Category: Business Mirror

THE House of Representatives’ Committee on Ways and Means has approved two State of the Nation Address (Sona) priority tax measures designed to strengthen household purchasing power, ease the financial burden on businesses, and support broader economic growth beginning in 2027.

Filed by Speaker Faustino Dy III and House Majority Leader Ferdinand Alexander ‘Sandro’ Marcos, House Bill 10345 seeks to raise the annual tax-free income threshold from P250,000 to P350,000, while House Bill 10346 proposes to abolish the minimum corporate income tax (MCIT) imposed on domestic corporations.

Marikina Rep. Romero Quimbo, chairman of the House Ways and Means committee, said the panel may consolidate the proposed tax relief measures with corresponding compensatory revenue measures into a single omnibus tax reform package.

The measures follow President Marcos’ call for tax relief during his fifth Sona. They also reflect key elements of the Department of Finance’s proposed ‘Progress Bill,’ or the Promoting Growth, Revenue, and Equity toward Socio-economic Sustainability measure.

Under the Tax Reform for Acceleration and Inclusion Law, individuals earning no more than P250,000 annually have been exempt from personal income tax since 2018. However, years of inflation have weakened the value of this exemption.

HB 10345 would increase the tax-free ceiling by P100,000. Taxable income above P350,000 but not exceeding P400,000 would be subject to a 15-percent rate, while the succeeding marginal rates of 20, 25, 30 and 35 percent would remain.

During the House Committee on Ways and Means hearing, Finance Undersecretary Karlo Fermin S. Adriano said the House proposal would result in an estimated average annual revenue loss of P68.6 billion.

Quimbo said many employees have entered taxable brackets not because they have become significantly wealthier, but because their salaries have struggled to keep pace with inflation.

The unchanged threshold has created what economists call ‘bracket creep,’ in which workers pay higher taxes because of nominal salary adjustments even when their real purchasing power has barely improved.

According to Quimbo, the reform could provide relief to an estimated 4.2 million Filipino workers. Around 1.3 million taxpayers could regain tax-exempt status, while another 1.2 million could become newly exempt from paying personal income tax.

He said the proposal is particularly important for the country’s ‘missing middle’-lower- and middle-income workers who regularly contribute taxes but often do not qualify for government assistance.

HB 10346, meanwhile, would abolish the minimum corporate income tax beginning January 1, 2027.

Under the current system, a domestic corporation generally pays an MCIT equivalent to two percent of its gross income beginning in its fourth taxable year whenever the amount is higher than its regular corporate income tax.

Because the MCIT is based on gross income, a company may still face a tax obligation even when its profit is small or when it experiences legitimate business difficulties.

The proposed reform would require covered corporations to pay the regular corporate income tax based on taxable income. The regular rate is generally 25 percent, while qualified domestic corporations with taxable income not exceeding P5 million and total assets of no more than P100 million are subject to a 20-percent rate.

DOF’s Adriano said the proposed current exemption would cover microenterprises with annual gross sales below P3 million and small enterprises earning between P3 million and P20 million.

The measure could provide an average tax relief of P78,000 per business while reducing government revenue by about P6.6 billion annually.

Adriano clarified that qualified businesses would remain subject to the regular corporate income tax when they earn taxable profits. Medium and large enterprises would also remain covered by the MCIT.

The launch of a new Batangas-Caticlan ferry service is expected to strengthen the movement of passengers, cargo and goods between Luzon and Western Visayas, while providing a more reliable sea link to one of the country’s major tourism gateways.

Lite Shipping Corp. has deployed the newly acquired MV Lite Ferry Twenty on the Batangas City-Caticlan, Malay, Aklan route, adding capacity to the Western Nautical Highway and linking Batangas more directly with Panay Island.

The vessel, which can carry up to 578 passengers and 30 units of 12-meter trucks and six cars, is expected to support tourism, local commerce and the movement of goods between Luzon and the Visayas.

At the August 7 blessing and inauguration, Jonathan Lim, CEO of Lite Shipping Corp., said the deployment marks the company’s growing presence in the Western Nautical Highway and its effort to provide faster and more dependable connections among major economic and tourism centers.

