BMBEs get financial assistance, exemption from paying taxes
By Gilda V. Llames
Balanga, Bataan (21 August) -- Exemption from payment of income tax and financing assistance are among the incentives enjoyed by barangay micro business enterprises (BMBEs).
The granting of incentives and other benefits to BMBEs, as contained in Republic Act 9178 (also known as the BMBEs Act of 2002), is aimed at encouraging the formation and growth of BMBEs, according to Yay P. Lasam, provincial director of the Department of Trade and Industry (DTI) in Bataan.
BMBEs, Lasam said, are essential to the country's economic development because they serve as seedbeds of Filipino entrepreneurial talent.
Objective of the law, according to the DTI official, is to integrate micro enterprises in the informal sector into the mainstream of the economy.
Strengthening the BMBEs, she also pointed out, would mean more jobs and livelihood and ultimately, a better life for Filipinos.
A BMBE is any business enterprise engaged in production, processing or manufacturing of products, including agro-processing, as well as trading and services with total assets of not more than P3 million.
Assets, Lasam explained, include those arising from loans but not the land on which the plant and equipment are located.
In addition to tax exemption of income arising from the operation of the enterprise and priority to a special credit window set up specifically for the financing requirements of BMBEs, registered BMBEs can also avail of these other incentives:
Exemption from the coverage of the Minimum Wage Law (although BMBE employees will still receive the same social security and health care benefits as other employees);
Technology transfer, production and management training; and marketing assistance programs.
Local government units where the BMBEs are located, according to Lasam, are encouraged to either reduce the amount of or totally exempt BMBEs from charges they impose.
Agencies mandated by law to provide assistance to BMBEs in the areas of technology transfer, production and management training; and marketing are: DTI, Department of Science and Technology (DOST), University of the Philippines Institute of Small Scale Industries (UP-ISSI), Cooperative Development Authority (CDA), Technical Education and Skills Development Authority (Tesda) and Technology and Livelihood Resource Center (TLRC).
Any person, cooperative or association owning an enterprise that fits the description of a BMBE may register with the Office of the Treasurer of the city or municipality where the business is located, Lasam said.
Only registered BMBEs may take advantage of the credit facility and other benefits granted under the law, she added.
A special credit window for BMBEs will be provided in the following government financial institutions: LandBank of the Philippines, Development Bank of the Philippines, Small Business Guarantee and Financial Corporation, People's Credit and Financial Corporation, Quedan and Rural Credit Guarantee Corporation, Government Service Insurance System (for members only) and Social Security System (also for members only). (PIA-Bataan) [top]