MSME

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.

 

 PDFicon DOWNLOAD SBN 169

Sen. Bam Welcomes APEC’s ‘Stamp of Approval’ on MSMEs

Sen. Bam Aquino called the Asia-Pacific Economic Cooperation’s (APEC) recognition of micro, small and medium enterprises’ role in poverty eradication as “stamp of approval” on the Senate’s work to strengthen entrepreneurship in the country.
 
In a joint communiqué at the conclusion of the APEC Summit, the 21 APEC leaders recognized the significance of MSMEs in poverty eradication and inclusive growth and committed to work for their globalization.
 
“Practically, lahat po ng tinututukan namin sa Senado, inclusive finance, support for MSMEs at E-commerce, nahagip siya sa APEC na ito. Nagkaroon siya ng stamp of approval na itong ginagawa ninyo, talagang mahalaga ito sa kapakanan ng ating bayan at APEC economies,” said Sen. Bam.
 
A former social entrepreneur and a staunch advocate of MSMEs as chairman of the Senate Committee on Trade, Commerce and Entrepreneurship, Sen. Bam said APEC’s recognition solidified his long-standing belief and advocacy that empowering MSMEs can help eradicate poverty.
 
Sen. Bam pushed for the passage of Republic Act No. 10644 or the Go Negosyo Act, which provides for the establishment of Negosyo Centers in all provinces, cities and municipalities in the country to help MSMEs.
 
“Through some of our programs like the Negosyo Centers, sinisikap po natin na nandiyan ang support for our MSMEs. Sa ngayon, mayroon na tayong 116 Negosyo Centers sa buong Pilipinas,” the senator said.
 
“Nandiyan po iyan para magbigay ng training, capacity building, market linkage at financing sa ating MSMEs,” he added.
 
Aside from the Go Negosyo Law, Sen. Bam also worked for the passage of other laws that support MSMEs in the country.
 
Among them are Republic Act No. 10693 or the Microfinance NGO Act, Republic Act No. 10667 or the Philippine Competition Act, Republic Act No. 10668 or the Foreign Ships Co-Loading Act and Republic Act No. 10679 or the Youth Entrepreneurship Act.
 

Sen. Bam Committed to Supporting MSMEs in Zamboanga

Zamboanga City – Senator Bam Aquino visited Zamboanga City last Thursday to launch the 4th Negosyo Center in the region and the 73rd in the country.

“We’re proud to have this center up in Zamboanga City. Alam po natin na napakaganda ng potensyal dito,” said Sen. Bam, chairman of the Senate Committee on Trade, Commerce and Entrepreneurship.

Sen. Bam is the main author of Republic Act 10644, or the Go Negosyo Act, which mandates the creation of Negosyo Centers in all provinces, cities and municipalities in the country.

It is the Senator’s advocacy to achieve inclusive growth through enabling and empowering micro, small, and medium enterprises (MSMEs).

“For our MSMEs, it’s not about protection but about competition. It is about enabling them and giving them the support so they can compete in larger markets,” said the neophyte Senator, “How can they compete? They can compete kung meron silang puhunan, kaalaman, at access sa malalaking merkado.”

It is the objective of the newly inaugurated Negosyo Center, located at the DTI provincial office along Veteran’s Avenue, to provide access to bigger markets and financing for businesses while simplifying the business registration process.

As for the major challenge faced by Zamboanga’s entrepreneurs, the Senator hopes to work closely with the local government unit to look into the energy crisis.

“Kung walang kuryente, walang negosyo so I know how important it is,” he said, “We need to take a closer look at it. We will work with Mayor Beng Climaco and Chairman Chris Arnuco to figure out how to handle this better.”

Overall, Sen. Bam believes that spurring a thriving MSME sector is the key to spreading the economic surge the country is experiencing.

“We want to see our MSME succeed because if they are successful, they provide jobs, the local economy will grow, and we create value of our countrymen,” he said, “We’re hoping that through this center, we can provide tangible support to our MSMEs.”

