A BMBE is defined as "any business enterprise engaged in production, processing or manufacturing of products including agro-process as well as trading and services with total assets of not less than P3 million, excluding land."
President Arroyo enacted the measure in November 2000 while its implementing rules and regulations was issued last February.
Quezon City Chamber of Commerce and Industry (QCCCI) president Nathan Zulueta said the Quezon City government is the first one to implement the BMBE Act and would unofficially serve as the pilot area for carrying it out.
"The DILG (Department of Interior and Local Government) has urged us to be the first to implement it having been adjudged as the biggest LGU in terms of income and tax collections," Zulueta said in an interview.
Quezon City has 55,000 registered business establishments, 50 percent of which are small and medium enterprises. Zulueta said they expect these SMEs to avail of the incentives under the BMBE.
Mayor Feliciano Belmonte, Jr. has created an action panel headed by City Treasurer Dr. Victor Endriga and Zulueta to implement the law in the entire city.
The incentives to be enjoyed under the BMBEs include: exemption from the coverage of the minimum wage law provided employees will still be given the same SSS, PAG-IBIG and PhilHealth coverage, income tax exemption for two years from income arising from the operation of the enterprise, priority to a special window set-up especially for the financing requirement of BMBEs, and technology transfer, production management training and marketing assistance program.
The Office of the Treasurer and the QCCCI are in-charge of accepting the applications.
Aside from the incentives provided by the law, the Quezon City Council is now in the process of passing an ordinance granting BMBEs a 50 percent discount in local business permits, licenses and fees.
"QCCCI will assist BMBEs in their application for financing in various government financial institutions such as Land Bank, DBP, SBGFC, PCFC and assist them in their transaction with government agencies such as DTI, DOST, CDA, TESDA, TLRC for technology, production, management training and marketing assistance," Zulueta said.– Pamela Samia