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Business chamber calls for reforms beyond corruption prosecutions

THE Philippine Chamber of Commerce and Industry (PCCI) said procedural and policy reforms need to accompany prosecutors’ action to address systemic corruption in government.

PCCI President Ferdinand A. Ferrer said corrective measures should take place at the institutional level to ensure that “massive abuse of power and stealing of people’s money” never happen again.

“While corrective measures in budgeting and accountability are underway, there have to be policy changes that should stop corruption in government,” he added.

According to the newly installed PCCI president, the infrastructure corruption scandal has been indirectly affecting the operations of enterprises.

“We continue to run our businesses as resiliently and as cautiously as possible, but… this massive corruption issue has, at times, affected productivity and operations,” he added.

He said that if the billions of pesos lost to corruption were instead channeled to improvements in digital connectivity and infrastructure, the Philippines could have been a more competitive investment destination.

“The future is digital. Our micro, small and medium enterprises (MSMEs), which comprise 97% of businesses in the country, are not reliably connected to the internet,” he said.

“We need to ensure they are connected and can use e-commerce faster and efficiently. If we improve their economic standing, the country improves,” he added.

Despite concerns about cybersecurity, he said digitalization plays a vital role in “improving the ease of doing business, providing transparency and efficiency, reducing human intervention, and aligning with global best practices.”

“Starting a business is easy and simple, but sustaining operations remains difficult due to regulatory inconsistencies,” he added. — Justine Irish D. Tabile

Agroforestry a climate-resilient option for PHL farming — ADB

BW FILE PHOTO

SCALING UP agroforestry could provide a boost to Philippine climate resiliency while raising farm incomes, the Asian Development Bank (ADB) said.

In a December paper, the ADB said agroforestry, which integrates tree planting with crop and livestock farming, can help address land degradation, declining forest cover, and food insecurity.

The bank noted that forest cover in the Philippines fell to about 24% of total land area in 2020 from 35% in 1990, largely due to agricultural expansion and unsustainable upland farming practices.

“Forest cover in the Philippines decreased dramatically, from around 10 million hectares in 1990 to about 7 million today. This loss is primarily because of large-scale deforestation and forest encroachment from crop cultivation, which remains a significant issue,” the ADB said.

The ADB said deforestation has been further worsened by unsustainable farming practices in upland areas, where monoculture, intensive tillage, and heavy chemical inputs remain prevalent.

“These practices have contributed to adverse environmental impacts, including increased erosion, declining soil fertility, and increased vulnerability to climate-related calamities,” it said.

The bank said agroforestry offers a viable alternative to conventional upland farming by restoring soil health, improving water retention, and stabilizing slopes, while allowing farmers to diversify production.

Integrating trees into agricultural systems can help regulate microclimates, reduce erosion, and protect crops and livestock from extreme weather, it added.

The ADB said trees also help mitigate climate change by sequestering carbon, as well as providing other ecological services. Citing a 2010 study, the ADB said agroforestry systems in Mindanao store three times more carbon than traditional tree plantations.

According to the ADB, common agroforestry practices in the Philippines include alley cropping, taungya (planting crops alongside young forest tree seedlings), multistory systems, tree-crop grazing, slope agriculture, and natural vegetative strips.

Crops considered suitable for agroforestry include durian, mango, mangosteen, and jackfruit, which can be grown alongside cacao and coffee. The ADB noted the practice of coconut-pineapple multistory systems in Cavite, and coffee-cocoa multistory systems in Mindanao.

However, the ADB said wider adoption in the Philippines remains constrained by high upfront costs, delayed financial returns, limited access to credit, and weak market linkages.

“The poorest farmers are constrained by an inability to suffer a short-term reduction in yields, short planning horizons, high discount rates, aversion to uncertainty, and availability of land, labor, and capital at key times of the year,” it said.

The ADB said smallholder farmers often lack financing for establishing seedlings and early maintenance, while returns from tree-based systems may take years to materialize.

The bank said targeted public support will be critical to address these barriers, including concessional financing, conditional cash transfers, and payments for ecosystem services.

The ADB said financial institutions, including the Land Bank of the Philippines, could play a key role in developing loan products suited to longer investments in agroforestry.