SRN-101: Rule X of Senate Rules

RESOLUTION TO PROVIDE FOR A SENATE COMMITTEE ON TRADE, COMMERCE, AND ENTREPRENEURSHIP AND DEFINING ITS JURISDICTION, AMENDING FOR THE PURPOSE SECTION 13 (9) RULE X OF THE SENATE RULES

Whereas, the Committee on Trade and Commerce is one of the regular standing committees of the Senate to address, among others matters relating to domestic and foreign trade and private corporations;

Whereas, the conduct of trade and commerce in the Philippines, both domestic and foreign, involves not only private corporations but also small and medium enterprises run by private individuals;

Whereas, the evolution of business and entrepreneurial practice, both domestic and foreign, has opened up new platforms and models of conducting business, trade, and commerce, including but not limited to: e-commerce sites, outsourced services delivered through Internet and communications technologies (ICT), telecommuting, home-based enterprises, social enterprises, and other models not formerly covered by the Senate Committee on Trade and Commerce, as earlier defined;

Whereas, in recognition of the fact that over 90 percent of trade and commerce in the Philippines is conducted through micro, small, and medium enterprises (MSMEs); and, moreover, of the fact that entrepreneurs have unique concerns apart from those of private corporations;

Whereas, in recognition of the fact that a new business model called the “social enterprise” has arisen and has taken root in the Philippines, fusing traditional for-profit goals and mission-oriented objectives of uplifting Filipino communities as an integral part of business operations and strategy;

Whereas, the proposal to provide for a Committee on Trade, Commerce and Entrepreneurship will be consistent with the Senate Rules that describe the committee to have jurisdiction over significant matters and a wide array of issues on trade, commerce, and business, and the concerns of both corporations and MSMEs alike.

NOW, THEREFORE, BE IT RESOLVED, as it is hereby resolved to provide a Senate Committee on Trade, Commerce and Entrepreneurship and defining its jurisdiction, amending for the purpose

Section 13 (9) Rule X of the Senate Rules to read as follows: “Section 13. After the organization of the Senate in the manner provided in Rule IX, the following permanent committees shall be formed, with the duties and general jurisdiction specified hereunder:

1) Committee on Rules. — xxx

2) Committees on Ethics and Privileges – xxx

xxx

xxx

xxx

9) Committee on Trade, Commerce and Entrepreneurship – Nine (9) members. All matters relating to domestic and foreign trade and private corporations; micro, small, and medium enterprises (MSMEs): social enterprises; the promotion of entrepreneurship and the regulation of entrepreneurial practice; patents, copyrights, trade names and trademarks; standards, weights, measures and designs; quality control; control and stabilization of prices of commodities; consumer protection; handicraft and cottage industries; and marketing of commodities.

xxx”
PDFiconDOWNLOAD SRN 101

Republic Act No. 10744: Credit Surety Fund Act of 2014

For a developing country like the Philippines, majority of its businesses come from the Micro, Small and Medium Enterprises (MSMEs). As of 2011, the Department of Trade and Industry (DTI) accounts that 99.6% are MSMEs, employing about 62% of the Philippine workforce. With that, the sector is a major stakeholder in the economic development of the people.

Yet, one of the roadblocks for the continued growth of the MSMEs is access to financing. The existing requirements for credit do not consider the nature and stature of these micro and small businesses. Current prerequisites for financing are marginalizing the sector, which provides jobs and livelihood to the majority of Filipinos.

It is high time that a structure of extension of credit for MSMEs be developed to further grow micro and small enterprises all over the country.

Thus, the bill proposes the establishment of the Credit Surety Fund (CSF) mechanism to enhance the credit worthiness of MSMEs, broa~en their access to credit facilities, and sustain the continuous flow of credit in the countryside. This will generate more employment and alleviate poverty through increased investments and economic activities.

The challenge is to grow micro businesses into small enterprises and small enterprises to medium enterprises. If this challenge is addressed, we would better enable the kind of economic growth that not only benefits the few rich, but also the majority of the people, including the poorest Filipino.

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

 

PDFicon DOWNLOAD RA 10744

Iloilo Entrepreneurs to Enjoy Access to Capital from Negosyo Center

ILOILO CITY — Entrepreneurs and would-be businessmen will now enjoy access to financing and other assistance with the opening of the country’s second Negosyo Center onFeb. 6 at the Department of Trade and Industry (DTI) building this city.

Senator Bam Aquino, author of Republic Act 10644 or the “Go Negosyo Act”, will formally open the Negosyo Center together with several local and DTI officials, led by Secretary Gregory Domingo, Undersecretary Zenaida Maglaya, Iloilo Governor Arthur Defensor, City Mayor Jed Patrick Mabilog and League of the Municipalities of the Philippines Iloilo Chapter Head Neil Tupas.

The “Go Negosyo Act” provides for the establishment of Negosyo Centers in provinces, cities and municipalities in the country.

