Category: Philippine Star

After years of it being charged to our monthly electric bills, the Bureau of Internal Revenue (BIR) has officially removed the value-added tax (VAT) on system loss charge of power utilities like the Manila Electric Co. (Meralco). The BIR officially issued Revenue Memorandum Circular (RMC) No. 97-2026, removing the 12 percent VAT on allowable system loss charges within the cap approved by the Energy Regulatory Commission (ERC).

System loss is the electricity lost as power travels from power plants to homes due to technical factors like heat in wires and transformers and non-technical issues like electricity theft and illegal connections.

‘For consumers, the practical effect is straightforward: once the new rules become effective, VAT will no longer be imposed on the allowable system loss portion of the electricity bill. That means a lower amount will be passed on to consumers on covered billings and transactions,’ BIR Commissioner Charlito Martin Mendoza announced last Monday.

The BIR’s RMC No. 97-2026 follows ERC Resolution No. 26, approved on Aug. 26, which declared that charge – within the ERC cap – a government-mandated pass-through cost. The charge is no longer part of the gross sales of generation companies, the National Grid Corporation of the Philippines (NGCP) and distribution utilities for VAT purposes. It takes effect immediately.

The VAT is a consumption tax. So why should we pay for systems losses when we did not even use the electricity?

For VAT purposes, the BIR explained the allowable system loss charge must be separately identified in the billing statement, invoice or similar document. Generation companies, transmission companies like NGCP, distribution utilities like Meralco, electric cooperatives and other affected utilities must also ensure proper billing, accounting, reporting and separate identification of the charge in accordance with applicable ERC rules and tax regulations, the BIR further instructed.

The BIR clearly stated though in its directive ‘allowable’ because system loss charge is regulated by the government upon utility companies that deliver services like power and water to public. While it is an authorized pass-on charge to us customers, there is an allowed limit or cap set by law to ensure these public utilities do not abuse it. It is meant to prod these utilities to improve efficiency in their system of delivery of services, whether these losses such as leakages from theft, illegal connections or damages are minimized, if not totally avoided.

Finally, we can now see the light of the end of the tunnel metaphorically. This came about only after no less than President Ferdinand ‘Bongbong’ Marcos Jr. (PBBM) gave the marching order in his penultimate State of the Nation Address (SONA) before the 20th Congress last July 27.

PBBM demanded that Congress immediately amend the 2001 Electric Power Industry Reform Act (EPIRA) that will henceforth prohibit the passing of system loss charges and their corresponding VAT to consumers. Speaking in Tagalog, PBBM made the dramatic policy direction that he vowed to see implemented before the end of his term in July, 2028.

‘And if we are talking about lowering prices, I think it is time to remove the system loss that is passed on to the consumer.

It is not the consumer’s fault why there is a system loss. Therefore, we, their people, request – no, we demand – the immediate amendment of the EPIRA and to prohibit charging system loss against consumers, including the VAT thereon,’ PBBM told lawmakers.

It was one of the most applauded portions of the President’s SONA at a time when Filipinos began reeling from the impact of the Middle East (ME) conflict between the US and Iran that erupted in February this year.

In the Philippines, we have laws like the EPIRA that mandated power rates to be fully unbundled. Under Republic Act (RA) No. 9136, or the EPIRA that took effect in June 2001, distribution utilities are legally allowed to pass a portion of these losses on to end-users through monthly electric bills of households and businesses. The higher VAT rate started being imposed and collected following the implementation of the Reformed Value-Added Tax (RVAT) law (RA No. 9337) in November 2005, with the 12 percent rate fully taking effect in February 2006.

That’s why through these years, the Philippines has the most expensive electricity rates and consequently losing its competitive advantage to our Southeast Asian neighbors. No less than the Department of Energy (DOE) conceded this fact as the biggest disincentive to prospective investors to locate and operate their manufacturing companies here in our country.

Incidentally, both the EPIRA and the RVAT were signed into law by former president and now still congresswoman of Pampanga, Gloria Macapagal-Arroyo. A former Arroyo Cabinet member and now Murang Kuryente party-list Rep. Arthur Yap hailed the speed by which the BIR chief ‘found the legal basis and used it’ to implement PBBM’s policy directive to remove the VAT charge out of system losses.

Yap, vice chairman of the House energy committee, noted the DOE calculated removing the VAT charge to systems loss itself would cut bills by five to ten percent.