Greater private sector participation, particularly from agribusinesses sourcing coffee, cacao, and other tree-based commodities, could also help strengthen market access and encourage wider adoption. — Vonn Andrei E. Villamiel

Key tax reforms that shaped 2025

As Heraclitus, the Greek philosopher, aptly observed, “There is nothing permanent except change.” Whether in life or in our professional pursuits, we encounter change almost daily, and we adapt and overcome each one.

The year 2025, in particular, witnessed substantial and transformative developments in the field of taxation. As we start 2026, it is timely and fitting to look back on the significant changes implemented in Philippine tax laws over the past year.

THE CREATE MORE ACT
Signed into law in November 2024, Republic Act (RA) No. 12066, or the CREATE MORE Act, became fully operational in 2025. This legislation was introduced to improve the investment climate by enhancing incentives aimed at stimulating economic activity, supporting business growth, generating employment opportunities, and attracting greater foreign investment.

Among its key provisions are the lowering of corporate income tax from 25% to 20% for Registered Business Enterprises (RBEs) under the enhanced deduction regime; the extension of incentive periods; the codification of allowable deductions for input VAT paid on local purchases attributable to VAT‑exempt sales; and the broadened coverage of VAT zero‑rating to include goods and services deemed “directly attributable” to the Registered Export Enterprise’s registered projects, among others.

While the law introduces clearer and more streamlined rules that are expected to benefit enterprises, it likewise imposes heightened responsibilities on taxpayers. The continued enjoyment of these incentives now demands strict adherence to the measures governing invoicing, reporting, and documentation standards, thereby emphasizing the need for businesses to be more diligent and proactive in maintaining their eligibility under this enhanced regulatory framework.

VAT ON DIGITAL SERVICES
With the full implementation of VAT on Digital Services under RA No. 12023, which took effect on Oct. 18, 2024, digital service providers (DSPs), including non‑resident entities offering digital platforms, goods, and services in the Philippines, are now required to register with the Bureau of Internal Revenue (BIR) and remit VAT on their taxable transactions. This measure reflects the government’s broader initiative to modernize the tax landscape by addressing the rapid expansion of the digital economy and reinforcing compliance among both local and foreign service providers. In effect, it promotes a more level playing field between traditional businesses operating in the Philippines and digital enterprises serving the same market. Notably, transactions of non-resident DSPs became subject to VAT beginning June 2, 2025, following the implementation schedule set under the rules.

Accordingly, foreign digital service providers, even those without any physical presence in the Philippines, are now subject to VAT and must comply with the corresponding registration, invoicing, and reporting requirements imposed by the BIR.

THE CAPITAL MARKETS EFFICIENCY PROMOTION ACT
RA No. 12214, or CMEPA, which took effect on July 1, 2025, was passed to streamline the taxation of passive income, promote transparency, and enhance the growth and global competitiveness of the Philippine capital markets. By modernizing the tax framework governing passive income, the law introduces a more competitive, regionally aligned, and investor‑friendly regime. It also aims to encourage broader participation from ordinary Filipinos, thereby fostering a more inclusive and accessible investment environment.

Among its key reforms are the reduction of the stock transaction tax from 0.6% to 0.1%; the standardization of the final withholding tax on all interest income from peso and foreign currency bank deposits, trust funds, and similar instruments to 20%; the alignment of capital gains tax rates on the sale of unlisted domestic and foreign shares to 15%; and the reduction of the documentary stamp tax on the original issuance of shares from 1% to 0.75%. These measures collectively simplify compliance, lower investment costs, and harmonize the treatment of financial instruments.

Ultimately, CMEPA strengthens the foundation of the Philippine capital market, supports long‑term savings and wealth‑building opportunities, and enhances the country’s attractiveness as a destination for sustainable investment and economic growth.

THE AUDIT SUSPENSION
In November and December, the BIR issued Revenue Memorandum Circular (RMC) Nos. 1072025 and 1092025, which indefinitely suspended all ongoing field audits and related field operations, including the issuance of Letters of Authority (LoA), Mission Orders (MO), and the conduct of examinations and verifications of taxpayers’ books, records, and transactions, subject to specific exceptions outlined in the circulars.

