Despite a 16 percent fall in its 2020 earnings because of the pandemic, the Philippine Ports Authority (PPA) decided to give P3.5 billion, or 56 percent of its P6.138 billion income, to the national coffers.
While the agency is required by law to turn over at least 50 percent of its annual net income to the government, PPA General Manager Jay Daniel R. Santiago last night (March 24) announced that the board approved turning over 6 percent more to assist in the administration's COVID-19 response.
Although PPA's net income went down 16 percent versus 2019, the amount is still above the agency's 2020 target of P5.557 billion, he pointed out.
Despite reduced earnings for 2020 due to the pandemic, PPA's dividend for the year ranked second highest in the current administration.
In fact, the PPA has not remitted a dividend lower than P3.1 billion.
Since 2016, the PPA has been consistent as a top-performing agency of the Department of Transportation (DOTr), remitting a total of P17.171 billion in dividends to aid government social and health programs.
The PPA also posted a total of P14.87 billion in income tax to the Bureau of Internal Revenue since 2016.
In 2018 alone, the agency paid P5.9 billion in taxes, its biggest, so far.
“We anticipate that the fight against this global health emergency is a long and winding road," according to GM Santiago.
"As a response, we are increasing our dividend to help the government in its fight against COVID-19.”
The hike in PPA’s dividend remittance will help the government procure needed doses of COVID-19 vaccines and assist vulnerable sectors of society, confirmed DOTr Secretary Arthur Tugade.
“The decision of the PPA to increase the amount of its dividend remittance to the Bureau of the Treasury is an example of Bayanihan spirit," he noted.
"Dividend remittances from government agencies help sustain the government’s efforts to contain the spread of COVID-19," he concluded.