I. Purpose and scope of the PCOICOP
The 2020 Philippine Classification of Individual Consumption According to Purpose (PCOICOP) is a standard classification of individual consumption expenditures patterned after the 2018 Classification of Individual Consumption According to Purpose (COICOP) developed by the United Nations Statistics Division (UNSD) in 2018.
The PCOICOP is used to identify individual consumption expenditures incurred by three institutional sectors of the 2008 System of National Accounts (SNA), namely: households, non-profit institutions serving households (NPISHs), and general government.
The PCOICOP serves as: 1) framework for the aggregation and integration of the Household Final Consumption Expenditures (HFCE) in the Philippine SNA; 2) input in the formulation of basket of goods for the Consumer Price Index (CPI); 3) guide in the classification of goods and services for the Family Income and Expenditure Survey (FIES); and 4) tool in the analysis of individual consumption expenditures.
As an integral part of the SNA, the PCOICOP is intended also for international comparisons of Gross Domestic Product and its component expenditures through purchasing power parities, and statistics relating to culture, sports, food, health, and tourism.
II. Statistical Units of Classification
For the household consumption expenditures in Divisions 01 through 13, the units of classification are consumption expenditures made by households for satisfying their needs or wants for various goods and services. The basic data on consumption expenditure usually come from one or more of the following sources: household budget surveys, statistics on retail trade sales, and product flow estimates which involve allocating the total supply of goods and services to intermediate and final uses. The important point to note is that the units of classification are expenditures on specific goods and services – they are not expenditures on purposes as such. Divisions 01 to 13 of 2020 PCOICOP convert these basic statistics into a purpose classification by grouping together the expenditure on various goods and services that are deemed to fulfill particular purposes, such as nourishing the body, protecting it against inclement weather, preventing and curing illness, acquiring knowledge, and travelling from one place to another.
The units of classification for Division 14 are the same as for Classification of the Purpose of Non-Profit Serving Households (COPNI). In principle, COPNI classifies individual outlays of NPISH according to the purpose they serve.
The units of classification for Division 15 are the same as for Classification of the Functions of Government (COFOG). The units of classification are, in principle, individual transactions. This means that each purchase, wage payment, transfer, loan disbursement or other outlay should be assigned a COFOG code according to the function that the transaction serves.
III. Underlying principles of the PCOICOP
A. Conceptual basis of PCOICOP
1.1 The 2008 SNA defines household actual consumption as consisting of three components:
(a) households’ final consumption expenditure;
(b) government units’ expenditure on consumption goods and services provided to households as social transfer in kind; and
(c) NPISHs’ expenditure on consumption goods and services provided to households as social transfer in kind.
1.2 Household final consumption expenditure are expenditures on goods and services purchased for final use by the household plus the estimated or imputed value of barter transactions, goods, and services received in kind, and goods and services produced and consumed by the same household.
Household final consumption expenditure includes the consumption expenditures of the resident households, whether the expenditure takes place in the country or abroad.
B. Types of products
1.1 Most classes and subclasses comprise either goods or services. Classes and subclasses containing goods are denoted by “ND”, “SD” or “D” indicating non-durable, semi-durable, or durable respectively. “S” denotes classes or subclasses consisting of services.
1.2 The distinction between non-durable and durable goods is based on whether the goods can be used only once, repeatedly, or continuously over a period of more than one year. Moreover, durables, such as motor cars, refrigerators, washing machines, and television sets have a relatively high purchasers’ price. Semi-durable goods differ from durable goods in that their expected lifetime of use, though more than one year, is often significantly shorter and their purchase prices are substantially less.
1.3 Although a systematic separation between goods and services was carried out in this revision of PCOICOP, some classes and subclasses contain both because it is difficult for practical reasons to break them down into goods and services. Such classes and subclasses are usually assigned an “S”, as the service component is considered to be predominant. Similarly, there are classes that contain either both nondurable and semi-durable goods, or both semi-durable and durable goods. Again, such classes and subclasses are assigned an “ND”, “SD”, or “D” according to which type of good is considered to be predominant.