This suspension was implemented to safeguard the integrity of audit operations by addressing systemic issues, protecting taxpayer rights, and developing a more transparent, standardized, and modernized audit framework. The issuance of these circulars was prompted by numerous complaints from taxpayers, stakeholders, and internal BIR units regarding alleged irregularities and inconsistencies in audit practices.

THE RULE ON DE MINIMIS BENEFITS
As the final tax issuance for 2025, Revenue Regulations (RR) No. 29‑2025 was promulgated to further amend RR No. 2‑98 by increasing the ceilings for non‑taxable de minimis benefits. The updated thresholds are as follows:

• Monetized unused vacation leave credits of private employees not exceeding 12 days during the year;

• Monetized value of vacation and sick leave credits paid to government officials and employees;

• Medical cash allowance to dependents of employees not exceeding P2,000 per employee per semester or P333 per month;

• Rice subsidy of P2,500 or one sack of 50 kg rice per month amounting to not more than P2,500;

• Uniform and clothing allowance not exceeding P8,000 per annum;

• Actual medical assistance (e.g., medical allowance to cover medical and healthcare needs, annual medical/executive check-up, maternity assistance, and routine consultations) not exceeding P12,000 per annum;

• Laundry allowance not exceeding P400 per month;

• Employee achievement awards (e.g., for length of service or safety achievement) in any form, whether in cash, gift certificate, or any tangible personal property, with an annual monetary value not exceeding P12,000 received by the employee under an established written plan which does not discriminate in favor of highly paid employees;

Gifts given during Christmas and major anniversary celebrations not exceeding P6,000 per employee per annum;

• Daily meal allowance for overtime work and night/graveyard shift not exceeding 30% of the basic minimum wage on a per region basis; and

• Benefits received by an employee by virtue of a collective bargaining agreement (CBA) and productivity incentive scheme provided that the total annual monetary value received from both CBA and productivity incentive schemes combined do not exceed P12,000 per employee per taxable year.

This issuance underscores the government’s recognition of rising living costs and its intention to provide employees with more meaningful non‑taxable benefits.

The regulation was published on Dec. 22, 2025 and will take effect 15 days after its publication in the Official Gazette or on the BIR website.

As we close the chapter on 2025, it becomes clear that the year marked a pivotal moment in the evolution of Philippine taxation. The numerous reforms reflect the government’s commitment to fostering a fair, efficient, and forward‑looking tax environment. These developments not only address long‑standing systemic issues but also pave the way for a more transparent and investor‑friendly landscape that supports business growth and economic resilience.

As 2026 unfolds, taxpayers and stakeholders alike are encouraged to remain vigilant, adaptable, and well‑informed to fully maximize the benefits of these reforms and confidently navigate the continually evolving tax landscape. It is likewise hoped that the government will continue to introduce measures that promote a more equitable and progressive system of tax laws: one that supports sustainable development and contributes to a better Philippines.

Let’s Talk Tax is a weekly newspaper column of P&A Grant Thornton that aims to keep the public informed of various developments in taxation. This article is not intended to be a substitute for competent professional advice.

 

Margreth P. Vasquez is an associate from the Tax Advisory & Compliance practice area of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

pagrantthornton@ph.gt.com

Eala-Jovic duo stuns powerhouse pair of Elina-Venus in ASB Classic

IVA JOVIC (L) and Alex Eala — FACEBOOK.COM/ASBCLASSIC

ALEXANDRA “ALEX” EALA added another former champion and top-ranked player to her kill list for an explosive start to her 2026 season.

Young guns Ms. Eala and American partner Iva Jovic pulled the rug from under the powerhouse and grizzled tandem of Ukraine’s Elina Svitolina and the returning Venus Williams of the United States, 7-6 (9-7), 6-1, on Monday in Round 1 of the 2026 ASB Classic at the ASB Tennis Centre in Auckland, New Zealand (NZ).

The 20-year-old Ms. Eala and 18-year-old Ms. Jovic erased a 3-5 deficit with a total of eight set points saved in the extended opener before shattering the gates wide open in the second for a stunning upset of the 31-year-old Ms. Svitolina and the 45-year-old Ms. Williams.

It’s definitely youth power over experience as the Filipina-American tandem leaned on fresher legs to dispatch the veteran duo with multiple titles under their belt in only one hour and 29 minutes for a quarterfinal berth.

