Tag: small businesses

Stakeholders and analysts perceive VAT refund limit for tourists just right to ensure small businesses will benefit

Stakeholders and analysts perceive VAT refund limit for tourists just right to ensure small businesses will benefit

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As far as the analysts and tourism stakeholders are concerned, the minimum purchase requirement for non-resident tourists to qualify for the value-added tax refund is just right in relation to benefiting the small businesses, according to a BusinessWorld news report. There is, however, one dissenting opinion.

To put things in perspective, posted below is an excerpt from the news report of BusinessWorld. Some parts in boldface…

THE P3,000 ($51) minimum purchase requirement for nonresident tourists to qualify for a value-added tax (VAT) refund is “just right” to ensure small businesses benefit, analysts said.

President Ferdinand R. Marcos, Jr. recently signed into law Republic Act (RA) No. 12079, which allows tourists to claim VAT refunds on purchases worth at least P3,000 from government-accredited stores, in an effort to boost tourism receipts.

“The P3,000 is just right to benefit micro, small and medium enterprise (MSME) retailers and local products,” Philippine Retailers Association (PRA) President Roberto S. Claudio said. He said the purchase cap is kept to a minimum to benefit locally made products.

“I think it’s a good entry and good starting point. Some countries are still higher than P3,000 as well. I think we’re above the middle, so I think that’s a good place to be,” Tourism Congress of the Philippines President James M. Montenegro said via phone call.

Under RA 12079, the value of the locally bought goods from accredited stores must reach at least P3,000 per transaction, provided these goods are taken out of the country within 60 days of purchase.

“This law is primarily designed to boost tourist arrivals and expenditure. Hopefully, it will also increase the sales revenue of retailers,” Mr. Claudio said.

Mr. Montenegro said the minimum purchase amount could be adjusted in the future.

The threshold is subject to review and adjustment every three years by the Finance secretary, upon recommendation of the Commissioner of Internal Revenue, considering the inflation data from the statistics agency.

“I think the minimum rate is at par with our ASEAN [Association of Southeast Asian Nations] neighbors. If you look at the minimum amounts in other countries, it is almost the same,” Eleanor L. Roque, a tax principal at P&A Grant Thornton, told BusinessWorld.

The Philippines has joined other ASEAN countries with a tax refund program for nonresident tourists. The scheme has increased retail activity, particularly in sectors such as fashion, electronics and souvenirs.

In Malaysia, the minimum purchase is 300 ringgit ($67). Singapore allows tourists to spend at least S$100 ($74), while in Indonesia, it starts at 500,000 rupiah ($31).

“It is good to have a minimum amount as it limits the refund claim to valuable expenses. De minimis spendings are normally not considered for VAT refund as it is not administratively practical. In some cases, the cost will be more expensive than the amount being refunded,” Ms. Roque said.

She said the government should tap accredited international firms in the VAT refund processing, adding that the “government should take advantage of the track record and best practices of these known companies.”

Ms. Roque said the government should ensure the goods bought are really brought out of the country.

“Physical inspection of the goods when exiting the country should be strict to ensure that local buyers do not use tourists for availing themselves of the VAT refund,” she added.

However, Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said the P3,000 threshold “may not be enough to significantly encourage higher spending among affluent tourists,” especially compared with ASEAN counterparts.

“A higher or more flexible threshold might align better with international best practices and encourage larger purchases,” he said.

Mr. Rivera also urged the government to simplify the VAT refund process, rather than make it “extra bureaucratic.”

Let me end this post by asking you readers: What is your reaction to this recent development? Do you consider the current purchase requirement for the VAT refund for foreign tourists a proper amount? Do you think foreign tourists will be receptive to the current standard for VAT refund of their purchases here in the Philippines?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at  @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram athttps://www.instagram.com/authorcarlocarrasco

Micro and small business owners can apply for government loans for 13th month pay

Micro and small business owners can apply for government loans for 13th month pay

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Christmas is gradually approaching here in the Philippines. That being said, the 13th month pay will be released to employees during the month of December, specifically before December 24. As the COVID-19 crisis brought the national economy down in 2020, its effects combined with lockdown and restrictions implemented by varied authorities (example: the surprise Metro Manila ECQ of August 2021) are still felt by economic stakeholders and lots of businesses continue to struggle to survive.

The release of the 13th month pay is indeed the next challenge for businesses to do. Fortunately for the micro and small business owners, they can come to the national government to start applying for loans with the 13th month pay in mind, according to a Philippine News Agency (PNA) report.

