Bills

Senate Bill No. 169: Small Business Tax Reform Act

The key to achieving prosperity for impoverished Filipino families is a strong micro, small and medium enterprise sector. A strong MSME sector also, in turn, strengthens a country’s economy and guards against foreign financial crises.

Currently, MSMEs already account for roughly 32-35% of the country’s GDP. Sadly, despite the growth in number of small enterprises in the Philippines, few are able to sustain their operation and create long-term success.

For this reason, our office has pushed for a number of policies to improve the support system for this vital sector and we will continue to do so until our country’s business environment is ripe for local entrepreneurs to succeed.

This particular legislation deals with the tricky subject of taxation.

According to a joint study by PwC and the World Bank, Paying Taxes 2016, the Philippines is on the 126th spot out of 189 economies in Ease of Paying Taxes.

This must change, which is why we are asserting the Small Business Tax Reform Act as a measure to simplify tax procedures and unburden our small businesses of the complex tax process.

Proposed measures include a simpler bookkeeping, a special lane and assistance desk for small businesses, exemption from tax audit, annual filing of returns, and payment in installment.

This bill also proposes the lowering of the income tax rate for small businesses and an exemption from VAT, among other methods of stimulating growth in small businesses as opposed to hindering it.

Let’s streamline our tax system and boost the chances of our local enterprises to succeed and, in turn, generate prosperity and livelihood for more and more Filipinos.

 

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Senate Bill No. 174: End ENDO Act

Over the past decade, the Philippines has been experiencing GDP gains and exponential economic growth. However, the unemployment and underemployment rates remain high.

There are almost a million new jobseekers that enter the labor force each year and, sadly, employment opportunities are simply not enough to absorb them. Worse, with many skilled and experienced employees agreeing to entry-level jobs just to have a steady source of income, first-time jobseekers with limited or low-level skills are left with no job opportunities.

 This is where contractors and subcontractors help job seekers in skills-building, particularly in developing occupational skills that match industry demand. Contractors and subcontractors also help employees in upgrading existing skills, learning new skills and opening up more opportunities for them.

 On the other end, contractors and subcontractors also help employers and companies expand their businesses with minimal costs and freedom to focus on their core business. Consequently, when these businesses expand, more jobs are created.

 Seeing the impact of this flexibility, the government and contractors/subcontractors must work together to establish a framework, filling the gaps in current industry practices and protecting both employers and employees.

 

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SBN-3208: Increasing Penalties on Erring Telcos

 

For years, Filipinos have been suffering from slow and expensive internet as they struggle to communicate with loved ones living abroad, forge deals with potential business partners and clients around the world or simply get work done and sent quickly and efficiently.

 

Our collective frustrations over our country’s internet quality has been justified by studies on Internet speed and cost per country, putting the Philippines as slowest and most expensive in the region.

 

Being the fastest growing economy in the ASEAN, this is clearly unacceptable and measures to improve our Internet quality while driving down its cost must be prioritized.

 

One of the many steps we must take is to update current policies to ensure that internet providers are held accountable for their activities.

 

Thus, this measure seeks to empower the National Telecommunications Commission (NTC) by increasing the penalties and fines for violations against the authority of the NTC and its released certificates, orders, decisions, resolutions, or regulations. With heavier penalties, NTC can expect greater compliance from Internet providers to standards and regulations that have been set to advance Internet quality in the Philippines.

 

When it comes to public services, we must do more than just keep up with the development of our neighbors, but exceed them. Let us band together to significantly improve our Internet services in the Philippines.

 

In view of the foregoing, the passage of this measure is earnestly sought.