“The opening of a Negosyo Center in Iloilo City will boost the development of micro, small and medium enterprises, creating jobs and livelihood in the community,” said Sen. Bam.

Sen. Bam said the Negosyo Center will provide a unified and simplified business registration process, thus helping ease of doing business and fast-track government processes in putting up a business in Iloilo City.

“By making business registration simpler and more efficient, we hope to encourage more Filipinos to start their own small businesses to stimulate the local economy,” Sen. Bam emphasized.

Iloilo has been ripe for investment and economic growth. In 2012, it recorded an impressive expansive growth of 7.5%, even surpassing the national growth rate of 6.6%.

Aside from ease of doing business, Sen. Bam said the Negosyo Center will help link up entrepreneurs with microfinance institutions that provide financing without collateral.

“We aim to develop and spur the rice, sugar cane, hog and commercial fishery industries of Iloilo. We want them to grow into bigger businesses and be able to compete in larger markets,” added Sen. Bam

In addition, the Negosyo Centers will provide courses and development programs, training, advice on business conceptualization and feasibility, management, capability building, human resources, marketing and other support services.

Life Bank Foundation Inc. president Manuel Perlas hailed the establishment of the Negosyo Center here, saying it will open up horizon for entrepreneurs to enhance their business skills and expand their networks.

“We hope this will reinforce the growth of bayanihan economics that is critically needed for poverty eradication to take root throughout the country,” Perlas said.

The Negosyo Center in Iloilo City is the second in the country, next to Cagayan de Oro, which was established last November.

As mandated by RA 10644, Sen. Bam expects that around 100 Negosyo Centers will be established in different parts of the country this year.

“With the help of DTI, I hope we can reach or even exceed our target for this year,” Sen. Bam said.

FDA Circular to Boost Small Food and Cosmetics Businesses– Sen. Bam

The release of Food and Drugs Administration’s simplified rules and regulations will make it easier for cosmetics micro enterprises to legitimize their status and enter the formal economy, according to Senator Bam Aquino.

“Micro entrepreneurs are having a difficult time expanding because they have no appropriate FDA approval that will vouch for the safety of their products,” said Aquino, chairman of the Senate Committee on Trade, Commerce and Entrepreneurship.

With the release of FDA Circular No. 2014-024, the senator said small businesses can now enter the formal market, giving them a better chance of expanding their business.

The FDA circular makes it simpler and easier for micro enterprises to apply for license to operate (LTO) and market authorization for their products, in accordance in with the recently passed Republic Act 10644 or the Go Negosyo Act.

“With the new and simplified process of FDA registration, our small businesses will be able to expand and grow,” Aquino said.

The Go Negosyo Act mandates the creation of Negosyo Centers, under the Department of Trade and Industry (DTI), in each city and municipality around the country that will make it easier for entrepreneurs to register and start up their businesses, as well as gain access to sources of financing.

In addition, the Negosyo Centers will provide courses and development programs, training, advice on business conceptualization and feasibility, financing, management, capability building, human resources, marketing and other support services.

The FDA circular said the process of application and approval are made simple and compatible with the Department of Trade and Industry (DTI) and local government units,

In addition, the circular will be consistent with the objectives of the Go Negosyo Act, Magna Carta for MSMEs and the Barangay Micro Business Enterprises Act of 2002.

The circular will apply to all micro enterprises engaged in the manufacture and distribution-wholesale of cosmetic products such as fragrance and toiler or bath soap as well as laundry and dishwashing soap bars, and other related products.

Micro enterprises involved in the manufacturing of processed food products are also covered by the circular.

Dagdag na Trabaho sa Go Negosyo Law – Sen. Bam

 

The development of micro, small and medium enterprises (MSMEs) in the country has been given a major boost with President Aquino’s signing of the Go Negosyo Act into law.

 “The approval of the Go Negosyo Act into a law is a fulfillment of our commitment to push for MSME development in the country,” said Senator Bam Aquino, the law’s author and chairman of the Senate Committee on Trade, Commerce and Entrepreneurship.

 As the first inclusive growth-related and pro-poor legislation to be passed into law by the present administration, Aquino believes the Go Negosyo Act will further the growth of the MSME industry, which comprises 99 percent of all enterprises and 66 percent of jobs in the country.

 “With MSMEs getting all the help they need through the Go Negosyo Act, it will now be easier for them to start a business or expand existing industries,” said Aquino.

 On Sunday, Malacanang announced the signing of the R.A. 10644 or An Act Promoting Job Generation and Inclusive Growth Through the Development of Micro, Small, and Medium Enterprises.

