Category: Business Mirror

LOCAL tobacco farmers stand to lose almost P980 million in income this year owing to smuggled cigarettes flooding the market, the Philippine Tobacco Growers Association (PTGA) said.

PTGA President Saturnino Distor noted that for 2025, around 11.8 billion sticks of illegal cigarettes would be sold in the Philippines. This volume translates to some 9.4 million kilos of tobacco that could have come from local farms, he said.

At an average farmgate price of P104.09 per kilo, Distor said the Philippine tobacco farmers would likely lose P978.44 million in income this year alone.

‘This is not just about breaking the law. This is about breaking the hearts of hardworking farmers,’ he said in a statement.

Distor noted that the government also loses around P40 billion annually because of illegal cigarette sales.

Citing industry data, he said illegal cigarettes are sold for as low as P2 per stick while legal ones are sold at PP7 per stick. Smuggling, he said, makes cigarettes cheaper and easily accessible, particularly to minors.

‘Every illegal product sold in the market is a peso taken away from hardworking Filipino farmers. These illegal products enter our markets unchecked, undermining the value of our harvest and the integrity of our work,’ Distor said.

He noted that the country’s tobacco industry supports around 2.2 million Filipinos, including farmers and workers in factories, transport, trading, and small stores.

‘When smuggled cigarettes take over the market, everyone in this chain suffers,’ Distor said.

Distor said the problem brought by smuggled tobacco also extends to the danger it poses to public health, since these could contain synthetic drugs that cause seizures.

Illegal cigarettes have been found with lead, insect parts, rat droppings, and even human waste, he added.

‘In some places, these illegal cigarettes are easier to find than clean water. They are sold cheaply, without any safety checks. They are not just illegal-they are deadly,’ Distor said.

He also lamented that no tobacco smuggler has been arrested under Republic Act 12022 or the Anti-Agricultural Economic Sabotage Law, which passed into law last year.

‘The PTGA is asking the government to act now. Farmers are not asking for special treatment. We are asking for protection, for fairness, and for a chance to keep farming and feeding our families,’ Distor said.

A FIRE broke out at the Department of Public Works and Highways (DPWH) Bureau of Research and Standards (BRS) building on Wednesday, fanning the flames of speculation that documents related to the ongoing flood control corruption investigation may have been destroyed. However, officials were quick to assure the public that no such materials were affected.

In a statement released shortly after the incident, the DPWH confirmed that the fire originated from a computer unit inside the Materials Testing Division that ‘reportedly exploded.’

No employees were injured during the incident.

The agency emphasized that no materials connected to the corruption probe into flood control projects were stored in the affected building.

‘The DPWH confirms that no documents related to the ongoing investigation into the flood control anomalies were in the Bureau of Research and Standards building that caught fire in Quezon City today,’ the statement read.

The BRS is responsible for conducting research, studies, pilot testing, and formulating policies for government infrastructure projects.

An investigation team has been deployed to assess the full extent of the damage and prevent similar incidents in the future, according to the DPWH.

The agency, described among the most graft-ridden in the bureaucracy, has been ensnared in one of the biggest corruption scandals in the history of Philippine governance, after its role as a focal point for plowing infrastructure funds into substandard, wrongly located, or even nonexistent flood control projects was exposed.

In recent hearings on its 2026 budget, the DPWH has seen over P200 billion of its budget taken away and diverted into other sectors.

THE Bureau of Internal Revenue (BIR) has imposed stricter rules to prevent schemes used to avoid excise taxes in the sale or transfer of automobiles.

Revenue Regulation 027-2025 altered the rules on how ad valorem tax-or tax imposed on an item based on its assessed value-is computed when a tax-exempt entity sells or transfers an automobile to a non-tax-exempt buyer.

The BIR said the new rule aims to ‘ensure equitable tax computation and alignment with market-based valuation.’

According to the BIR, the tax will be based on the actual selling price agreed upon by the parties or the depreciated value of the automobile at the time of sale, whichever is higher.

The annual depreciation rate is set at 16 percent, but limits the total allowable depreciation to no more than 80 percent of the vehicle’s original cost or value.

For vehicles acquired by a tax-exempt person or entity before-but sold after-the effectivity of the new rules, the computation of ad valorem tax will be governed by the current regulation, according to the BIR.

When it is determined that a tax-exempt automobile was acquired primarily to avoid the payment of excise tax, the ad valorem tax will be assessed based on the vehicle’s original purchase price or importation value at the time of acquisition, with no allowance for depreciation, the BIR stressed.

