Shift to 10% VAT could signal more borrowing, taxes Metrobank says

October 6, 2025 | 8:51 pm

THE GOVERNMENT could raise borrowing and other taxes to offset billions in foregone revenue should it decide to reduce value-added tax (VAT) to 10% from the current 12%, Metropolitan Bank & Trust Co. (Metrobank) said.

“One thing is clear: reducing the VAT rate would result in a substantial loss of government revenue,” Metrobank said in a commentary attributed to Marian Monette Q. Florendo, a research and business analytics officer, and James Nathan Ang of the bank’s research and market strategy departments.

Any resulting hike in borrowing or taxes could outweigh the expected benefits of lowering VAT.

Last month, Batangas Rep. Leandro Antonio L. Leviste filed House Bill (HB) No. 4302 seeking to reduce VAT to 10% from 12% to make the country’s tax system more “progressive.”

According to the measure, however, the government may opt to return the VAT rate to 12% for a year if the projected deficit is expected to surpass the programmed deficit.

The Department of Finance, which has said that it does not support new taxes, warned that HB No. 4302, if signed into law, could lead to foregone revenue averaging P330 billion annually, which is equivalent to 1% of gross domestic product (GDP).

The Bureau of Internal Revenue posted VAT collections of P467.04 billion by the end of July, below its P473.41-billion target but 9.17% higher than its year-earlier total.

VAT is imposed on the sale, barter, exchange or lease of goods or property and services and on imported goods.

Metrobank’s Ms. Florendo and Mr. Ang cited three potential scenarios in the event of a VAT reduction, including “the government (offsetting) the revenue loss through increased borrowing.”

At the end of June, the debt-to-GDP ratio was 63.1%, the highest since 2005 and a ratio that Metrobank said “provides limited space for further debt accumulation.”

The Metrobank analysts also noted that the measure could prompt the National Government to increase its levies on other goods and services.

“The second is that the government will seek alternative sources of revenue to offset the losses,” they said. “This could involve raising taxes on specific goods or services, which may, in turn, lead to higher prices on these items, potentially undermining the intended relief from the VAT reduction.”

They added that it could boost household consumption if businesses lower their prices to reflect the reduced VAT.

Household final consumption grew 5.5% in the second quarter, outpacing the 4.8% from a year earlier.

“With more disposable income, consumers might spend more on goods and services, which in turn could expand the overall tax base. While this may not fully cover the shortfall, it could soften the revenue impact by boosting economic activity,” Ms. Florendo and Mr. Ang said.

“The challenge, however, is that the scale of this effect would depend heavily on consumer response and whether businesses pass on the tax savings to their customers,” they added.

Metrobank said the government’s analysis of the potential impact of a VAT adjustment and other tax measures must be data-driven to show potential benefits to economic competitiveness while demonstrating fiscal prudence. — Katherine K. Chan

Redevelopment deal signed for John Hay Mile Hi complex

October 6, 2025 | 8:50 pm

THE Bases Conversion and Development Authority (BCDA) said it tapped the consortium of the Istana Development Corp. (IDC) and Meridian Commercial Centers, Inc. (MCCI) to lead the P560-million redevelopment of the Mile Hi commercial center in Camp John Hay.

In a statement on Monday, the BCDA said the deal was signed on Oct. 6. The concession holders are tasked with upgrading the 6,647-square-meter Mile Hi into an upscale commercial center, “while preserving its historical significance and enhancing the natural and built environment of the surrounding area.”

Istana-Meridian’s brief includes incorporating sustainable design features to reduce greenhouse gas emissions, water and energy consumption, and waste generation.

The complex is envisioned to maximize access to natural light and ventilation, implement thermally efficient building designs, and use solar power.

“Mile Hi will once again be a place that welcomes visitors, strengthens local livelihoods, and sustains the spirit of Baguio for generations to come,” BCDA President and Chief Executive Officer Joshua M. Bingcang said during the signing.