 Presidential Communications Operations Office secretary Herminio Coloma Jr. said the new law would help create new jobs and livelihood for more Filipinos.

 The Act mandates the creation of Negosyo Centers, under the Department of Trade and Industry (DTI), in each city and municipality around the country. These Negosyo centers are meant to make it easier for entrepreneurs to register and start up their businesses, as well as gain access to sources of financing.

 In addition, the Negosyo Centers will provide courses and development programs, training, give advice on business conceptualization and feasibility, financing, management, capability building, human resources, marketing and other support services.

Easier Credit Access to Fuel Growth of MSMEs – Sen. Bam

Despite the key role they play in strengthening the economy, lack of access to financing remains as the biggest roadblock for the growth of Micro, Small and Medium Enterprises (MSMEs) in the country.

“The existing requirements for credit do not consider the nature and stature of these micro and small businesses,” said Senator Bam Aquino, chairman of the Committee on Trade Commerce and Entrepreneurship.

The senator pointed out that current prerequisites for financing are marginalizing the MSME sector, which accounts for 99.6% of all enterprise in the country and employs about 62% of the workforce in the country.

To address this, Aquino has filed Senate Bill No. 2218 expanding and strengthening the current Credit Surety Fund (CSF) program of the Bangko Sentral ng Pilipinas (BSP) to enable it to extend financial help to more micro and small enterprises all over the country.

“The CSF is seen as an effective program to address the financing gap that is affecting many entrepreneurs in the country,” Aquino said, referring to the BSP’s credit enhancement scheme that allows MSMEs, which are members of cooperatives to borrow from banks without collateral.

He emphasized that CSF must be supported by passing laws that will augment and enable it to help more small businesses who lack access to capital and other assistance.

“With our bill, we will institutionalize CSF and give it more funding to enable it to provide help to more MSMEs,” Aquino added.

The BSP recently launched three CSF programs in Cagayan de Oro, Aklan, and Tarlac, bringing the total number of credit surety funds established nationwide to 29 from 26 in the previous year.

In addition, the bill is aimed at aimed at building the capability of MSMEs, cooperatives and non-government organizations in the areas of credit evaluation, loan and risk management, and good governance.

Also, the bill seeks to enhance the MSMEs’ credit worthiness and broaden access to credit facilities, and sustain the continuous flow of credit in the countryside.

“This will generate more employment and alleviate poverty through increased investments and economic activities,” added Aquino, stressing that the challenge is to grow the micro businesses into small enterprises and the small enterprises to medium enterprises.

“If it this is done, growth would not only be for the few rich, rather, it would be for everyone, even to the poorest Filipino,” Aquino said.

 

 

Bicam Approves Go Negosyo Act, Awaits PNoy’s OK


Go, go, go!

The Go Negosyo Act is now closer to becoming a law after it hurdled the bicameral conference committee.

Senator Bam Aquino, chairman of the Committee on Trade, Commerce and Entrepreneurship, and his House counterpart, Las Pinas Rep. Mark Villar, have adopted the Senate version of the Go Negosyo Act authored by Aquino.

On the last day of session, the Senate has ratified the bicameral conference committee report on the Go Negosyo Act. It will be transmitted to Malacanang for President Aquino’s approval.

 “No amount of words will get the people’s trust back in the Senate,” Aquino said.

“If our countrymen would see that we have been working for them despite the scandals, maybe at some point, we would be able to gain their trust again.”

 “With the imminent passage of the Go Negosyo Act into law, small businessmen – micro, small and medium enterprises (MSMEs) are given a much needed boost that will lead to job creation in different parts of the country,” Aquino said.

 Aquino stressed the importance of the Go Negosyo Act, saying 66 percent of jobs in the labor force are generated by the MSME sector, which in turn comprises 99 percent of all enterprises in the Philippines.

“The Go Negosyo Act gives Filipinos – from a simple housewife to ordinary employee – a chance to establish their own business that will help sustain their everyday needs and for their families,” the senator said.

The Act mandates the creation of Pinoy Negosyo Centers, under the Department of Trade and Industry (DTI), in each city and municipality around the country. These Pinoy Negosyo centers are meant to make it easier for entrepreneurs to register and start up their businesses, as well as gain access to sources of financing.

In addition, the Pinoy Negosyo Centers will provide courses and development programs, training, give advice on business conceptualization and feasibility, financing, management, capability building, human resources, marketing and other support services.

Scroll to top