Category: Philippines Daily Inquirer

The government could lose an estimated P10 billion annually from the planned removal of the 12-percent value-added tax (VAT) on electricity system loss charges, the Department of Finance (DOF) said.

Speaking to reporters on the sidelines of an event, Finance Secretary Frederick Go confirmed the estimated revenue loss, saying the Bureau of Internal Revenue (BIR) is still awaiting the Energy Regulatory Commission’s (ERC) policy decision before processing the matter.

System losses refer to electricity that is generated but lost during transmission and distribution, with the cost recovered by power firms from consumers through the system loss charge.

In Resolution No. 26 published on Aug. 28, the ERC declared the system loss charge a government-mandated pass-through cost that would no longer form part of the gross sales of generation companies, the National Grid Corp. of the Philippines and distribution utilities. The resolution will take effect once the BIR issues the necessary confirmation.

Distribution utilities will then have 60 days to modify their billing formats to reflect that the system loss charge is not subject to VAT.

The policy comes over a month after President Marcos, in his State of the Nation Address, called for the removal of system loss charges in electricity bills to ease the financial burden of Filipinos.

Defense lead counsel Sheila Sison reacts to the prosecution’s offer of testimony for lawyer Michael Poa, presented by prosecution counsel Benjamin Tolosa Jr. before the impeachment court.

Sison says the prosecution’s 13-point offer of testimony ‘sounds like rhetoric aimed at providing drama’ in the impeachment trial.

Poa served as the Department of Education chief of staff from 2022 to 2024.

The decision of House lawmakers not to subject to scrutiny the proposed 2027 budget of the Office of the President (OP) may have violated the checks and balances enshrined in the 1987 Constitution, according to a budget watchdog.

On Tuesday, the House appropriations committee voted 37-5 to swiftly end debate on the P10.1-billion proposed budget of the OP, citing parliamentary courtesy. The 2027 budget is 63.9-percent lower than this year’s P28.1 billion.

‘The traditional practice of ‘courtesy’ to executive agencies afforded to the President … violates the checks and balances designed by the Constitution,’ Kenneth Abante, coconvener of watchdog People’s Budget Coalition, told the Inquirer in a text message.

He described the practice as ‘worrying.’

‘There are also red flags in the Office of the President’s budget that need to be scrutinized. At the very least, it should be debated so it can be discussed,’ Abante said. ‘After all, it is still the people’s money being used, and it deserves the same scrutiny.’

Some programs flagged by budget watchdogs include confidential and intelligence funds allotted to the OP and funding for the government’s anticommunist task force, alongside its direct oversight authority over a support fund for local units, according to Tim Salomon of the Caucus of Development Non-Government Organizations Network.

Lawmakers have traditionally refrained from scrutinizing the OP’s budget, invoking the long-standing parliamentary courtesy extended to a sitting President.

Opposition lawmakers, however, protested the House appropriation committee’s move.

‘Public funds are not personally owned by Malacañang and we do not want to continue the broken tradition of extending parliamentary courtesy [to] the Office of the President,’ Kabataan Rep. Renee Co told lawmakers in a manifestation after she voted against terminating the OP’s budget hearing.

‘The power of the purse is held by the legislature … and it should not be surrendered to the executive,’ Co said.

Secret funds

Deputy Minority Leader and ACT Teachers Rep. Antonio Tinio also questioned why half of the President’s proposed budget next year falls under secret funds, stressing that transparency should be applied across all agencies.

Of the P10.1 billion, around P4.56 billion is earmarked for spending beyond traditional scrutiny.

Confidential and intelligence funds finance surveillance and intelligence information gathering activities, according to a 2015 joint circular between the Commission on Audit (COA) and several agencies.

Tinio said the OP should explain its allotments meant for secret expenses, especially amid the ongoing impeachment trial of Vice President Sara Duterte, who is accused of misusing confidential funds.