If the BIR finds that the sale or transfer was mainly intended to avoid the payment of excise taxes, then the ad valorem tax will be assessed based on the original purchase price or value of importation at the time of acquisition, with no allowance for depreciation.

The regulation also outlined several indicators that may suggest a scheme to circumvent excise tax obligations, unless proven by evidence.

These include the sale or transfer of a vehicle within a short period from acquisition without valid justification, repeated purchases by the tax-exempt person or entity and disposing of them shortly after, or transfers to officers, employees, relatives or closely affiliated entity without arm’s length transaction terms.

Other circumstances that may raise red flags include records showing the automobile was hardly used for official operations, prior agreements indicating intent to sell or transfer existed before or shortly after acquisition, or the entity’s nature or operations do not justify the acquisition of a luxury or high-value vehicle.

The same applies when the automobile was never registered under the tax-exempt entity or used predominantly by non-affiliated individuals.

PAGASA Island’s beach forest plays a vital role in capturing and storing carbon while sustaining coastal biodiversity, a new study revealed.

The study by researchers of the Department of Environment and Natural Resources-Ecosystems Research and Development Bureau (ERDB) was published in the Philippine Journal of Science, and presents the first scientific account of Pagasa Island’s beach forest ecosystem.

It says that the 32-hectare island stores nearly 10,000 tons of carbon dioxide or equivalent to the annual emission of about 2,000 cars, while supporting native coastal vegetation that plays a vital role in shoreline stability and island resilience.

The study, an ERDB contribution to the country’s beach forest research, underscores the ecological and climate importance of coastal forests in remote Philippine territories, highlighting their role in carbon sequestration, biodiversity conservation, and natural coastal defense amid growing environmental pressures in the West Philippine Sea.

The DENR-ERDB research team recorded 20 plant species from 19 families, including resilient coastal trees such as Barringtonia asiatica (botong), Calophyllum inophyllum (bitaog), and Terminalia catappa (talisai). Despite limited species diversity, the forest stood out for its exceptional carbon storage capacity, thanks to its tall, large-diameter trees.

‘Pag-asa’s beach forest may be small, but its ecological value is immense,’ said Jose Alan Castillo, co-author and head of the Mangrove and Beach Forest Research team of ERDB said in a statement.

‘These large coastal trees are nature’s living carbon vaults and serve as the first line of defense against storms and rising seas.’

Further, the study found that B. asiatica alone accounts for 85 percent of the island’s carbon stock, while C. inophyllum contributes 9 percent. These two native species, known for their resilience to coastal conditions, can serve as key anchors for future reforestation programs. Lead author Alvin Gestiada added, ‘Each tree lost is not only a loss of carbon storage but also a loss of coastal protection and biodiversity.’

With Pag-Asa Island’s beach forest vegetation cover declining from 11 hectares in 2017 to less than seven hectares in 2023, the researchers stress the need to prioritize beach forest ecosystems in climate change mitigation and coastal management efforts.

‘Beach forests, though often overlooked compared to mangroves and coral reefs, play an equally crucial role in stabilizing shorelines and regulating the climate,’ Castillo emphasized.

The researchers recommend integrating beach forest protection into the National Greening Program and other climate adaptation strategies.

THE Philippines and Timor-Leste strengthened their diplomatic and regional partnership today, as Foreign Affairs Secretary Maria Theresa Lazaro and Timor-Leste Foreign Minister Bendito Freitas met in Manila ahead of Timor-Leste’s formal accession to the Association of Southeast Asian Nations (ASEAN).

Timor-Leste is set to become ASEAN’s 11th and newest member within days-a milestone that both ministers described as historic and transformative.

‘This is a very historic moment for me to be here today with the Madame Secretary of the Philippines,’ Freitas said. ‘We appreciate very much the role of the Philippines in the whole process of providing us support and guidance towards our full membership.’

Shared Commitment to UNCLOS and Peaceful Dispute Resolution

At the heart of the discussions was a shared commitment to international law, particularly the United Nations Convention on the Law of the Sea (UNCLOS). Both countries have used UNCLOS mechanisms to resolve maritime disputes-Timor-Leste through conciliation with Australia, and the Philippines through arbitration against China.

‘They have the conciliation. We have the arbitration,’ Lazaro said. ‘We can exchange resources, as well as best practices.’

Freitas also voiced strong support for the early conclusion of a binding Code of Conduct in the South China Sea.

‘Timor-Leste supports all efforts to promote peace, stability, and freedom of navigation in the region,’ he said. ‘We renew our commitment to UNCLOS as the legal foundation for resolving maritime disputes.’