C. “Do it yourself” repairs and maintenance to consumer durables and dwellings
1.1 “Do it yourself” repairs and maintenance to consumer durables and dwellings carried out by members of the household constitute the production of services for own final use. The production of services for own final use is excluded from the production boundary of the SNA and therefore also from consumption expenditure. However, the materials purchased for repair and maintenance are treated as final consumption expenditure and are therefore included in PCOICOP.
1.2 In relation to dwellings, “do it yourself” activities cover decoration, maintenance and small repairs, including repairs to fittings, of types that are commonly carried out by tenants as well as by owners. The expenditure to purchase materials to undertake these activities are included in PCOICOP. On the other hand, more substantial repairs, such as re-plastering walls or repairing roofs, carried out by owners, are essentially intermediate inputs into the production of housing services; the production of such repairs by an owner-occupier is a secondary activity of the owner in his capacity as a producer of housing services. The purchases of materials for repairs in these cases are intermediate expenditures incurred in the production of housing services and are out of scope of PCOICOP.
D. Multi-purpose goods and services
The majority of goods and services can be unambiguously assigned to a single purpose. However, some goods and services could plausibly be assigned to more than one purpose. Examples include:
- motor fuel which may be used to power vehicles classified as transport as well as vehicles classified as recreational; and
- bicycles which may be purchased for transport or recreation purposes.
The general rule followed has been to assign multi-purpose goods and services to the division that represents the predominant purpose. Hence, motor fuel is shown under the Transport division.
Where the predominant purpose varies among countries, multi-purpose items have been assigned to the division that represents the main purpose in the countries where the item concerned is of greatest importance. As a result, bicycles are assigned to Division 07 - Transport.
Other examples of multi-purpose items and their treatment include:
camper vans which are shown under Division 09 -Recreation, sport, and culture; and not under Division 07 – Transport; and
basketball shoes and other sports footwear suitable for everyday or leisure wear are shown under Division 03 -Clothing and footwear; and not under Division 09 -Recreation, sport, and culture.
E. Bundled goods and services
Single expenditure outlays (i.e. where there is no itemized price information for the individual goods or services) may sometimes comprise a bundle of goods and services that serve two or more different purposes. For example, the purchase of:
- telecommunications bundles including a combination of home telephone, mobile phone, Internet, and television services;
- all-inclusive package tours including payment for transport, accommodation, and catering services;
- education services that include payments for health care, transport, accommodation, board, educational materials, etc.;
- in-patient hospital services that include payments for medical treatment, accommodation, and catering; and
- transport services that include meals and accommodation in the ticket price (e.g. passenger air transport).
Single outlays covering two or more purposes and not separately invoiced are dealt with on a case-by-case basis with the objective of obtaining a purpose break-down that is as precise as possible and consistent with practical considerations of data availability. Hence, there is no attempt to isolate expenditure values related to separate purposes for telecommunication bundles, package tours, in-patient hospital services, or transport services with accommodation and catering included in the single price. In all of these cases, the outlay should be categorized with the predominant good or service. However, specific classes for the above-mentioned bundles are also included in 2020 PCOICOP.
Health care, transport, accommodation, board, and educational materials linked with education, on the other hand, should be allocated as far as possible to Section 06 – Health; Section 07 – Transport; Section 09 - Recreation, sport, and culture; and Section 11 - Restaurants and accommodation services.
F. Internet-enabled and other virtual services
The Internet has enabled services, such as the streaming of movies and music, and subscriptions to games, thus removing the need for a physical product to be purchased and in many cases facilitating the rental of these products rather than outright purchase. For this reason, these services are in general classified with more traditional forms of the rental of similar goods.
While related products can exist in either physical or virtual forms (e.g. books, music, videos, games), in PCOICOP the product should be categorized in the one class based on predominant purpose. Therefore, the purchase of virtual books (e.g. e-books, audiobooks) should be classified in the same class or subclass as paper books because they are consumed for the same purpose.