‘If [Duterte’s] P612.5 million in confidential funds is under scrutiny … why is the Office of the President not explaining why its confidential and intelligence funds are that big?’ he asked, adding: ‘We need a fair application of the principle of transparency.’

Executive Secretary Ralph Recto, however, said that President Marcos has the right to hold secret funds as the nation’s chief executive.

He also noted that the COA had rendered an unmodified opinion on OP finances, which he described as ‘the highest opinion ever for all government agencies.’

‘The President is the chief executive officer. The President is the head of state, so his first job is to ensure law and order and that is where confidential funds are being used,’ Recto told reporters.

Prosecution lawyer Benjamin Tolosa Jr. asks the impeachment court to declare lawyer Michael Poa a hostile witness as he begins his testimony in the impeachment trialof Vice President Sara Duterte on Sept. 2, 2026.

Tolosa also presents a 13-point offer of testimony covering Poa’s role as Department of Education chief of staff from 2022 to 2024

The Provincial Health Office (PHO) of Oriental Mindoro urged residents to take precautionary measures against the possible health effects of haze and air pollution, with Provincial Health Officer Dr. Cielo Ante leading the call for vigilance.

‘Our health and safety are our topmost priority. By taking preventive steps together, we can protect ourselves, our families, and our entire community,’ Dr. Ante said in a public health advisory released on Tuesday (September 1).

The health warning comes amid concerns over haze – a mixture of fine particulate matter that can irritate the eyes, nose, throat, and lungs – and its potential health impacts.

According to the PHO, extended exposure to haze may lead to ‘itching, redness, or watering of the eyes, irritation or pain in the nose and throat, coughing and hoarseness, headaches and dizziness, a difficulty of breathing or shortness of breath, the worsening of asthma and other respiratory and heart conditions.’

Dr. Ante urged all residents to follow these guidelines by reducing outdoor activities and to avoid strenuous physical exertion outdoors, stay indoors with windows and doors closed whenever air quality is poor, consume plenty of water, and to wear protective N95 masks or use the equivalent respirator when going outside becomes necessary.

Acting Health Secretary Edwin Mercado said on Wednesday that the agency has sufficient stocks of leptospirosis medicine to meet demand, if needed, to address the flood-borne illness.

At a congressional budget hearing, Mercado said the Department of Health (DOH) has around 3.1 million pills stored at its main warehouse that could be distributed to flooded communities.

‘We have at least 3.1 million capsules still in the central warehouse, which is enough buffer for the rest of the year,’ he told lawmakers.

He did not specify the medicine he was referring to, although he responded to a question asked by 4K Partylist Rep. Iris Montes, who asked if the DOH had procured ‘prophylaxis’ treatment for leptospirosis.

Post-exposure treatment for those who wade through floodwaters involves doxycycline, a pill now under scrutiny amid supply concerns after torrential rains brought by monsoon rains left several areas flooded.

In mid-August, the University of Santo Tomas Hospital disputed reports that its doxycycline supply was depleted. Last week, Manila Mayor Francisco ‘Isko’ Moreno Domagoso said the capital still has sufficient stocks of the pill despite heavy rains that inundated the flood-prone city.

The DOH plans to procure 4.88 million doxycycline pills for next year, which will be distributed to health centers nationwide, Mercado said

Los Angeles has officially designated Sept. 1-8 as ‘BTS Week’ as the group returns to the city for four sold-out concerts as part of its ‘Arirang’ world tour.

The boy group is set to perform at SoFi Stadium on Tuesday and Wednesday and again on Saturday and Sunday, marking the group’s first concerts at the venue in nearly five years.

To welcome the group and fans traveling to the city for the shows, Los Angeles will also illuminate its city hall in red on Tuesday, reflecting the key color associated with BTS’ fifth LP, ‘Arirang.’

An official proclamation ceremony was held at Los Angeles City Hall on Monday, attended by representatives from the City Council, the Los Angeles Tourism and Convention Board and Big Hit Music.

