SMEs back Comprehensive Tax Reform Program Package 2

MANILA, Philippines — Small and medium enterprises (SMEs) from Luzon and Central Visayas have expressed support for the second package of the Comprehensive Tax Reform Program (CTRP), saying the measure would enable them to expand their businesses and hire more workers at a higher pay.

Edward Du and Alexander Ang, regional governors of the Philippine Chamber of Commerce and Industry (PCCI) for Regions 7 and 1, respectively, said local businesses including SMEs are backing the Tax Reform for Attracting Better and High-Quality Opportunities (TRABAHO) Bill in the Congress.

Du, in particular, said the measure is expected to lower the costs incurred by enterprises, and therefore enable them to increase their manpower and raise wages.

“With regard to the TRABAHO bill, we support the lowering of corporate income taxes. Savings from lower corporate income taxes will allow us to hire more workers, increase wages and expand our businesses,” Du said in a statement submitted to the Department of Finance (DOF) following the Sulong Pilipinas workshop in Cebu.

Du and Ang said the SME community from Central Visayas and Luzon are also backing reforms to further improve the ease of doing business (EODB) in the country, especially the zero-contract policy provided under the EODB law.

Both industry leaders represented the business community in these regions during the Sulong Pilipinas consultative workshops in Cebu City and San Fernando, La Union last Nov. 9 and Nov. 14, respectively.

The workshop aims to gather the business sector’s inputs and recommendations on how the government could further improve the investment climate and fulfill its goal of high and inclusive growth.

The Central Visayas business sector, for its part, recommended an increase in agricultural output through better access and improved investment in new farm technologies.

 It also pushed for the increased research and development efforts in the agriculture and fisheries sector, as well as measures to transform the agriculture sector into a net exporter of high-valued crops.

Central Visayas also sought for the improvement of farmers’ income through support services and assistance, establishment of mass transport systems to ease traffic congestion, simplified loan requirements and lower interest rates for SMEs, faster processing of licenses and certificates of product registration, and streamlined government processes and reduction of red tape.

 La Union, meanwhile, said the government should improve the efficiency of the local farming industry by investing in education and new technology.