Zamboanga gov't mulling tax holidays for affected businesses

ZAMBOANGA CITY, Philippines - The city government is planning to impose tax holidays as a relief measure for the business sector affected by the 22-day hostility between the government forces and the Misuari-faction Moro National Liberation Front.

“We intend to do that by looking at the possibility of tax holiday or certain exemption of fees that they need to pay,” Mayor Ma. Isabelle Climaco-Salazar said.

Salazar said they have requested the city treasurer’s office to give exemption of two to three months for business establishments.

The mayor said they also plan to give incentives for business groups who will rent government and business establishments in preparation for the upcoming activities, including the Fiesta Pilar this month, Eid’l Adha, and the Christmas season.

She said based on the estimate, the city lost P331 million on a daily basis since the crisis erupted or an estimated total loss of income of P4 billion. 

The business community welcomed the relief plan of the government to their community and was also reciprocating it with hiring of new workers to help pump prime the local economy.

“We are all in this situation together. We have to share the burden to help pick the pieces where Zamboanga left as vibrant place,” said Pocholo Soliven, president of the Zamboanga chamber of commerce and Industry. 

The business industry also requested the Regional Tripartite Wage Board for an exemption to the implementation of the minimum wage law.

Salazar and Soliven in a meeting said the exemption of the implementation of the minimum wage law will encourage the business industry to hire more workers without necessarily paying them the minimum wage. 

“They would like to campaign for a program wherein the industry will be hiring more people than they can provided they will pay for a certain amount without following the minimum wage so as to give them an income,” Salazar said.

Soliven said they are also asking the government financial institutions to fast track the release of the calamity loans to assist the business groups in pump priming the local economy.

The city government, on the other hand, will come up with the food-for-work program in coordination with the Department of Social Work and Development (DSWD).

Salazar said once the city government will be given the clearance for the third phase of the rehabilitation, she wanted that the affected civilians be allowed to work in rebuilding the devastated areas.

“We will need a lot of helping hands to clean and clear the debris, so that is where our food-for-work program will come in, Salazar said.

The city government is coordinating with the Department of Public Works and Highways to help the affected people through a subsidy scheme of food-for-work.

The mayor also appealed for people to purchase local products and commodities. 

“We need to prime up our economy right now by making sure that money that has been saved up will use to buy the basic necessities of each household by patronizing our sari stores, our own flea markets,” she said.