Tax Relief

The PH franchise sector is looking for tax breaks as pandemic closings enhance

A food and beverage company. Photo of the ABS-CBN message file

MANILA – The Philippine Franchise Association (PFA) asked for more government support as tens of thousands of small businesses close due to the COVID-19 pandemic.

In a webinar organized by the Employers’ Association of the Philippines (ECOP), the group also mentioned the taxes its members have to pay from local government units (LGU) despite having ceased operations for several months in 2020.

PFA President Sherill Quintana said 82 percent of the group’s members were “severely affected” by the lockdowns and 94 percent had to close between March and June.

Despite these difficulties, PFA members were still fined with heavy tax bills by their local government units when they tried to renew their business permits in January this year.

“So I hope we get an aid program, help in this regard too,” said Quintana.

Meanwhile, Minister of Socio-Economic Planning, Karl Chua, said the rating of the companies was in line with the local government’s code.

“I suggest discussing with the LGUs whether there is any way to help companies comply with the code,” said Chua.

]Edgar Chua, president of the Makati Business Club, meanwhile, suggested that the government support troubled small businesses with easier credit.

The MBC official noted that private banks are tightening loan requirements as they fear these loans may not be repaid.

FROM THE ARCHIVE

Karl Chua, Socio-Economic Planning, Philippine Franchise Association, COVID-19, Pandemic, Taxes, Local Government, MSMEs, Micro Businesses, Small and Medium Businesses, Closures, Business Permits, BIR, Bureau of Internal Revenue

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