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MANILA - Small businesses that are losing money due to the COVID-19 lockdown need government intervention and other measures to address cash flow concerns, a tax expert said Thursday.

A government intervention to waive or subsidize office rent payments is better than grace periods to help small firms recover faster, Asian Consulting Group chairman and senior tax adviser Mon Abrea told ANC.

"I think what we need right now is the government intervention to either waive or subsidize office rent considering that they were not able to utilize these offices during the lockdown," Abrea said.

"Considering the liquidity issues for most of our MSMEs, they’re dependent on their daily cash, daily sales and its zero during this ECQ. So we have to understand, its not that we don’t want to pay but we really need help particularly in handling their cash," he added.

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The ECQ refers to the enhanced community quarantine that requires people to stay at home and limits business operations to food and medicine. It remains in effect in Metro Manila and high risk areas until May 15.

Tax breaks can also help address liquidity concerns and allow businesses to bounce back faster after the lockdown is lifted, he said.

Over 99 percent of the country's businesses are micro, small and medium enterprises employing over 60 percent of the total workforce, government data showed.

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