Business groups welcome directives in Rody’s SONA

MANILA, Philippines — Business groups welcomed the pronouncements made by President Duterte yesterday during his fourth State of the Nation Address (SONA) on faster issuance of government permits, call to Congress to pass the Tax Reform for Attracting Better and Higher Quality Opportunities (TRABAHO) bill and other packages of the tax reform program as well as providing financing for micro, small and medium enterprises (MSMEs) as such would help promote growth of businesses.

“The SONA had the familiar themes on drugs and corruption, but we welcome the directive on various measures to encourage the growth of business,” Management Association of the Philippines (MAP) president Riza Mantaring said in a text message.

The TRABAHO bill seeks to reduce the corporate income tax rate to 20 percent from the current 30 percent and rationalize fiscal incentives.

The government, through the National Land Use Act, will also have a policy identifying specific uses of land.

In a telephone interview, Philippine Exporters Confederation and Employers Confederation of the Philippines president Sergio Ortiz-Luis Jr. said he is pleased that Duterte talked about improving the ease of doing business, as this has been one of the concerns of the private sector.

Ortiz-Luis also welcomed the push for the TRABAHO bill but recommends keeping the status quo for incentives enjoyed by exporters in ecozones.

While he sees the directive of providing financing to MSMEs as a positive development, he said much needs to be done.

“I hope they come up with out of the box solutions,” he said.

As the President did not mention the signing of the security of tenure (SOT) bill during the SONA, Ortiz-Luis said he is hopeful it is an indication that the proposed measure would not be made into law.

Under the SOT bill, project and seasonal workers would have the same rights as regular employees when it comes to the payment of minimum wage and social protection benefits, among others.

Business groups have earlier called on Duterte to veto the SOT bill, saying there are already existing laws protecting workers from illegal contractualization, and such measure goes against the rights of firms to contract labor.

Mantaring said the MAP also welcomes Duterte’s directive to address urgent issues such as the creation of the Department of Water and the Department of Disaster Resilience.

“Hopefully, the government is able to live up to the promises,” she said.

House Majority Leader Martin Romualdez and Camiguin Rep. Xavier Jesus Romualdo lauded Duterte for his empathy for the Filipino masses as he vowed to improve the lives of the people in the last three years of his administration.

“It was a straightforward and direct-to-the-point speech. I congratulate President Duterte for another powerful speech about his renewed commitment to good governance and intensified campaign against corruption,” Romualdez said.  – With Delon Porcalla, Christina Mendez, Jess Diaz