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FIVE THINGS TO KNOW

10:45 PM7-minute read

ABOUT THE OCTOBER WATER-RATE INCREASES

Metro Manila households served by Maynilad and Manila Water will see slightly higher water charges beginning October 1. The announced increases are small for many residential customers, but the figures vary by concessionaire and consumption level. That makes it easy to misunderstand a notice expressed only in centavos per cubic meter.

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7:21 AM6-minute read

ABOUT THE NOTE HANDED TO GIBO TEODORO IN SEOUL

Defense Secretary Gilberto “Gibo” Teodoro Jr. was answering questions at the Seoul Defense Dialogue on September 8 when a man handed him a note. He read it aloud, challenged its rejection of the 2016 South China Sea ruling and objected to being interrupted that way.

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9:55 AM8-minute read

ABOUT EL NIÑO AND PREPARING FOR LESS RAIN

It can be raining outside while PAGASA warns about El Niño. That can sound confusing when the immediate problem is a wet road or a flooded field. The two warnings describe different periods: the weather happening now and the rainfall conditions that may develop over the coming months.

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5:30 AM8-minute read

ABOUT THE NEW ARREST WARRANTS AGAINST ZALDY CO, MARTIN ROMUALDEZ AND TWO OTHERS

The Sandiganbayan has ordered the arrest of Zaldy Co, Martin Romualdez and two other accused in the plunder case filed on September 7. By Monday evening, authorities had served Romualdez's warrant and carried out booking procedures at Cardinal Santos Medical Center in San Juan. His arrest is a confirmed development; it does not establish that his three co-accused are also in custody.

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3:15 PM8-minute read

ABOUT THE PLUNDER CASE AGAINST MARTIN ROMUALDEZ

The Office of the Ombudsman filed a plunder case against former House Speaker Martin Romualdez at the Sandiganbayan on September 7 over his alleged involvement in flood-control kickbacks. The accusations have now reached the court that will handle the criminal case. Romualdez denies wrongdoing and remains presumed innocent.

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1:18 PM7-minute read

ABOUT THE NEW SWS POVERTY NUMBERS

Self-rated poverty and food poverty declined in June, but the figures also show how many Filipino families remain under pressure and why lower household budgets do not necessarily mean life became cheaper.

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2:02 PM11-minute read

ABOUT THE CHILDREN'S SOCIAL MEDIA SAFETY ACT

House Bill No. 9965 would bar children below 13 from having social media accounts, require parental consent for users aged 13 to 17, regulate platform algorithms, and impose fines reaching P50 million. It is still being deliberated in the House.

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12:02 PM7-minute read

ABOUT THE SEALED BIR BOX

Marcos authorized the BIR to comply with the Senate subpoena. That did not open the records to the public or prove the unexplained-wealth allegation.

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MCT DAILY BRIEF

MCT Daily Brief cover: Tax Relief Moves Forward, DOH Changes Leaders Again

AUGUST 11, 2026 | MORNING

A proposal to reduce income taxes has passed its first committee test in the House. The Department of Health has received its third secretary in less than a month, while motorists and Meralco customers are getting some relief from fuel and electricity costs.

The Ombudsman is also examining flood-control spending in Cebu, and a senior Pentagon official is asking American allies in Asia to assume a larger share of regional defense costs.

Here are the five developments to follow.

1

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.

WHAT TO WATCH

The committee report, the complete tax schedule that will apply above ₱350,000, the government’s estimate of lost revenue, and whether the Senate adopts the same threshold.

2

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.

WHAT TO WATCH

Mercado’s first directives at the DOH, Ho’s plans for PhilHealth benefits and claims, and any official action by the Ombudsman on the separate complaints involving Pujalte.

3

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.

WHAT TO WATCH

Fuel adjustments in the following weeks, the next Meralco rate announcement and the ERC-approved refund schedule. Readers should compare their actual consumption before deciding whether their total electricity bill decreased.

4

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.

WHAT TO WATCH

A verified list of the projects and contractors, inspection and engineering reports, payment records, any lifestyle checks formally opened, and the filing of administrative or criminal complaints.

5

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.

WHAT TO WATCH

Any formal Philippine response, proposed changes to the 2027 defense budget, new military procurement plans and whether Washington attaches specific spending expectations to future security agreements.

BOTTOM LINE

The fuel rollback provides immediate relief, while the proposed income-tax exemption could eventually increase the take-home pay of some workers. The tax measure still faces a long legislative process. The remaining developments involve government performance and public spending. Filipinos need continuity from the new health officials, documentary proof that flood-control money produced working infrastructure, and a full accounting of any additional defense commitments. The next official records and decisions will show whether today’s announcements produce measurable benefits.

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