Los Angeles Mayor Karen Bass said the designation recognizes both BTS’ cultural impact and the role of arts and culture in bringing communities together.

‘The proclamation of ‘BTS Week’ reflects our belief in the power of arts and culture to foster mutual understanding and connect communities,’ Bass said. ‘We are proud to honor the remarkable achievements of BTS, who have made significant contributions to global culture, and to celebrate their special connection with Los Angeles with people around the world.’

Los Angeles City Council member John Lee said the proclamation also recognizes the city’s longstanding ties with Korea and its Korean American community.

‘This proclamation honors at the city level the extraordinary mark BTS has left on global culture,’ Lee said. ‘At the same time, it celebrates with pride the longstanding ties and cultural exchanges between Los Angeles, Korea and the Korean American community.’

In its resolution, the Los Angeles City Council described BTS as ‘one of the most influential artists representing this generation’ since its debut in 2013, highlighting the group’s role in expanding opportunities for Korean and Asian artists in the global music industry.

The resolution also cited BTS’ efforts to connect audiences across languages, cultures and generations through messages of love and hope, as well as its ‘Love Myself’ campaign with UNICEF and appearances at the United Nations.

The Los Angeles concerts will close the North American leg of BTS’ ongoing world tour.

The concerts will also mark the septet’s return to SoFi Stadium in around four years and nine months after their ‘Permission to Dance on Stage’ tour in late 2021. All four of the upcoming shows have sold out.

Earlier, BTS received ‘gold’ certification from Syndicat National de l’Edition Phonographique, the French recording industry organization, with ‘Swim,’ Big Hit Music announced.

The focus track from the group’s fifth album, ‘Arirang,’ is its tenth song to achieve the feat and did so in about five months, the second shortest time for it after ‘Dynamite.’

‘Swim’ earned the group a nomination for song of the year from the MTV Video Music Awards. The award ceremony will be held in Los Angeles on Sept. 27. BTS is also contending for best K-pop, which it has won three times.

The Philippine peso weakened below the 62.5-per-dollar level on Wednesday to hit another record low, extending its slide as a stronger greenback and rising oil prices fueled inflation concerns.

The local currency opened at 62.4 per dollar before widening its losses to an intraday low of 62.58 during morning trading, according to data from the Bankers Association of the Philippines.

The move came as renewed hostilities in the Middle East pushed oil prices higher and boosted demand for the dollar as a haven. Brent crude rose almost 1 percent on Wednesday, while the dollar held firm against major currencies.

On Tuesday, the peso closed at a record-low 62.40 as higher oil prices, geopolitical risks, and a stronger dollar weighed on the currency.

Earlier, MUFG Bank Ltd. said the Philippine peso remains Asia’s ‘weakest link,’ despite the central bank’s recent rate hike, as policymakers balance inflation control with weak economic growth

The country’s fuel marking program is moving toward an upgrade after securing government funding from the Public-Private Partnership (PPP) Center to implement technological and operational enhancements aimed at curbing oil smuggling.

Fuel marking, which the government began in 2019, allows authorities to identify petroleum products that may have entered the market illegally by injecting molecular markers into fuel products that have paid the correct excise taxes and import duties.

In a statement on Tuesday, the PPP Center said its Project Development and Monitoring Facility (PDMF) Committee had provisionally approved P19.16 million for transaction advisory services for a proposed PPP covering the operations, maintenance and upgrading of the Philippine Fuel Marking Program.

This proposed PPP would introduce technological and operational upgrades, deploy additional field-testing units and provide training for the Bureau of Customs (BOC) and Bureau of Internal Revenue (BIR).

The PPP Center stated that these measures aim to ultimately help the government independently and sustainably manage the program.

Currently, the Department of Finance (DOF) implements the fuel marking program in partnership with the joint venture of Swiss security technology firm SICPA SA and inspection company SGS Philippines Inc.

