Resolutions

SRN-1266: Death Penalty Cases Involving Overseas Filipino Workers (OFW)

RESOLUTION DIRECTING THE APPROPRIATE SENATE COMMITTEES TO CONDUCT AN INQUIRY, IN AID OF LEGISLATION, ON THE DEATH PENALTY CASES INVOLVING OVERSEAS FILIPINO WORKERS AND THE DELAY IN THE DISPOSITION OF OVERSEAS-RELATED CASES, PARTICULARLY ILLEGAL RECRUITMENT AND TRAFFICKING

Whereas, under Republic Act No. 8042 otherwise known as the “Migrant Workers and Overseas Filipinos Act of 1995, it is a declared policy of the State shall, at all times, uphold the dignity of its citizens whether in country or overseas, in general, and Filipino migrant workers, in particular. Free access to the courts and quasi-judicial bodies and adequate legal assistance shall not be denied to any persons by reason of poverty. In this regard, it is imperative that an effective mechanism be instituted to ensure that the rights and interest of distressed overseas Filipinos, in general, and Filipino migrant workers, in particular, documented or undocumented, are adequately protected and safeguarded;

Whereas, in its effort to protect the overseas Filipino workers (OFWs), the Philippine government is committed to ensure accountability to and representation of migrant workers. According to the Department of Foreign Affairs, there are at least 805 Filipinos facing drug-related cases worldwide (as of September 2014). Most of the cases are in Asia at 341, 244 in the Middle East and Africa and 116 in the United States, and 104 in Europe;

Whereas, based on data by the DFA, 45 OFWs are on death row, but their death sentences are not yet final as the cases are on various stages of appeal. The common occurrence is they get arrested and undergo investigation and trial without any representation or legal counsel from the embassy. Because of this, they are deprived of due process and go straight to jail without any legal assistance or intervention from the Philippine government;

Whereas, from January 2011 to August 2012, only 196 OFWs have received help from the DFA’s legal assistance fund and attributed this to the limitations under Sections 18 and 19 of Republic Act No. 10022 which amends the Migrant Workers and Overseas Filipinos Act of 1995.” The Legal Assistance Fund shall be used exclusively to provide legal services to migrant workers and overseas Filipinos in distress in accordance with the guidelines, criteria and procedures promulgated in accordance with the law. The expenditures to be charged against the Fund shall include the fees for the foreign lawyers to be hired by the Legal Assistant for Migrant Workers Affairs to represent migrant workers facing charges or in filing cases against erring or abusive employers abroad, bail bonds to secure the temporary releases and other litigation expenses;

Whereas, funds for legal assistance for OFWs in distress have been slashed since 2010, even if at least P52 million in legal funds for OFs were unused since 2011. On the other hand, from 2010 to 2014, the average OFW remittances per year amount to $22 billion according to the Bangko Sentral ng Pilipinas (BSP). Based on news reports, Foreign , . Affairs Secretary Albert del Rosario said that only P7,8 million ($174,000) of the P60- million legal assistance fund ($1.34 million) (LAF) available for 2012 was utilized. The average annual combined budget of the DFA and Department of Labor and Employment (DOLE) for the protection of OFWs is only $202 million. The annual budget allotted for the protection of OFWs is no even one percent of the total remittances they send each year;

Whereas, several studies had been conducted to address the problems of migrant workers. Countries of destination should consider providing technical and financial assistance in capacity-building projects. They also should consider developing mechanisms to protect the welfare of temporary workers by signing bilateral agreements or memorandums of understanding (MOUs) with countries of origin that explicitly address workers’ protection. Although the Philippines has signed 12 bilateral agreements with destination countries, these MOUs and agreements are merely generalities and guidelines on migrant workers; they do not give bases for enforcing compliance on wages and other terms of employment!

Whereas, there is a need to review the existing rules and regulations in order to protect migrant domestic workers. The government agencies concerned should be able to provide better recruitment regulation and improve the working conditions of the migrant workers. Moreover, it is crucial to provide legal aid and representation to distressed overseas Filipino workers, To this end, the government will be able to improve labor migration policies, administration and practices;

NOW, THEREFORE, BE IT RESOLVED, as it is hereby resolved to direct the appropriate Senate committees to conduct an inquiry, in aid of legislation, on the death penalty cases involving overseas Filipino workers and the delay in the disposition of overseas-related cases, particularly Illegal Recruitment and Trafficking.