 

 

RA 10693: Microfinance NGOS Act

Microfinance NGOs shall conduct its 19 operations in accordance with the basic principles of micro finance, which include, but are not 20 limited to the following:

a. The State recognizes Microfinance NGOs as its effective partners in promoting social welfare and development and pursuing poverty alleviation and holistic transformation and acknowledges micro finance as a viable solution to empower the poor;

b. The poor shall be given access to appropriate financial services that are convenient, flexible, and reasonably priced, including, but not limited to credit, savings, and insurance;

c. Microtinance shall be undertaken on a sustainable basis, where providers shall be able to recover all of its costs to allow sustainable operation and regular provision of financial services to the poor;

d. Microfinance NGOs shall aim to provide both financial and social protection programs to an increasing number of disadvantaged and for underprivileged people;

e. Microfinance NGOs shall abide by the Client Protection Principles, such as, but not limited to, appropriate product design and delivery, prevention of over-indebtedness, promotion of transparency, practice of responsible pricing, fair and respectful treatment of clients, privacy of client data and mechanisms for complaint resolution;

f. Microfinance NGOs shall develop financial, social, and governance performance standards that shall help define and govern the industry toward greater outreach and sustainability. 109. Mierofinance NGOs shall develop and provide the appropriate community development II projects and programs to ensure attainment of social welfare and holistic transformation 12 of the poor.

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SBN-1026: Poverty Reduction Through Social Entrepreneurship

The Social Enterprise (“SE”) Bill provides the framework for the planning and implementation of a National Poverty Reduction Through Social Entrepreneurship (the “PRESENT”) Program. The SE Bill, or the PRESENT Bill provides a nurturing environment for the growth and burgeoning of strong and innovative Social Enterprises as tools to reduce poverty.

A “Social Enterprise” as defined in the proposed Bill, refers to an enterprise with the poor as primary stakeholders. This is an enterprise that explicitly declares and pursues poverty reduction, alleviation, or improving the quality of life of speCific segments of the poor as a principal objective. A Social Enterprise engages and invests in the poor for them to become effective workers, suppliers, clients and/or owners, and ensures that a substantive part of the wealth created by the enterprise is distributed to, or benefits them.

In addition to reinvesting its surplus or profits back to the enterprise to sustain the fulfillment of its social mission, a Social Enterprise also uses its surplus or profits and mobilizes other resources to assist the poor in becoming partners in the value chain management/governance as well as to become partners in community, sectoral and societal transformation.

This is in line with Article XII, Section 1 of the Philippine Constitution which states:
Section 1. The goals of the national economy are a more eqUitable distribution of opportunities, income, and wealth; a sustained increase in the amount of goods and services produced by the nation for the benefit of the people; and an expanding productivity as the key to raising the quality of life for all, especially the under-privileged.

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The challenge for Social Enterprises is how to become an effective poverty reduction tool. In the face of this challenge, government must play a supportive role to ensure that the appropriate systems, structures, and resources needed to support social enterprises are put in place. Government must help these new breed of entrepreneurs to acquire resources, build successful organizations, and achieve significant positive impact.

A nation’s economy is not stagnant – new social investment models, ways of doing business, and impact measurement tools continually arise. These changes at times distort and blur the once clear boundaries among the traditional nonprofit, for-profit, and public sectors. It is time that a “Social Enterprise” deserves to be officially recognized and defined in order for the government to be able to give it adequate support.

Therefore, the legislature is urged to pass measures wherein the government must make a leap forward and take advantage of this potential for the nation’s social change. Such leap forward is through the PRESENT Bill.

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SBN-2150: Electric, Hybrid and Other Alternative Fuel Vehicles Promotions Act of 2014

In a country that ranks among the world’s Top 10 most vulnerable countries to climage change” it is important to mainstream programs that mitigate climate change risks while incentivizing climate change adaptation among the private sector, communities, and individuals.

The use of electric, hybrid, and other alternative fuel vehicles (AFVs) among individuals and organizations presents such an opportunity. At present, the Department of Energy (DOE) aims to put. 100,000 electric tricycles on the road by 2017, while the Electric Vehicles Association of the Philippines (EVAP) hopes to mainstream 1 million electric vehicles by 2020.

In a study released by international consulting firm Grant Thornton in 2012, “Asia is currently the largest market for hybirds/electrics (56%).'” Further: “The trend toward alternative fuels is visible in global sales of hybrid electric vehicles (HEVs) and battery electric vehicles (BEVs), projected to reach 5.4 million vehicles by 2021 (more than 6% of the automotive market), up from 810,000 vehicles in 2010 (approximately 2% of market share).”

