Energy market veteran, new ERC chief By Lenie Lectura and Samuel P. Medenilla
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O prevent the possible paralysis of the Energy Regulatory Commission (ERC) due to lack of quorum, President Ferdinand Marcos Jr. has named Independent Electricity Market Operator of the Philippines (Iemop) President Francis Saturnino C. Juan as its new chair, as well as its two new members. Palace Press Officer Claire Castro announced on Thursday the ap-
WORLD » A10
HOSPITALS FIND SIMPLER WAYS TO RECOVER HEARTS FOR TRANSPLANT FROM ‘CIRCULATORY DEATH’ DONORS
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pointment of Juan, a seasoned energy expert who has played a key role in operationalizing the wholesale electricity spot market, advocating consumer protection and promoting renewable energy development through tariff reforms. “With his deep institutional knowledge and leadership, we are confident that Chairperson Juan will steer the ERC toward more efficient, transparent and proconsumer decision making,” Castro said. “We look forward to his smooth and seamless transition under his
chairmanship,” she added. The Presidential Communications Office (PCO) Undersecretary also announced the appointment of Amante A. Liberato and Paris G. Real as new ERC commissioners. Liberato is currently serving as deputy executive secretary for finance and administration at the Office of the President, while Real is a seasoned litigator and a legal advisor with more than two decades of experience including active participation in high-impact ERC regulatory proceedings.
“Together these appointments reflect the President’s commitment to energizing the ERC with leaders who uphold integrity, transparency and public service. We look forward to the reforms and progress they will help bring under Bagong Pilipinas [New Philippines],” Castro said. Malacañang made the announcement after it confirmed the resignation of ERC Chairperson Monalisa C. Dimalanta, which is effective 8 August 2025. See “Energy,” A11
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Friday, July 18, 2025 Vol. 20 No. 278
P25.00 nationwide | 2 sections 22 pages | 7 DAYS A WEEK
By Andrea E. San Juan
ITH two weeks left to negotiate with Washington, Philippine industries are not waving the white flag yet even after the country’s Asean counterparts Indonesia and Vietnam, its toughest competitors on garment shipments to the US, managed to haggle for lower tariffs with Washington. “Indonesia is a bigger economy than the Philippines to start with. Now, I will be talking particularly on the textile sector. It is shipping
$5 billion to pay on this item on garment and textile. Whereas the Philippines is still fighting for $1 See “PHL,” A2
THERE ARE NOW 112.7-M PINOYS, BUT GROWTH HAS SLOWED DOWN
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ITH his issuance of Proclamation No. 973, series of 2025, President Ferdinand Marcos Jr. has officially declared the country’s population has reached 112.73 million nationwide. Under the two-page issuance dated 11 July 2025, the chief executive has made official the outcome of the 2024 Census Population (Popcen), which showed the country’s total population was at 112,729,484 as of 1 July 2024. The latest Popcen was conducted from July to September 2024.
“The PSA in coordination with the Presidential Communications Office, is hereby declared to disseminate copies of the 2024 Census of Population: Population by Province, City/ Municipality, and Barangay to all concerned government agencies,” Marcos said. Batas Pambansa Blg. 72 (s. 1980) requires the President to issue the necessary proclamation for the results of the census to be considered official. The latest Popcen showed that the country’s population grew by 3.69 million compared to the
STORM SIGNALS As Tropical Depression Crising nears landfall, local fishermen at Navotas Seaport secure their small bancas on Thursday, July 17, 2025, bracing for rough seas and strong winds. Government authorities have urged residents in low-lying and coastal communities to prepare for possible flooding and evacuation, and to stay tuned for weather bulletins and local advisories as Crising moves closer to the Philippine landmass. NONOY LACZA
See “There,” A2
DOF clarifies ‘fake news’ on savings tax
SAVINGS ARE SAFE: DOF Corrects Misinformation on CMEPA ❝All savings will be taxed at 20%.❞ ✔ Only the interest income is taxed— not your principal or savings amount. ✔ This was already the case for 99.6% of deposits, per BSP data. ✔ What changed: Long-term deposits no longer get lower rates.