The BCDA took over the Camp John Hay property after the previous management, CJH Development Corp. (CJHDevCo), was ordered to vacate in the wake of a Supreme Court ruling. — Beatriz Marie D. Cruz

Sept. WESM rates decline on higher supply margins

October 6, 2025 | 8:50 pm

THE average electricity price on the spot market fell in September due to a higher supply margin, according to the Independent Electricity Market Operator of the Philippines (IEMOP).

Power prices on the Wholesale Electricity Spot Market (WESM) system-wide declined 33.8% to P3.04 per kilowatt-hour (kWh) compared to August.

Arjon B. Valencia, manager for corporate planning and communication at IEMOP, said the September average was the lowest in seven months.

Between Aug. 26 and Sept. 25, available supply rose 0.5% month on month to 20,712 megawatts (MW). Demand declined 2.9% to 13,640 MW.

“In Luzon, prices dropped significantly due to lower demand and higher supply, even with increased power exports,” Mr. Valencia said.

The WESM rate in Luzon fell 31.7% to P2.57 per kWh, with supply increasing 0.2% to 14,681 MW and demand dropping 2.9% to 9,595 MW.

IEMOP said that spot prices in the Visayas fell 37.1% month on month to P4.02 per kWh.

Supply rose 1.5% from a month earlier to 2,440 MW while demand dropped 4% to 1,945 MW.

A yellow alert was declared over the Visayas grid after several power plants tripped because of the earthquake that hit northern Cebu on Sept. 30.

Power rates in Mindanao rose 37.1% month on month to P4.19 per kWh.

Available supply on the grid was up 0.9% month on month to 3,592 MW. Demand declined 2.1% to 2,100 MW.

IEMOP operates the WESM, where energy companies can purchase power when their long-term contracted power supply is insufficient for customer needs. — Sheldeen Joy Talavera

US shutdown impact on PHL to be ‘mild’

October 6, 2025 | 8:49 pm

USA-CONGRESS-TAX — A US flag is draped at Union Station with the US Capitol dome in the background in Washington, DC, US, June 28. — REUTERS/KEN CEDENO

THE US government shutdown is “nothing new,” and can result in some disruption to the Philippine economy, analysts said.

“A US government shutdown could mildly impact the (Philippine) economy depending on its duration,” John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, told BusinessWorld via Viber.

The Federal government shut down at the start of the month after the US Senate failed to pass a continuing resolution that would have funded government operations for a few more weeks. One of the sticking points is the Democrat insistence on continuing the subsidies to the Affordable Care Act, which are set to expire. Democrats are also calling for the restoration of cuts to Medicaid.

A shutdown means some government services will be temporarily unavailable and no US economic data, including employment and payrolls, will be released.

US President Donald J. Trump has also threatened to sack thousands of federal workers and began freezing funding for Democrat-held cities and states.

If the shutdown continues, Mr. Rivera said remittances from overseas Filipino workers (OFWs) and Philippine businesses reliant on US markets could take a slight hit.

“Remittances may dip slightly if some US-based OFWs are affected, and Philippine businesses tied to US demand, such as exporters (and) business process outsourcing, could see temporary disruptions,” he added.

OFW remittances amounted to $3.179 billion in July. OFW in the US are usually the top source of remittances.

Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort, called the shutdown’s impact on remittances “negligible” if Filipino federal workers are eventually paid.

“US government shutdowns are nothing really new… lasting for a few days or weeks,” he said via Viber.

The main result overall might be the impact on investor confidence, analysts said.

“Market volatility could increase, with investor confidence momentarily shaken,” Mr. Rivera said.

In terms of currency impact, “This may cause confidence in the dollar to fall, potentially causing peso appreciation in the short term,” according to Reinielle Matt M. Erece, economist at Oikonomia Advisory & Research, Inc., speaking via Viber.