Reviving Bilateral Consultations and Expanding Cooperation

The two ministers agreed to revive bilateral policy consultations-last held over a decade ago-with plans to reconvene early next year. They also identified priority areas for cooperation, including education, health, agriculture, human resource development, and tourism.

‘We want to reinforce our bilateral relations more clearly and specifically,’ Freitas said.

On economic development, Freitas highlighted the importance of supporting micro, small, and medium enterprises (MSMEs).

Lazaro responded that MSMEs are ‘a very important foundation of Philippine business,’ and confirmed that the Department of Trade and Industry is ready to assist Timor-Leste in strengthening its MSME ecosystem.

Growing People-to-People Ties

Beyond policy, the ministers celebrated the growing people-to-people ties between the two nations.

As of June 2025, more than 1,500 Overseas Filipinos live in Timor-Leste, mostly in the capital Dili, working in education, administration, entrepreneurship, and engineering.

‘I express my appreciation to the government for always ensuring the safety and wellbeing of the Filipino nationals,’ Lazaro said.

Last year, the Philippines welcomed over 700 visitors from Timor-Leste.

In 2024, Timor-Leste ranked as the Philippines’ 152nd largest trading partner and 141st export destination, with total bilateral trade amounting to USD 582,670-entirely composed of Philippine exports.

THE Department of Labor and Employment (DOLE) admitted on Wednesday that possible higher tariffs and the potential passage of the Keep Call Centers in America Act pose risks to employment in the Philippines, which remains one of the world’s largest business process outsourcing (BPO) hubs.

Labor Secretary Bienvenido Laguesma said the department aims to conduct a preliminary assessment of employment risks to determine the possible factors to labor market instability, as the country faces global trade uncertainties and the potential passage of the US legislation seeking to curb call center outsourcing.

‘Externally, we are seeing [risks from] the possible imposition of higher tariffs. There is also the possibility that the Keep Call Centers in America bill will become law,’ Laguesma said in a budget briefing, adding that the labor department is closely monitoring these external developments.

The Keep Call Centers in America Act, filed in the United States by Senators Ruben Gallego and Jim Justice, aims to curb the outsourcing of call center operations by imposing stricter rules on firms that transfer a significant portion of their services overseas.

Under the proposed bill, companies that relocate at least 30 percent of their operations abroad would be placed on a public registry. Those listed could lose access to federal grants and loans, face penalties if they continue outsourcing while holding federal contracts and be deprioritized in future government bidding.

The bill also includes a consumer transparency clause that, one year after its enactment, would allow American customers to know if the call center agent assisting them is located outside the United States and to request a transfer to a US-based representative.

BPO Industry Employees Network (BIEN) earlier said that the proposed legislation could trigger widespread job losses in the Philippines, which hosts one of the largest call center workforces in the world.

The Center for Trade Union and Human Rights (CTUHR) also previously urged the Marcos administration to prepare protection measures for call center agents, warning that if passed, the law could lead to a ‘massacre of jobs’ in the country’s BPO industry.

DOLE meets stakeholders

According to Laguesma, DOLE had already met with the Contact Center Association of the Philippines on Tuesday to discuss industry concerns and determine how the government could provide support.

‘It’s not only related to the continuous increase in wages and the narrowing of profit margins, there were also other concerns mentioned.We see both external and internal factors that could become burdens or could dampen not only the expansion of the industry but also the entry of investors,’ Laguesma said.

‘Since it would be difficult if the review takes too long, we can probably come up with a preliminary assessment,’ Laguesma said.

The preliminary risk assessment, he said, may serve as a guide to address these issues.

He added that the department also maintains regular dialogue with the Information Technology and Business Process Association of the Philippines to gather more concrete information on the industry’s outlook, including how its partner firms assess the Philippines as an investment destination.

PRESIDENT Marcos said he is looking forward to deeper diplomatic ties between Manila and Tokyo following the election of Prime Minister Takaichi Sanae, Japan’s first female leader.

In a social media post, the Chief Executive congratulated Takaichi for her historic election on Tuesday.

‘Her assumption demonstrates Japan’s firm democratic advocacy, and reflects the country’s commitment to progress and representation,’ Marcos said.

‘I look forward to working with her in commemorating the 70th Anniversary of [Philippines-Japan] diplomatic ties in 2026, and in deepening the Strengthened Strategic Partnership for the peace and prosperity of our peoples,’ he added.

Takaichi is the third Japanese Prime Minister Marcos will deal with since he assumed presidency in 2022.