Where the Internet is being used for the rental of a product, either in its physical or virtual form, this activity is still a service and not the purchase of a product. For example, subscription fees to play online games (i.e. streaming) are classified to 09.4.3.1 - Rental of games software and subscription to online games. The outright purchase of video game software, in its physical or virtual form, is classified to 09.2.1.1 - Video game computers, game consoles, game apps, and software.
G. Software and apps
Software is a set of instructions, data, and associated documentation which tells a computer to perform certain tasks. The definition of software includes operating systems of computers, applications, database programs, and mobile apps. The classification of software will be different if they are associated with the provision of a service to the household or not.
Examples of software that are not associated with the provision of a service to the household are operating systems, office suites, photo editors, computational programs, programming languages, database programs, and computer games. This type of software may be installed physically on the computer or provided via a local network or the Internet. The expenditure for software and apps that are not associated with the provision of a service is classified under 08.2.0.0 - Software for regular soft-ware; or under 09.2.1.1 - Video game computers, game consoles, game apps and software for gaming software.
If the payment is actually not for the software but for an associated service which is provided with the help of the software or app, then this expenditure should be classified under the corresponding service. Examples include: the ordering of a car with a driver using a smartphone app and the subsequent payment for the taxi service through the app is classified under 07.3.2.2 - Passenger transport by taxi and hired car with driver because the payment is for a transportation service. Likewise, the expenditure for a dating app should be classified under 13.9.0.9 - Other services, n.e.c because the payment is for a dating service.
For bundles of hardware and software (e.g. a computer with preinstalled operating systems and software applications), the outlay should be classified with the predominant product, which normally is the hardware (e.g. the computer).
H. Treatment of second-hand goods
Since second-hand goods are used for the same purpose as new goods, expenditure on second-hand goods are not classified separately from the original goods in PCOICOP.
The only exception relates to second-hand motor vehicles for which a separate subclass was created because of the substantial market for these goods and the high value of these transactions. Although the full value is usually recorded for price statistics and other uses, it should be noted that only the trade margin on second-hand cars are part of household consumption expenditure and not the whole value of the car, except in cases where the vehicle previously belonged to businesses, government, or was imported.
I. Treatment of rental and leasing
Renting of land
Rent is the income receivable by the owner of a natural resource. The land (the lessor or landlord) is the natural resource that is put at the disposal of another institutional unit (a lessee or tenant). Rent is a form of property income, thus the payment by households for renting land alone is out of scope of PCOICOP and should be excluded. Consumption of goods and services is the act of completely using up the goods and services in a process of production or for the direct satisfaction of human needs or wants. Since the renting of land for parking lots, garden allotments, or animals (e.g. horses) for recreational purposes does not consume the land, the related household expenditure on renting land is out of scope.Rental services
There are many categories in PCOICOP that relate to the “rental” or “hiring” of a product or service. Rental in this sense refers to expenditure on the service of renting or hiring a product or service that is owned by another party and is in scope of PCOICOP (e.g. rental or hiring of clothes or furniture). Note that the hiring of contractors to undertake substantial repairs to the dwelling is out of scope.Leasing
The System of National Accounts (SNA) distinguishes between operating leases and financial leases.In the case of operating leases, the legal owner is also the economic owner, who accepts operating risks and provides maintenance and repair of the asset. “The payments made under an operating lease are referred to as rentals and are recorded as payments for a service.” Hence, this type of leasing is treated as rental.
In the case of financial leases, the legal owner transfers economic ownership to the lessee who accepts operating risks and undertakes repair and maintenance. Payments are not treated as rentals but as payment of interest and repayment of principal to the legal owner / lessor. Therefore, financial leasing of a good is classified as purchasing a good.
J. Division 01 - Ready-made meals and Division 11 - Take-away food services
Ready-made meals have been added to Division 01 – Food and Non-Alcoholic Beverages of 2020 PCOICOP due to the increasing availability of prepared meals. Ready-made meals are generally sold in supermarkets where the meal can also be produced or prepared in some cases. Ready-made meals are commonly intended for consumption at home, where it can be eaten as is or after heating, but without cooking. Also, when consumed at the supermarket or market premises, ready-made meals are still to be classified as goods in Division 01.