The same report states that, “Around a quarter of global companies (24%) have introduced or are considering vehicles that run on alternative fuels for their businesses … Companies in the ASEAN region (31%) were most likely to use or consider alternative-fuel vehicles.'”

Among the top reasons cited for ASEAN users to consider switching to AFVs are the following: the “price of oil” (88%); “saving the planet” (88%), “cost management” (81%), and “tax relief’ (77%).

The study summarizes its findings this way: Rising oil prices and increasing awareness of the environmental impact of traditional fuels make alternative-fuel vehicles attractive to owners of commercial/business fleets. Government incentives and regulations are also pushing executives to explore alternative fuels. Indeed, many countries and states/provinces already offer significant incentives for buying or converting to alternative-fuel vehicles; in some regions regulations will eventually force the use of alternative fuels.”6 In the 15th Congress, both the Upper and Lower Houses of Congress passed on Third Reading . similar measures entitled, “An Act Providing Incentives For The Manufacture, Assembly, Conversion And Importation Of Electric, Hybrid And Other Alternative Fuel Vehicles, And For Other Purposes.” Clearly, Congress recognizes that the emerging industry of alternative fuel vehicles (AFVs) can significantly contribute to investment generation, job creation, poverty reduction, and climate change mitigation.

To follow through on this, this representation proposes stronger policy support in order to promote adoption of and drive consumer demand for electric, hybrid, and other alternative fuel vehicles, In this regard, this Act provides non-fiscal incentives to drive consumer demand, including the following:

a. Priority in registration and issuance of plate number;
b. Priority in franchise application;
c. Exemption from Unified Vehicular Volume Reduction Program (UVVRP) or Number-Coding Scheme; and
d. Provision for free parking spaces in new establishments

It is recognized that while the costs of electric and hybrid vehicles are higher compared to those of regular vehicles, these non-fiscal incentives will make the acquisition and conversion of vehicles more attractive to consumers and manufacturers alike. As the world braces itself for stronger impacts of climate change while adapting to swift changes in technology, it is imperative that Filipinos are not left behind in the waves of change. Early adaptation to and promotion of AFVs will help the country mitigate the risks associated with climate change, while opening up potential investment and job opportunities that will ultimately benefit more Filipinos.

In view of the foregoing, the passage and enactment of this bill is earnestly sought.

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SBN-2364: Amending Sec. 11009, Tariff and Customs Code (Carriage of Container Vans)

As a response to the call of the President and key stakeholders, this measure seeks to amend Section 1009 of the Presidential Decree No. 1464, otherwise known as the Tariff and Customs Code of 1978 to introduce reform in the shipping industry.

Given that the Philippines is an archipelago composed of more than 7,100 islands, the transport of goods relies heavily on sea routes interconnecting the islands. Shipping is the means of transporting goods between islands and even in and out of the country. Shipping cost impacts the movement and price of traded goods.

Facilitating inter-island trade in the country has become costly and cumbersome for micro, small and medium enterprises (MSMEs). Currently, inter-island shipping is exclusively reserved for ships bearing the Philippine flag. While this helps the domestic shipping industry, the cost of shipping is hampering trade especially for the MSMEs.

This measure seeks to allow foreign ships to call in multiple ports provided that their cargoes are intended for import or export and duly cleared by the Commissioner of Customs. This would allow importers and exporters to co-load in foreign ships going in or out of the Philippine jurisdiction.

Moreover, this bill gives clarification on the definition of common carriers and public service in the shipping industry. With this bill, foreign cargoes shall not be subjected to the law concerning common carriers and public services as defined in the Civil Code and the Domestic Shipping Development Act, respectively.

MSMEs who are importing or exporting goods will be able to access a cheaper alternative in transporting their goods through co-loading in foreign ships. Ultimately, this leads to lower prices of goods for the Filipino public.