‘Now the arithmetic…Meralco’s September rate is P14.7424 per kWh. So today’s relief is about six-tenths of one percent of the bill – P17 to P19 a month for a household using 200 kWh (kilowatthour),’ Yap computed.

‘Remove the system loss charge from consumer bills entirely – technical and non-technical losses, not just the tax on top,’ Yap urged. ‘And only a law can undo a law… That is the benchmark, and Congress will be measured against it,’ he pointed out.

The BIR chief hastily clarified the exclusion of the 12 percent VAT ‘will apply prospectively’ in accordance with the effectivity of ERC Resolution 26, Series of 2026. Obviously, the BIR does not want refunds to be demanded from them. These VAT charges on system loss were collected from us taxpayers through our electric bills that Meralco et.al. collected for the government.

So we can only reasonably expect BIR to strongly lobby for Congress to make sure a ‘no refund’ provision will be included in the pending bills to amend the EPIRA.

Getting fiber internet at home can now be as easy as ordering food delivery. Globe AT HOME and Grab are expanding the country’s first order-and-install WiFi-on-demand model to more customers across Metro Manila, Cebu and Davao.

Following its initial rollout in Pasig, GFiber Prepaid on GrabMart is now available in more cities, allowing households to order directly through the Grab app and get an installer visit in as fast as two hours, subject to serviceability. Starting at P699, customers can enjoy 7 days of UNLI internet with speeds of up to 300 Mbps, giving them a more accessible and convenient way to get connected at home. This makes GFiber Prepaid a practical option for work-from-home professionals, renters, gamers, streamers, and young households who need reliable internet without the long application process.

‘GFiber Prepaid is bringing the country’s first ‘order-and-install’ WiFi-on-demand to even more Filipinos nationwide,’ said Abby Cardino, vice president and head of Globe’s Broadband Brand Management. ‘Customers can skip the lines and the traditional application process, order their WiFi seamlessly online, and get an installer almost immediately. More than expanding our reach, this initiative reflects our commitment to continuously innovate and adapt around the evolving digital lifestyle of Filipinos.’

For customers balancing remote work, online learning, gaming, streaming, and everyday digital life, GFiber Prepaid on GrabMart offers a more immediate and accessible way to get connected. It is a fresh take on home internet that feels more on-demand, more flexible, and more in step with how Filipinos live today.

Actor Romnick Sarmenta has reiterated his opposition to the proposed Pax Silica project in the Philippines, questioning how the planned AI-focused industrial hub would benefit Filipinos.

In a video shared on his X account, Romnick questioned why the Philippines was being considered for the project when larger countries with more expansive territories could potentially host similar developments.

‘Sabi nila, ang bansang Pilipinas ay maliit, masikip, watak-watak na mga isla, at overpopulated. So ang tanong ko, bakit dito itatayo ‘yong Pax Silica na data centers?’ he said.

‘Bakit hindi sa mga bansa ng mga foreign proponents kung saan mas malawak at wala sigurong madi-displaced na indigenous people at mga magsasaka?’ he added.

Retired Chief Justice Artemio Panganiban said the 16-vote threshold to convict Vice President Sara Duterte should not be treated as a fixed number.

Appearing before the Senate impeachment court on Wednesday, September 16 as an amicus curiae, or friend of the court, Panganiban said the constitutional requirement of “two-thirds of all the members of the Senate” translates to 16 of 24 senators only “in the abstract.”

The calculation, he argued, “cannot always be reduced to abstract arithmetic.”

Panganiban said senators should approach the constitutional provision with “common sense,” guided by “truth and fairness,” rather than rely exclusively on either a literal reading of the text or the intent of its framers.

He noted that senator-judges are not sitting as ordinary jurists but as elected representatives exercising the Senate’s constitutional power to try impeachment cases.

Should absent senators vote?

Panganiban also questioned whether senators who have not participated in the proceedings should be allowed to cast a vote on Duterte’s guilt or innocence.

He said determining the truth in an impeachment trial requires studying evidence and hearing witnesses in person, including observing their body language, tone of voice and spontaneity.

Fairness likewise requires hearing all sides before reaching judgment, he said, quoting the ancient Greek statesman Themistocles: “Strike me as you may, but hear me first.”

Panganiban then raised the cases of senators who may be in hiding, abroad, detained, sick, hospitalized or otherwise absent from the proceedings.

