SMALL BIZ IN CEBU RAISE CONCERNS TO NOYNOY

Small businesses in Cebu raise concerns to Noynoy


By Debra Magallon-Estero

HIGH taxes, local government units (LGU) that do not provide business-friendly processes and a level playing field between big and small players are among the concerns micro, small and medium entrepreneurs (MSME) in Cebu raised to Sen. Benigno “Noynoy” Aquino III in a private meeting last Friday evening.

The meeting, participated in by members of the Filipino Cebuano Business Club Inc. (FCBCI), was convened by the group as a venue for them to actively take part in the process of formulating government platform for change.

“This is the period where the issues and concerns of (the MSME sector) will become a formal suggestion to the future leaders of our country and consequently become part of their platform of government,” said FCBCI president Rey Calooy in his opening speech.

Although Aquino said that his primary platform would include the development of the agricultural sector and job generation, the concerns of the MSMEs should also be heard since the sector comprises 99 percent of the country’s total business industry.

Admitting that he is no expert in taxation, Aquino said he is now consulting a team composed of legal and economic experts to identify leakages in the country's tax and revenue systems that need to be addressed.

He also acknowledged that there is a need to reach a balanced budget first before a decision on reducing taxes will be made.

“You are also experts in this field, so why not tap the experts and (ask for their inputs). At the end of the day, there will be compromises to be made,” he said.

He said that he is also looking at simplifying tax processes and enforcing laws. “The first role of the chief executive is to enforce the laws. If it is not enforceable, we have to find out why,” he said.

To be able to create a more business-friendly LGU, Aquino said local leaders have to be empowered and at the same time work in reforming the revenue side for LGUs.

Increasing the revenues for local governments that champion the concerns of the business community, he told Sun.Star Cebu in an interview following the meeting, can be among the mechanisms that can improve their services.

“There should be a parameter for performance and they should get only what they are entitled to,” he added. At the same time, penalties should also be imposed.

After listening to the inputs of the businessmen, Aquino said his team will be looking at how the MSMEs can be helped in terms of capability building and in increasing research and development in the country.

He also said dialogues between industry players are something that he will try to continue doing although, more focus in converting them into actions is also needed.

Published in the Sun.Star Cebu newspaper on October 19, 2009.