‘This deployment is more than just an expansion of load,’ Lim said, noting that the new service would provide a sea link between major industry hubs and destinations such as Boracay.

Lite Shipping President Lucio Lim Jr. said the company plans to make the Batangas-Caticlan service a daily operation.

The company intends to deploy a second vessel on the route before the end of August, allowing daily trips between the two destinations.

The new vessel is the company’s largest brand-new acquisition to date. Measuring 90 meters in length and with a gross registered tonnage of 3,923 tons, the MV Lite Ferry Twenty is designed to provide greater passenger and cargo capacity on the route.

Maritime Industry Authority (Marina) Administrator Sonia Malaluan said the vessel’s deployment would strengthen a key maritime corridor supporting trade and economic activity between Luzon and Western Visayas.

She said the vessel’s capacity would allow it to carry passengers and rolling cargo while raising the standards for safety, reliability and comfort in domestic shipping.

Marina has granted the vessel pioneering status, recognizing the introduction of an upgraded shipping service on the route.

Malaluan said the deployment is consistent with the agency’s push to modernize the domestic shipping fleet and encourage operators to invest in vessels that meet higher standards of safety, efficiency and passenger comfort.

Aklan seeks new Batangas-Dumaguit route

Moving forward, Aklan is seeking to expand its maritime connectivity beyond the new Batangas-Caticlan service, with a proposed route that would allow heavy cargo trucks to bypass difficult mountain roads in northern Panay.

Aklan 2nd District Rep. Florencio Miraflores said the provincial government plans to ask Marina and Lite Shipping to consider opening a Batangas-Dumaguit service.

Under the proposal, cargo trucks bound for Kalibo and Iloilo could use Dumaguit as an alternative entry point instead of passing through Caticlan and traversing the roughly 70-kilometer road between Caticlan and Kalibo.

Miraflores said the proposed route could help address the difficulties faced by heavy trucks traveling through the mountain sections between Caticlan and Kalibo, while reducing congestion and improving road safety.

He said the diversion of heavy cargo traffic could also allow the Caticlan-Kalibo highway to function more effectively as a tourism corridor for travelers heading to Boracay from the Kalibo International Airport.

‘We will be writing a request for your consideration to open the Batangas-Dumaguit route for our heavy cargo trucks in the future,’ Miraflores said.

He said the proposed route would complement Caticlan’s role as a major gateway for tourism and maritime trade, while providing an alternative logistics corridor for goods moving toward Iloilo and other parts of Panay.

The provincial government is also seeking additional shipping routes serving other parts of Aklan as it aims to maximize the province’s position as a gateway between Luzon and the Visayas.

Western, Eastern nautical highways

Lite Shipping said its expansion in the Western Nautical Highway forms part of a broader effort to connect the country’s major island groups through a more integrated shipping network.

The company currently operates routes across Luzon, Visayas and Mindanao and has been expanding its fleet through the acquisition of new vessels.

Lim Jr. said the company has been adding around two higher-class vessels annually in recent years.

Aside from the MV Lite Ferry Twenty, another brand-new vessel is scheduled for deployment in September on the San Carlos City-Toledo City route.

The company said the additional routes are intended to strengthen links between Panay, Negros, Cebu and other parts of the country, eventually bridging the Western and Eastern Nautical Highways.

Lite Shipping, together with its subsidiaries, currently operates 27 roll-on/roll-off passenger ferries serving 36 destinations, according to the company.

For Aklan, the arrival of the MV Lite Ferry Twenty represents another step in the development of Caticlan as a strategic gateway not only for Boracay tourism but also for the movement of cargo and passengers between Luzon and the Visayas.

Miraflores said the province would continue supporting the operation and would work with port authorities to facilitate the vessel’s operations in Caticlan.

The new service, he said, should be viewed as a starting point for further expansion of maritime links that could strengthen commerce, tourism and logistics in Aklan and neighboring provinces.

