₧3.58-T BIR goal: What it will take
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30 YEARS OF PETALS AND PRIDE Baguio City prepares to welcome Panagbenga 2026, marking three decades of the iconic Flower
Festival that began in 1995 as a symbol of recovery after the devastating 1990 Luzon earthquake. What started as a gesture of healing has grown into one of the country’s most celebrated cultural events—showcasing the creativity of the Cordilleras through flowers, floats, dance, and community spirit. As the city gears up for an earlier kickoff this year, Panagbenga once again blooms as a testament to resilience, renewal, and local pride. MAU VICTA
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HE Bureau of Internal Revenue (BIR) could attain its P3.579-trillion revenue target this year by modernizing audits with artificial intelligence (AI), aligning with international standards and easing the tax burden on ordinary Filipinos and small businesses, according to a tax expert. According to Mon Abrea, founder and chief executive officer of the Asian Consulting Group, the BIR’s goal presents a “critical opportunity” to streamline tax administration and strengthen public trust without adding more burden on ordinary taxpayers, employees and micro, small, and medium enterprises (MSMEs). “We support the direction articulated by Bureau of Internal Revenue Commissioner Charlito Martin R. Mendoza to streamline audits and improve compliance,” Abrea said.
To achieve this ambitious target, Abrea urged the BIR and economic managers to adopt a risk-based, AIdriven tax administration reform in audit and investigation. Among the key recommendations is for the BIR to shift its approach from blanket audits to data-driven, risk-based selection, utilizing AI and advanced analytics to prioritize large-scale tax evaders, corrupt officials, and complex schemes, while minimizing disruptions to compliant MSMEs and employees. The BIR should focus on running after high-net-worth individuals, abusive tax planning and illicit flows, in coordination with the Department of Justice. “Accountability at the top yields higher revenue and restores credibility,” Abrea said. Abrea also called for the simplifi-
cation of filing procedures, harmonization of requirements and expansion of digital services to reduce compliance costs, attract foreign investors, improve competitiveness and allow MSMEs to grow. Moreover, the Philippines should adopt and implement the Organisation for Economic Co-operation and Development’s (OECD) standards to protect the country’s tax base, curb profit shifting and secure revenues from multinational enterprises. To boost consumption, support the middle class and stimulate inclusive growth, Abrea said the government should consider raising the tax-exempt income threshold from P250,000 to P400,000, or even up to P1 million. The Philippines could also reduce the value-added tax rate to 10 See “P3.58-T,” A2
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Tuesday, January 13, 2026 Vol. 21 No. 93
P25.00 nationwide | 2 sections 20 pages | 7 DAYS A WEEK
By Reine Juvierre S. Alberto
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HE Bangko Sentral ng Pilipinas (BSP) has extended for another two years its regulatory incentives that allow banks to lend more aggressively to green or sustainable projects or activities. On Monday, the BSP said its highest policy-making body, the Monetary Board, has approved the extension of incentives until 2028 to maintain banks’ momentum in scaling up sustainable finance. The incentives enable banks to exceed the 25-percent Single Borrower’s Limit (SBL) by up to an additional 15 percent for eligible sustainable or green projects. Banks can also lend 100 percent of funds raised from sustainable bond issuances, as these funds are exempt from the usual 3 percent reserve requirement (RR). Projects that are expected to benefit from the extended regulatory incentive period are renewable energy, water and wastewater systems, clean transportation, and climate‑resilient infrastructure, among other eligible activities. These activities are aligned with the National Adaptation Plan, Nationally Determined Contributions and the Philippine See “Lending,” A2
ON TRACK, UNDERGROUND Workers continue construction of the Metro Manila Subway Project along Quezon Avenue, Quezon City, on Monday, January 12, 2026. Once completed, the country’s first underground railway system is