“Merry Christmas and Happy New Year to everybody. Thank you so much for supporting me and Iva. I had such a good time on court. I think we had a lot of fun,” said Ms. Eala before a predominantly Filipino crowd in NZ.

“You know, to start the year with a moment like this and sharing the court with two pioneers of the sport and pioneers off the court as well, people I looked up to since I was young. I’m so happy to be sharing this moment with Iva and with all of you guys.”

WTA No. 53 Ms. Eala and No. 35 Ms. Jovic, who will also see action in the singles starting on Tuesday, shoot for a final four ticket against either the top-seeded pair of Erin Routliffe of New Zealand and Asia Muhammad of the United States or Czechia’s Jesika Maleckova or Mexico’s Renata Zarazua.

Ms. Svitolina, a former world No. 3, WTA Tour Finals champion and holder of 18 pro titles, is currently world No. 13, while Ms. Williams, WTA No. 582 off a 16-month break boasts seven singles and 14 doubles Grand Slam crowns on top of four Olympic gold medals and a former No. 1 stature.

And that was in full display right off the bat as the hard-hitting veterans blitzed to a 5-3 upper hand behind crisp groundstrokes and return game that the young duo could not handle.

The tide, however, turned from there as the Pinay-American tandem embraced the challenge with resiliency and fortitude amidst deficits and set points one after another.

A break point shifted the momentum on to Mses. Eala and Jovic in the ninth game until they struck to within 5-6 where they scaled the mountain anew from a 15-40 deficit to force a tiebreaker.

Trailing 6-7 anew in the extra session, the never-say-die Mses. Eala and Jovic staged a 3-0 closeout for a 9-7 victory.

And it was all Mses. Eala and Jovic from there on, pouncing on the golden opportunity with a torrid 4-0 start on their way to a near shutout capped by Ms. Eala’s backhand that sliced perfectly through in between the stunned Mses. Svitolina and Williams for the victory.

Ms. Eala and Ms. Svitolina will take a break before their quarterfinal stint to focus on the singles’ campaign.

The fourth-seeded Ms. Eala, on the bottom half of the stacked bracket, will take on Croatia’s Donna Vekic in Round 1 slated at 2:10 p.m. on Tuesday. Ms. Jovic, as the No. 3 seed on the upper half with top-seeded Ms. Svitolina, already advanced with a 4-6, 6-1, 6-0 comeback against No. 182 Gabriela Knutson of Czechia.

The ASB Classic along with Kooyong Classic on Jan. 13 to 15 in Melbourne serve as Ms. Eala’s warm-up tournaments for her main draw debut in the Australian Open starting on Jan. 18.

After that is her homecoming as a wildcard at the Philippine Women’s Open in Manila on Jan. 26 to 31 albeit her availability will depend on her Australian Open campaign. — John Bryan Ulanday

Meralco Bolts move on after the Philippine Cup semis Game 1 misstep

MERALCO BOLTS — FACEBOOK.COM/PBAOFFICIAL

BUNGLING what initially looked like a winning position stung but the Meralco Bolts are quick to do what elite teams do after a misstep — move on.

“It’s far from over. There’s still a lot of basketball to be played,” said coach Luigi Trillo after the Bolts absorbed a 95-100 loss to TNT in a PBA Season 50 Philippine Cup semifinal series opener that saw them squander a 21-point lead.

“But we need to be better,” he stressed.

The Bolts practically imposed their will on the Tropang 5G early on, going on a 52-31 tear before ending the first 24 minutes comfortably by 16. A furious TNT storm in the third sliced the Meralco lead to just one and ultimately, the Tropang 5G outsteadied the Bolts in the homestretch en route to the 1-0 running start in the race-to-four final four.

“That thing (tight ending) should not happen when you go up by 20. That should be a step on the throats and done game. And we didn’t do that. We allowed them to come back,” rued Mr. Trillo.

“Maybe we have to be a heavy-duty team. We need to go down with humility and see that to beat this team, we have to not let go of the gas pedal. You can’t play good (in) one half. And in the third quarter, they just (overpowered Meralco). I think at that point in time, it’s anybody’s ball game. So I think we could have done better in the third.”

The victory on Sunday marked TNT’s biggest comeback win since the 2007 Fiesta Conference when it battled back from 23 down in the second in a 95-87 victory over Alaska in Game 2 of the Finals. Coach Chot Reyes’ troops also made it six in a row against Meralco dating back to the Season 48 Commissioner’s Cup.