Meanwhile, RCBC’s Mr. Ricafort said the delayed release of US economic data could affect the Federal Reserve’s monetary policy decisions and potentially that of the Bangko Sentral ng Pilipinas (BSP) as well.

“Delayed release of some US economic data, especially the latest US employment data, could delay processing or assessment and future Fed rate decisions that, in turn, could affect future BSP rate decisions,” he said.

Mr. Rivera also noted that the shutdown may cause the Fed to take a less aggressive stance on easing, “giving the BSP more flexibility.”

“However, prolonged uncertainty may influence the BSP to act cautiously if the peso comes under pressure,” he added.

Last month, the Fed delivered its first 25-basis point (bp) cut since December 2024, bringing its policy rate to the 4%-4.25% range.

Fed Chairman Jerome H. Powell signaled a gradual easing cycle in response to growing labor market concerns.

On Aug. 28, the BSP cut its benchmark interest rate by 25 bps to 5%. It has so far lowered borrowing costs by a total of 150 bps since it began its easing cycle in August last year.

The Monetary Board will meet again on Thursday before its last meeting this year on Dec. 11. — Katherine K. Chan

‘Dinosaur egg’ artisanal salt wins GI mark

October 6, 2025 | 8:48 pm

THE Intellectual Property Office of the Philippines (IPOPHL) said it approved the registration of Bohol’s Alburquerque Asin Tibuok as a geographical indication (GI), which is expected to enhance the artisanal salt product’s marketability.

In a statement, IPOPHL Acting Director General Nathaniel S. Arevalo said the approval “supports the preservation of culture and the way of life while also bolstering branding, market access and revenue opportunities for communities.”

IPOPHL issued the certificate to officials representing the municipality of Alburquerque, Bohol, it said.

A GI links goods to their geographic origin and serves as a form of intellectual property protection for cultural practices.Asin Tibuok is made by filtering seawater in charred coconut husks. The concentrated brine is cooked for hours in large clay pots until it solidifies into shapes described as “dinosaur eggs.” The salt contains halite, a natural form of sodium chloride, and is unrefined and additive-free.

Making Asin Tibuok, which dates back to the pre-colonial period, has declined in recent years due to modern salt production methods and the lack of interest among younger generations.

“The inclusion of the Alburquerque Asin Tibuok into our growing list of geographical indications further underscores IPOPHL’s efforts to safeguard the country’s cultural icons, likewise potential economic drivers, under a strengthened intellectual property framework,” Mr. Arevalo said.

A GI registration is thought to deter imitation products or false claims about the geographical origin of the goods.

GIs are issued to agricultural products, foodstuffs, wines, spirits, textile/clothing, handicrafts, and industrial products.

Alburquerque Asin Tibuok joins products like Guimaras mangoes and Aklan piña on the Philippine GI list. — Beatriz Marie D. Cruz

Fil-Chinese chamber backs Customs rules vs conflicts of interest

October 6, 2025 | 8:48 pm

THE Federation of Filipino-Chinese Chambers of Commerce and Industry, Inc. (FFCCCII) expressed support for new conflict-of-interest rules imposed on Bureau of Customs personnel, saying the rules are expected to minimize corruption within the agency.

In a statement on Monday, the chamber said the new policy “sends a clear message of accountability, ensuring that both accurate revenue collection and trust in the institution are strengthened.”

The bureau recently introduced an Anti-Conflict of Interest Policy, a “No Take” Policy; and comprehensive disclosure rules for its personnel.

Commissioner Ariel F. Nepomuceno said these reforms go hand-in-hand with the agency’s full digitalization and will restore public trust in its operations.

The reforms “create a competitive and business-friendly environment for business people,” according to FFCCCII President Victor Lim.

