson police said the 23-year-old and 24-year-old Nelson men were both due to appear in the Nelson District Court Monday on a number of charges, following the assaults.

He described the two men, who were arrested Sunday, as skinheads. Read full story here.

Local [New Zealand] students fail discrimination test
By Martha McKenzie-Minifie - The New Zealand Herald | 15 May 2008

Three in four international students feel they have been discriminated against by local students, according to the results of a major study.

But the more than 2600 students from overseas to respond felt better about treatment they got from teachers and staff at institutions - and other international students. Read full story here. 

Last Saturday, Senator Hillary Clinton of New York has conceded and has ended her presidential campaign. She has also endorsed Senator Barack Obama from Illinois.

I am personally saddened by her defeat. I really believed that she would have been the better candidate and eventually the better president.

Related articles

• Live blog: Clinton ends her campaign; endorses Barack Obama [via Zemanta]
• So Long, Hillary, It’s Been a Blast [via Zemanta]
• Clinton Endorses Barack Obama [via Zemanta]
• Clinton drops out of U.S. presidential race [via Zemanta]
• Clinton Concession Speech [via Zemanta]
• FAQ: The Vice Presidency [via Zemanta]

While there is a move by government regulators, such as the National Telecommunications Commission (NTC) to lower the charges for domestic text messaging or SMS and voice calls is welcomed the government should also order telcos to lower international SMS charges.

As of the moment, if you are on a prepaid (prepay or pay-as-you-go, in other countries) with either Globe Telecom and Smart Communications you are paying a standard rate of PHP 15.00 per SMS. SunCellular charges PHP 9.00 and PHP 10.00 for its I-Text and I-Speak prepaid plans, respectively. [Rant about Sun Cellular below]  For those with postpaid (paid monthly) subscribers both Globe and Smart charge PHP 10.00 per SMS. Globe and Smart does have international SMS promos however these only cover certain countries.

International SMS is in important necessity for Filipinos especially now that almost everyone has a friend or a relative who is living or working overseas. It is not impossible for the telcos to earn billions from international SMS.

As you would see below big telcos overseas charge way below Globe, Smart and Sun. This can no longer be considered reasonable profit but unjustified greed.

The current rates are one of the highest in the region. From my internet search I have gathered the following data on how much some telcos around the region charge for prepaid plans (Click on the name of the telco to go to my source):

StarHub, M1 - Singapore
SGD 0.15/SMS sent (PHP 4.72)

BMobile, DST - Brunei
BND 0.20/SMS sent (PHP 6.13) 

DTAC - Thailand
THB 5.00/SMS sent (PHP 6.58 )

True Move - Thailand
THB 9.00/SMS sent (PHP 11.84) 

Telkomsel - Indonesia
IDR 600.00/SMS sent (PHP 2.74)

Excelcomindo - Indonesia
IDR 500.00/SMS sent (PHP 2.28 ) 

DiGi, Maxis - Malaysia
MYR 0.20/SMS sent (PHP 2.67)

Celcom - Malaysia
MYR 0.50/SMS sent (PHP 6.68 )

SmartTone - Hong Kong
HKD 3.00/SMS sent (PHP16.44)

PCCW Mobile - Hong Kong
HKD 1.50/SMS sent to the Philippines (PHP 8.22)
HKD 2.00/SMS sent to rest of the world (PHP 10.96)

Peoples - Hong Kong
HKD 0.50/SMS sent to the Philippines (PHP 4.93)
HKD 0.90/SMS sent to Indonesia, Malaysia, Saudi Arabia, Singapore, South Korea, Taiwan, UAE, India, Japan, Nepal, Pakistan, South Africa, Sri Lanka, Vietnam (PHP 2.74)
HKD 1.50/SMS sent to rest of the world (PHP 8.22)

Vodafone, Airtel - India
INR 5.00/SMS sent (PHP 5.07)

Mobily - Saudi Arabia
SAR 0.50/SMS sent (PHP 5.70)

As you would have noticed above, majority of the telcos in other countries charge far less than what is charged by Globe, Smart and Sun. Even places richer or slightly richer than the Philippines, we see telcos charging even less.

Now, about SunCellular, while it currently offers the cheapest standard international sms rate it cannot send SMS to a lot of overseas telcos. I have wasted a few hundred pesos just to realize that the sms I’m sending to friends in New Zealand were never received. SUNCELLULAR’S INTERNATIONAL SMS SERVICE IS BROKEN, AVOID!!!

[Currency conversion done on Google at the time of composing this post]

Image via Wikipedia

Just last Monday morning I just learned that Malaysia Airlines (MH) is offering Zero and discounted fares around South East Asia. This includes travel between Manila/Cebu to Kuala Lumpur/Kota Kinabalu.

Please check it out here. (Please read the terms and conditions fully before you hit submit!) The booking period ends Tuesday 3 June 2008 and travel period is from 1 July to 14 December 2008. I have booked tickets myself and I was only charged about USD 125.00

Here is the actual breakdown:

Philippines: Travel Tax = USD 37.20 (PHP 1620.00) each
Malaysia: Passenger Service Charge = USD 15.80 each
Surcharge = USD 71.90 each

[By the way, I called the MH office in Makati to verify if the taxes on my e-ticket really includes the PHP 1620 travel tax. The representative at reservations confirmed it.]

I’ve tried comparing my fare if I were to fly via Air Asia (AK) but I get a better deal with MH because the travel tax in already included in the total fare. Also, MH lands at NAIA (Ninoy Aquino International Airport) and the ultra modern KLIA (Kuala Lumpur International Airport) in Manila not unlike AK that uses DMIA (Diosdado Macapagal International Airport) and the KLIA - LCCT (Low Cost Carrier Terminal).

I cannot wait until I fly to KL!

[Disclaimer: No compensation received or will be received from MH by posting this on my blog.]