Slapping a minimal registration fee to micro small and medium enterprises, instead of taxing them, will help them grow, prosper and ‘graduate’ from the informal economy to legit enterprises.
Several congressmen are proposing that micro small and medium enterprises should only be asked to pay a minimal registration fee, and not be taxed, so that they can grow and make their businesses prosperous and viable.
What (to me is more sensible) is to tax the multi- millionaires and billionaires, who more often that not, salt their dollars away to other tax havens and buy assets in other countries.
Responding to the call of President Ferdinand Marcos Jr on better tax administration, two lawmakers said business registration fees can be set instead of tax payments of some enterprises.
Economist-solon Mikee Romero said
“tax administration and business registration can be made simple and convenient registration for enterprises from the smallest (which I find plausible) to those of foreign investors (so what do we get from foreign investors if we just ask them to pay registration fees when they could very well afford to bring in millions of dollars here).”
“For the small to smallest enterprises, different but only a few tiers of registration fees should take the place of taxing these businesses,” Romero suggested.
From informal to legit economic status
Neophyte Rep. Reynante Arrogancia of Quezon Province’s Third District said, “affordable and minimal registration fees will bring tens of thousands of enterprises out of the informal economy and onward to full legit status.”
He also said “simplified registration” of MSMEs as well as of digital services and online sellers, can enable these businesses to “more easily avail of government services” when they are registered.
Bagong Henerasyon Rep. Bernadette Herrera said generating more revenues “instead of granting incentives to a favored few,” convenient and affordable registration of online businesses and firms in digital services “will energize the economy.”
The President’s proposed new real property valuation system, Romero said
“will unleash the economic potentials of local governments who rely mostly on real property taxes to fund their programs.”
Herrera said improvements in the real property valuation system of the country “are most welcome and will increase revenue collections of local governments but should also be fair to homeowners.”
“We will work with the Department of Finance and the Department of Housing and Urban Development to make sure the new real property evaluation system will be a win-win solution,” Herrera said.
Tags: #lawmakers, #minimalfeesforMSMEspushed, #informaleconomy