Services provided by restaurants, cafés, and the like are classified in Division 11- Restaurants and Accommodation Services. Serving services range from full (with a waiter and seating) to limited and self-service. In contrast to ready-made meals in Division 01, the predominant component of services provided by restaurants, cafés, and the like is the price paid for providing the serving and cooking service, which includes the goods such as the food and beverage for immediate consumption. Expenditure on such food and beverage serving services are to be classified in Division 11 even when food is purchased at the restaurant, and the like, and consumed at home. If food is purchased in a restaurant and home delivered, the expenditure for delivery is to be classified under Division 07, if separately invoiced. The criterion therefore to distinguish between Division 01 and Division 11 is not where the food is consumed (at home vs. away from home) but rather on the type of expenditure (for the good or for the serving service).
K. Dwelling, domestic, and household services
The services included under Division 04 - Housing, water, electricity, gas, and other fuels are those that enable the use of the dwelling (e.g. cleaning the road or footpath to provide access to the dwelling, chimney sweeping, snow removal). Services included under Division 05 - Furnishings, household equipment, and routine household maintenance relate to household maintenance or services that support households rather than the dwelling. Division 05 differentiates further between domestic and other household services. Class 05.6.2.1- Domestic services by paid staff are services provided by personnel employed by households, such as maids, cooks, baby sitter or nannies, drivers, and gardeners who receive a compensation or wage for their services. Domestic services also include services, such as babysitting, gardening and cleaning supplied by enterprises and self-employed persons. Class 05.6.2.9 - Other household services are services provided by enterprises and self-employed persons that are not routinely provided by staff employed by households, such as carpet cleaning, pest extermination, and disinfection.
L. Housing (Division 04) and Accommodation Services (Group 11.2)
Expenditure related to the principal, or secondary dwellings is classified in Division 04 - Housing, water, electricity, gas, and other fuels. Expenditure related to accommodation services away from the principle or secondary dwelling (excluding vacation homes), such as resorts, hotels, motels, and vacation homes is classified to Group 11.2 - Accommodation services.
M. Tips, gratuities, and unofficial payments
Expenditure on tips, gratuities, and unofficial payments (in the following only called tips) are classified with the service to which the tipping relates. For example:
tipping a maid for cleaning your hotel room: the tip is included with the expenditure for the accommodation service (i.e. in subclass 11.2.0.1- Hotels, motels, inns and similar accommodation services);
tipping waiters in a restaurant, the tip expenditure is included in subclass 11.1.1.1 - Restaurants, cafes and the like – with full service; and
tipping food delivery drivers: if the fee for delivery of the food is included in the cost of the food, this expenditure is included in Division 11 – Restaurants and Accommodation Services. However, if the delivery of the food is undertaken by a different business or separately invoiced, the expenditure is included in subclass 07.4.9.2 - Delivery of goods.
N. Gifts and donations
Outlays on gifts or donations are recorded in the SNA as transfers and therefore out of scope for COICOP. On the other hand, goods or services obtained as gifts or donations are recorded in the SNA as household consumption expenditure by the receiving household. They are valued at the market value of the goods or services received. The costs of the expenditures are being met from transfers received as described above.
O. Delivery fees
Delivery fees are classified separately from the good being delivered, where this is possible (i.e. the delivery fee is separately invoiced). The need for this distinction arises from the SNA valuation principle which treats transport services separately invoiced as transport margins. The objective is to separate the cost of the delivery service from the cost of the product being delivered.
If the delivery and installation of a good are charged together, e.g. for furniture and appliances, then this bundle should be classified under the appropriate subclass for installation (subclass 05.1.2.0 for furniture, subclass 05.3.3.0 for appliances), as the installation represents probably the higher value added.
