Philippine government to suspend excise taxes on petroleum products if oil hits $80

The new duties on fuel – and other items such as cars, tobacco and sugary drinks – are part of the Tax Reform for Acceleration and Inclusion law which took effect at the start of the year. (AFP)
Updated 05 June 2018
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Philippine government to suspend excise taxes on petroleum products if oil hits $80

DUBAI: The Philippine government will suspend the collection of excise taxes on petroleum products if global crude oil prices hit $80 a barrel to soften its impact on Filipino consumers, a presidential spokesperson said Tuesday.
The announcement comes after oil companies on Tuesday implemented their biggest price hike for gasoline products so far this year of 1.6 pesos per liter ($0.03), and prices of diesel and kerosene products up by about 1 peso a liter, with what they claimed was to reflect ‘movements in the international oil market.’
“Excise taxes will be suspended when prices, If I am not mistaken, reach $80 [per barrel]. We are ready when to suspend the collection when oil prices reach that level,” presidential spokesperson Harry L. Roque said during a press briefing.
“The collection will be suspended,” he said, as part of contingencies to protect the public from a possible oil-price shock.
The new duties on fuel – and other items such as cars, tobacco and sugary drinks – are part of the Tax Reform for Acceleration and Inclusion (TRAIN) law which took effect at the start of the year.
The first tranche of the Philippine government’s tax restructuring has been blamed for the rise in consumer prices, which rose 4.5 percent in April and breached the year’s target of between 2 percent and 4 percent.
Finance Secretary Carlos Dominguez, however, said the roughly two-thirds of the April inflation rate was due to the demands of a rapidly-expanding economy, with the TRAIN accounting for only 0.4 point of the increase instead of the estimated 0.7 point.
“We will coordinate with the Department of Finance and the Department of Budget and Management if the benefits [for poor families] aside from the P200 monthly subsidy [as part of the amelioration program] have been released,” Roque said. “There are still other benefits to be given to soften the effects of TRAIN.”


Fintech makes inroads in US banking market, but revenue share minimal — Accenture

Updated 26 min 23 sec ago
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Fintech makes inroads in US banking market, but revenue share minimal — Accenture

  • Around 19 percent of financial institutions in the US are new entrants, such as challenger banks, non-bank payments institutions and big tech companies
  • New entrants account for 63 percent of financial players in the UK

NEW YORK: Financial technology startups and other new entrants are making inroads in the US banking market, but have yet to capture a threatening share of bank revenues, according to research published by Accenture on Wednesday.
Around 19 percent of financial institutions in the US are new entrants, such as challenger banks, non-bank payments institutions and big tech companies, according to the report. Yet they have amassed only 3.5 percent of the total $1.04 trillion in banking and payment revenues so-far, Accenture found.
In the UK, new entrants have made a larger dent, having captured 14 percent of the total €206 billion ($238.45 billion) in industry revenues, with the majority going to non-bank payments companies, according to the report.
Accenture assessed more than 20,000 banking and payments institutions across seven markets around the world to determine the level of change that digital technologies have brought about in banking.
Since the financial downturn, a growing number of companies across the world have sought to position themselves as cheaper and more user-friendly alternatives to banks by making better use of new technology.
Banking and payments institutions have decreased by nearly 20 percent from 2005 to 2017. Still, one in six current institutions is what Accenture considers a new entrant, or companies that have entered the market since 2005.
Their impact has varied by geography.
Tougher regulations and greater dominance of large banks have made the US a more difficult market for new entrants in areas excluding payments, Alan McIntyre, head of Accenture’s global banking practice, said in an interview.
“You still have a very robust banking market in the US,” McIntyre said.
More than half of new current accounts opened in the United States have been captured by three large banks, which have had more money to invest in digital than smaller regional players, he added.
In the UK the situation has been different, thanks in part to a push from regulators aimed at fostering greater competition in the financial sector and diminishing the dominance of large banks.
New entrants account for 63 percent of financial players in the UK, according to the report.
The report also found new entrants are taking over one third of new revenue, pointing to their potential to pose a greater competitive threat going forward.
In Europe, including the UK, 20 percent of banking and payments institutions are new entrants and have captured nearly 7 percent of total banking revenues, according to the report.