The 64-year-old lawmaker, who is a professed admirer of England’s Margaret Thatcher, said she wants to become Japan’s ‘Iron Lady.’

Among the former Japanese Prime Ministers Marcos interacted with were Shigeru Ishiba and Fumio Kishida.

Both resigned owing to mounting pressures from their political party, the Liberal Democratic Party (LDP).

Kishida left his post after it was revealed that LDP funds were illegally funneled in the private accounts of some lawmakers as well as the stagnating Japanese economy. In the case of Ishiba, it was due to poor performance of LDP candidates in a snap election, which he called last September.

LEYTE Rep. Ferdinand Martin G. Romualdez on Wednesday firmly rejected allegations linking him to convicted fraudster Patrick Mahony, whose name has surfaced in connection with the Maharlika Investment Fund (MIF).

The controversy surfaced after a report by Sarawak Report, a Malaysia-based investigative news outlet, claimed that Mahony had been advising officials behind the MIF and was often spotted in Manila social circles alongside Romualdez.

Reports have suggested that Mahony attempted to establish ties with the MIF, but these claims have been denied by the fund’s investors and officials.

In a statement, Romualdez described the reports as ‘false and baseless,’ emphasizing that he has never engaged in any discussions or communications regarding investments or advisory roles related to the MIF.

‘I join the Maharlika Investment Corporation in completely denouncing the false and baseless allegations published by certain online sources. I have never had any discussion, meeting, or communication with any individual regarding investments, advisory roles, or management decisions involving the Maharlika Wealth Fund. The reports attempting to link me to such matters are entirely unfounded, misleading, and malicious,’ said Romualdez.

Mahony, a British-Swiss national, was convicted of siphoning over US$1.8 billion from the 1Malaysia Development Berhad (1MDB) fund and was sentenced to six years in prison for his role in the scandal.

The 1MDB scandal also led to the 2022 imprisonment of former Malaysian Prime Minister Najib Razak for the embezzlement of the state-owned 1MDB fund.

The Maharlika Investment Corporation, the fund’s managing entity, has also issued statements distancing itself from Mahony and refuting any allegations of misconduct.

ATENEO de Manila University reclaimed the throne as queen of the University Athletic Association of the Philippines Season 88 Badminton tournament, sweeping first-time finalist National University, 3-0, on Wednesday at the Rizal Memorial Badminton Hall in Malate, Manila.

Graduating captain Mika De Guzman capped her UAAP career with a rousing performance, leading the Blue Eagles to their eighth UAAP title in her fifth and sixth years-making her swan song a true coronation.

Ateneo completed the badminton golden double as its men’s team earlier secured victory over the University of the Philippines, 3-0.

A standout from St. Paul College in Pasig, De Guzman ensured her return was one of redemption, sweeping the two events she played-the first singles match and the first doubles match.

De Guzman, a Smash Pilipinas standout, displayed both consistency and dominance, needing just 20 minutes in her final singles match to topple Hailene Diaz, 21-8, 21-8. Diaz tried to match De Guzman at the start of both games, but the Ateneo star quickly took control and never looked back.

Her teammate and sophomore, Althea Ocampo, overcame a first-game setback to defeat NU’s top player, Ysabel Amora, 17-21, 21-12, 21-13, in the second singles rubber.

Ocampo showed flashes of brilliance in the opener against Amora, but her rally wasn’t enough to take down the Lady Bulldog.

The Season 87 Rookie of the Year, however, carried that momentum into the second and third games, putting Ateneo on the verge of the championship.

With Ateneo up 2-0, De Guzman and co-captain Jochelle Alvarez wasted no time reclaiming the throne for the Blue Eagles in the lone doubles match.

After the mandatory break for Amora, who also played doubles, De Guzman and Alvarez dominated the first game and turned the second set into a statement of their championship credentials.

The Ateneo captains patiently waited for the right moments to attack, and despite taking 34 minutes to close the match, they claimed a decisive 21-6, 21-10 victory over Amora and Gwyneth Desacola, securing both the tie and the championship.

‘Of course, I am very happy and proud of the team, that we were able to bring the double gold back to Ateneo. So just really happy and proud of everyone,’ De Guzman said.

With this triumph, Ateneo claimed its sixth men’s title and ninth women’s crown, marking a third double crown and a second twin victory in three years.

With eventual MVPs De Guzman and Lyrden Laborte leading the way, longtime head coach Kennie Asuncion-Robles credited the team’s hunger after last year’s losses.