Like Meralco, defending champion San Miguel Beermen (SMB) stands defiant after dropping the first match of their own duel with Barangay Ginebra, 90-99.

“Long series ito, best-of-seven. Bounce back na lang kami next game,” said SMB giant June Mar Fajardo after the Gin Kings spoiled his 27-23 double-double and ended the Beermen’s 10-game streak prior to the New Year’s break. — Olmin Leyba

Patriots throttle Dolphins, capture 2nd seed in AFC

NEW ENGLAND PATRIOTS’ TreVeyon Henderson (32) runs the ball against the Miami Dolphins during the second quarter. — REUTERS/IMAGN IMAGES/BRIAN FLUHARTY

RHAMONDRE STEVENSON rushed for 131 yards and had three total touchdowns to lead the New England Patriots to a 38-10 rout of the Miami Dolphins on Sunday at Foxborough, Massachusetts.

The Patriots (14-3) settled for the No. 2 seed in the AFC playoffs after Denver secured the top seed — and a first-round bye — by defeating the Los Angeles Chargers (11-6) in its season finale on Sunday.

New England will host the seventh-seeded Chargers next weekend in the AFC wild-card round.

“We’ll get ready and get rolling and try to do what we do every week, which is prepare and figure out who we have available and what we feel like the keys are going to be and try to practice and be ready to go,” Patriots coach Mike Vrabel said. “That’s all we’ve done all year, and that’s all we’ll be able to do this week in the playoffs.”

The Dolphins (7-10) fell short of the postseason and finished with a losing record for the second consecutive season.

Stevenson rushed for two touchdowns and had a scoring reception.

Rookie TreVeyon Henderson rushed for two touchdowns for New England, which amassed 243 yards on the ground to cap its sixth 14-win season in franchise history.

The Patriots won 14 games for the first time since 2016, and their 10-win turnaround from last season tied the 1999 Colts and 2008 Dolphins for the largest win-difference from one season to the next in NFL history.

“I think we’ve come a long way. I think it takes everybody,” Drake Maye said. “It took everybody in that locker room, took every coach. I think it starts now. This was one of the goals, home playoff games, and this is what we wanted. It’s win or go home, and the mentality, nothing changes from that standpoint, but I think we just stay playing like us. We’ve built this identity and play to it, and I think good things happen.”

Stevenson, who did his damage on the ground on just seven carries, broke a 56-yard run to the Dolphins’ 5-yard line on the game’s second play. Henderson scored on the next play.

Stevenson later scored on a 2-yard run to give New England a 14-0 lead with 55 seconds left in the first quarter.

Miami played without running back De’Von Achane, who sat out with a rib injury. The Dolphins rushed for just 63 yards.

Rookie quarterback Quinn Ewers made his third start and completed 16 of 23 passes for 137 yards, one touchdown and one interception. Ewers’ 2-yard touchdown pass to Malik Washington and a 52-yard field goal from Riley Patterson cut the Patriots’ lead to 14-10 just before halftime.

Trailing 17-10 early in the third, the Dolphins drove into the red zone, but Ewers was intercepted by Jaylinn Hawkins in the end zone with 11:38 left.

New England separated from that point on as Stevenson scored on the ensuing two drives, first on a 15-yard catch and run from Maye, and later on a 35-yard touchdown run. Maye completed 14 of 18 passes for 191 yards.

Henderson ended the scoring on a 2-yard run. — Reuters

Strong Group Athletics acquires Angels middle blocker Remy Palma and setter Chie Saet

STRONG GROUP ATHLETICS (SGA) added two more veterans in its fold after it acquired middle blocker Remy Palma and setter Chie Saet from Petro Gazz in preparation for the coming PVL All-Filipino Conference wars tentatively unfurling late this month.

Both the 30-year-old Ms. Palma and 41-year-old Ms. Saet were key pieces in the Angels’ Reinforced Conference championship run the month before and should significantly bolster the team they would land between SGA-owned clubs Farm Fresh and ZUS Coffee.

Ms. Palma will also be a playing assistant coach while Ms. Saet, despite not having an official title as a coaching lieutenant, should help mentor the cabal of young players SGA has in its rosters.