Philippine National Police (PNP) chief Gen. Jose Melencio Nartatez Jr. on Monday ordered police officers in areas affected by the southwest monsoon or ‘habagat’ to remain on heightened alert and intensify preemptive evacuation efforts in flood- and landslide-prone communities.

In a statement, the PNP chief instructed local police units to remain ready for search, rescue, retrieval, and evacuation operations, as well as closely monitor weather conditions and coordinate with local government units and other response agencies.

‘I have directed our police units in affected areas to remain on heightened alert, closely monitor developments and coordinate with local government units and other response agencies. They must be ready to immediately conduct search and rescue, retrieval and evacuation operations when needed, while ensuring the safety of our personnel,’ Nartatez said.

He also added local police units must help authorities move residents out of danger before conditions worsen.

‘Our local police units must actively assist local governments in preemptive evacuations, particularly in areas vulnerable to flooding and landslides. We must act early, provide timely warnings and help prevent loss of life rather than wait for the situation to worsen,’ the PNP chief said.

Prior to this, the PNP has already activated its Subcommittee on Natural Disaster under the Directorate for Police Community Relations to monitor the situation through the PNP Command Center.

Around 800 PNP personnel had been deployed in affected regions while around 10,000 reserve personnel were also on standby for possible search and rescue and retrieval operations

As this developed, the PNP said deaths that could be attributed to the adverse weather conditions now went up to 15.

PNP spokesman Col. Allen Rae Co said a total of six people were also reported missing while 13 were injured due to different incidents that include landslides, flashflood, and electrocution.

‘All of these are still to be validated by the Office of Civil Defense but these are the reports that we obtained from our personnel on the ground,’ he added.

In Ilocos Region, one person was reported to have been electrocuted in La Union while another one drowned in Alaminos, Pangasinan.

In Cordillera Administrative Region, six people died due to two separate incidents of landslides-two of them died in La Trinidad, Benguet last week while four more died in Baguio City on Sunday night.

In Calabarzon, seven people were reported fatalities- three of them from Batangas due to drowning, electrocution and landslide; two due to landslides in Rodriguez, Rizal; one in Binangonan, Rizal due to drowning; and another one in Antipolo City who was hit by an uprooted tree.

THE Philippines received a $600-million grant from the United States to strengthen the country’s healthcare system and improve its capacity to respond to public health threats, according to the Department of Finance (DOF).

The grant, equivalent to about P36.95 billion and does not require repayment, is under the ‘Strategic Objective Agreement’ (SOAG) for Integrated and Sustainable Health Systems in the Philippines.

According to the DOF, the funding will build an integrated and self-reliant health system by improving health security, healthcare delivery and the country’s capacity to respond to infectious disease threats.

Specifically, the Department of Health will implement the grant to strengthen disease surveillance, detection and outbreak response; integrate health service delivery across disease programs; and improve domestic capacity to finance and manage the health sector.

The fund will also support priority health initiatives covering Human Immunodeficiency Virus (HIV), tuberculosis (TB), neglected tropical diseases and maternal, newborn and child health.

The DOF added that the agreement will advance strategic bilateral cooperation on global health security and other priority health programs.

The SOAG builds on more than six decades of health cooperation between the Philippines and the United States, read a statement the DOF issued.

According to the DOF, the grant is also part of the five-year ‘Health Strategic Objective Agreement,’ a jointly funded plan signed by the Philippines and the United States last July to improve and sustain the capacity to detect, treat, and prevent HIV and TB, as well as strengthen global health security.

Under the agreement, Manila committed to investing more than P30 billion, or $491 million, in its health systems over the next five years.

Washington, for its part, intends to provide more than P11.8 billion, or $193 million, over the five-year term of the agreement to advance shared global health goals, fight the spread of infectious diseases  and build greater autonomy and self-reliance in its health systems.

A RANKING American senior defense official on Monday called the Philippines as a ‘model ally’ as it actively leads its own defense modernization even as the former affirmed his government’s commitment to its oldest treaty ally in Asia especially when it comes to credible deterrence.

In his speech before the forum organized by the Stratbase Group, US Undersecretary of War for Policy Elbridge Colby gave assurances that the United States remained a ‘willing partner’ amid a perceived shift in US President Donald Trump’s foreign policy.

