EDITORIAL - A revolutionary initiative

In a move seen to draw more investors, the Cebu City government has reduced the business permit requirements. Starting this year, the City Treasurer's Office would only need three requirements to speed up the process.

Mayor Michael Rama said the move would greatly help in the effort to bring in more investors. "Our intention is to encourage businesses, so how will they be encouraged if businessmen will get their permit after one month? That cannot be," the mayor explained.

In the previous years, establishments have to comply with at least 13 requirements before they can be given business permits. Starting this year, the CTO will only require application form, printout ledger of the current year, and a comparison of income.

Of course, we can only say that this is a good move on the part of the city government. For it entices more investments and encourages businessmen to further expand their businesses.

Not only is the decision to reduce the business tax requirement a revolutionary one, it is also very timely in this time when Cebu has been attracting more investments as hub of commerce in this part of the country.

If only all local government units in Cebu could follow the initiative made by the Cebu City government, the entire province will surely become the magnet for local and foreign investments.  

Given Cebu's already favorable business climate, easing permit requirements will even make it more investor-friendly. And that would really be a big help to the government's effort to make the country the ultimate investment haven.   

The reason why foreign investors complain about having a hard time doing business in the country is the fact that applying for permits entails a lot of hassles, prompting them to sidestep the Philippines in favor of neighboring countries.

The move of the Cebu City government will not only make the city more attractive to investment. It further makes the city a model in local governance.