QC business group backs ‘tiangge’ tax

The Quezon City Chamber of Commerce and Industry (QCCCI) expressed full support yesterday to a move by the national government to impose taxes and regulate the activities of temporary retail store outlets or tiangges proliferating in various parts of Metro Manila.

Nathan Zulueta, president and CEO of QCCCI, said tiangges operating in shopping malls, must be regulated to protect some 50,000 registered small businesses that religiously pay taxes and other obligations to the city and national government.

"Its about time the Department of Trade and Industry, Bureau of Internal Revenue and local governments step in and regulate the proliferation of the tiangges which is giving legitimate business operators unfair trade competition," Zulueta said.

Earlier, a group of merchants representing owners of stalls in big shopping malls asked President Arroyo to suspend the imposition of advance taxes for their short-time operations in certain areas.

In a paid advertisement, they said the additional tax could kill their trade and deprive them of the much needed livelihood since most of them are retired public servants and rebel returnees from Mindanao who had only borrowed capital for their business.

But Zulueta argued that most tiangges are multi-million peso businesses organized by big-time traders who collect in advance from stall operators amounts ranging from P60,000 to as high as P120,000 for a 30-day operation during peak season like Christmas.

He said market stalls and prime areas in malls cost as much as P150,000 and with a minimum of 500 stalls in one area, operators can easily make a gross of P60 million in 30 days from tiangge rentals. "The question is, do they pay value added tax for the rental? How about the sellers? Are they issuing sales receipts?"

Zulueta insisted that tiangges inside malls must be considered regular stores and must secure permits and licenses and pay taxes to the national government to even the playing field with the legitimate store outlets.

"Equal application of the law as far as taxation, store regulations, permits and licenses must be imposed on them," Zulueta said.