Connect with us

News

Angara Calls on Govt To Carry Out APEC’s Commitment To Help Small Businesses By Simplifying Tax System

Published

on

Senator Sonny Angara has urged the government to simplify the process of tax filing and payment for micro, small, and medium enterprises (MSMEs) in line with the Asia-Pacific Economic Cooperation (APEC) member-economies’ call for more intensive efforts to help small businesses penetrate the global market.

“Kung ang mga APEC attendees at delegates may special lane o treatment, ganun din dapat ang ating mga small entrepreneurs. How we can make the Philippines MSME-friendly should be one of the priorities of the government after APEC as we all aim for inclusive growth,” said Angara, chairman of the Senate ways and means committee.

The 21 APEC leaders concluded their meeting in Manila by issuing the 23rd APEC Economic Leaders’ Meeting Declaration which underscored “the significance of the participation of MSMEs in global commerce to inclusive growth,” and that the member-economies “will take action to facilitate such participation.”

Among the strategies that will help empower the MSMEs, which represent 98 percent of all registered businesses, include trade facilitation, e-commerce, financing, and institutional support.

The senator, however, cited a new World Bank study, Paying Taxes 2016, which ranked the Philippines 126th, down a notch from last year, and showed “the Philippines neither improved nor regressed in the time (193 hours) and number of payments (36) it takes for a medium-sized firm to comply with tax obligations.”

“Business tycoons who own multi-billion corporations have the same requirements as sari-sari store owners and sidewalk vendors who may not be computer literate and who can’t afford to hire accountants. This should not be the case. We should make it easy for small players to form a business and pay taxes. We should streamline the process, lessen the steps and requirements, and ease the formalities that cause red tape,” said Angara, who has also been pushing for a more progressive and equitable income tax rates in the country.

The lawmaker stressed that even Alibaba billionaire founder and China’s second richest man Jack Ma, when asked by US President Barack Obama during the APEC Summit how can both the government and larger companies help the small entrepreneurs, said, “Government is simple. Just reduce the tax, or no tax for these guys.”

Angara said that while the government is already giving tax incentives to small businesses as mandated by Republic Act 9178 or the Barangay Micro Business Enterprises (BMBE) Act of 2002, many small entrepreneurs still do not avail of these incentives due to lack of awareness and because they find the registration process and requirements too cumbersome.

Under the BMBE law, a barangay micro-enterprise with a total asset of P3 million or less will be entitled to an exemption from tax of the income arising from the operation of the enterprise, and exemption from or reduced rates of local taxes, fees and charges.

“By granting BMBEs with these tax incentives, we are helping them generate more income and minimize their expenditures, giving them the opportunity to grow, compete and develop their entrepreneurial skills. Unfortunately, many of them do not even know such law exists. Moreover, our complex tax system itself is a disincentive to our small entrepreneurs. One concrete way of providing assistance to MSMEs is by amending our one-size-fits-all type of taxation,” he said.

He also urged the government to pursue a paradigm shift from regulatory to developmental, and encourage the informal sector to venture into the mainstream economy.

“Ang tingin kasi ng mga maliliit na negosyante, kapag nanatili silang underground, makakaiwas sila sa mga bureaucratic fees and costs. Dapat nating ipaunawa sa kanila na mayroong mga karampatang insentibo kapag sila ay nagparehistro. Sa halip na agad panghinaan ng loob ang ating mga maliliit na negosyante dahil sa dami ng requirements, dapat ay tulungan natin sila na makasunod sa mga alituntunin ng batas na magbibigay sa kanila ng dagdag benepisyo,” Angara said.

“Importante na maramdaman ito ng nakararaming Pilipino at ‘di lamang ng malalaking korporasyon na may kakayahang hindi malunod sa agos ng globalisasyon ng pandaigdigang kalakal. Kailangan bumalik agad ang gobyerno sa trabaho at ituloy ang reporma,” he concluded.

senate.gov.ph

Continue Reading
Advertisement
Comments

Subscribe

Advertisement

Facebook

Advertisement

Ads Blocker Image Powered by Code Help Pro

It looks like you are using an adblocker

Please consider allowing ads on our site. We rely on these ads to help us grow and continue sharing our content.

OK
Powered By
Best Wordpress Adblock Detecting Plugin | CHP Adblock