This as he stressed that the new approach was to ‘build strength in ways that are durable and achieve their intended effect, of genuine peace through strength rather than rhetorical pressurization without adequate material strength and resolve.’

‘We seek partnerships, not dependencies, and we understand that countries will engage widely just as we do,’ Colby said.

Likewise, the US official said they are putting their alliances on a sustainable, realistic, and durable footing for the long haul.

‘When we ask our allies and partners to step up, to invest more in their own defense, and to take responsibility for their own sovereign security, we are not signaling abandonment,’ he stressed.

Colby also clarified the US is looking for partners and not protectorates.

‘When our partners are strong, deterrence is strong. And that is exactly what we have here in Manila under the leadership of President Marcos, Secretary of National Defense Teodoro, and other key leaders,’ he added.

Colby’s visit to Manila-his first as Undersecretary of Defense for Policy-is part of his four-nation tour including Indonesia, Thailand and Cambodia as part of the United States’s efforts to affirm the country’s commitment to build durable peace in the Indo-Pacific region. Colby also met with President Ferdinand Marcos Jr. in the morning before the forum.

Meanwhile, Stratbase Group President Victor Andres Manhit said Colby’s visit was also timely given that the Philippine-US alliance ‘carried greater weight than any point in recent memory.’

He also said the Filipinos rank the US first among the countries they want the Philippine government to work with in defending the Philippine maritime territories, especially in defending the West Philippine Sea and advancing its economic security.

‘Today, that is precisely what we hope to explore, how this trust can be translated into a stronger, more capable, and more resilient alliance that responds to present challenges and contributes to a free and open rules-based Indo-Pacific,’ he said.

Relatedly, Colby emphasized that the administration’s defense strategy was focused on cultivating a ‘network of highly capable sovereign nations’ that could establish a ‘denial defense’ along the first island chain to ensure that any potential aggression in the region was rendered completely infeasible.

He also said the United States touted the Philippines as a ‘resolute and proud nation… determined to strengthen its own capabilities to better defend itself and its allies.’

Colby also praised the Philippines’s ‘clear-headed pragmatism’ as the exact strategic fit required for the region’s strategic demands, and that through the help of Manila and other allies, ‘we are actively building a strong denial defense to back up a peace-through-strength approach of a lastingly favorable balance of power in Asia.’

Colby pointed to several areas where the two countries were seeking to translate their alliance into greater military capability, including the operationalization of the Enhanced Defense Cooperation Agreement (Edca), investments in resilient defense infrastructure and expanded joint training.

He said Washington was also supporting Philippine defense investments through the rotational deployment of four US Coast Guard Fast Response Cutters, which would work with the Philippine Coast Guard in securing and patrolling the country’s exclusive economic zone.

‘This is not a one-sided partnership,’ Colby said, noting the Philippines’ increased investments in modernizing its armed forces and coast guard.

‘Alliances are most durable when they are based on shared responsibility, mutual interests governed by pragmatic respect, and underwritten by real capability on both sides, rather than permanent dependency,’ he added.

Colby’s visit also comes as Manila and Washington continue to deepen defense cooperation amid growing security tensions in the Indo-Pacific, particularly in the South China Sea.

The United States has repeatedly affirmed that the 1951 Mutual Defense Treaty covers armed attacks on Philippine armed forces, public vessels or aircraft-including those of its coast guard-anywhere in the South China Sea.

THE Commission on Elections (Comelec) considers Sen. Francis Escudero’s proposal to move the 2026 barangay and Sangguniang Kabataan elections (BSKE) to 2028 a term adjustment rather than a simple postponement of the polls.

Comelec Chairman George Erwin M. Garcia said Congress has the sole authority to determine the term of barangay officials, including whether their tenure should be shortened or extended.

‘Only Congress has the power to determine the term of barangay officials. It may make the term longer or shorter, and it is also given the discretion to determine the reasons for doing so,’ Garcia told the BusinessMirror.

