Solon pushes incentives for small rural shops

Negros Oriental Rep. Herminio Teves (Negros Oriental) has sought the help of his colleagues in Congress in ensuring the swift approval of a bill seeking to grant a whole set of tax and non-tax incentives to countryside and barangay business enterprises (CBBEs) with a capitalization of not more than P500,000.

Teves was referring to the proposed Magna Carta for CBBEs, which seeks to exempt "small and productive business enterprises" in the rural areas from all national and local government taxes and fees, including income and value-added taxes, building permit fees and other charges.

Under the House Bill 2568, authored by Teves himself, CBBEs shall also be exempt from complying with regional minimum wage rates, and enjoy credit support from government financial institutions and state-run guarantee funds.

Private financial institutions involved in credit support mechanisms for CBBEs shall likewise enjoy tax breaks and other benefits.

"We must support small scale rural-based business enterprises that produce, manufacture or process commodities, and help develop the economy in their localities," Teves said.

"This is one sure way to create new jobs, boost rural household incomes and ease urban congestion," Teves pointed out.

Under HB 2568, business enterprises registered as CBBEs shall also get technical training and marketing assistance from the Department of Trade and Industry, Department of Science and Technology, the University of the Philippines’ Institute for Small Scale Industries and the National Anti-Poverty Commission, among other agencies.

Under Teves’ proposal, all qualified business enterprises actually producing or processing goods may register as CBBEs.