To put things in perspective, posted below is the excerpt from the Philippine News Agency report. Some parts in boldface…

Micro and small enterprises that are having difficulty in giving the 13th-month pay of their employees can apply for a government loan, Department of Labor and Employment (DOLE) Secretary Silvestre Bello III said in a statement on Sunday.

The Labor chief made the call as he reminded employers that the grant of 13th-month pay is mandated by law. He, however, assured establishments that are still struggling amid the reopening of the economy of the government’s support through the Small Business Corporation (SBCorp).

“Let me remind the employers that the grant of 13th-month pay is mandatory. We issued a Labor Advisory where we maintained that no exemption and no deferment will be allowed on the payment of the 13th-month pay. So, with this loan facility from SB Corporation, there is no more reason to not give the 13th-month pay,” Bello said during the ceremonial launch of the loan program with the Department of Trade and Industry and its financing arm, SBCorp on Friday.

As of Nov. 12, a total of 25 loan applications amounting to PHP5.052 million were already approved by SBCorp.

Qualified borrowers are the owners of micro and small enterprises that have implemented flexible work arrangements and registered under the DOLE Establishment Reporting System as of Oct. 15, 2021.

The loan program can cover up to 40 employees per establishment and the loanable amount is at PHP12,000 per current employee.

It is a zero-interest rate, no collateral loan that is payable in 12 months, inclusive of the three-month grace period.

“I encourage our employers, especially yung mga nahihirapan pa (hard up firms), to avail of this facility so that they can comply with the mandate to pay our workers with what is due them, especially this Christmas season,” Bello said.

The above article ended stating that micro and small business owners may apply for the loans at www.bayanihancares.ph

Let me end this piece by asking you readers: Are you a micro or small business owner struggling to come up with ways to raise funds to pay the 13th month funds to your employees? Have you prepared yourselves to apply for the loans announced by the government? How hard has the lockdown and the set of restrictions been to your business operations this year?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below and also please consider sharing this article to others. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at  HavenorFantasy@twitter.com as well as on Tumblr at https://carlocarrasco.tumblr.com/

For more South Metro Manila community news and developments, come back here soon. Also say NO to fake news, NO to irresponsible journalism, NO to misinformation, NO to plagiarists, NO to reckless publishers and NO to sinister propaganda when it comes to news and developments. For South Metro Manila community developments, member engagements, commerce and other relevant updates, join the growing South Metro Manila Facebook group at https://www.facebook.com/groups/342183059992673

COVID-19 Crisis: Trade Secretary Lopez proposes allowing vaccinated people to dine in food-and-beverage joints, and enter personal care service joints during MECQ

COVID-19 Crisis: Trade Secretary Lopez proposes allowing vaccinated people to dine in food-and-beverage joints, and enter personal care service joints during MECQ

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Nothing changes the fact that the restrictions imposed on businesses as a result of lockdown or the enhanced community quarantine (ECQ) or the modified enhanced community quarantine (MECQ) caused damage on the national economy in the forms of rising unemployment, added business hardship and the loss of income for the affected employees as the national authorities struggle with the COVID-19 pandemic. The National Economic and Development Authority (NEDA) declared that the nation’s economy would lose at least P150 billion per week in relation to Metro Manila and other areas being placed under the most restrictive quarantine measure while the Employers Confederation of the Philippines (ECOP) announced that the economy should be reopened to prevent any more economic damage. ECOP already stated that lockdown is no remedy.

For the newcomers reading this, under ECQ and MECQ, dining inside food-and-beverage joints and availing of indoor services of personal care service businesses are forbidden. Restaurants, coffee shops and related food-and-beverage joints are limited to take-out and deliveries. Very recently, Department of Trade and Industry (DTI) Secretary Ramon Lopez has a proposal to help the food-and-beverage joints and personal care service providers and literally give more breathing room to consumers who have already been vaccinated. Take note that already the government announced that more than 50 million new COVID-19 vaccines will come into the country in September and October.

To put things into perspective, posted below is the excerpt from the Manila Times report. Some parts in boldface…

Trade Secretary Ramon Lopez is proposing to allow vaccinated people to dine-in in restaurants and enter personal care services establishments in areas under stricter quarantine measures.

In a Viber message to reporters, Lopez said this will help spur employment in those sectors.

“Same MECQ (modified enhanced community quarantine) but [I] am pushing for allowing vaccinated to [be] allowed only in these restricted sectors like dine-in and personal care. Because we are saying that in these restricted sectors, those who are vaccinated are safer. So, we don’t expect an increase in severe critical (cases) and should not worsen ICU (intensive care unit) cases,” Lopez told reporters in a Viber message.

“We pity the dine-in workers. About one million jobs and P1.5 billion revenues gone per week in the National Capital Region (NCR),” he added.