 

 

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SRN-1267: Bureau of Internal Revenue

RESOLUTION ’15 IIPR 13 r 5 :36 DIRECTING THE APPROPRIATE SENATE COMMITTEES TO CONDUCT AN INQUIRY, IN AID OF LEGISLATION, ON THE PROPER IMPLEMENTATION OF THE REVENUE REGULA TlONS AND MEMORANDUM CIRCULARS ON ELECTRONIC FILING AND PAYMENT SYSTEM BY THE BUREAU OF INTERNAL REVENUE

Whereas, it is settled in jurisprudence that the power to tax is an attribute of sovereignty and as such, inheres in the State. Tax statutes are strictly construed against the taxing authority. As such, tax laws may not be extended by implication beyond the clear import of their language, nor their operation enlarged so as to embrace matters not specifically provided;

Whereas, the Bureau of Internal Revenue (BIR) issued Revenue Regulation (RR) 5- 2015 last 17 March 2015. Said revenue regulation amends RR No. 6-2014, which requires all non-eFPS taxpayers enumerated in Section 4 of RR 6-2014, to mandatorily use the eBIR Forms facility in electronically submitting and filing all the tax returns. Taxpayers shall receive a system-generated notification email and filing reference number, which shall be submitted to the authorized agent bank for the payment of taxes due;

Whereas, notwithstanding that the revenue regulation was issued less than a month before the 15 April 2015 deadline, failure to comply with RR 5-2015 shall result to a penalty of P1,000.00 per return and 25% surcharge of the tax due to be paid for filing in the wrong venue. With such short notice, the mandated taxpayers may not have ample time to adjust their systems and processes to be able to comply with the mandatory requirement to file and pay electronically;

Whereas, the stiff penalties imposed on those who are unable to comply with the said regulation seems to be excessive and unjustly burdensome for taxpayers. The use of “wrong venue filing” as basis for this penalty, pursuant to Section 248(A)(2) of the National Internal Revenue Code, seems unreasonable given that taxpayers who pay manually would be physically at their assigned BIR office;

Whereas, on 30 March 2015, BIR issued Revenue Memorandum Circular (RMC) 14- 2015 which provides for the guidelines in filing, receiving and processing using the eBIR Forms and eFPS. Those who are not mandated to use eFPS/eBIR Forms and those who have not opted to file electronically shall follow the existing procedures on manual filing. Taxpayers mandated to use eBIR forms and file electronically who had already filed manually, are mandated to re-file electronically on or before 15 April 2015. Those who refile electronically on or before 15 April 2015 shall not be subject to the penalties;

Whereas, on 10 April 2015, another revenue memorandum circular (RMC 18-2015) was issued by the BIR wherein “No Payment” returns filed manually shall be re-filed electronically on or before 15 June 2015. The penalties imposed under RR No. 5-2015 on filing using a mode/venue different from that prescribed shall be waived provided that the subject income tax returns have been re-submitted electronically in the BIR’s systems on or before 15 June 2015.

Whereas, based on numerous complaints from the taxpayers, the issuance of the revenue regulations and the memorandum circular has caused confusion regarding the proper implementation of the revenue regulations and the memorandum circular. Problems also arose such as, not all mandated taxpayers are computer-literate and some taxpayers have reported encountering delays or technical issues enrolling into the BIR online system. Not only did taxpayers not have sufficient lead time to comply with the new requirements, BIR employees from the different RDOs were not familiar with the process and failed to correctly answer the queries of the taxpayers;

Whereas, there is confusion as to whether taxpayers may continue to use the pre-printed BIR forms, or must use returns generated by the eBIR Forms package. BIR National Officials opined that taxpayers who are not mandated to file electronically may continue to use pre-printed forms, but may also opt to use returns generated electronically. However, BIR officials at the regional and district level insist that all taxpayers must use returns generated by the eBIR Forms package. The tax bureau should be able to balance its power to tax vis-a-vis the duty of the taxpayers to properly and correctly file the tax returns and accordingly, pay the taxes due to the government;

NOW, THEREFORE, BE IT RESOLVED, as it is hereby resolved to direct the appropriate Senate committees to conduct an inquiry, in aid of legislation, on the proper implementation of the revenue regulations and memorandum circulars on Electronic Filing and Payment System by the Bureau of Internal Revenue.
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SRN-1268: Youth Unemployment