expected to ease chronic traffic congestion and significantly cut travel times across the capital. The Department of Transportation said 90.76 percent of the subway’s right-of-way has been acquired, while 56 percent has been secured for the North–South Commuter Railway (NSCR) North Segment, in line with President Ferdinand R. Marcos Jr.’s directive to fast-track land acquisition for major transport projects aimed at benefiting thousands of daily commuters. NONOY LACZA
DENR VOWS FULL PROBE, GROUP SEEKS JUSTICE IN LANDFILL SLIDE By Justine Xyrah Garcia
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HE Center for Trade Union and Human Rights (CTUHR) has urged the national government to investigate the collapse of a garbage mound at the Binaliw Landfill in Cebu City, saying the incident may reflect regulatory and workplace safety gaps. “We demand that the Ferdinand Marcos Jr. government investigate the accountability of Prime Integrated Waste Solutions, the [Department of Environment and Natural Re-
sources] and the [Department of Labor and Employment] in the disaster, that the results be made known to the public, and that key officials responsible for the tragedy be held into account,” CTUHR said in a statement. Roughly 50 landfill workers were buried alive last week when a 20-story pile of waste collapsed at the Binaliw disposal site, which is operated by Prime Integrated Waste Solutions Inc., a subsidiary of businessman Enrique K. Razon Jr.’s Prime Infra. See “DENR,” A2
COA flags ₧2-B canceled projects, ₧202-M fees By Malou Talosig-Bartolome
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HE Philippines had access to P1.15 trillion in foreign loans in 2024, enough to jumpstart long-delayed transport and development projects. Instead, the money sat idle—while taxpayers paid P202.3 million in “commitment fees” for projects that never materialized, the Commission on Audit (COA) said. In its CY 2024 Consolidated Audit Report on ODA-Funded Programs and Projects, COA also revealed that more than P2 billion worth of flood control projects were canceled in 2024. These included partial cancellations of ongoing projects and unavailed balances from completed ones, underscoring systemic inefficiencies in project implementation. It remains unclear whether the COA report directly prompted the President to order an investigation into the so-called flood control scandal.
However, the report was submitted to Malacañang a month before his 2025 State of the Nation Address (SONA), where he admonished Congress with the remark: “Mahiya naman kayo sa inyong kapwa Pilipino.” The COA findings were made public only on December 16, 2025, adding fuel to concerns over wasted opportunities and mounting costs from idle loans.
Yet delays in implementation left billions unavailed, with 26 loans fully untouched—not a single peso drawn—despite incurring millions in fees. On top of this, 68 other ODA loans totaling P723.58 billion (US$12.51 billion) were only partially utilized, representing nearly 63 percent of the total unavailed balances in 2024.
Loans left unused
COMMITMENT fees are charges imposed by lenders on the undisbursed portion of loans. For 2024 alone, the government paid P1.02 billion in such penalties, with P202.3 million tied to projects that never moved forward. Among the biggest contributors: n South Commuter Railway Project (SCRP)— Tranche 1: P115.43 million in fees, the highest in 2024. n Davao Public Transport Modernization Proj-
STATE auditors revealed that the government is burdened with a backlog of 94 Official Development Assistance (ODA) loans. These loans, extended by partners such as Japan, the World Bank, the Asian Development Bank (ADB), and the Asian Infrastructure Investment Bank (AIIB), were meant to finance transport modernization, rural development, and social reform.
‘Ghost projects’
ect (DPTMP): P90.2 million in fees. n Philippine Rural Development Project (PRDP) Scale-Up: P83.03 million in fees due to agricultural delays. n Cebu Bus Rapid Transit Project (CBRTP): A chronic case, with one World Bank loan idle since 2014, racking up P21.73 million in fees.
Flood control scandal
THE audit also flagged flood control projects as part of the growing ODA loan controversy, with partial cancellations and scaled-down commitments: n Metro Manila Flood Management Project—Phase 1 (MMFMP I): Funded by the World Bank and AIIB, this ongoing project saw a partial loan cancellation of P1.31 billion (US$22.67 million) per loan agreement. • Five of nine planned pumping stations See “Projects,” A2
PESO EXCHANGE RATES n US 59.1640 n JAPAN 0.3743 n UK 79.2738 n HK 7.5910 n CHINA 8.4781 n SINGAPORE 45.9740 n AUSTRALIA 39.5275 n EU 68.8787 n KOREA 0.0406 n SAUDI ARABIA 15.7771 Source: BSP (January 12, 2026)