CEBU, Philippines - Collection of penalties from erring business owners has increased by 1000 percent, the Mandaue City Treasurer’s Office said.
City treasurer Regal Oliva said the city collected P2 million in administrative penalties last year but has collected P22 million this year.
The increase is attributed to the implementation of an ordinance that has increased the administrative penalty from P500 to P5,000.
The city had to increase the amount of the penalty because most business
s owners would rather pay the fine than secure the statutory requirements leading to the obtaining of business permits, Oliva said.
These requirements include acquiring a sanitary permit, an environmental clearance, a fire clearance, SSS, PhilHealth, Pag-Ibig, and the Income Tax Return (ITR).
In 2011, the city has streamlined the process in the business permit renewal from 17 steps to only four steps which include the following: first, application or submission of requirements (barangay clearance and real property tax clearance); second, assessment, third, payment, fourth, release of a provisional business permit.
The whole process takes 30 minutes to finish instead of 15 days.
After compliance, a permanent business permit is released.
But since most business owners opt for the P500 penalty, Oliva imposed the maximum penalty as stipulated in the ordinance.
Under the city ordinance, the city can impose P500 to P5,000 on business owners that fail to comply with these statutory requirements.
Business owners are given 60 days to comply with the requirements. (FREEMAN)