RESOLUTION DIRECTING THE APPROPRIATE SENATE COMMITTEES TO CONDUCT AN INQUIRY, IN AID OF LEGISLATION, ON THE INCREASE OF YOUTH UNEMPLOYMENT AND THE NEED TO CREATE EMPLOYMENT OPPORTUNITIES AND FORMULATE PROGRAMS TO ADDRESS THE NEEDS OF YOUNG FILIPINOS, INCLUDING THE UNEMPLOYED YOUTH, WORKERS IN VULNERABLE EMPLOYMENT AND YOUNG ENTREPRENEURS

Whereas, the 1987 Philippine Constitution provides that the State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment opportunities for all. The State also recognizes the role of the youth in nation building and shall promote and protect their physical, moral, spiritual, intellectual and social well-being;

Whereas, according to the Philippine Statistics Authority (PSA) and the National Statistics Office (NSO), the unemployment rate increased to 6.6 percent in January 2015, from 6 percent as reported in October 2014. The employment rate is estimated at 93.4 percent in January 2015, up from 92.5 percent last 2014. There were 37.4 million employed people: 54.6 percent worked in the services sector, 29.5 in agriculture and 15.9 percent in industry sector;

Whereas, the age bracket from 15 to 24 years old accounted for 49.1 percent of . total unemployed, while the age group 25 to 34 accounted for 31.6 percent. This is estimated at around 8.5 million youth unemployed, a slight increase from last year, which is 8.2 million. By educational attainment, 20.4 percent were college graduates, 13.0 percent were college undergraduates, and 34.4 percent were high school graduates. Underemployment has marginally decreased this year, a decrease of 42,000 underemployed Filipinos this year, but that is still 6.9 million Filipinos underemployed;

Whereas, based on the data by the PSA, the quality and type of employment also remains a challenge. Employment growth is greatly attributed to the increased number of part time employment, alongside the increase in self-employment (407,000 new selfemployed workers) and unpaid family workers (292,000). Together, they contributed to 68.3% of those employed. However, this type of employment is considered vulnerable and thus, marginally contributory to the overall growth of the economy;

Whereas, quite a number of policy initiatives had been introduced to address youth unemployment problems including provision of labor market information, skills training and upgrading, online job-matching and improving entrepreneurship skills. Through the years, there has been mismatch between the available jobs and available skills in the labor force, which is considered as one of the main reasons for youth unemployment. There are employment opportunities but the young people are not fully equipped to handle the jobs available;

Whereas, there is a need to address the lack of capacity, coordination and collaboration among the relevant government offices and institutions such as the Department of Labor, Department of Education, Commission on Higher Education, the Technical Education and Skills Development Authority and the National Economic Authority, among others. In order to strategically and significantly promote job generation for young Filipinos and propose interventions on economic policies, there should be a coordinated policy framework to address the challenges of youth unemployment;

NOW, THEREFORE, BE IT RESOLVED, as it is hereby resolved to direct the appropriate Senate committees to conduct an inquiry, in aid of legislation, on the increase of youth unemployment and the need to create employment opportunities and formulate programs to address the needs of young Filipinos, including the unemployed youth, workers in vulnerable employment, and young entrepreneurs.
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SRN-100: National Convergence and Strategy and Policy

A RESOLUTION DIRECTING THE COMMITTEE ON TRADE AND COMMERCE TO CONDUCT AN INQUIRY, IN AID OF LEGISLATION, ON THE NATIONAL CONVERGENCE STRATEGY AND POLICY FOR ADDRESSING OBSTACLES TO ENTERPRISE DEVELOPMENT TOWARDS THE URGENT REALIZATION OF JOBCREATING, BROAD-BASED GROWTH THAT BENEFITS ALL FILIPINOS

WHEREAS, the Philippines has been recognized globally as Asia’s “rising star” and I . “breakout nation” because of its strong economic performance and high growth amidst the global economic slowdown, outpacing all other Asian countries, including China, during the first quarter of 2013;

WHEREAS, the country continues to experience high unemployment and poverty rates, despite its high and fast-paced growth, and the strong economy continues to be exclusive and beneficial to only a few;

