Tax Relief

Marikina Schuhmacher, LGU leather-based items producer. tax relief

To help shoemakers and other leather goods manufacturers in the country’s “shoe capital” during the Covid-19 pandemic, the Mayor of Marikina City, Marcelino R. Teodoro, signed an ordinance providing tax breaks for all shoemakers in the city, which means that they get a discount from business tax and permit fees for five years.

Teodoro signed the Marikina City Ordinance 110 (series of 2021) or “Ordinance Granting Business Tax Exemption and Relief to Local Footwear and Other Leather Goods Manufacturers of Marikina” on December 28th at the Marikina Shoe Bazaar, which is in Freedom Park directly in front of it of the town hall.

According to the above regulation, all manufacturers of shoes and other leather goods in Marikina who are both currently active or want to set up a company to manufacture news shoes are hereby granted a trade tax exemption and exemption as follows:

1. For new businesses that are to be opened / operated from the 2022 calendar year

A. Trade tax exemption upon request;

B. From the second year of operation, a 75 percent discount on the trade tax due;

C. From the third year of operation, 60% discount on trade tax;

D. From the fourth year of operation, 50% discount on the trade tax due;

Meanwhile, companies currently in operation will receive a 50 percent discount for five years.

Teodoro thanked the Marikina City Council “for quickly reintroducing tax exemptions and tax relief for shoemakers and other leather goods manufacturers in the city”.

Originally, this tax relief only applies for up to three years, but the city council has granted two more years, according to the official.

Teodoro said shoemakers’ livelihoods were more important than collecting taxes.

Tony Andres, chairman of the Philippine Footwear Federation Inc. (PFFI) based in Marikina, and Corazon Espiritu, chairman of the Marikina Bags and Leather Goods Association, thanked the city officials for the tax breaks.

Teodoro also led the reopening of the Shoe Bazaar in Freedom Park in front of City Hall on December 6th. The bazaar runs until January 15th, 2022.

According to the mayor, the bazaar is set to help shoemakers and revitalize the shoe industry amid the pandemic. The bazaar shows the ingenuity and craftsmanship of the Marikina shoemakers and makers, he said.

A total of 40 shoe and leather goods manufacturers attended this year’s bazaar, where they can find high quality, affordable and durable shoes, bags, belts and other products made by Marikina’s artisans.

Teodoro said he was optimistic that despite the challenges the local shoe industry is facing amid the pandemic, the local shoemakers will be able to manage and overcome the negative effects of the pandemic.

In 2020, the city government of Marikina decided not to hold the annual shoe bazaar due to the health restrictions caused by the Covid-19 pandemic.

Image courtesy of Marikina LGU Photos

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