‘Because of this, Senator Escudero’s proposal appears to be a term adjustment-from the present four-year term to five years per term-rather than a postponement of the elections,’ he added.

Garcia said Comelec cannot interfere with Congress’ exercise of that authority.

Escudero filed Senate Bill 2387 seeking to increase the term of elected barangay and Sangguniang Kabataan officials from four years to five years.

The measure would also move the next regular BSKE from November 2026 to the first Monday of November 2028, with elections to be held every five years thereafter.

Under its transitory provision, incumbent barangay

officials would be considered to have completed one term despite the proposed two-year extension of their tenure.

Officials currently serving their third consecutive term would be ineligible to seek the same position in the proposed November 2028 elections.

Escudero said the longer term would provide greater stability and continuity in barangay governance while giving officials more time to implement community development programs.

The bill’s explanatory note said extending terms could also reduce disruptions caused by frequent elections and allow local officials to focus more on public service instead of electoral cycles.

HEAVY flooding could force the Commission on Elections (Comelec) to postpone voting in parts of the Bangsamoro region.

Comelec Chairman George Erwin M. Garcia said the commission is closely monitoring schools that will be used as voting centers, particularly in flood-prone areas in Maguindanao and Lanao del Sur.

‘What concerns Comelec more are the schools where the elections will be held because there are areas that are being flooded,’ Garcia said.

He said the poll body is studying where voters could be transferred if heavy rains affect the designated voting centers on election day.

‘If it rains heavily on election day, where will we transfer our voting centers? Where will our people vote?’ Garcia said.

Section 5 of the Omnibus Election Code allows Comelec to postpone an election when violence, terrorism, loss or destruction of election paraphernalia, force majeure or other analogous causes make it impossible to hold a free, orderly and honest election.

Garcia cited flooding and typhoons as possible force majeure that could trigger the provision.

‘We can postpone the election if there is violence, terrorism, force majeure, or loss or destruction of election paraphernalia,’ he said.

He added that flooded election paraphernalia could also leave Comelec without equipment to use on election day.

However, the poll body chief stressed that Comelec has not seen conditions that would require postponement at this point.

Comelec is also continuing the deployment of election equipment to provincial hubs, including Lanao del Sur, Maguindanao del Sur, Maguindanao del Norte and the Special Geographic Area.

KUTIS by Kei Dermatology and Skincare Corp. has reopened its Makati branch. Kutis by Kei’s founder and chief executive officer Dr. Kei George Rebolledo said the renovated branch houses the Vossman Blauman Advanced 450 nm Blue Laser, which is said to be the first unit of its kind available in the Philippines.

‘The Vossman is the upgraded version of a laser system we’ve been using for quite some time called the Blauman,’ said Rebolledo. The Vossman is a German-made laser platform that combines fractional resurfacing, selective photothermal treatment, and bactericidal therapy. It is designed for skin rejuvenation, acne management, and selected benign skin lesion removal.

The renovated branch has seven treatment rooms, a consultation room, and a dedicated photo room for documenting patient progress. The interiors are light, airy, and very Filipino. The clinic’s large windows allow natural light to fill the space. The open layout was preserved to create a bright and welcoming atmosphere, while the treatment rooms have softer lighting designed to provide a more relaxing environment.

Rebolledo said he commissioned a local Filipino artist to create the paintings and sculptures displayed throughout the clinic, including the large artworks outside the branch and pieces placed inside each treatment room.

Many of the Makati clinic’s patients are balikbayans and overseas Filipino workers, said Rebolledo.

‘Some of them haven’t been home for 10 or even 20 years, so I thought they would appreciate seeing something that reminds them of the Philippines.’

The Kutis by Kei Makati branch is on the 3rd Floor of Allianceland Tower Paseo de Roxas corner Dela Rosa Street, Legaspi Village.

WATSONS AUGUST NATIONWIDE SALE

THIS year’s Watsons Nationwide Sale on August 14 to 18 is part of the continuing celebration of AS Watson’s 185th anniversary. All these years, Watsons has been the go-to destination when it comes to good deals for makeup, skincare, bodycare, haircare, and health and wellness.

