New gov’t council to aid SMEs
SIMPLIFYING filing procedures and regulations will be the priority of the newly reconstituted Micro, Small and Medium Enterprises Development (MSMED) Council, as the government seeks to make doing business in the country easier, particularly for the small and social enterprises.
Trade Secretary Gregory L. Domingo said the reformulated MSMED Council, as provided under the Go Negosyo Act, will have its first meeting next month to line up the initiatives and reforms needed to achieve this target.
The MSMED Council will be chaired by Domingo and will be tasked to approve a multiphase plan for the establishment and management of the Go Negosyo Centers.
“I prefer that we simplify the rules and regulation whether it be for importing products, filing of tax returns, or filing for permits for the small and social enterprises. We could also come up with a scheme that will allow for a one-time annual payment of taxes at a flat rate for these enterprises,” Domingo explained.
“Providing tax breaks or changing tax structures would definitely require a change of law, but the simplification of procedures can be done through regulatory changes. Right now, we have a law that can address that which is the Go Negosyo Act. We also have the Barangay Micro Business Enterprises (BMBEs) Act of 2002,” he added.
The trade chief further stressed that any comprehensive tax reform package that would be put forward to Congress or the Senate should prioritize or at least include the simplification of tax filing procedures.
Article continues after this advertisement“Right now, small enterprises are finding it difficult to file their taxes. There has to be a distinction between the micro and small enterprises, and the medium and large companies because the latter group can afford to hire tax accountants and lawyers to file for them. The small enterprises, on the other hand, often do the filing by themselves. So to raise the tax compliance of the micro and small enterprises, we need to make it really simple for them,” Domingo explained.
Domingo also proposed for the taxes of the small and social enterprises to be pegged at a fixed fee to make filing and payments easier for them.