P. Other clarifications
In a small number of situations, the logic for allocating goods or services to particular divisions is not immediately evident. For example:
- textbooks are classified in Division 09 - Recreation, sport, and culture, rather than Division 10 - Education services;
- food consumed from a food service establishment (e.g. restaurant, café) is classified in Division 11 (Restaurants and accommodation services), and not Division 01 (Food and non-alcoholic beverages).
These situations are not dealing with multi-purpose goods or services, but rather with the predominant purpose and type of product. Division 10 relates to education services only and therefore excludes expenditure on goods typically required to undertake education services (e.g. textbooks, school uniforms). Food consumed in food-service establishments commonly includes a service component (e.g. to prepare and serve a meal) and therefore is more appropriately classified to Division 11 which is predominately related to services.
IV. Major changes adopted in the 2020 PCOICOP
The following changes were adopted and incorporated in the 2020 PCOICOP:
Division 01 – Food and non-alcoholic beverages
Most of the classes from 2009 PCOICOP were retained. Further detail was introduced at subclass level providing extra information on the different types of processing.
A new subclass 01.1.9.1 - Ready-made food was introduced due to the increased importance of the consumption of these goods worldwide.
A new group, 01.3 - Services for processing primary goods for food and non-alcoholic beverages, was added to this division. This new group, class and subclass cover services purchased for the processing of primary products provided by households to produce food and non-alcoholic beverages for own final consumption by households. It includes services such as grinding of cereals to produce flour, oil pressing or fruit/vegetable crushing, and pressing services to produce juices.
Division 02 – Alcoholic beverages, tobacco and narcotics
This division remained relatively unchanged at the group and class levels.
More detail was introduced in wines in order to identify the difference between wine from grapes and from other sources. A new subclass was added, 02.1.9 - Other alcoholic beverages to separately identify mixed alcoholic-based drinks such as gin pomelo, shandy, cola beer, etc.)
A new group, 02.2 - Alcohol production services, was added along with a new group, class and subclass to cover services purchased for the processing of primary goods provided by households to produce alcohol for own final consumption by households. They include services such as fruit and vegetable crushing and pressing services for the production of alcoholic beverages, distilling, and fermentation services, brewing services, and aging and bottling services.
The class for tobacco is further broken down into three subclasses: 02.3.0.1 - Cigarettes, 02.3.0.2 - Cigars, and 02.3.0.3 - Other tobacco products.
Division 03 – Clothing and footwear
Groups and classes remained the same as in 2009 PCOICOP.
At the subclass level, 03.1.2 - Garments was broken down into -03.1.2.1 Garments for men or boys, 03.1.2.2 - Garments for women or girls, 03.1.2.3 - Garments for infants (0 to under 2 years), and 03.1.2.4 - School uniforms. The first three subclasses enable a better consistency with the PCPC, and the identification of expenditure on school uniforms allows a more complete picture of all education expenditures as Division 10 - Education services only covers education services. The group 03.2 - Footwear was broken down into 03.2.1.1 - Footwear for men, 03.2.1.2 - Footwear for women, and 03.2.1.3 - Footwear for infants and children.
Unisex garments and footwear should be classified according to the gender of the person wearing them.
Tailoring is now included in the title of the class 03.1.4 - Cleaning, repair, tailoring, and hire of clothing previously called “Cleaning, repair and hire of clothing” in the 2009 PCOICOP. Cleaning of footwear is now included in the title of the class 03.2.2.0 and subclass 03.2.2.00) previously called “Repair and hire of footwear”.
Division 04 – Housing, water, electricity, gas and other fuels
Group 04.1 has the same classes as the 2009 PCOICOP, but class 04.1.2 - Other actual rentals is subdivided into 04.1.2.1 - Actual rentals paid by tenants for secondary residences and 04.1.2.2 - Garage rentals and other rentals paid by tenants.
Groups 04.1 - Actual Rentals for Housing and 04.2 - Imputed Rentals for Housing now clarify when the classes and subclasses refer to rentals paid for the main residence or for a second residence.