In fact, Ms. Saet has been with the league even before it turned professional and had won several championships including four with Petro Gazz.

The two vets joined a coterie of new pickups by SGA like Royse Tubino, Bia General, Cess Robles, Karen Verdeflor and Renee Penafiel. — Joey Villar

Broncos beat resting Chargers to earn 14th win, AFC’s top seed

JA’QUAN MCMILLIAN returned an interception 45 yards for the only touchdown of the day, Wil Lutz kicked four field goals and the host Denver Broncos secured the No. 1 seed in the AFC with a grinding 19-3 win over the Los Angeles Chargers on Sunday.

It is the first time in 10 years that Denver (14-3) has clinched home-field advantage in the AFC. The Broncos went on to win Super Bowl 50 in that 2015 season in Santa Clara, California, which is the site of this year’s game. They will have a week off before hosting a playoff game.

“All the work that I put in, all the work that we put in, in offseason, just finally showing (in) my fourth year by far,” McMillian said. “This is my best year. Just thankful we’re a great team, close team. Just got more work to do.”

Bo Nix finished 14-for-23 passing for 141 yards and ran for a season-high 49 yards for Denver, and the defense sacked Trey Lance four times to finish with 68 for the season, a franchise record and the most in the league.

Los Angeles (11-6) rested several players, including quarterback Justin Herbert and safety Derwin James, while Omarion Hampton (ankle) was inactive. The Chargers are the seventh seed and will travel to No. 2 New England (14-3) next weekend for the first round of the playoffs.

Lance, making his sixth NFL start for his third team, was 20-for-44 passing for 136 yards, rushed for 69 yards, threw one interception and lost a fumble. Los Angeles wide receiver Keenan Allen finished with seven receptions for 36 yards to reach two performance bonuses worth $1 million.

Denver drove 81 yards on 15 plays on its first possession of the day but settled for Lutz’ 24-yard field goal.

On the Chargers’ ensuing possession, McMillian picked off Lance and took it down the left sideline and into the end zone for a 10-0 Denver lead.

Late in the first half, Los Angeles drove 51 yards for Cameron Dicker’s 30-yard field goal that made it 10-3 at halftime.

The Broncos drove to the Chargers’ 8 early in the third quarter but had to settle for a 26-yard field goal. Then, early in the fourth quarter, Nik Bonitto sacked Lance and jarred the ball loose, and it was recovered by Sai’vion Jones.

Denver couldn’t move the ball and had to settle for a 41-yard field goal with 11:45 left. Los Angeles couldn’t convert on a fourth down and Lutz’ fourth field goal — from 23 yards out with 2:23 left — capped the scoring. — Reuters

Djokovic exits PTPA over transparency concerns

NOVAK DJOKOVIC said on Sunday he would step away completely from the Professional Tennis Players Association (PTPA), the advocacy group he co-founded, citing concerns over transparency and governance within the organization.

Djokovic, who launched the PTPA alongside Vasek Pospisil in 2020 with the aim of strengthening player representation within the sport, said in a post on X that his latest move was also driven by how his voice and image had been represented.

“I am proud of the vision that Vasek and I shared when founding the PTPA, giving players a stronger, independent voice,” Djokovic said.

“But it has become clear that my values and approach are no longer aligned with the current direction of the organization.”

The Serbian said he would focus on tennis, his family and contributing to the sport in ways that reflect his principles and integrity.

“I wish the players and those involved the best as they move forward, but for me, this chapter is now closed,” he added.

The PTPA said in a statement late on Sunday that players had created the body to secure a stronger and more transparent voice in professional tennis and it was open to addressing any issues.

The PTPA in March launched legal action against tennis’ governing bodies, including the ATP, WTA, International Tennis Federation and International Tennis Integrity Agency, accusing them of anti-competitive practices.

Organizers of the four Grand Slam events were added to the case in September in the lawsuit, which also accused the various governing bodies of failing to safeguard player welfare.

Djokovic, a 24-time Grand Slam champion, said at the time that he did not agree with all elements of the lawsuit, while both the ATP and WTA strongly rejected the allegations.

