PH franchise sector calls for tax relief as pandemic closures mount

Bruce Rodriguez, ABS-CBN News

Posted at Jun 23 2021 08:00 PM

PH franchise sector calls for tax relief as pandemic closures mount 1
A food and beverage business. ABS-CBN News file photo

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

At a webinar organized by the Employers Confederation of the Philippines (ECOP), the group also cited the taxes their members are being required to pay by 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 "greatly impacted" by the lockdowns, and 94 percent had to close from March to June.

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

"So I hope we get a relief program, assistance also in terms of this," Quintana said. 

Socioeconomic Planning Secretary Karl Chua meanwhile said the assessment the businesses received was according to the local government code.

"I suggest to also discuss with the LGUs if there is some way to help with the businesses while complying with the code," Chua said.

]Edgar Chua, president of the Makati Business Club, meanwhile suggested that the government help struggling small businesses by providing easier credit. 

The MBC official noted that private banks are tightening credit requirements over worries that these loans may not be repaid.

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