WHEREAS, the most pressing challenge to government today is how to effectively leverage the country’s growth momentum to positively impact on the lives of the majority of the Filipinos, who are in dire need of decent jobs, sustainable livelihood and income opportunities;

WHEREAS, the President’s 2013 State of the Nation Address has articulated the present government’s commitment to achieving inclusive growth in the country, and recognizes that job creation is key to translating high growth to sustained and broad-based growth;

WHEREAS, studies show that job creation for inclusive growth can be greatly facilitated by the promotion of enterprise development, particularly through strategies and programs to encourage the development of micro enterprises, small and medium enterprises (SMEs), and inclusive businesses particularly in the country side, where most of the poor are situated;

WHEREAS, research has revealed that one of the most significant barriers to enterprise development is the poor regulatory environment for doing business in the country, as reflected in the Philippine’s low ranking of 138th place among the 150 economies surveyed in the World Bank’s Ease of Doing Business Index in 2013;

WHEREAS, another major barrier to enterprise development, especially for SMEs, is the lack of access to credit and financing, given the restrictive, conventional, collateral-based requirements of banks and limited financing alternatives;

WHEREAS, other challenges encountered by SMEs include lack of access to markets, lack of technology support, poor incentives, and poor investments in infrastructure especially in the countryside;

WHEREAS, there is a need for government, the private sector, development partners and concerned citizen groups to coordinate and ensure a convergence of efforts and strategies to address these concerns and overcome the challenges that have hampered enterprise development in the country.

NOW, THEREFORE, BE IT RESOLVED, as it is hereby resolved by the Senate of the Philippines to direct the Committee on Trade and Commerce to conduct an inquiry, in aid of legislation, on the national convergence strategy and policy to overcome the obstacles to enterprise development towards the urgent realization of job-creating and broad-based growth that benefits all Filipinos.
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SRN-101: Rule X of Senate Rules

RESOLUTION TO PROVIDE FOR A SENATE COMMITTEE ON TRADE, COMMERCE, AND ENTREPRENEURSHIP AND DEFINING ITS JURISDICTION, AMENDING FOR THE PURPOSE SECTION 13 (9) RULE X OF THE SENATE RULES

Whereas, the Committee on Trade and Commerce is one of the regular standing committees of the Senate to address, among others matters relating to domestic and foreign trade and private corporations;

Whereas, the conduct of trade and commerce in the Philippines, both domestic and foreign, involves not only private corporations but also small and medium enterprises run by private individuals;

Whereas, the evolution of business and entrepreneurial practice, both domestic and foreign, has opened up new platforms and models of conducting business, trade, and commerce, including but not limited to: e-commerce sites, outsourced services delivered through Internet and communications technologies (ICT), telecommuting, home-based enterprises, social enterprises, and other models not formerly covered by the Senate Committee on Trade and Commerce, as earlier defined;

Whereas, in recognition of the fact that over 90 percent of trade and commerce in the Philippines is conducted through micro, small, and medium enterprises (MSMEs); and, moreover, of the fact that entrepreneurs have unique concerns apart from those of private corporations;

Whereas, in recognition of the fact that a new business model called the “social enterprise” has arisen and has taken root in the Philippines, fusing traditional for-profit goals and mission-oriented objectives of uplifting Filipino communities as an integral part of business operations and strategy;

Whereas, the proposal to provide for a Committee on Trade, Commerce and Entrepreneurship will be consistent with the Senate Rules that describe the committee to have jurisdiction over significant matters and a wide array of issues on trade, commerce, and business, and the concerns of both corporations and MSMEs alike.

NOW, THEREFORE, BE IT RESOLVED, as it is hereby resolved to provide a Senate Committee on Trade, Commerce and Entrepreneurship and defining its jurisdiction, amending for the purpose

Section 13 (9) Rule X of the Senate Rules to read as follows: “Section 13. After the organization of the Senate in the manner provided in Rule IX, the following permanent committees shall be formed, with the duties and general jurisdiction specified hereunder:

1) Committee on Rules. — xxx

2) Committees on Ethics and Privileges – xxx

xxx

xxx

xxx

9) Committee on Trade, Commerce and Entrepreneurship – Nine (9) members. All matters relating to domestic and foreign trade and private corporations; micro, small, and medium enterprises (MSMEs): social enterprises; the promotion of entrepreneurship and the regulation of entrepreneurial practice; patents, copyrights, trade names and trademarks; standards, weights, measures and designs; quality control; control and stabilization of prices of commodities; consumer protection; handicraft and cottage industries; and marketing of commodities.

