MCT DAILY BRIEF

THE ₱350,000 TAX-FREE INCOME PROPOSAL CLEARED A HOUSE COMMITTEE

The House committee on ways and means approved House Bill No. 10345, which would raise the annual taxable-income exemption from ₱250,000 to ₱350,000.

Taxable income is the amount left after mandatory contributions and other deductions allowed under tax rules. It is different from a worker’s total annual salary.

Minimum-wage earners are already exempt from personal income tax. The proposal is primarily aimed at workers whose taxable income currently falls between ₱250,000 and ₱350,000.

Under the current schedule, the first ₱250,000 is tax-free. Income between ₱250,000 and ₱400,000 is taxed at 15 percent of the amount above ₱250,000. A person with exactly ₱350,000 in taxable income would therefore currently owe ₱15,000 a year before any applicable adjustments.

If the bill becomes law in its present form, taxable income of up to ₱350,000 would fall under the zero-percent bracket.

The proposal has only cleared a House committee. A committee report must still be filed. The bill would then proceed to House deliberations and voting, followed by a separate Senate process. Any differences between the two chambers would have to be resolved before the measure could reach the President.

Workers should therefore not expect an immediate change in their payslips.

The House must also explain how much revenue the government would lose. Income-tax collections help finance schools, hospitals, transportation and other public services.

THE HEALTH DEPARTMENT HAS ITS THIRD SECRETARY IN LESS THAN A MONTH

President Ferdinand Marcos Jr. appointed Edwin Mercado as health secretary after Jose Pujalte Jr. resigned following 28 days in office.

Pujalte had replaced Teodoro Herbosa on July 13. Malacañang said both Herbosa and Pujalte left for health reasons.

Separate complaints had been filed against Pujalte involving alleged casino visits and the handling of a procurement process for tuberculosis medicines. Pujalte denied wrongdoing. The Palace did not establish a connection between those complaints and his resignation.

Mercado is a physician and hospital executive who had served as PhilHealth president and chief executive officer since February 2025. Beverly Lorraine Ho, a former Department of Health undersecretary, will replace him at PhilHealth.

This places Mercado in charge of the health department while Ho manages the corporation responsible for paying members’ health benefits.

For patients, the immediate concern is continuity. The new officials inherit ongoing work involving medicine procurement, hospital programs, PhilHealth claims, benefit packages and universal health care.

A leadership change does not automatically interrupt those services. Repeated transitions can, however, require agencies to review decisions and redistribute responsibilities. The public should be told if any existing program, procurement or benefit schedule will change.

FUEL PRICES ARE FALLING BY MORE THAN ₱4 PER LITER

Oil companies announced reductions of at least ₱4.70 per liter for gasoline, ₱4.30 for diesel and ₱4.88 for kerosene beginning today.

The precise adjustment can vary among companies and products.

A motorist buying 40 liters of gasoline at a station implementing the ₱4.70 reduction would spend approximately ₱188 less than before the rollback.

The diesel reduction will also lower operating expenses for jeepney and bus operators, delivery services, farmers and businesses that transport goods. This does not guarantee an immediate reduction in fares or retail prices. Businesses may still be recovering from earlier fuel increases, while regulated public-transport fares require separate government approval.

Meralco’s residential electricity rate will decline by ₱0.0428 per kilowatt-hour, from ₱14.8261 to ₱14.7833 per kilowatt-hour.

For a household using 200 kilowatt-hours, the rate change represents a reduction of approximately ₱8.56, usually rounded to ₱9. The actual bill can still rise or fall depending on the household’s electricity use.

An Energy Regulatory Commission-ordered refund helped offset increases in transmission, generation, taxes and other charges. Without that refund, customers would have faced a higher rate.

THE OMBUDSMAN IS EXAMINING ₱60 BILLION IN CEBU FLOOD-CONTROL PROJECTS

Ombudsman Jesus Crispin Remulla said his office is preparing to investigate possible anomalies involving approximately ₱60 billion in Cebu flood-control projects implemented over six years.

The amount is the Ombudsman’s working figure. It is not yet the result of a completed audit or court finding.

Remulla said approximately 25 percent of the money went to Cebu’s 7th District and another 25 percent was awarded to one contractor. These figures must still be checked against procurement, budget, payment and project-completion records.

The investigation will examine whether continued flooding resulted from problems in project design, construction or implementation, or from possible corruption.

No individual has been formally found liable based on the announcement. Remulla did not identify the contractor or the public officials who may become subjects of the investigation.

For Cebu residents, the useful test is whether the projects exist, were built according to specifications and reduced the flooding they were supposed to address. A large allocation by itself does not prove that the infrastructure worked.

The Ombudsman is also considering lifestyle checks involving district engineers. Such checks compare an official’s declared income and assets with visible wealth and financial records.

A U.S. DEFENSE OFFICIAL WANTS ASIAN ALLIES TO SPEND MORE

U.S. Undersecretary of Defense for Policy Elbridge Colby told a forum in Manila that American allies and partners in Asia should invest more in their own defense.

His request was addressed broadly to countries in the region. He did not announce a specific spending target for the Philippines.

Colby said the United States intends to maintain a strong presence in Asia despite demands created by the war involving Iran and other developments in the Middle East. He also praised the Philippines for its military modernization and exercises with American forces.

The statement continues Washington’s effort to persuade allies to carry a larger share of regional security costs.

For the Philippines, any increase in defense spending would have to pass through the national budget. Military modernization can involve aircraft, ships, surveillance systems, weapons, training, maintenance and facilities.

Those purchases may strengthen the country’s ability to monitor and defend its waters. Congress must still examine their price, purpose and procurement process. Additional defense spending also has to be weighed against competing demands for hospitals, schools, disaster preparation and other public services.

The statement from Colby does not by itself commit the Philippine government to spend more.