‘NGAs, GOCCs can’t waive fees sans charter clearance’ By Joel R. San Juan
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HE Department of Justice (DOJ) has declared that national government agencies (NGAs) and government-owned and-controlled-corporations (GOCCs) are not allowed to grant amnesty or waive regulatory fees without express authority under their charters. In a four-page legal opinion signed by Acting Justice Secretary Fredderick Vida, the DOJ held that while NGAs and GOCC have been given the power to charge and collect fees, “it does not follow that they are likewise authorized
WAVES OF WONDER Spectators gather at the Naga Park and Boardwalk as the “Naga’s WaterLight Symphony”—Cebu’s first musical floating seawater fountain—debuts on Valentine’s Day, dazzling audiences with synchronized lights, music, and seawater jets during its inaugural show. The attraction is set to become a regular weekend highlight aimed at boosting tourism and energizing the local economy. COURTESY OF CEBU PROVINCIAL GOVERNMENT
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to exempt clients from or waive service or regulatory fees.” The DOJ issued the legal opinion upon the request of National Tax Research Center Executive Director Mark Lester L. Aure. In his letter-request, Aure sought the DOJ legal opinion on the authority of NGAs and GOCCs to grant amnesty, condone, or waive the imposition of government fees, fines and penalties. The request stemmed from ongoing policy discussions involving NGAs and GOCCs exploring relief measures for affected sectors, such as indigent clients, smallscale enterprises, and other regulated entities.
Specifically, Aure sought DOJ’s clarification on three key issues: (1) Whether an NGA or GOCC may, without express authority or an express grant under its charter, exempt clients from or waive service or regulatory fees, and whether such action may be justified as an exercise of administrative discretion or incidental powers; (2) Whether an NGA or GOCC may, in the absence of express statutory authority or an express grant under its charter, condone or waive fines and penalties arising from the exercise of its enforcement functions, and whether, in lieu thereof, it may grant a discount or reduction; and (3) Whether there
are legal parameters, conditions, or limitations governing such acts of condonation or waiver. The DOJ agreed with the view that Section 54(1), Chapter 12, Book IV of Executive Order (EO) No. 292 (Administrative Code of 1987) and Administrative Order (AO) No. 31 dated October 1, 2012 limit the authority of NGAs and GOCCs to charging, collecting, and rationalizing rates and fees, including adjusting existing charges and imposing new ones. It also shared Aure’s position that a waiver of fines and penalties is not legally permissible in See “Fees,” A2
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Wednesday, February 18, 2026 Vol. 21 No. 129
P25.00 nationwide | 2 sections 22 pages | 7 DAYS A WEEK
BIR to let some RBEs register as VAT taxpayers
By Andrea E. San Juan @andreasanjuan
HILIPPINE banks will likely focus on targeted lending to priority sectors like infrastructure and consumption this year as they transition from “pure growth mode” to a more disciplined and sustainable footing, according to an economist.
Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., explained how the Philippine financial system will transition into a “disciplined, higher-quality growth” in 2026 from rapid accumulation in 2025. “The growth in financial system resources in 2025 was driven by steady credit expansion, strong deposit inflows, and the impact of higher interest rates on bank balance sheets. Overall, it reflected resilience and confidence in the system,” Ravelas said in a Viber message. In 2026, however, he pointed out that growth will likely be “more measured but still solid,” with
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banks focusing on targeted lending to priority sectors like infrastructure and consumption, while nonbanks benefit from capital market activity, trust funds, and insurance.
PHL financial system resources
HE said this after the Bangko Sentral ng Pilipinas (BSP) released data which showed that total resources held by the Philippine financial system rose by 8.08 percent as of December 2025. Based on BSP data, combined funds and assets of banks (excluding the BSP) and non-bank financial institutions (NBFIs) increased See “Infra,” A2
AI SLIPS INTO SHOPPER OPTIONS BEFORE STORES–IBM STUDY By Bless Aubrey Ogerio
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HOPPING decisions are increasingly being made before consumers step into stores, with artificial intelligence (AI) now shaping how buyers research, compare and choose products, according to the IBM Institute for Business Value and the National Retail Federation. The study found that nearly half, or 45 percent, of consumers now turn to AI at some point in their buying journey. While physical stores remain central, with 72 percent of respondents still shopping in person, many are using AI tools to research products (41 percent), interpret reviews (33 percent) and search for deals before making purchases (31 percent). “AI is changing how consumers shop, and every aspect throughout the shopping jour-
ney,” Caroline Reppert, Senior Director, AI and Technology Policy at the National Retail Federation, said. She added, “As these technologies increasingly guide consumer discovery, comparison, and choice, retailers that understand and respond to this shift will be best positioned to earn trust, relevance, and long-term customer loyalty.” Moreover, visual appeal and convenience still matter, with 35 percent saying they want attractive stores with minimal waiting time. At the same time, one in three consumers said AI-enabled features, such as “super apps” that combine shopping with other services, are nearly as important. More advanced expectations are also emerging. About 30 percent of respondents said they want smart homes with AIpowered personal shoppers and See “Shopper,” A2
CROSSING INTO GOOD FORTUNE Fireworks burst above the Intramuros–Binondo Bridge on the eve of the Lunar New Year, illuminating the link between Manila’s historic districts, Intramuros and Binondo—home to the world’s oldest Chinatown. The bridge, funded by China, becomes a radiant backdrop to the annual celebration welcoming the new lunar cycle. BERNARD TESTA
HE Bureau of Internal Revenue (BIR) will now allow certain registered business enterprises (RBEs) to optionally register as value-added tax (VAT) taxpayers and exempt specific transactions from special VAT rules. In its new revenue regulation, the BIR said buyers of goods from economic zones and freeports must file and pay VAT on business-to-business local sales on a per-transaction basis using BIR Form No. 0605 temporarily. For bulk shipments covered by several invoices, buyers may opt to pay the VAT due in a single payment, provided they submit one payment form and a list of covered invoices to the Bureau of Customs before cargo release. Moreover, the BIR also allows optional VAT registration for local sales of RBEs, availing of the 5 percent special corporate income tax or gross income earned regime. RBEs availing of the 5 percent special corporate income tax or gross income earned regime to voluntarily register as VAT taxpayers for their local sales. “Such VAT registration shall not affect the RBE’s entitlement to its existing fiscal and nonfiscal incentives, including VAT zero-rating on local purchases and VAT exemption on importation, provided these are directly attributable to its registered activities,” the BIR noted. The BIR likewise excludes certain transactions and entities from the “buyer pays VAT” mechanism under Section 295(D) of the Tax Code. VAT-registered domestic market enterprises that do not qualify for VAT zero-rating or import VAT exemptions, despite being registered with investment promotion agencies, will no longer be covered by the buyer-remittance system. Instead, these enterprises will file and pay VAT directly to the BIR as regular VAT taxpayers. Sales of VAT zero-rated goods and services, VAT-exempt transactions under the Tax Code, transactions covered by Title XI of the Code, entities registered with the Board of Investments under special laws See “VAT,” A2
PESO EXCHANGE RATES n US 58.0590 n JAPAN 0.3805 n UK 79.2563 n HK 7.4283 n CHINA 8.4103 n SINGAPORE 45.9655 n AUSTRALIA 40.9955 n EU 68.9683 n KOREA 0.0403 n SAUDI ARABIA 15.4815 Source: BSP (February 16, 2026)