SMEs seek tax relief, cheap loans

Small businesses are seeking tax and debt relief as well as access to cheap loans to offset their losses caused by the COVID-19 pandemic, results of the online survey conducted by the Department of Finance (DOF) and the National Economic and Development Authority (Neda) last month showed.

Of the 44,097 micro, small and medium-sized enterprises (MSMEs), 24,146 respondents, or 54.76 percent, said they wanted remittances of withholding taxes temporarily deferred, while 17,426, or 39.52 percent, sought delayed debt payments to banks and utility firms.The government has already pushed back some tax payment deadlines on top of a loan moratorium during the lockdown that started in mid-March.For 16,578 MSMEs, or 37.59 percent of total respondents, tax credits or discounts would help them recover.

Also, 14,302 respondents (32.43 percent) asked for low-interest loans from the government, on top of 13,812 (31.32 percent) that wanted access to cheap bank loans.

For 11,825, or 26.82 percent of respondents, a payroll subsidy for nonessential workers was needed, perhaps similar to the P51-billion small business wage subsidy program launched by the DOF last month.As for 7,652 respondents (17.35 percent), a price freeze on raw materials and supplies would be helpful, while 2,844 MSMEs (6.45 percent) sought support to deploy their goods.

Among the respondents, 1,260 (2.86 percent) wanted to avail themselves of learning programs to upskill employees, while 1,042 asked for programs to redeploy their workers.Last week, the Department of Labor and Employment said 2.5 million workers had been affected by work suspension, flexible working arrangements and business closures amid the lockdown.

Another possible form of support was double depreciation allowance, sought by 1,267 MSMEs. —Ben O. de Vera INQ