“The FFCCCII… is ready to partner with the Bureau of Customs in sustaining these reforms, confident that continued collaboration will not only strengthen the fight against smuggling but also contribute significantly to national economic progress,” it said. — Beatriz Marie D. Cruz

Tobacco helps excise tax revenue beat target for first eight months

October 6, 2025 | 8:43 pm

EXCISE TAX collections came in ahead of target in the first eight months, driven by higher volumes of tobacco and vapor products, according to the Bureau of Internal Revenue (BIR).

The BIR said in an e-mail that excise tax collections amounted to P222.65 billion during the period, beating the target by 0.75%.

The eight-month total was also 13.55% higher than the year-earlier tally.

“Excise taxes also contributed to BIR collection growth, with the additional deposits and increased volumes of tobacco and vapor products,” the BIR said.

The tally at the end of August was equivalent to 64% of the full-year excise tax target of P343.10 billion.

Excise taxes are imposed on the production, sale or consumption of tobacco, alcohol, and non-essential goods, among others.

Tobacco products accounted for P109.98 billion of the excise tax haul, exceeding the target by 14.71%. Year on year, tobacco tax collections were up 30.38%.

Taxes generated by alcohol products hit P75.88 billion during the period, missing the target by 9.37% though it exceeded the year-earlier tally by 1.81%.

Miscellaneous excise taxes, generated from automobiles, sweetened beverages, cosmetic procedures, and other non-essential goods — were 13.56% below target at P28.52 billion, and 5.15% lower than the year-earlier total.

Excise taxes on sweetened beverages (P24.55 billion) and automobiles (P3.74 billion) were also short of their targets.

Taxes generated by non-essential goods (P213.77 million) and cosmetic procedures (P15.21 million) both beat targets.

Excise tax collections generated by mining and mineral products amounted to P8.17 billion at the end of August, beating the target by 2.20%. They were up 16.20% from a year earlier.

Petroleum excise tax collections totaled P95.23 million, up 7.52% from a year earlier.

Overall, excise taxes accounted for 10.41% of the BIR’s revenue of P2.14 trillion at the end of August.

Meanwhile, the Development Budget Coordination Committee’s (DBCC) 2025 Midyear Report be equivalent to 16.8% of gross domestic product or P7.13 trillion in 2030, from 16.7% or P4.42 trillion in 2024.

The DBCC also said the BIR is expected to collect P5.51 trillion in 2030, while the Bureau of Customs to generate P1.29 trillion by that year.

“From 2025 to 2030, BIR collections are expected to rise by an average of 11.6% annually, while BoC collections are projected to grow by an average of 5.8% every year,” it said.

With the full-year impact of recently enacted tax reforms, the BIR and BoC are expected to post revenue growth rates of 11.2% and 5.7%, respectively, in 2026.

Meanwhile, the National Government (NG) is projected to spend P2.20 trillion on infrastructure by 2030, equivalent to 5.2% of GDP. The current ratio is 5.3% on expected spending of P1.51 trillion. — Aubrey Rose A. Inosante

Domestic market enterprises regain their VAT zero-rating privileges

October 6, 2025 | 8:42 pm

Have you ever wondered what goes through someone else’s mind when they wish to turn back time? You might say that you want to rectify past mistakes or explore whether their current circumstances might have turned out differently. More often than not, people tend to imagine themselves going back in time to somehow alter their present. Personally, I tend to advise against these ideas, as dwelling on what-could-have-beens often leads to frustration and prevents us from appreciating the beauty and value of one’s current life.

Still, if you were given the chance to revisit the past to clarify certain matters, would you take it? Would you turn back time?

Just as in the case of Subic Bay Freeport Chamber of Commerce, Inc. vs. Department of Finance, etc. (Subic Bay Freeport Case), the entitlement of Registered Business Enterprises (RBEs), specifically Domestic Market Enterprises (DMEs), to VAT-zero rating for local purchases has been revisited by the Supreme Court to provide clarity in the application of the law.

