Business club to launch "fixed taxation" campaign

CEBU, Philippines - A newly organized business club aims to launch a nationwide advocacy campaign on “fixed taxation” for Micro and Small and Medium (MSME) companies to curb corruption and encourage underground economy players to become legitimate businessmen.

“We are starting to draw support from the Congress on this advocacy. This is not only to curb corruption, but it will also encourage the informal sector in the economy to come to the open and pay their taxes without the hassle of getting bookkeepers and additional staff,” said Filipino Cebuano Business Club president Rey Calooy.

The group initially consulted Akbayan Representative Risa Hontiveros on this particular bid, and in the next few months, the group will solicit support from other Congressmen.

 Most FCBC members are only starting up with their small and micro businesses, such as those operating Sari-Sari stores, including sidewalk vendors, among others, Calooy said these kinds of businesses should be encouraged to pay taxes, but it should be a fixed amount.

 He said small and micro businesses can hardly afford to pay accounting staff or bookkeepers and they don’t have the time to calculate their tax dues, it is better for the government to implement a “fixed taxation” structure for these micro-entrepreneurs.

Calooy, however, said that this is a very sensitive advocacy and the group vows to work hand-in-hand with the concerned government agency on the tax campaign issue, and that fixed taxation can be only applied to a certain cap of capitalization, and asset of a company.

Calooy said that the present situation almost always force MSMEs to resort to amicable settlement with tax collectors, which is a very attractive venue for corruption on the field.

Besides, he said some micro business operators intentionally miss to pay their taxes to avoid the hassles of calculating their dues, and other documentary processes.

FCBC is trying to simplify the tax obligation issues among the grassroot business players emphasizing that most of them are willing to pay taxes religiously but it just take part of their time, and additional operational expenses too.

Aside from drumming up support from the Congressmen, FCBC will also influence other MSME organizations in all over the Philippines, to join this bid and eventually make this campaign a nationwide call that will gain popularity in the House of Representative and in the Senate.

In this difficult times, Calooy said MSMEs should be given the opportunity to thrive, rather than providing them with a more “difficult environment” for business.

FCBC recently had its 2nd General Membership Meeting (GMM) held at the ParkMall, with Senator Mar Roxas as the keynote speaker.

FCBC also asked the support of the Senator who has been known as a strong supporter of the MSMEs especially with his previous stint as Department of Trade and Industry (DTI) secretary wherein he strongly pushed for the Magna Carta for MSMEs.