The PTPA said in November that it was close to a deal with Tennis Australia, which is gearing up for the Australian Open that begins in Melbourne on Jan. 18 and kicks off the new Grand Slam season. — Reuters

Trump bets on intimidation to force Venezuelan leaders into line

US PRESIDENT-ELECT Donald J. Trump is set to assume office on Jan. 20, 2025. — REUTERS

WASHINGTON/PALM BEACH, Florida — After removing President Nicolas Maduro from power, the Trump administration is gambling that it can intimidate the Venezuelan leader’s inner circle into toeing the US line with threats of further military action that could put them at risk of a similar fate, according to sources familiar with the matter.

The United States would consider another military operation in Venezuela if the interim government in the South American nation did not cooperate, US President Donald J. Trump said on Sunday.

Mr. Trump told reporters aboard Air Force One traveling from Florida to Washington that more military intervention was on the table. “If they don’t behave, we will do a second strike,” he said.

Asked if this would mean that US troops would be deployed on the ground to conduct peacekeeping, Mr. Trump said it would depend on the actions of the government now led by Interim President Delcy Rodriguez.

Mr. Trump’s advisers also believe they may be able to work behind the scenes with Ms. Rodriguez, who despite her public defiance, is seen as a technocrat who might be amenable to working with the US on a political transition and key oil-related issues, according to three people briefed on the US strategy.

Mr. Trump said he wants Ms. Rodriguez to give the US and private companies “total access” to Venezuela’s beleaguered oil infrastructure, as well as roads and bridges that are in disrepair.

If she and the interim government do not cooperate, Mr. Trump told reporters they could face a strong response.

“I just say that she will face a situation probably worse than Maduro,” he said, adding that the deposed president “gave up immediately.”

Uncertainty about the Trump administration’s use of military force is raising questions about his ability to bend the post-Maduro Venezuelan government to his will.

The potential sweeteners for Mr. Maduro’s aides would be offers of amnesty or safe exile of the sort that Mr. Maduro rejected in his final days before his capture by US special forces on Saturday, according to one source. He is now locked away in a New York detention center awaiting a Monday court appearance on drug charges.

Venezuelan Defense Minister Vladimir Padrino and Interior Minister Diosdado Cabello, two powerful members of Mr. Maduro’s inner circle who both have multimillion-dollar US bounties on their heads, remain potential spoilers in any such arrangement with the US, given their authority over the country’s military and intelligence apparatus.

Mr. Trump’s effort could also be undercut if Democrats can convince enough of the president’s fellow Republicans to restrict funding for further Venezuela military operations.

The US president’s vow on Saturday to “run” post-Maduro Venezuela appears for now to be more an aspiration to exert outside control — or at least heavy influence — over the OPEC nation without deploying US ground forces, which would have little public support at home.

But US officials believe they can still gain cooperation from Venezuelan authorities by maintaining a massive military buildup off the country’s coast and keeping alive the threat of further air strikes, the targeting of Mr. Maduro loyalists and, as a last resort, sending in a contingent of US troops.

“This is the sword that Trump has hanging over them,” the source told Reuters.

Venezuela’s remaining leaders could feel especially vulnerable because of the damage inflicted by US air strikes on the country’s air defense systems, according to a second source familiar with the matter.

Another major source of leverage, hammered home by Secretary of State Marco Rubio on Sunday television news programs, is to keep in place a “quarantine” on Venezuelan oil shipments, the government’s main financial lifeline.

VENEZUELAN OFFICIALS DEFIANT
Top Venezuelan officials, who have called the capture of Mr. Maduro and his wife Cilia Flores a kidnapping and accused the US of trying to steal the country’s vast oil reserves, insisted that they remain united.

Ms. Rodriguez — who also serves as oil minister — has taken over as interim leader with the blessing of Venezuela’s top court, though she has said Mr. Maduro remains president.

Because of her connections with the private sector and her deep knowledge of oil, the country’s top source of revenue, Ms. Rodriguez has long been considered the most pragmatic member of what was Mr. Maduro’s inner circle, but she has publicly contradicted Mr. Trump on his claims she is willing to work with the United States.

Brushing aside Ms. Rodriguez’ defiant language, Mr. Rubio told CBS: “We’re going to make an assessment on the basis of what they do, not what they say publicly.”