The DOF plans to continue the program through a PPP following an unsolicited proposal from SICPA. The PDMF support aims to prepare and structure the project before the PPP procurement process.

The funding will cover preparation of a due diligence report and tender documents, assistance during the PPP bidding process, and advisory services after contract signing until financial close.

The fuel marking project was among three proposals that secured PDMF support during committee meetings in July and August.

Iligan, Bataan projects

The committee also approved P60.94 million for project preparation and transaction advisory services for the rehabilitation, expansion and modernization of the Iligan City Waterworks System.

The proposed project covers the rehabilitation, financing, operation and maintenance of the city’s water supply system, including its water sources, pumping stations and pipelines, as well as the construction and upgrading of supporting infrastructure.

The government approved another P48.42 million for Bataan’s Bunker II-Pylon Project, which aims to create an integrated complex that will consolidate provincial offices and facilities for justice, health, and other public services.

The PDMF is a revolving fund managed by the PPP Center that finances feasibility studies, transaction advisory work, tender preparation and other activities needed to develop and implement potential PPP projects.

When it comes to figuring out what young shoppers want, SM Supermalls has decided that perhaps the best people to ask are-well, young shoppers themselves.

SM Supermalls president Steven Tan revealed that the mall giant has its own internal ‘Gen Z Council,’ a think tank composed solely of Gen Z employees whose job includes keeping management plugged into the fast-changing tastes of younger consumers.

‘You learn so much from the younger generation,’ Tan said, adding with a laugh that he ‘definitely’ cannot participate in the council.

Instead, the council members discuss trends among themselves before pitching their ideas to management. The older hands then bring experience and practicality into the equation.

‘You just have to be more practical when you apply. That is where we come in because of our experiences. Then you balance it out,’ Tan said.

SM Supermalls executive vice president for marketing Joaquin Agustin said the council plays a role in shaping the company’s strategies by providing insights straight from their generation.

Rather than leaving consumer research entirely to senior executives, SM deliberately taps its younger officers to find out what is clicking-and what isn’t-with today’s market.

‘They tell us and present to us what is the pulse of the market today,’ Agustin said.

Those insights, he added, help SM personalize what it does as a mall and as a broader business.

So while seasoned executives still call the shots at SM, some of the ideas keeping its malls relevant may increasingly come from the youngest voices in the room. -Emmanuel John B. Abris

Meralco keeps nuclear option

Manila Electric Co. (Meralco) stays the course on its nuclear power quest, tapping a US-based engineering firm to explore the potential deployment of small modular reactors (SMRs) in the Philippines.

With Meralco PowerGen Corp., the group inked a deal with Sargent and Lundy, in partnership with local engineering firm AMH Philippines Inc., to launch a comprehensive feasibility study on SMRs.

This forms part of the $2.8-million technical assistance program funded by the US Trade and Development Agency (USTDA), which Meralco secured in February.

The study, which is seen completed by the last stretch of 2027, will produce ‘a rigorous, data-driven basis for determining whether, when, and how SMRs’ can beef up the country’s electricity mix. SMRs have a capacity ranging from 300 megawatts (MW) to 450 MW each.

Meralco said that it has created an SMR working group to work closely with the engineering firms.

‘Partnering with Sargent and Lundy marks a pivotal step in turning our nuclear roadmap into actionable, data-driven decisions under our NEST (nuclear energy strategic transition) program,’ MGEN president and CEO Emmanuel Rubio said in a statement.

‘As we advance this USTDA-funded study, MGEN remains committed to exploring safe, reliable, and low-carbon technologies such as SMRs as we work to secure the Philippines’ long-term energy future and support the country’s economic growth,’ he added.

Talks on nuclear energy advanced under the leadership of President Marcos, seemingly a continuation of what his father, late President Ferdinand Marcos Sr., envisioned with the establishment of the Bataan Nuclear Power Plant. The mothballed facility, however, was hounded by safety fears