xxx”
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SRN-105: Bureau of Immigration

RESOLUTION DIRECTING THE APPROPRIATE SENATE COMMITTEES TO CONDUCT AN INQUIRY, IN AID OF LEGISLATION, INTO THE QUESTIONABLE CONDUCT OF OFFICIALS OF THE BUREAU OF IMMIGRATION ON THE PROFILING OF FILIPINO PASSENGERS WHICH RESULTS IN DISCRIMATION AND IMPAIRMENT OF RIGHT TO TRAVEL

Whereas, under the Philippine Constitution, the liberty of abode and of changing the same within the limits prescribed by law shall not be impaired except upon lawful order of the court. Neither shall the right to travel be impaired except in the interest of national security, public safety, or public health, as may be provided bylaw;

Whereas, impositions against the right to travel should not be construed to give the officers and employees of the Bureau of Immigration the opportunity to profile a person merely based on physical attributes. While it is true that passengers entering some terminals are questioned, Filipinos should not be treated differently based mainly on physical appearance. Immigration officers may ask about the destination of the passenger or the purpose of their trip. However, passengers not suspected of any violation of laws, rules or regulations may not answer questions from immigration officers about their personal business;

Whereas, the government is duty-bound to protect its citizens from discrimination on the basis of physical attributes, ethnicity, religion, gender and employment, among others. While prejudices and biases may not be simply and instantaneously purged, government officials should set an example in the discharge of their regular duties and functions;

Whereas, based on reports, some Filipino passengers departing from the Philippines are being singled out by immigration and airport officials based on their physical appearance. They are being asked to step aside without any explanation on their exclusion from the other departing passengers;

Whereas, there is a need to strengthen the immigration guidelines in order to provide a mechanism in the profiling of Filipino passengers to avoid negative stereotypes of the physical appearance resulting in discrimination. Most of the countries recognize the Screening of Passengers by Observation Techniques (SPOT) program that subjects some passengers to questioning by behavioral detection officers. This measure should be used as a tool in reducing discrimination and not as an obstacle for passengers who reside in the Philippines.

NOW, THEREFORE, BE IT RESOLVED, as it is hereby resolved to direct the appropriate Senate Committees to conduct an inquiry, in aid of legislation, into the questionable conduct of officials of the Bureau of Immigration on the profiling of Filipino passengers which results to discrimination and impairment of right to travel.
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SRN-229: Inquiry, Pre-need Companies

RESOLUTION DIRECTING THE APPROPRIA TE SENATE COMMITTEES TO CONDUCT AN INQUIRY, IN AID OF LEGISLA TION, ON THE EXISTING POLICIES REGARDING THE ESTABLISHMENT AND REGULATION OF PRE-NEED COMPANIES IN ORDER TO MAINTAIN A SOUND AND EFFICIENT INSURANCE SYSTEM

Whereas, it is a declared policy of the State to regulate the establishment of pre-need companies and to place their operation on sound, efficient and stable basis to derive the optimum advantage from them in the mobilization of savings and to prevent and mitigate, as far as practicable, practices prejudicial to public interest and the protection of plan holders;

Whereas, Republic Act No. 9829 otherwise known as the “Pre-need Code of the Philippines” was approved on 03 December 2009, transferring the primary and exclusive supervision and regulation of all pre-need companies to the Insurance Commission;

Whereas, the Department of Finance (DOF) instructed the Insurance Commission to settle within the year all issues related to the conditions of at least thirty (30) distressed pre-need companies, aside from the Prudential Plans, Inc. Further, the pre-need industry must increase its capital base to avoid cases similar to College Assurance Plan (CAP) and Pacific Plans, Inc. according to DOF. To date, the Insurance Commission will undertake a major review of all the pre-need companies that have been placed under conservation, rehabilitation or liquidation;

Whereas, thousands of Filipinos lost their hard-earned money as they had purchased pre-need plans. In the recent collapse of a pre-need company, Prudential Plans, Inc. was supposed to be an insurer in times of financial distress or other difficulties and protector of the plan holders’ interest. Instead, it left the plan holders empty-handed in their time of need;