Fitted carpets and linoleum were moved from Division 05 - Furnishings, household equipment, and routine household maintenance to Division 04 - Housing, water, electricity, gas and other fuels because they are part of the dwelling and normally cannot be removed when the occupants move out of the dwelling. The same principle applies to door fittings, power sockets, and wiring flex. For consistency reasons, the services of laying fitted carpets and linoleum and its repair were also moved from Division 05 to Division 04.
A new subclass 04.3.1.2 - Security equipment was included and contains surveillance and security equipment for individual dwellings, which is not part of the building structure and can hence be easily moved to a new dwelling. These include smoke detectors, security alarms, security and surveillance cameras (04.3.1.21), door phones for dwellings (04.3.1.22), and fire extinguishers (04.3.1.23). These articles were previously included in Division 05 - Furnishings, household equipment, and routine maintenance.
Charges for self-produced solar energy were added to Class 04.5.1.0 - Electricity due to the emerging trend of households producing more solar energy and feeding this energy back into the electricity supply grid.
Biofuels for domestic use and alcohol for fireplaces were added to the content of Sub-class 04.5.3.0 - Liquid fuels.
Biomass (i.e., from agriculture production) and dry animal dung were added to the content of Class 04.5.4 - Solid fuels.
Class 04.5.5 was renamed to "Other energy for heating and cooling" to better reflect the content of the class.
Division 05 – Furnishings, household equipment, and routine household maintenance
Group 05.1 - Furniture and furnishings, carpets and other floor coverings and class 05.1.1 - Furniture and furnishings were renamed to “Furniture, furnishings, and loose carpets”.
Fitted carpets and linoleum were moved from Class 05.1.2 - Carpets and floor coverings to 04.3.1 - Security equipment and materials for the maintenance and repair of the dwelling because they are part of the dwelling and normally cannot be removed when the occupants move out. The same applies to 04.3.1.141 - door fittings, 04.3.1.142 - power sockets and 04.3.1.143 - wiring flex. For consistency reasons the service of laying fitted carpets and linoleum and its repair was also moved from Class 05.1.210 - Loose carpets, fitted carpets, linoleum and other such floor coverings to 04.3.2.03 - Service of laying fitted carpets and linoleum.
Expenditures on delivery and installation of furniture or electric appliances are only included in the class of the good if not separately invoiced. In the case that the expenditure on delivery can be separately identified, it should be classified in Division 07 - Transport.
Class 05.1.2 was renamed to “Repair, installation and hire of furniture, furnishings and loose carpets” to also include installation and rental services.
A new Class 05.2.2 - Repair, hire and sewing services of household textiles was created to separate the service from the good; sewing services of household textiles was added to the list of associated services.
The title of Class 05.3.3 - Repair of household appliances was replaced by “Repair, installation and hire of household appliances” to reflect the inclusion of installation and rental in the list of services.
Class 05.5.1 - Major tools and equipment was renamed “Motorized tools and equipment” to show that all tools and equipment in this class should be motorized.
Class 05.5.2 - Small tools and miscellaneous accessories was renamed “Non-motorized tools and miscellaneous accessories” to show that all tools and equipment in this class should be non-motorized.
A new Class 05.5.3 - Repair and hire of motorized and non-motorized tools and equipment was created to separate the goods from the services.
Tutors were moved from Class 05.6.2.1 - Domestic services supplied by paid staff employed in private service to 10.5.0 - Education not defined by level.
Division 06 – Health
The services are broken down into 06.2 - Outpatient care services, 06.3 - Inpatient care services, and 06.4 - Other health services that cover essentially diagnostic imaging services, medical laboratory services, patient emergency transportation services, and emergency rescue. The overnight stay criterion is the main distinction between 06.2 - Outpatient care services and 06.3 - Inpatient care services. Another feature of Division 06 is distinguishing health consumption according to the health outcome objective (preventive, curative, rehabilitative, and long-term).
Sub-class 06.1.1.2 - Herbal medicines and homeopathic products are identified separately.
