SALES of preneed companies in the first quarter of the year fell 27.1 percent to P3.84 billion, from P5.26 billion a year earlier as the number of education, life and pension plans sold dropped 4.22 percent to 52,671.

Data released by the Securities and Exchange Commission (SEC) showed that from January to March this year, only P465 million worth of education plans were sold, down 58.3 percent from P1.11 billion in the same period in 2006. Sale of pension plans fell 36.1 percent to P2.03 billion from P3.2 billion a year earlier. Only life plans registered a jump in sales from P974.2 million to P1.34 billion.

In terms of number of plans sold, life segment recorded an increase of 51.3 percent during the period to 36,564 from 24,163 last year. Both education and pension registered contractions of 67.1 percent and 40.8 percent, respectively.

In March alone, the preneed industry experienced a decline in sales from P1.73 billion to P1.31 billion even if the number of plans sold went up 21.46 percent to 18,324.

The preneed industry is currently valued P70 billion in terms of total trust fund.

Earlier, the Philippine Federation of PreNeed Plans Companies Inc. (PFPPCI) said the proposal by the Bureau of Internal Revenue (BIR) to impose higher taxes will hurt the industry and eventually push them to close shop.

PFPPCI vice president for education Jose Alberto T. Alba said a looming increase in the value-added tax (VAT) expenses would mean higher prices for preneed products like life, education and pension plans.

“If that happens, I don’t think customers will still be enticed to buy our products. The returns on the clients’ investments will also suffer, thus making preneed products not competitive to other investment products in the market,” said Alba, who is also the president of Prudentialife Plans Inc.

PFPPCI, which has 21-member companies, has requested for a dialogue with the officials of the BIR on the VAT issue.

The BIR said it will audit preneed firms as part of efforts to raise more revenue and meet targets. Commissioner Lilian Hefti has directed the Large Taxpayers Service and Revenue District Offices to preaudit pre-need firms to ensure that the taxable base for payment of the VAT will be the gross receipts without any deduction, particularly the trust fund.

DEVELOPER Shang Properties Inc. reported a 55.4-percent rise in net profit in 2007 to P944.5 million from P607.9 million a year earlier.

Cebu Holdings allots nearly P1B in capex

CEBU CITY—Cebu Holdings Inc. has allotted close to P1 billion in capital expenditure this year on the heels of record revenues in 2007, aimed at strengthening its in the real estate and retail trade in Metro Cebu.

ONE hundred IBM employees from thirty-three countries were selected to participate in IBM’s new Corporate Services Corps program, part of the Global Citizen’s Portfolio initiative announced by chief executive Sam Palmisano, to develop leadership skills while addressing socioeconomic challenges in emerging markets.

SALES of preneed companies in the first quarter of the year fell 27.1 percent to P3.84 billion, from P5.26 billion a year earlier as the number of education, life and pension plans sold dropped 4.22 percent to 52,671.

LEADING preneed company Eternal Plans Inc. is set to release nationwide the education plan-benefit checks of planholders for the first semester of schoolyear 2008-2009, the company said in a statement.

IN a bid to make its contribution in the government’s thrust against global warming and climate change, Pangea Green Energy is set to inaugurate today the Quezon City Controlled Disposal Facility Biogas Emission Reduction Project that is expected to reduce the country’s greenhouse-gas emissions.

Controlling jurisprudence has been consistent that organization and commencement of transactions of corporate business are but conditions subsequent and not a prerequisite for the acquisition of the corporate personality.