Whereas, there is a need to review the existing policies of pre-need companies because the public should be provided with adequate information to enable them to make calculated decisions in their personal and business risk management. Though elimination of all the risks,is beyond the industry’s control, it is of public interest that there should be sound governance and effective risk management by insurers;

NOW, THEREFORE, BE IT RESOLVED, as it is hereby resolved to direct the appropriate Senate Committees to conduct an inquiry, in aid of legislation, on the existing policies regarding the establishment and regulation of pre-need companies in order to maintain a sound and efficient insurance system.
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SRN-557: Commending Mr. Robert F. Lopez

RESOLUTION COMMENDING MR. ROBERT F. LOPEZ FOR EXEMPLIFYING WORLD-CLASS FILIPINO TALENT AND FOR HIS OUTSTANDING CONTRIBUTION TO THE INTERNATIONAL MUSIC INDUSTRY

WHEREAS,Filipino-American composer, Mr. Robert F. Lopez, was awarded “Best Original Song” at the prestigious 86th Academy Awards held on March 2, 2014, at the Dolby Theatre in Los Angeles, for the original song composition, “Let It Go,” from Disney’s 2013 animated feature film, “Frozen;”

WHEREAS, the Tony Awards for Best Original Score for the Broadway musical, “Avenue Q,” was given to Mr. Lopez in 2004. To further bolster his excellence in the arts, Mr. Lopez was awarded “Best Book of a Musical” and “Best Original Score” for “The Book of Mormon” in 2011. He was also awarded Grammy’s “Best Musical Theater Album Award” for “The Book of Mormon: Original Broadway Cast Recording” ‘in 2012;

WHEREAS, Mr. Lopez was cited by the Daytime Emmy Awards for his outstanding achievement in music direction and composition for the television series, “The Wonder Pets'” in 2008 and 2010. His dedication to contribute to the welfare of children has been consistently recognized by the international award giving bodies, bringing pride and’ fostering solidarity not only in the Philippines but throughout the world;

WHEREAS, Mr. Lopez is presently the youngest and only the 12th person to earn a place in the elite circle of people who have won the prestigious Emmy, Grammy, Oscar and Tony awards in their lifetime. Through his demonstration of hard work and exemplary talent and ingenuity, Mr.Lopez serves as an inspiration for Filipinos around the world to continue pursuing excellence, creativity and innovation in their respective fields;

RESOLVED, AS IT IS HEREBY RESOLVED, by the Senate of the Philippines, to commend and congratulate Mr. Robert F. Lopez for exemplifying world-class Filipino talent and for his outstanding contribution to the international music industry.
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SRN-563: BIR Revenue Memorandum Cicular (RMC) No. 7-2014

RESOLUTION DIRECTING THE APPROPRIATE SENATE COMMITTEES TO CONDUCT AN INVESTIGATION, IN AID OF LEGISLATION, ON THE ISSUANCE OF BIR REVENUE MEMORANDUM CIRCULAR (RMC) NO. 7-2014 TO CLARIFY ISSUES ON THE TAXATION AND COMPLIANCE REQUIREMENTS OF MARGINAL INCOME EARNERS PURSUANT TO REVENUE REGULATION 7-2012 AND REVENUE REGULATION 11-2000

Whereas, the Bureau of Internal Revenue (BIR) issued on 05 February 2014 Revenue Memorandum Circular (RMC) No. 7-2014 to clarify the issues related to the registration and tax compliance of Marginal Income Earners (MlEs) pursuant to Revenue Regulation (RR) No. 7-2012 and RR No. 11-2000. According to BIR, the issuance of the circular is part of the BIR’s campaign to plug leakages from tax evasion and to boost state coffers;

Whereas, under RMC No. 7-2014, a .Marginal Income Earner (MIE) is an individual not deriving compensation as an employee under an employer-employee relationship and who is self-employed and’ deriving gross sales or receipts not exceeding One Hundred Thousand Pesos (Php 100,000.00) in any twelve-month period. Moreover, the activities of such MlEs should be principally for subsistence or livelihood.

Whereas, under RMC No. 7-2014, the BIR’ clarified that MlEs include agricultural growers/producers (farmers/fishermen) selling directly to ultimate consumers, small sari-sari stores, small carinderias or “turo-turos,” and drivers/operators of a single unit tricycle. It categorically excludes licensed professionals, consultants, artists, sales agents, brokers and others similarly situated, including all others whose income have been subjected to withholding tax;

Whereas, under RMC No. 7-2014, MlEs are exempted from payment of the Annual Registration Fee (ARF) and from payment of business taxes such as Value Added Tax or any Percentage Tax. However, the BIR still holds MlEs liable for payment of Income Tax.

