JUNE 9, 2013

NR # 3129

Solon urges the exemption of barangay micro-business enterprises from local taxes
A lawmaker is steadfast in re-filing this 16th Congress a measure granting registered Barangay Micro Business Enterprises (BMBEs) exemptions from local business taxes. Rep. Roman Romulo (Lone District, Pasig City), who authored the bill in the 15 th Congress through House Bill 1742, said BMBEs benefit local government units (LGUs) through employment generation, use of local entrepreneurial skills, raw materials and services by the BMBEs, simulation of the local economy of the informal sector into the mainstream economy of the LGU. Romulo cited Republic Act 9178 or the Barangay Micro Business Enterprises (BMBEs) Act of 2002, which declared that it is the policy of the State to hasten the country’s economic development by encouraging the formation and growth of barangay micro business enterprises. These barangay micro-business enterprises, Romulo said, effectively serve as seedbeds of Filipino entrepreneurial talents, and integrating those in the informal sector with the mainstream economy, through the rationalization of bureaucratic restrictions, the active intervention of the government specially in the local level, and the granting of incentives and benefits to generate much needed employment and alleviate poverty. Aside from exemption from income tax for income arising from operations of the enterprise, the bill seeks to exempt all BMBEs from all local taxes on business and the LGUs are encouraged to either reduce the amount of other local taxes, fees and charges imposed or to exempt the BMBEs from other local taxes by amending Section 7 of Republic Act No. 9178. The Department of Interior and Local Government (DILG) in consultation with the Department of Trade and Industry (DTI) and the Department of Finance (DOF) are mandated to formulate the necessary rules and regulations. “I believe that the active intervention and participation of the LGUs in granting incentives and benefits to BMBEs will help generate much needed employment and alleviate poverty,” Romulo said. (30) lvc

Sign up to vote on this title
UsefulNot useful