So what’s in store for shoppers? Buy 1, take 1 offers, up to 50 percent off, and the chance to earn up to 185 points on purchases especially through participating brands that include Health Aid, Watsons Collection, Belo, MET, Nizoral, Vicks, Novuhair, Vantelin, Tiger Balm, Tolak Angin, Nivea, Ponds, Olay, Garnier, Vaseline, BYS, Dr Gil, Tsubaki, Aveeno Baby, and more.

In-store purchases will earn Club and Elite members 50 points for a minimum spend of P1,000, 100 points for a minimum spend of P1,500, and 185 points for every minimum spend worth P2,000. Watsons Club Members get access to the preview sale on August 13.

Shoppers can also get photo cards of Watsons brand ambassador SB19. Watsons Club members who make a qualifying online Watsons App or Watsons online purchase will receive a random exclusive SB19 photocard, available in six collectible designs.

Talubangi National High School (TNHS) in Kabankalan City, Negros Occidental, shifted to remote learning on Monday following an online threat that warned of shooting all teachers in the head during the flag-raising ceremony.

On Sunday night, a certain ‘Tonyo Shooter’ sent a threat using the messenger of TINTA-Talubangi NHS OSP, the official online publication of the school, that read ‘UMANDAM KAMO BWAS HA…Sadya gid ni para sa inyo…pang tiruhon namon sa ulo mga maistro kag maistorya [Prepare yourselves tomorrow…This is going to be exciting…we will shoot all teachers on the head].’

The school officials then coordinated with the local police and the National Bureau of Investigation (NBI) to track down the sender of the message.

Police Lieutenant Colonel Gary Alan V. Resuma, City Chief of Police, met with TNHS Principal Melvan B. Calumag to assess the situation and to ensure peace, order, and safety of the students, teachers, and faculty members.

In an interview with the BusinessMirror, Calumag said that they were surprised of the threat, noting that the Science -oriented school has peaceful school environment, with almost 1,000 students.

She said that the authorities are now investigating to uncover and apprehend suspect or suspects behind the threat.

Calumag also met with the TNHS teachers for well-being assessment and discuss measures against school violence and threats.

Some of the teachers admitted that they felt nervous and experienced anxiety when they were informed about the threat on Sunday night.

‘We have interventions in place…this threat is different since it specifically targeted the teachers,’ Calumag said noting that they will apply effective interventions for teachers who were nervous and experiencing anxiety following the school shooting threat.

Calumag said that classes at TNHS will resume on Tuesday, August 11, after Resuma assured of the safety of learners, teachers, other school personnel, and the security of the school premises.

Alex Eala’s Filipino fans in Canada have spoken, and the National Bank Open listened. After chicken adobo made its surprise debut at Sobeys Stadium last week, organizers rolled out another heritage favorite: pork lumpia.

‘This thing is going to be legendary,’ Ashtad Dadachanji, executive chef of the NBO, who helped curate the new offering, said in NBO’s social media post.

This isn’t your everyday spring roll. Chef Ddadachanji offered it with sinamak-Iloilo’s famed spiced vinegar – then topped it with crunchy chicharron, garlic chips, peanuts, cilantro and drizzle of banana ketchup.

The inventive layering reflects a fusion of nostalgia and innovation – a courtside flavor meant to resonate as strongly as the cheers echoing from the stands.

Pork lumpia was offered Sunday (Canada time), during Eala’s match against 12th-seeded Swiss veteran Belinda Bencic.

NBO food concessionaire The Changeover Kitchen prepared only 200 servings for the limited-time run, priced at CAD $12 (about ?522). It continued to serve chicken adobo for special price os CAD$ 17 (about ?740).

With more than 200,000 kababayan in the city, their voices – and appetites – are shaping the tournament experience in real time.

Just as Eala’s matches have drawn sell-out crowds, the menu is evolving to reflect the culture of those filling the seats.

Tournament director Karl Hale had earlier called the Filipino wave ‘an absolute blessing.’

With adobo and now lumpia joining courtside, the NBO is becoming a showcase not only of world-class tennis but also of Filipino flavor.