Whereas, under RMC No. 7-2014, the BIR additionally subjects MlEs to a range of registration and compliance requirements, including the registration of the MlEs with the BIR, registration of Book of Accounts, issuance of registered principal receipts/sales invoices, and the filing and payment of their Annual Income Tax Return similar to other self-employed individuals.

Whereas, the registration and compliance requirements as provided by RMC No. 7-2014 seem to be unreasonable and excessively burdensome considering the level of income that MlEs are earning as well as their capacity to comply with these complicated requirements. These requirements were not,rart of RR No. 11-2000, the original circular defining MlEs. Under RR No. 11-2000, MlEs shall be given the opportunity to register with the BIR, with no charge and without complying with the usual documentary requirements, such as maintenance of books of accounts and issuance of registered receipts/invoices.

Whereas, the cap of One Hundred Thousand Pesos (Php 100,000.00) per year on gross sales or receipts for individuals to be considered as MlEs, as stated in RMC No. 7-2014, seems unreasonably low and tends to exclude many individuals who are conducting activities principally for subsistence and livelihood. One Hundred Thousand Pesos (Php 100,000.00) per year of gross sales or receipts is equivalent to Eight Thousand Three Hundred Thirty Three Pesos and Thirty Three Centavos (Php8,333.33) per month or Two Hundred Seventy Three Pesos and Ninety Seventy Centavos (Php 273.97) in gross sales or receipts per day.

Whereas, the cap of One Hundred Thousand Pesos (Php 100,000.00) per year on gross sales or receipts implies that MlEs should be earning not more than Twenty Thousand Pesos (Php 20,000.00) per year or not more than Fifty Four Pesos and Seventy Nine Centavos (Php 54:79) per day, assuming a twenty percent (20%) profit margin and not yet deducting their operating costs. In effect, MlEs would only include individuals situated way below the poverty line, those who earn less than Ninety Pesos (Php 90.00) per day. Estimated earnings of those currently considered as MlEs would also be way below the income of individuals considered as Minimum Wage Earners (MWEs), which is between One Hundred Forty Thousand and One Hundred Seventy Thousand Pesos (Php 140,000 to P170,000+) per year.

Whereas, the cap on gross sales or receipts of MlEs of One Hundred Thousand (Php 100,000) provided by RMC No. 7-2014 has been carried over from RR No. 11-2000, the original circular defining MlEs. Under the said revenue regulation issued in year 2000, “MIE shall refer to those individuals whose business do not realize gross sales or receipts exceeding One Hundred Thousand Pesos (Php 100,000.00) in any twelve-month period.” Over a decade later, an upward adjustment of this cap is in order due to a variety of factors, notably inflation.

Whereas, granting income tax exemption to the Minimum Wage Earners (MWE) while subjecting the Minimum Income Earners (MlE) to income tax is contrary to the equal protection clause under the Constitution, there being no substantial distinction between them in terms of earning capacity. Both of these classifications of workers belong to the same class, a class with barely enough money to satisfy even their most basic and immediate needs.

Whereas, imposing income tax on agricultural growers/producers (farmers/fishermen) selling directly to ultimate consumers, small sari-sari stores, small carinderias or “turo-turos”, drivers/operators of a single unit tricycle and such is tantamount to confiscating what little income they are able to make on a daily basis. Such provision seems counter-productive and contrary to the nation’s thrust towards a better economy that will benefit the majority of our people.

Whereas, there is a need to revisit the provisions of the circulars issued by the BIR and other pertinent laws in order to afford equal protection and benefits to Marginal Income Earners. Further, the. government should look into more effective tax measures and simpler compliance requirements to encourage micro entrepreneurs to conduct/engage in business. Through the initiatives of the tax authority, the country will able to provide better productivity incentives, promote a more just and equitable distribution of the tax burden, and ultimately, better address the government’s inclusive ~rowth agenda.