Such senators, he said, would not have examined the documents presented to the court, heard the testimony or personally observed the witnesses.

“Meaningful adjudication requires active participation in this search for truth and fairness,” Panganiban said.

In one of the sharpest parts of his presentation, he contrasted senators “sweating it out” inside the session hall with absent members who could be sightseeing by the Nile, shopping in Paris, riding gondolas in Venice or “deliberately hiding in the dark corners of the world.”

He did not name any senator.

Panganiban’s position adds another argument against automatically treating two-thirds of the Senate as a fixed 16 votes, although he did not, in the portions of his presentation summarized Wednesday morning, prescribe a specific alternative number.

Senate has final say

Panganiban also argued that the Senate itself has the final word on an impeachment verdict.

He said the Constitution provides no route for appealing a Senate judgment in an impeachment trial to the Supreme Court.

The high court may intervene only when the Senate commits grave abuse of discretion, he said, such as a capricious, whimsical or arbitrary exercise of judgment amounting to lack or excess of jurisdiction.

The Supreme Court cannot step in simply because it disagrees with the wisdom of the Senate’s decision, Panganiban added.

The former chief justice is one of four retired Supreme Court justices tapped as amici curiae, or friends of the court, to advise senator-judges on the disputed voting threshold.

Retired Chief Justice Hilario Davide Jr., who submitted a written memorandum, separately argued that the two-thirds requirement should be based on senators legally and physically qualified to vote rather than automatically on the full 24-member Senate.

Shares succumbed to the pressure as the peso continues to weaken near the 63 to $1 level, pulling the local stock market nearer 6,000.

The bellwether Philippine Stock Exchange index (PSEi) yesterday tumbled by 1.11 percent or 67.29 points to 6,007.78, as investors feared the peso’s decline is far from over.

The broader All Shares index also slipped by 0.62 percent or 21 points to 3,342.52.

Regina Capital Development Corp. head of sales Luis Limlingan said investors have taken a step back following the peso’s folding to 62.86 to $1 on Monday. Further, they went on a selling spree because they believed the depreciation would persist.

The peso yesterday plunged to a new record intraday low at 62.925 after opening at 62.9 and strengthening to an intraday high of 62.777.

It appreciated by 2.5 centavos to close at 62.835 from Monday’s all-time low of 62.86 as traders believed that the Bangko Sentral ng Pilipinas intervened to smoothen the volatility in the market, as volume almost doubled to $1.9 billion from $969.22 million.

Likewise, there are concerns that elevated oil prices would worsen the peso’s decline. Given that the Philippines is a net buyer of oil, it spends more for every barrel of import, causing the peso to become volatile in foreign exchange.

‘Elevated oil prices continued to weigh on investor sentiment, raising concerns over inflationary pressures and the broader economic outlook,’ Limlingan said.

Investors are likely keeping a cautious stance in trading, especially with the US Federal Reserve expected to hike interest rates in a move to prevent inflation from potentially running away.

The PSEi saw P5.35 billion worth of shares changed hands yesterday, as the losers outnumbered the winners, 96 to 90, leaving 53 issues unchanged.

Beauty had its moment in the spotlight as Rustan’s Beauty Source staged its much-awaited Beauty Addict Event 2026, transforming Rustan’s Makati into a glamorous playground for beauty devotees.

With this year’s theme, ‘Spotlight,’ the event rolled out the red carpet for an irresistible mix of makeup, skincare, fragrance and beauty experiences. From discovering the latest cult favorites to trying out new products, guests were treated to a day where looking good was very much part of the fun.

Adding star power to the occasion were beauty influencers and personalities who shared the products they personally swear by.

Claudia Barretto singled out Nars Light Reflecting Foundation for its natural, skin-like finish that leaves her complexion polished and even.

Angelique Manzo called Mac Prep + Prime Fix a ‘cult classic,’ using it before and after makeup to keep her look fresh all day.

For Mark Qua, it’s the Mac Glow Play Bouncy Highlighter, which he applies directly to the skin after foundation for a naturally flushed look.

Fragrance had its own devoted following. Claudette Ferrer loves Hermès Eau de Rhubarbe Écarlate for its unique, lightweight and versatile scent, while Michelle Arceo chose Guerlain Aqua Allegoria, saying its feminine, sexy, sophisticated and slightly mysterious character feels like an extension of her identity.

Kayla Jean Carter keeps YSL Loveshine Candy Glaze in her bag, praising its non-sticky texture, buildable color and easy balm application.