☛ WHAT WENT VIRAL VS. WHAT’S TRUE Clarified by DOF ✘“Savings are taxed 20%”
✔ Only interest income, not principal
✘“It’s a new tax on deposits”
✔ Not new—standardized across all maturities
✘“Pag-IBIG and SSS will be taxed”
✔ These remain exempt under the law Government-run savings programs, like Pag-IBIG MP2, SSS PESO Fund and GSIS savings schemes, remain tax-free under CMEPA, contrary to viral misinformation.
Where the confusion starts: People who had long-term deposits (e.g., 5 years+) were previously exempt. Now they’re included in the uniform 20% rate— leading some to believe a “new tax” was created.
By Reine Juvierre S. Alberto
❝CMEPA merely corrects this outdated and inequitable system that placed a heavier burden on ordinary Filipinos who do not have the extra cash to put in banks for longer periods.❞—DOF, on correcting an outdated and inequitable system
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❝This special tax treatment favored depositors who can afford to park their savings in long-term deposits, making the tax system unfair for shortterm depositors who face liquidity issues and need immediate access to their funds.❞— DOF, on the unfairness of the old tax scheme
☛ BEFORE VS. AFTER CMEPA Tax Rates on Bank Deposit Interest Maturity Period
Before CMEPA
After CMEPA
Less than 3 years
20%
20%
3 to <4 years
12%
20%
4 to <5 years
5%
20%
5 years or more
0% (Exempt)
20%
SSS, GSIS, Pag-IBIG
Exempt
Still Exempt
BM Graphics: Ed Davad | Source: Department of Finance, BSP
Misleading claim circulating online:
@reine_alberto
HE Department of Finance (DOF) made clear that interest income from bank deposits—not the savings—will be taxed at a uniform rate of 20 percent to “correct an unfair system” that favors the rich. In a statement on Thursday, the DOF warned the public against “fake news” about the recently enacted Capital Markets Efficiency Promotion Act (CMEPA), clarifying that savings will not be taxed at 20 percent. Misleading headlines and art cards have been making the rounds of social media, causing the public to air their frustrations over a per-
ceived added tax burden. “CMEPA does not impose a new tax, instead standardized the tax rate on interest income to correct an unfair system that favored the wealthy,” the DOF explained. Before CMEPA was passed into law, a 20-percent final tax was applied on interest earned from bank deposits with a maturity of less than three years. Deposits that mature in four to five years and three to four years are subject to just 5 percent and 12 percent tax, respectively. Meanwhile, deposits with a maturity period of more than five years are exempt from tax. Under CMEPA, interest income is now taxed uniformly at 20 percent, regardless of the deposits’ matu-
rity period, to simplify compliance, remove confusion and ultimately, level the playing field for all. Specifically, a 20-percent final tax will be applied on the interest, yield or other monetary benefit earned from any currency bank deposit, deposit substitute, trust fund or other similar arrangements. This includes peso and foreign currency time deposits, as well as US dollar and other third-currency deposits held under Foreign Currency Deposit Unit accounts. Government savings programs, such as those under the Social Security System, Government Service Insurance System and Pag-IBIG, will remain exempt from the 20 percent tax. “CMEPA merely corrects this
outdated and inequitable system that placed a heavier burden on ordinary Filipinos who do not have the extra cash to put in banks for longer periods,” the DOF clarified. Citing data from the Bangko Sentral ng Pilipinas (BSP), 99.6 percent of total deposits were already subject to the 20-percent tax rate before, while only 0.4 percent enjoyed preferential rates. “This special tax treatment favored depositors who can afford to park their savings in long-term deposits, making the tax system unfair for short-term depositors who face liquidity issues and need immediate access to their funds,” the DOF said. The standardized tax rate is not See “DOF,” A2
PESO EXCHANGE RATES n US 56.9880 n JAPAN 0.3855 n UK 76.4779 n HK 7.2608 n CHINA 7.9403 n SINGAPORE 44.4282 n AUSTRALIA 37.1847 n EU 66.3283 n KOREA 0.0411 n SAUDI ARABIA 15.1936 Source: BSP (July 17, 2025)