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The Philippine Ports Authority (PPA) is remitting 56% or P3.541 billion of its 2020 net income to the national government
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The PPA Board approved the increase in remittance to 56% from 50% to assist in the government’s fight against the pandemic
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Due to the pandemic PPA’s net income in 2020 amounted to just P6.138 billion, which is 16% below that of 2019 but above the 2020 target of P5.557 billion
The Philippine Ports Authority (PPA) is remitting 56% or P3.541 billion of its 2020 net income to the national government, higher than its mandated remittance of 50%.
As a government-owned and controlled corporation (GOCC), PPA is mandated to remit 50% of its annual net income to the national coffers after it was granted fiscal autonomy during the term of President Corazon C. Aquino.
However, PPA in a statement said its Board had approved the increase in remittance of its 2020 dividends to 56% to assist in the government’s fight against the COVID-19 pandemic.
“We anticipate that the fight against this global health emergency is a long and winding road. As a response, we are increasing our dividend to P3.541 billion representing 56% of PPA’s 2020 net income to help (the) government in its fight against COVID-19,” PPA general manager Jay Daniel Santiago said.
PPA’s net income in 2020 amounted to P6.138 billion, which is 16% below its 2019 net income primarily due to the pandemic’s effect on trade, but is above the 2020 target of P5.557 billion.
PPA has been a consistent member of the “billionaires’ club” of GOCCs that contributes billions of pesos in dividends to the national coffers. A consistent member of the club though situated in the lower half in the last decade, PPA rose in ranking from 2016 when it started remitting higher dividends.
PPA said that since 2016, it has remitted a total of P17.171 billion in dividends to help in the implementation of various government social and health programs and has posted a total of P14.87 billion in income tax to the Bureau of Internal Revenue.
Santiago earlier said PPA forecasts growth in cargo and container volumes of 7% and 6% to 8%, respectively, this year after traffic declined in 2020 due to the COVID-19 pandemic.
READ: PPA sees 7% cargo growth with easing of restrictions
Cargo and container traffic are expected to increase by only 1% in 2022 and expand by 3% in 2023.
READ: PH container volume projected to grow up to 8% in 2021
In terms of passenger traffic, PPA expects a 1% to 2% improvement this year after a 70% decline in 2020 to 24.79 million passengers.