Mr. Trump said nothing about restoring democracy to Venezuela in his triumphant press conference on Saturday. And he disappointed the country’s opposition when he dismissed the idea of working with opposition leader and Nobel Peace Prize winner Maria Corina Machado, widely seen as Mr. Maduro’s most credible opponent, and focused more on prospects for exploiting Venezuela’s energy resources.

Mr. Trump’s aides appear to see co-opting Venezuela’s current leadership as the best way to stabilize the country and create a path for US oil investment while moving toward some kind of political transition away from the Maduro government.

The US has not intervened in Latin America so directly since invading Panama 37 years ago to depose military leader Manuel Noriega over allegations that he led a drug-running operation. The United States has leveled similar charges against Mr. Maduro, accusing him of running a “narco-state” and rigging the 2024 election, accusations he has denied.

Mr. Trump offered no clear picture how the US would fulfill his vow to oversee Venezuela, something critics quickly condemned as neocolonialism and which would risk alienating some supporters who oppose foreign interventions.

Much of the US State Department’s Western Hemisphere office was caught by surprise by Mr. Trump’s remarks, and no preparations have been made for sending staff to Caracas, two US officials said. — Reuters

Chinese cyberattacks on Taiwan infrastructure averaged 2.6M a day in 2025, report says

A Navy miniature is seen in front of displayed Chinese and Taiwanese flags in this illustration taken, April 11, 2023. — REUTERS/DADO RUVIC

TAIPEI — Chinese cyberattacks on Taiwan’s key infrastructure from hospitals to banks rose 6% in 2025 from the previous year to an average of 2.63 million attacks a day, the island’s National Security Bureau said, adding some were synchronized with military drills in “hybrid threats” to paralyze the island.

Taiwan has in recent years complained about what it sees as China’s “hybrid warfare” — from daily military drills near the island to disinformation campaigns and cyberattacks — as Beijing ramps up military and political pressure on the democratically governed island to force Taipei to accept its claims of sovereignty.

The average number of daily attacks in 2025 jumped 113% from 2023 when the bureau first began publishing such data, with sectors such as energy, emergency rescue and hospitals seeing the sharpest year‑on‑year increases, according to a report by the National Security Bureau on Sunday.

“Such a trend indicates a deliberate attempt by China to compromise Taiwan’s crucial infrastructure comprehensively and to disrupt or paralyze Taiwanese government and social functions,” the report said.

The bureau said China’s “cyber army” timed operations to coincide with military and political coercion. For example, China launched 40 “joint combat readiness patrols” by sending military planes and ships close to Taiwan and cyberattacks escalated on 23 of those occasions.

China also ramped up hacking activities during politically sensitive moments such as when President Lai Ching-te marked his first year in office with a speech in May and when Vice-President Hsiao Bi-khim spoke at a meeting with lawmakers at the European Parliament in November.

“China’s moves align with its strategic need to employ hybrid threats against Taiwan during both peacetime and wartime,” the report said.

China’s Taiwan Affairs Office did not respond to a request for comment.

China routinely denies being involved in hacking attacks. — Reuters

Ukraine says overnight Russian strike on Kyiv leaves first civilians dead this year

REUTERS/THOMAS PETER

KYIV — An overnight Russian air attack on Kyiv and its region killed two people, Ukraine’s authorities said on Monday, in what appeared to be the first reported deaths in Russian strikes on the Ukrainian capital this year.

Ukraine’s State Emergency Service said the strike set ablaze a medical facility in the Obolonskyi district in Kyiv’s northern sector, where an inpatient ward was operating. After the fire was extinguished, a body was found inside, the service added.

A woman was also injured and 25 people were evacuated, the service said on the Telegram messaging app.

It released a nighttime photo showing emergency responders carrying a body on a stretcher past an ambulance outside a building, with snow on the ground.

Russia also hit towns and villages across the Kyiv region, damaging homes and critical infrastructure, and killing a civilian in the Fastiv district, just southwest of the capital, the region’s Governor Mykola Kalashnyk said on Telegram.

Small parts of the region were left without power, Mr. Kalashnyk added.

There was no immediate comment from Russia. Both sides deny targeting civilians in their attacks.

Russia has repeatedly attacked Kyiv and other Ukrainian cities with missiles and drones during the nearly four-year-old war, saying it strikes military targets, while Ukraine says civilians and civilian infrastructure are often hit. — Reuters

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