Shine Dee has been loyal to L’Occitane Softening Shower Oil since 2016, loving its cozy scent and moisturizing effect. And Nicole Go prefers Jo Malone Sea Salt and Bergamot for its light, effortless character.

The beauty stations were anything but ordinary. Hermès Beauty offered its bespoke Blooming Portrait experience and flash makeup inspired by Barénia, while Anastasia Beverly Hills provided brow and lip styling. Nars invited guests to discover their perfect shade and create a signature look, while Clarins, Shiseido, Estée Lauder, Clinique and Laura Mercier turned beauty discovery into playful challenges – with prizes to match.

There was also Mac Cosmetics’ Blend and Brew, pairing shade matching with iced coffee, and Sisley Paris’ botanical tea station for a more leisurely beauty break.

Adding to the excitement were special offers, Beauty Addict perks and exclusive gifts from an impressive roster of international beauty names.

More than simply a shopping event, Beauty Addict 2026 celebrated the pleasure of beauty itself – part indulgence, part discovery and plenty of glamour. At Rustan’s, the message was clear: when beauty takes center stage, everyone gets a chance to shine.

Retired chief justice Hilario Davide Jr. argued that the two-thirds threshold in Vice President Sara Duterte’s impeachment trial should be based only on senators qualified and able to vote, rather than automatically on all 24 Senate seats.

Davide’s position was contained in a memorandum submitted as amicus curiae, or friend of the court, which was read before the Senate impeachment court on Wednesday, September 16.

He argued that senators facing legal or physical restraints that prevent them from participating in the trial should be excluded from the denominator used to determine the two-thirds vote required for conviction.

Davide, who was a delegate to the 1971 Constitutional Convention and a member of the 1986 Constitutional Commission, said the framers did not specifically debate the meaning of “all the members of the Senate” in the impeachment provision.

But he said they understood “members” to mean senators capable of performing their duties.

Any other interpretation, Davide wrote, would “tolerate an absurdity, and perpetuate an injustice.”

Under his interpretation, senators who have resigned or been expelled would not be counted.

He argued that the same should apply to senators unable to participate because of serious physical or mental incapacity, citing examples such as coma or terminal illness.

Davide also said senators who are outside the country, in hiding or whose whereabouts are unknown should be excluded from the count.

He further argued that senators under legal restraint should not form part of the voting body, including those detained while facing plunder or graft charges, those facing other criminal cases under circumstances preventing them from performing their duties, and those convicted and serving sentence.

Davide cited Supreme Court rulings holding that public officials in detention cannot exercise the functions of their office while detained.

‘Avelino’ case

Davide also addressed the 1949 Supreme Court ruling in *Avelino v. Cuenco*, which has figured in arguments over how the Senate should count its membership.

He said the case was not directly controlling because it dealt with quorum during an ordinary Senate session rather than the constitutionally required vote in an impeachment trial.

Davide nevertheless said the ruling had persuasive value.

In Avelino, two senators were absent, one confined in a hospital and another in the United States. Davide said this effectively left 22 senators capable of acting, making 12 the majority that elected Mariano Cuenco as Senate president.

Applying that reasoning to the impeachment court, Davide argued that senators who are detained, abroad, suspended or otherwise unable to take part in the proceedings should not be counted when determining the voting threshold.

The Senate impeachment court is considering an appeal of presiding officer Chiz Escudero’s earlier ruling that 16 votes, or two-thirds of the full 24-member Senate, are required to convict Duterte.

Davide is one of four former Supreme Court justices tapped as amici curiae to advise the impeachment court on the constitutional question.

Retired Chief Justices Artemio Panganiban and Reynato Puno and retired Associate Justice Adolf Azcuna were also invited to give their views. Davide submitted a written memorandum instead of appearing personally

They’re all in. PSC. POC. PHILTA. The Senate. All behind Alex Eala.

Eala, 21, world No. 18 and the hottest ticket in women’s tennis today, has chosen Nagoya over Beijing. Asian Games tennis starts Sept. 27 at Higashiyama Park while the China Open, a mandatory WTA 1000 for Top 30 players, starts Sept. 30. Skip it and it’s an automatic $10,000 fine plus a damaging zero-pointer.

But Eala is determined to play for flag and country, and the nation is behind her.

