SoNA come-lately

SoNA come-lately | Daily Tribune

Quick research shows that Meralco loses about 5.72 percent of the electricity passing through its system, still below the government’s allowable limit of 6.5 percent. Some electricity loss is unavoidable, while some comes from illegal connections and theft. Removing the charge from our bills will not make the cost disappear. The real question is whether Meralco will absorb it, recover it through another charge or reduce it by improving its facilities and stopping pilferage.

The market immediately recognized this uncertainty. Meralco shares closed at P589.50 on the day of the SoNA, fell to P562 the following day and reached P480 by 30 July — a decline of approximately 18.6 percent in three trading days. We cannot attribute the entire movement to one presidential statement, but its timing reflects investor concern over how the proposal could affect Meralco’s earnings, capital expenditures and ability to maintain a resilient distribution network.

On another equally important topic, the SoNA also proposed raising the annual personal income tax exemption from P250,000 to P350,000, removing the minimum corporate income tax for small businesses and granting an amnesty for unpaid income taxes. These are sensible measures. They could give workers more disposable income, allow small enterprises to retain precious working capital and bring delinquent taxpayers back into the formal system.

But this may be a case of SoNA come lately. These reforms were announced during the President’s penultimate SoNA, with less than two years remaining in his term. Each requires legislation, detailed implementing rules and coordination among Congress, regulators and revenue agencies.

Meanwhile, the impeachment proceedings against the Vice President and the approaching 2028 presidential elections will increasingly consume political attention. Thus, the reality is that only one working year remains in the administration.

Good intentions announced late are still worth pursuing, but they must now be accompanied by figures, deadlines and clearly assigned responsibilities. Government should explain who bears unavoidable electricity losses, how much the tax proposals will cost and when consumers and businesses can expect actual relief.

The administration can still deliver these reforms, but it no longer has the luxury of prolonged studies and ceremonial promises. At this stage, every policy must move quickly from applause to enactment and from enactment to results.