Lopez said that on top of these, 200,000 jobs in the personal care services sector in NCR were also affected.

“For other sectors, no need for distinguishing because both the vaccinated and unvaccinated are allowed. For example, both vaccinated and unvaccinated are allowed to go to malls or ride public transport,” he said.

“Again to clarify, [vaccinated should be allowed] only in restricted sectors during lockdowns like dine-in, personal care services, and meetings, incentives, conferencing, exhibitions. If it’s not locked down, all vaccine status should be allowed subject to operating capacity,” he added.

Lopez, however, clarified that these should be allowed to operate at a maximum of 20- percent capacity.

“We believe in the vaccine. So, we should believe in the vaccinated. This should also serve as an incentive to those who are vaccinated and to encourage vaccination. With this, we help bring back jobs, open up these sectors,” said Lopez.

He said that once approved, this will be part of the new Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF) guidelines.

Metro Manila and other Covid-19 critical areas were earlier placed under enhanced community quarantine (ECQ) until August 20.

The National Economic and Development Authority (NEDA) disclosed that the two-week ECQ will cost the Philippine economy P120 billion and aggravate poverty.

In relation to the details emphasized by Trade Secretary Lopez, the affected businesses within the restricted sectors can be relieved economically and already there are millions of vaccinated consumers available in Metro Manila to come in and support these businesses even though the maximum capacity is fixed at 20% under MECQ. The unemployed and the under-employed impacted by the ECQ/MECQ will finally get the opportunities to be hired and be able to earn much-needed income. That being said, it is a must that we pray in supporting Lopez’s proposal to get approved so that our nation as whole can recover better and that MECQ won’t be too damaging for businesses and workers anymore.  

Speaking of the National Capital Region (NCR), pay close attention as to how Metropolitan Development Authority (MMDA) chairman Benhur Abalos and the members of the Metro Manila Council (MMC) will perceive and react to Lopez’s proposal of allowing food-and-beverage joints and personal care businesses to cater to vaccinated customers at limited capacity during MECQ. Take note that during the last ECQ, it was the MMDA and MMC who approved the restriction on outdoor exercise while businesses and their employees kept losing! Think about how these Metro Manila authorities think. That being said, it is essential to pray to our Lord to enlighten and guide all the government officials so they can do their jobs better and correctly.

Let me end this piece by asking you readers: Do you agree with Trade Secretary Lopez’s proposal to help the affected businesses during MECQ? If you are still unvaccinated, does this recent development encourage you at all to get vaccinated? If you are an owner of a food-and-beverage joint or a personal care services joint, what do you think about Lopez’s proposal in helping you and your employees?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below and also please consider sharing this article to others. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me as well. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me at HavenorFantasy@twitter.com

For more South Metro Manila community news and developments, come back here soon. Also say NO to fake news, NO to irresponsible journalism, NO to misinformation, NO to plagiarists, NO to reckless publishers and NO to sinister propaganda when it comes to news and developments. For South Metro Manila community developments, member engagements, commerce and other relevant updates, join the growing South Metro Manila Facebook group at https://www.facebook.com/groups/342183059992673

COVID-19 Crisis: Muntinlupa City loans P1 million to a local cooperative

COVID-19 Crisis: Muntinlupa City loans P1 million to a local cooperative

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The City Government of Muntinlupa yesterday provided a P1,000,000 loan to assist local business Salon de Ayala Service and Credit Cooperative in a bid to help businesses within the city’s jurisdiction to recover from the economic disruption brought about by the COVID-19 pandemic.

Mayor Jaime Fresnedi signed a memorandum of agreement with Salon de Ayala head Pam Godinez and Cooperative Salon De Ayala chairman Angeline Teodoro (3rd from left) for the loan assistance last September 18. Also present during the signing were City Cooperative Officer Cynthia Viacrusis and Coun. Eliot Martinez. The mayor assured business owners in Muntinlupa City of the City Government’s continuing concern and support during these trying times.

Muntinlupa City champions MSME development through various programs including the Tulong Negosyo program (formerly Dagdag Puhunan program) which offers zero-percent interest loan assistance from 2,000 to 150,000 pesos. As of September 17, Muntinlupa City has 3,967 confirmed cases with 3,188 recoveries, 649 active cases, 130 reported deaths, 452 suspect cases, and 581 probable cases.

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Latest City Government of Muntinlupa details sourced from their official media release. Some parts were edited for this website.

For more South Metro Manila community news and developments, come back here soon. Also say NO to fake news, NO to irresponsible journalism, NO to misinformation, NO to plagiarists, no distorted views and NO to sinister propaganda when it comes to news and developments.