In this case, petitioners Subic Bay Freeport Chamber of Commerce (SBFCC) and Benjamin Antonio, as taxpayers, filed a Petition for Declaratory Relief with an Application for Writ of Temporary Restraining Order and/or Preliminary Injunction against respondents the Departments of Finance (DoF) and Trade and Industry (DTI), the Bureau of Internal Revenue (BIR), Revenue District Office No. 19 (RDO 19) of the Subic Bay Freeport Zone, and the Subic Bay Metropolitan Authority (SBMA), collectively referred to herein as respondents.

The petitioners alleged that the Implementing Rules and Regulations of Republic Act (RA) No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE IRR), particularly Rule 18, Section 5, Revenue Regulation (RR) No. 21-2021, Revenue Memorandum Circular (RMC) No. 24-2022, and RMC No. 49-2022, are invalid and unconstitutional after the issuances unjustly excluded DMEs from availing of tax incentives. Specifically, it effectively limited the application of VAT zero-rating for local purchases only to Registered Export Enterprises (REEs), excluding DMEs, such as SBFCC, making a distinction between DMEs and REEs when in fact there is none under the CREATE Act. Mainly, the petitioners contend that so long as an enterprise is a registered business, like SBFCC, it is entitled to VAT-zero rating on local purchases.

Now, before we proceed with the Supreme Court’s (SC) decision, let us first walk down memory lane and recount the creation and nature of SBFCC.

As outlined in the case, the Subic Special Economic Zone was created pursuant to Section 12 of RA No. 7227, or the Bases Conversion Development Act of 1992, to be operated and managed as a separate customs territory. Pursuant to SBMA’s issued Certificate of Registration and Tax Exemption, it granted tax incentives and exemptions to these entities, subject to certain conditions. Due to these incentives, SBFCC registered with the SBMA as a freeport enterprise to conduct business within the Subic Bay Freeport Zone (SBFZ).

It should be noted that upon passage of the CREATE Act, SBFCC has been classified as an RBE, specifically a DME, being an enterprise registered with the IPA, such as the Philippine Economic Zone Authority (PEZA). This finds support under the CREATE Act, which defines RBEs as corporations or other entities organized and existing under Philippine law and registered with an Investment Promotion Agency (IPA). Further, an RBE may be classified as a Registered Export Enterprise (REE) or a DME. DME refers to any enterprise registered with the IPA apart from export enterprises.

Under the CREATE Act, SBFCC, being an RBE, should be entitled to VAT exemption on imports and VAT zero-rating on local purchases of goods and services directly and exclusively used in the registered project or activity of the RBEs.

However, the DTI and the DoF, on implementing the CREATE IRR, limited the entitlement to VAT zero-rating on local purchases to REEs. As provided under Rule 18, Section 5 of the CREATE IRR, which implements Section 311 of the CREATE Act, VAT zero-rating on local purchases only applies to goods and services directly attributable to and exclusively used in the registered project or activity of REEs located inside ecozones and freeports. Additionally, Revenue Regulations (RR) No. 21-2021, implementing Sections 294(E) and 295(D), Title XIII of the National Internal Revenue Code (Tax Code), as amended by the CREATE Act, RMC No. 24-2022, and RMC 49-2022, further provided that the VAT zero-rating incentives apply only to REEs, excluding DMEs.

DMEs claimed irreparable injury by virtue of the law and BIR issuances because of their exclusion from the VAT zero-rating incentive. In effect, the VAT passed on to the DMEs by local suppliers was to be absorbed as part of their costs or expenses. Further, the petitioners contended that their sales were subject to the regular 12% VAT rate. These effects conflicted with the nature of DMEs as belonging to a separate customs territory, by virtue of which they should be exempt from VAT.

The SC likewise revisited CREATE Act and RA No. 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN Law) and found that under Sections 294(E) and 295(D) of the CREATE Act, all RBEs, which include REEs and DMEs, are entitled to VAT zero-rating on their local purchases of goods and services directly and exclusively used in the registered project or activity. The SC concluded that the rule is consistent with the nature of SBFZ as a separate customs territory.