NOW, THEREFORE, BE IT RESOLVED, as it is hereby resolved to direct the appropriate Senate Committees to conduct an investigation, in aid of legislation, on the issuance of BIR RMC No. 7-2014 to clarify issues on the taxation and compliance requirements of Marginal Income Earners pursuant to RR 7-2012 and RR 11-2000.
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SRN-564: Steel Products and Rampant Smuggling of Imported Steel Products

RESOLUTION DIRECTING THE COMMITTEE ON TRADE, COMMERCE AND ENTREPRENEURSHIP ; TO CONDUCT AN INVESTIGATION, IN AID OF LEGISLATION, ON THE ALLEGED PROLIFERATION OF UNCERTIFIED AND SUBSTANDARD STEEL PRODUCTS AND THE RAMPANT SMUGGLING OF IMPORTED STEEL PRODUCTS, WITH THE END VIEW OF AMENDING PROVISIONS OF REPUBLIC ACT NO. 7103, OTHERWISE KNOWN AS “THE IRON AND STEEL INDUSTRY ACT” AND OTHER PERTINENT LAWS

Whereas, under Republic Act No. 7103, it is hereby declared a policy of the State to promote industrialization through the immediate establishment of an integrated iron and steel industry that makes full and efficient use of the country’s human and natural resources taking into consideration its critical impact on employment, indigenous resources utilization, foreign exchange and balance of payments position;

Whereas, the State shall provide impetus for the growth, promotion and development of the iron and steel industry as the springboard and basis for launching Philippine industrialization. The intent of the law is to provide a framework for a rational iron and steel program consistent with the requirements of the government’s environmental protection program. It shall provide measures to strengthen the demand and supply structures primarily through the establishment of an integrated iron and steel plant, which is technologically and economically efficient, internationally competitive and contributing to industrialization and accelerated development of the country;

Whereas, in the Philippines, reinforcing steel bars (Rebars) are consumed more than any other steel product. All building and infrastructures use rebars to ensure strength and integrity in their concrete foundations and structures. Rebars are covered in the Philippine National Standards 49 (PNS49) as mandatory because the product is critical to public safety. In accordance with PNS49, rebars should be manufactured from proper steel billets. However, in the past years, it has been reported that there has been a visible proliferation of substandard rebar in the market place;

Whereas, the Philippine Iron & Steel Institute (PIS!) and Steel Angles, Shapes & Sections Manufacturers Association of the Philippines, Inc. (SASSMAPI) conducted several test buy operations in Bulacan while the Consumer Protection Group of the Department of Trade and Industry (DT!) conducted market monitoring and standards enforcement activities on hardware stores reported to be carrying substandard steel products. Technical experts from the PISI and SASSMAPI assisted DTi in conducting the standards enforcement and found that substandard steel products are being sold in hardware stores located in Caloocan City. The test buys and standards enforcement operations resulted in the confiscation of thousands of pieces of uncertified and substandard reinforcement and angle bars;

Whereas, the substandard steel products had no Import Commodity Clearance (ICC) or PS Mark, thus raising suspicions that said products are smuggled into the Philippine market by unscrupulous traders. The other confiscated products had PS Mark but failed the standard test conducted on them

Whereas, in the aftermath of the disastrous earthquake that caused severe damage in the provinces of Cebu and Bohol, a technical team was sent by PISI to inspect the damages brought about by the earthquake. They discovered that there was widespread use of substandard construction materials. Based on their inspection, with the exception of the old churches that understandably used primitive engineering techniques, disproportionately more public structures were damaged. Majority of the damaged structures like residential houses, public markets and bridges, used substandard bars and angle bars in their construction;

Whereas, setting aside bureaucratic inefficiency and corruption, there is a need to integrate the iron and steel industry because steel is a basic component of industrialization and thus, considered a strategic sector of the national economy. More importantly, the continued sale of uncertified and substandard steel products poses a grave threat to Filipino lives. With climate change as a complex ‘environmental, cultural and political phenomenon, the production and integration of steel production should be able to significantly contribute to the effort to correctly and effectively address the safety of the public when another disaster strikes the country;

NOW, THEREFORE, BE IT RESOLVED, as it is hereby resolved to direct the Committee on Trade, Commerce and Entrepreneurship to conduct an investigation, in aid of legislation, on the alleged proliferation of uncertified and substandard steel products and the rampant smuggling of imported steel products, with the end view of amending provisions of Republic Act No. 7103, otherwise known as “The Iron and Steel Industry Act” and other pertinent laws.
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