In view of the foregoing, the approval of this bill is earnestly sought.

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SBN-2369: Students’ Rights and Welfare Act of 2014

As education plays a vital role in shaping any nation, it provides young citizens the key knowledge, skills and attitudes to be able to participate and contribute meaningfully to the growth of society.

While there is an effort to improve the technical content and curriculum, and the delivery and instruction, there is also a need to reform the non-academic side of education.

This bill proposes to broaden the focus of education institutions towards a more holistic formation of students. By providing a national framework for students’ rights and welfare, this measure seeks to create a conducive atmosphere to maximize their learning and growth.

Service-learning modules provide the chance for students to learn about empathy and compassion; volunteer organizations present the world outside the four walls of the classroom and show the faces of poverty and injustice.

Student-governments and campus publications are spaces where students are able to strengthen values of leadership, integrity, transparency and accountability. Dialogues and consultations with school administrations further enhance the value for respect and critical thinking among future leaders of the country.

Students are no longer just the future of the country. We count on them to be leaders in tneir communities in the here and now.

In view of the foregoing, the approval of this bill is earnestly sought.

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SBN-2713: Magna Carta for Persons with Disabilities

Filipino Persons with Disabilities (PWDs) have been actively participating in shaping our history and contributing to the advancement of good governance.

We go back to as early as the 1896 Spanish Revolution era, where Apolinario Mabini, a sublime paralytic, wrote subversive manifestos against Spain and became the brains of the revolution1 . Moreover, he eventually drafted the framework of the revolutionary government in 1899.

In recent history, Art Borjal, who moved with leg braces and crutches, was a popular columnist and worked for the rights of the PWDs in the early 1990s2 , while polio-survivor Grace Padaca, a former Isabela governor and Ramon Magsaysay awardee, is a staunch advocate of governance and election reforms todal.

Furthermore, the National Federation of Cooperatives of Persons with Disability (NFCPWD) has worked with the Department of Education (DepEd) in producing public school chairs4. The organization has generated P80 million in the past twelve years for workers and staff with disabilities.

Still, our country’s challenge is to be truly inclusive to serve the needs of the marginalized, particularly the PWD sector. PWDs have found it difficult to gain employment and earn income for themselves and for their families. Families with PWDs have also had to worry about their daily expenses for medicine and rehabilitation.

Hence, the PWDs Tax Exemption Act of 2015 seeks to give reprieve to the plight of our PWDs and their families and be able to support them in their daily challenges.

This measure proposes for families with PWD dependents to have a yearly uniform P25,OOO tax exemption, in addition to the regular personal deductions, in order to augment their expenses – wheelchairs, hearing aids, nurses and caregivers, and learning disability tutors, among others. In addition, the act seeks to exempt PWDs from value add taxes (VAT).

Such accommodation for our PWD sector is part of our larger reform efforts in pushing for a society that is inclusive for the poor and most vulnerable sectors. It is one of our courses in our journey towards achieving a fully-abled nation.

In view of the foregoing, the approval of this bill is earnestly south.
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SBN-2729: Ameding Sec. 150, NIRC (Non-essential Goods)

Whether young or old, ingrained in the Filipino psyche and in our daily hygiene is the use of baby cologne.

In a survey of Filipino consumers, baby colognes ranked second only to shampoo in regular usage, placing it above powder, lotion, and hand sanitizers.

Further, 98% of the splash cologne consumers are from the economic classes C, D, and E with Class D taking up 54% of the market share.

This Act aims to recognize splash cologne as an essential good, setting it apart from perfumes and other luxury fragrances by ascertaining the concentration of the essential oils or perfume in the product.

The proposed amendment is in line with the legal definition already set by Revenue Regulations No.8 to 84.

By aligning and streamlining the definition for baby cologne or “toilet water” and recognizing such as an essential good and taxing them accordingly, we will be able to protect our low-income households from unnecessary surges in prices of their inexpensive, but fragrant cologne, and at the same time, provide appropriate support to the baby cologne industry.

In view of the foregoing, the approval of this bill is earnestly sought.
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