Also, the SC made mention of the time-old Cross Border Doctrine and Destination Principle, which states that no VAT may be imposed to form part of the cost of goods destined for consumption outside of the territorial border of the taxing authority. Thus, the sales made by suppliers from a customs territory to a purchaser located within the freeport zone are considered exports; hence, they are subject to zero percent VAT.

As a further argument, the court held that, pursuant to TRAIN, sales by VAT-registered persons to registered enterprises within a separate customs territory are subject to a zero percent rate.

Thus, the court ruled that Rule 18, Section 5 of the CREATE IRR and RR No. 21-2022, RMC No. 24-2022, and RMC No. 49-2022, insofar as they limited the VAT zero-rating on local purchases of goods and services to REEs, are ultra vires, or exceeding their legal authority. They altered the provisions of the underlying law — the CREATE Act — by carving out DMEs from those entitled to the VAT zero-rating incentive. Hence, the relevant provisions of the law and BIR issuances were declared void and unconstitutional.

If we are to consider the case above, reevaluating the past — such as previously implemented laws — can often lead to greater clarity and justification. However, there still exists the element of risk. In fact, this case came close to being dismissed for failure to exhaust administrative remedies. Therefore, if you were given the chance to turn back time, knowing the risk involved, would you still take it?

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.

Justine Bea D. Alano 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

Marcos says anti-graft drive needed to sustain Philippine economic growth

October 6, 2025 | 8:24 pm

PBBM Marcos — PRESIDENT FERDINAND R. MARCOS, JR. — PHILIPPINE STAR/KRIZ JOHN ROSALES

PHILIPPINE PRESIDENT Ferdinand R. Marcos, Jr. said his administration’s campaign against fraudulent public works projects is needed to sustain economic growth, as he ordered the realignment of P255.5 billion from questionable flood control programs toward social services, healthcare, education and agriculture.

Speaking in a podcast released across his social media platforms on Monday, the President said the discovery of widespread “ghost” infrastructure projects revealed how deeply corruption has penetrated the bureaucracy, warning that unchecked abuse risks derailing the country’s development goals.

“Nothing will happen to the Philippines if we carry on this way,” he said in mixed English and Filipino. “The economy will never grow properly… We will not get anywhere.”

The Philippines, which faces an average of 20 typhoons each year, is probing a multibillion-peso infrastructure scandal after a string of storms and monsoon rains triggered heavy flooding.

The investigation has exposed alleged corruption within the Department of Public Works and Highways (DPWH), prompting Mr. Marcos to suspend flood control allocations in the 2026 budget.

He argued that halting dubious projects would not slow economic momentum, adding that rechanneling funds into classrooms, hospitals, insurance and agriculture would provide stronger, more equitable growth.

Of the total, P26 billion will go to the Department of Education for new classrooms, P29 billion to the Department of Health for hospital projects and medical aid and P60 billion to the Philippine Health Insurance Corp. (PhilHealth) to expand coverage.

Another P39 billion is earmarked for the Department of Agriculture, while the Department of Social Welfare and Development will receive additional support to sustain cash assistance programs.

To avoid a repeat of past abuses, Mr. Marcos plans to reinstate inspection procedures requiring local governments to verify national projects before contractors are paid. He noted that while tools such as blockchain could enhance transparency, the core issue has been weak enforcement of existing rules.

The President said investigations led by the newly formed Independent Commission for Infrastructure (ICI) would be based on evidence rather than politics.

“We must be thorough,” he said. “If we are actually going to punish these people, we have to be very, very clear about what we are doing, and we have to be very, very clear that we go after the guilty ones.”

The reallocation comes as the government faces rising reconstruction costs following recent earthquakes and typhoons in Cebu, Samar and Masbate.