‘Definitely, there were many learnings from what happened last year, so they’re really hungry to take it back,’ said the concurrent program director of the Philippine Badminton Association.

University of the Philippines continued its post-pandemic podium streak with a third-place finish, sweeping University of Santo Tomas, 3-0.

Susmita Ramos and Anthea Gonzalez gave the Fighting Maroons a 2-0 lead following contrasting victories in the singles matches.

Ramos, a former Smash Pilipinas standout, ended her fourth year with a 21-19, 22-20 win over Reshane Nicor, while last year’s MVP, Gonzalez, needed 36 minutes to dominate eventual co-Rookie of the Year Hanie De Jesus, 21-15, 21-8.

Newcomers Krissa De Leon and Trisha Postrano then secured the bronze with a 21-18, 21-18 win over UST seniors Jennifer Saladaga and Rhafi Anne Santos.

The Fighting Maroons also had another reason to celebrate, as Brys Fuggan shared the top rookie award with De Jesus.

On the men’s side, 18-year-olds Lovic Javier of De La Salle University and JR Pandi of Ateneo were named Rookies of the Year.

I was reading the book ‘Ikigai’ by Hector Garcia and Francesc Miralles, and I came across this phrase ‘Active Mind Youthful Body.’ I realized this speaks not only to the old people but to everybody since each day we are drawn closer to losing our younger days and slowing down our active minds.

Lately, I was struck by reality: that although ‘my spirit is willing, my body is weak.’ For the past years (30 or more), except when I am sick, I either go to the gym or workout at home almost every day. I try to discipline myself not to miss a day, especially my weights training. But for the past weeks I have been experiencing back pain; and the other day I suddenly felt an excruciating pain at the left back shoulder and must get an X-ray so my doctor can determine the reason for the pain.

For me, it was not about nature telling me I could not have that youthful body anymore. This was due to the fitness program that I had been adhering lately, which requires a lot of bending and squats with dumbbells to go along. These could have resulted to bone injuries, which could have caused such muscle pain or bone irregularity. I also realized I had not been drinking milk or taking calcium supplements, which I had been taking for granted.

Whether you are at your thirties, forties or even a lot older you should be mindful of not only your workouts and exercise but also of your diet. The blue zone senior people mentioned in the book are taking life every day at a pace in rhythm with nature. They have strong bones because of their active lifestyle of farming, fishing, household and community work. They don’t go to the gym and strain their muscles by lifting weights more than what their body can bear just like me. But their work provided enough exercise to keep their bones and muscles strong as a youth.

According to a study posted on mayoclinic.org/, most people reach peak bone mass around the age of 30. After that, bone remodeling continues. But you lose slightly more bone mass than you gain. This is because the body is always in the process of making bone and breaks down old bone and this process is what they call remodeling. New bone is made faster when you are still young than being broken down making your bone mass go up.

The point here is we should take care of our body just as we take care of the assets in our business. The body when healthy can cope up with any kind of work no matter what age, just like the blue zone senior people in Okinawa Japan and Sardinia Italy which are two of the five places where there are significant number of centenarians.

Their tasks require much physical work which makes their bodies strong. But not only that, they have active minds. Dementia were not major problems among the centenarians even at their age because they have constant social interaction and fun activities, too.

In our working world, an active mind is much needed, but we also should not take for granted our physical strength and to have fun times.

A French population-based study (sciencedirect.com/) shows the older that one retires, the lesser risk of dementia. It further explains that the longer people stay professionally active such as greater years of work, the more it provides a reserve that act to compensate for the effects of age-related cognitive impairment and pathology. Compared to early retirees, those who are still active in their work or business have lesser risk of dementia than those who stop working. The risk of dementia was respectively 28-percent and 43-percent lower in individuals who retired between 60-65 years old and those over the age of 65 years old.

Having an active mind does not only require intellectual knowledge. It requires time for meditation and resting your mind regularly or even just spending 15 minutes to 20 minutes a day writing your thoughts in a journal (whether it’s a gratitude, prayer or introspection journal) or having a quiet time relaxing and listening to soft music. It involves social interaction and stimulating activities and managing stress.

We all long for longer and quality life-and if you have not been conscious of it-it is never too late, whatever your age, to start taking care of your body, mind and soul now.

Wilma Miranda is a Finex Business Column Writer, the Managing Partner of Inventor, Miranda and Associates CPAs, Member-Board of Directors and former head of Business Development of Knowledge, Process, System Outsourcing. The views expressed herein do not necessarily reflect the opinion of these institutions and the BusinessMirror.