New goods and services were highlighted in 06.1 - Medicines and health products and 06.2 - Outpatient care services in view of Corona virus disease 2019 (Covid-19).
Division 07 – Transport
The main change in Division 07 was adding a Group 07.4 - Transportation services of goods, which were previously included in the expenditure on the good itself and in Division 08 - Communication in 2009 PCOICOP.
The main reason for this change is that the consumption of postal services by households is now predominantly related to parcel delivery services of items bought on the Internet. Furthermore, services to deliver goods, such as furniture, groceries, take-out meals, and prescription drugs are increasingly offered as a specific service and charged separately.
Sub-class 03.1.320 - Crash helmets for motorcycles and bicycles moved to Subclass 07.2.1.3 - Accessories for personal transport equipment. These items are considered essential security equipment, rather than clothing accessories, and therefore align better with accessories for personal transport equipment. For similar reasons, baby and child seats for cars, motorcycles and bicycles were also moved from 12.3.2 - Other personal effects to 07.2.1.3 - Accessories for personal transport equipment.
Item 07.1.3.03 - Electric bicycles (e-bikes), pedelecs (electric pedal-assisted bicycles) were added to the list of goods in sub-Class 07.1.30 - Bicycles. To distinguish e-bikes from motorized bicycles, it was clarified that the latter have a combustion engine.
Class 07.2.11 - Spare parts and accessories for personal transport equipment was renamed Parts and accessories for personal transport equipment (07.2.1).
Group 07.3 - Transport services was renamed Passenger transport services because other services related to transport equipment are classified in Group 07.2 - Operation of personal transport equipment, and Group 07.4 relates to transport services of goods.
Subclass 07.3.2.2 - Passenger transport by taxi and hired car with driver includes payments for private arrangements of sharing a means of transport (e.g. 07.3.2.22 - carpooling and ridesharing fare).
Division 08 – Information and Communication
This division was renamed “Information and communication” to better reflect its content. The list of goods reflects existing electronic products, but at the same time aims to provide an enduring list that deals with the fast developments in this area.
Former Group 08.1- Postal services was moved to Class 07.4.1 - Postal and courier services in Division 07 - Transport. Most of the postal services used by households are now for sending and receiving parcels, and rarely to send letters. The delivery of parcels has strongly increased in importance with e-commerce. For this reason, it was considered that the purpose of the postal services is more accurately reflected as transportation of goods.
Previous Classes 09.1.1 - Equipment for the reception, recording and reproduction of sound and pictures, 09.1.3 - Information processing equipment, and 09.1.4 - Recording media were moved to Division 08 - Information and communication as this type of equipment is now mainly used for information and communication. The related services for repair and rental of information and communication equipment, licenses fees for television and subscriptions to television networks were also moved from Division 09 - Recreation and culture in 2009 PCOICOP to Division 08 – Information and communication.
Former Group 08.2 – Telephone and telefax equipment was renumbered and renamed to 08.1 – Information and communication equipment and Group 08.3 Telephone and telefax services was renamed to Information and communication services.
Division 09 – Recreation, sport and culture
This division was renamed Recreation, sport, and culture to better reflect its content.
Classes 09.1.1 - Equipment for the reception, recording and reproduction of sound and pictures, 09.1.3 - Information processing equipment, and 09.1.4 - Recording media in 2009 PCOICOP were moved to Division 08 - Information and communication. Previous Subclass 09.1.510 - Repair of audio-visual, photographic and information processing equipment and 09.4.240 – Television and radio broadcasting, in particular license fees for television equipment and subscriptions to television networks moved to Division 08 – Information and communication.
Previous group 09.1 – Audio – visual photography and information processing was renamed Recreational durables.