‘We can always say Alex is giving back to her country, to the support of Filipinos in the country and wherever she competes – they have amazingly established that global ‘Eala mania’,’ said POC president Bambol Tolentino. ‘The WTA has its rules and breaking the rules has penalties. But Alex will be in Nagoya, for flag and country.’

PSC chairman Patrick Gregorio was just as firm: ‘Para sa bayan ito at malinaw ito sa isip at puso ni Alex. She is the epitome of a world-class Filipino athlete. Para sa bayan, laging lalaban.’

PHILTA secretary-general John Rey Tiangco confirmed the official appeal for exemption has been filed with the WTA, with PSC and POC in close coordination. Senators Bong Go and Erwin Tulfo have stepped in, asking the WTA to recognize the exceptional circumstance.

‘Hindi dapat parusahan ang atleta dahil pinili niyang katawanin ang bandila,’ said Go, who chairs the Senate sports committee.

Tulfo added government should be ready to cover the fine if imposed: ‘It is a price worth paying for the honor.’

Eala won bronze in Hangzhou in 2023 behind Qinwen Zheng and Zhu Lin – both absent in Nagoya – and now guns for the country’s first Asian Games tennis gold since Johnny Jose in Jakarta in 1962.

Ellen Adarna had a playful response to questions about the bundles of cash featured in her latest Instagram video.

The actress recently shared a clip of herself being playfully slapped with bundles of money while asking her followers to come up with the ‘most unhinged’ caption for the post.

‘May the most unhinged caption win,’ Ellen wrote.

A netizen then joked about a possible ‘boyfriend reveal,’ prompting the actress to clarify that she is not dating anyone.

The Philippines is bringing its largest delegation to this year’s China-ASEAN (Association of Southeast Asian Nations) Expo (CAEXPO), in line with its aim to grow exports, according to the Center for International Trade Expositions and Missions (CITEM).

Designated as this year’s ‘Country of Honor,’ the Philippines is being represented by a 313-strong national delegation, including 73 high-value export enterprises, at the 23rd CAEXPO being held at the Nanning International Convention and Exhibition Center in Guangxi, China, from Sept. 17 to 21.

This is the second time the Philippines has been named CAEXPO’s ‘Country of Honor,’ following its designation in 2013.

Carrying the theme ‘The Philippines is Programmed for Business and Growth,’ the country’s 73 exhibitors include enterprises in agrifood, lifestyle, home and fashion, personal care and allied services, tourism, banking and pharmaceuticals.

Apart from showcasing Philippine products and services, the country’s participation will feature Cebu as CAEXPO’s official ‘Province of Charm,’ and highlight the trade and investment opportunities it offers.

Aside from posting annual economic growth of 7.3 percent, CITEM said that Cebu has world-class air and maritime logistics infrastructure and strategic deepwater ports, making it a high-yield destination for investment, industrial manufacturing and creative industries.

Through its participation in CAEXPO, CITEM said the aim is to position the country as a premier sourcing hub and world-class travel destination.

‘CITEM did not build this milestone alone; it was forged by the ambition and product innovation of our 73-strong exhibitors, backed by a whole-of-government ecosystem,’ CITEM said.

‘Every deal closed, and every partnership forged on this floor directly feeds into the country’s overall economic growth, elevating the Philippine export nation on the global stage,’ it added.

CITEM serves as the Department of Trade and Industry’s (DTI)’s export promotion arm.

CITEM organized this year’s CAEXPO participation in partnership with the Department of Agriculture, Department of Foreign Affairs, Coconut Farmers and Industry Development Plan, Philippine Exporters Confederation Inc., Tourism Promotions Board Philippines, Federation of Filipino-Chinese Chambers of Commerce and Industry Inc., Liwayway Marketing Corp. and Metropolitan Bank (China) Ltd.

After the CAEXPO, CITEM is set to bring a delegation of Filipino food companies to SIAL Paris 2026 in France from Oct. 17 to 21.

This will be followed by the Philippines’ participation in the China International Import Expo, which will run from Nov. 5 to 10 in Shanghai.

Earlier, DTI Export Marketing Bureau director Bianca Pearl Sykimte said the agency expects the country’s exports to grow faster than the government’s three percent growth target for exports of goods this year.

Latest data from the Philippine Statistics Authority (PSA) showed that the country’s exports of goods from January to July rose by 13 percent to $54.92 billion from $48.67 billion in the same period last year.

The seven-month export figure is the highest recorded since tracking began in 1991.