Also on Monday, House Deputy Minority Leader and Party-list Rep. Leila M. de Lima said the President’s decision not to include a bill crafting a fact-finding body on the multibillion-peso flood control scandal among his administration’s priority raises questions about the government’s commitment to probing the controversy.

The cancellation of congressional hearings into bogus flood control deals, along with the ICI’s decision to conduct proceedings behind closed doors underscored the need to include the proposed fact-finding bill as a legislative priority, she said in a statement.

“If the President is truly serious about holding those accountable for the biggest corruption scandal in our country’s history, he must certify this proposed bill as urgent,” she added.

The Philippines is facing a widening scandal over billions of pesos worth of flood control projects, and Congress had launched separate investigations amid allegations of kickbacks tied to public works contracts.

Mr. Marcos has formed an independent commission to investigate anomalies in flood control and other infrastructure projects, with authority to recommend criminal, civil and administrative charges.

The Legislative-Executive Development Advisory Council last week endorsed 44 priority bills for streamlined passage, covering measures on governance, social services and energy security.

Ms. De Lima said she and other co-authors of House Bill No. 4453 are hoping for the proposal’s quick approval at the House of Representatives, citing Speaker Faustino “Bojie” Dy III’s openness to the measure.

The House bill proposes a five-member commission to probe corruption in flood control projects, granting it access to state records as well as subpoena and contempt powers to compel compliance.

“I actually brought it up already with the new Speaker,” Ms. De Lima said. “And he’s very open and very receptive about it. He will push for its speedy enactment, and he would even try to convince the President to certify it as urgent.” — Chloe Mari A. Hufana and Kenneth Christiane L. Basilio

Philippine senators buck call for snap elections

October 6, 2025 | 8:23 pm

PHILIPPINE senators on Monday rejected a proposal by Senate Minority Leader Alan Peter S. Cayetano for a snap election, saying it would only worsen political instability as the government faces scrutiny over alleged corruption in infrastructure spending.

Senate President Vicente “Tito” C. Sotto III said the idea has no constitutional basis. “We have no constitutional or legal framework for snap elections. We will be flirting with uncertainty and chaos,” he said in a statement.

Mr. Cayetano on Sunday urged all top officials — from the President down to lawmakers — to resign and face snap elections, arguing that it would restore public trust amid revelations of alleged anomalies in flood control projects.

Mr. Sotto dismissed the suggestion, saying the Senate would instead focus on making the budget process more transparent.

“Everything will be done through the eyes… of the public,” he said. He also called on the newly created Independent Commission on Infrastructure (ICI) to open its hearings to the public and stressed that credible prosecutions were key.

“There should be prosecutions, imprisonment, and make sure that those who are guilty are proven so,” he added.

Senator Panfilo “Ping” M. Lacson also rejected Mr. Cayetano’s proposal, warning that special elections could create more opportunities for corruption.

“A snap election is not the key to restoring public trust in the government — but the certainty of punishment is,” he said in a statement. In many cases, candidates may try to buy votes using taxpayers’ money, he added.

Mr. Lacson urged swift convictions for those involved in anomalous flood control projects, saying accountability would serve as a stronger deterrent than political resets.

The Palace also downplayed the proposal. Press Officer Clarissa A. Castro described calls for a snap election as “wishful thinking.”

She said President Ferdinand R. Marcos, Jr. remains focused on disaster response after a recent earthquake and typhoon.

“Let’s all focus on the needs of the people and not just on personal interests,” she told reporters in a Viber message.

The administration has come under pressure after reports of congressional insertions in this year’s budget and billions of pesos allegedly siphoned off through irregular flood mitigation projects.

Several investigations are under way, including by the Department of Justice, the Senate, and the ICI. — Adrian H. Halili

Marcos puts education at core of development plan with bigger budget push

October 6, 2025 | 8:22 pm

PRESIDENT Ferdinand R. Marcos, Jr. vowed to make education the centerpiece of his administration’s development plan, ordering tighter budget alignment and faster project rollout as the Philippines struggles with one of the world’s weakest student performance records.