Class 09.1.2 - Major durables for recreation is a merge of the Classes 09.2.1 - Major durables for outdoor recreation and 09.2.2 - Musical instruments and major durables for indoor recreation in 2009 PCOICOP and now covers indoor and outdoor durables. The previous Group 09.3 - Other recreational items and equipment, gardens and pets was split into groups 09.2 - Other recreational goods and 09.3 - Garden products and pets. Class 09.5.2 - Audio-visual media is a new class that includes all kinds of recorded media containing music or films. Groups 09.6 -Cultural services and 09.7 - Newspapers, books, and stationery correspond to previous Class 09.4.2 – Cultural services and Group 09.5 – Newspapers, books, and stationary. Class 09.7.1 – Books was subdivided into 09.7.1.1 - Educational and text books and 09.7.1.2 - Other books to allow the compilation of all education-related expenditures.
Division 10 – Education services
The breakdown of Division 10 is aligned with the 2017 Philippine Standard Classification of Education (PSCED).
Division 10 covers exclusively education services, other expenditures linked with education have been separately identified across other divisions to enable the calculation of all education-related expenditures. These education-related expenditures include 03.1.2.4 - School uniforms, 07.3.2.3 - Passenger transport for students to and from school, 09.7.1.1 - Educational and textbooks in printed or electronic copy, 11.1.2.1 - Canteens, cafeterias of universities, schools, and kindergartens, and 11.2.0.3 - Accommodation services of boarding schools, universities and other educational establishments.
Group 10.5 - Education not defined by level was extended to include independent tutors, tutor centers, homework help centers and the like, online tutoring, exam preparation courses, tutorial services, and short educational courses in classroom or online. Language immersion courses and travelling for learning languages are included in 10.5 as well as languages courses online, in the form of software or audio tapes.
Student excursions and exchanges, which are part of the normal school program are now included on the corresponding class of early childhood, primary, secondary, and tertiary education. This includes travel, catering, and accommodation costs.
Division 11 – Restaurants and accommodation services
Division 11 was renamed from Restaurants and Hotels to Restaurants and accommodation services to better reflect the content of the division.
The notion of full and limited service was introduced to breakdown the Class 11.1.1 (Restaurants, cafés and the like). The distinction between full service and limited service relates to the range of the food- and beverage-serving service: a service by waiters to the individual customer seated at tables qualifies as full service.
Canteens, cafeterias of universities, schools, and kindergartens are now separately identified at subclass level 11.1.2.1 to allow the compilation of all education-related expenditures. For the same reason, Subclass 11.2.0.3 -Accommodation services of boarding schools, universities and other educational establishments, was introduced.
Division 12 – Insurance and financial services
Division 12 - Miscellaneous goods and services in the 2009 PCOICOP was split into two (2) divisions: Division 12 – Insurance and financial services and Division 13 – Personal care, social protection and miscellaneous goods. Insurance connected with transport was further broken down into subclass 12.1.4.1 - Personal transport insurance and subclass 12.1.4.2 - Travel insurance.
Class 12.6.2 (Other financial services n.e.c) in COICOP 1999 was split in COICOP 2018 into 12.2.2 (Explicit charges by deposit-taking corporations) and 12.2.9 (Other financial services n.e.c).
Class 12.6.2 - Other financial services n.e.c in 2009 PCOICOP was split in into class 12.2.2 - Explicit charges by deposit-taking corporations and class 12.2.9 - Other financial services n.e.c in 2020 PCOICOP.
Division 13 – Personal care, social protection and miscellaneous goods
A new class 13.2.2 for Devotional articles and articles for religious and ritual celebrations was created, as well as a Subclass 13.9.0.2 for Religious services.
Social protection was split into the following subclasses:
13.3.0.1 – Child care services
13.3.0.2 - Non-medical retirement homes for elderly persons and residences for disabled persons
13.3.0.3 - Services to maintain persons in their private homes
13.3.0.9 - Other social protection services
Expenditure on prostitution was not considered to be large enough to remain at the group level and was regarded to be of similar importance as other personal services such as legal services and estate agents. For this reason, prostitution was demoted to subclass 13.9.0.1.
Division 14 – Individual consumption expenditures of non-profit institutions serving households and Division 14 – Individual consumption of general government
Divisions 13 and 14 remained unchanged at the group and class level. The divisions were renumbered to Division 14 and Division 15.