Speaking at the Philippine Development Forum in Mandaluyong City on Monday, the President said the Department of Education (DepEd) would get the biggest proposed allocation in the 2026 national budget, highlighting his goal of ensuring “quality, future-proof education” for every Filipino learner.

“Every classroom built, every teacher trained, every child supported is a seed toward real, lasting progress,” he said.

The President ordered the Department of Budget and Management, Department of Economy, Planning and Development and other key agencies to focus resources on “projects that move the needle for Filipino families,” particularly in education and infrastructure.

He also ordered the Department of Public Works and Highways and DepEd to accelerate the construction and rehabilitation of thousands of classrooms by 2028 and speed up public-private partnership reviews for school facilities.

At a separate event in Pasay City, Mr. Marcos announced a P1,000 incentive for teachers in celebration of World Teachers’ Day and reaffirmed DepEd Order No. 005, which caps teaching loads at six classroom hours daily with overtime pay for extra hours.

He also touted the rollout of the Career Progression System for Public School Teachers and School Leaders Act, designed to ensure “no public school teacher will retire as Teacher I.”

“We believe that education is the best investment that any nation can make in its people,” he said.

The Philippines has consistently ranked near the bottom in global learning benchmarks. In the 2022 Programme for International Student Assessment (PISA), released in December 2023 by the Organization for Economic Cooperation and Development (OECD), the country placed 76^th out of 81 economies in reading, mathematics and science.

While the standing was a slight improvement from its last-place finish in 2018, Filipino students’ scores were far below the OECD averages.

The Philippines posted 355 in math, 347 in reading, and 373 in science, compared with OECD averages of 472, 476, and 485, respectively.

The OECD said a 20-point gap reflects about one year of learning for a 15-year-old, underscoring the scale of the country’s education challenge. — Chloe Mari A. Hufana

House minority seeks budget realignment

October 6, 2025 | 8:21 pm

Minority lawmakers in the House of Representatives on Monday called for realignments to the proposed P6.793-trillion spending plan for next year, as the chamber prepares for a week-long process to amend the budget bill ahead of the congressional recess.

The House needs to rechannel funds toward biodiversity and recycling initiatives, while also pushing for hikes on education and social services, House Minority Leader and Party-list Rep. Marcelino C. Libanan said.

“We hope that the observations we have raised be given due consideration and carried out into the period of amendments and then after by the bicameral conference committee,” said Mr. Libanan, who was flanked by minority lawmakers while delivering his turno en contra speech on the House floor.

Congressmen last week opened floor debates on the record spending bill after 37 days of scrutiny at the House appropriations committee, which has rechanneled most of the P255-billion flood control funds to the Education, Health and Social Welfare departments.

“The national budget must always be more than numbers; it must be a reflection of our people’s needs, their struggles and their hopes for a better future,” Mr. Libanan said. “It is about protecting the vulnerable, uplifting workers and farmers, strengthening health and education, defending rights and investing in infrastructure.”

He said the bicameral panel that would finalize the proposed 2026 spending bill must also hold its hearings publicly to improve transparency amid concerns of budgetary insertions, issues that had hounded lawmakers since last year.

The deliberations in the bicameral conference committee must be transparent and open to the public,” he said. “Otherwise, all our efforts in this chamber would have been put to naught if the process is still done in secrecy.”

This year’s budget process underwent major reforms after Nueva Ecija Rep. Mikaela Angela B. Suansing, who heads the House appropriations panel, pushed for greater transparency after last year’s controversy over alleged insertions in the spending plan.

Amendments to the budget bill were previously managed by a closed-door “small committee” of select lawmakers, with the measure swiftly approved on second and third reading on the same day. — Kenneth Christiane L. Basilio

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