|
THE
World Bank’s International Finance Corp. (IFC) is now
working with the Quezon City government on how to reduce
the number of informal enterprises in the area by
simplifying local business regulations and help the city
jack up further its revenue collections.
Euan
Marshall, IFC head of advisory services for the
Philippines, said in a statement they have designed a
program to help identify reforms in the business
environment using the combined experience of the IFC and
Quezon City, which has been registering the highest
revenue collection among local government units in the
past years.
“We aim
to achieve simplified and transparent regulatory
procedures that [would] stimulate private investment,
reduce informality and support the productivity and
growth potential of smaller businesses in the city,”
added Marshall.
He said
the city has a wealth of experience in undertaking
innovations that support private-sector development and
business growth, while the IFC has global experience in
business-environment reform.
Informal
business activity, he said, is detrimental to both
governments and businesses themselves.
“For
local governments, high informality prevents the
collection of accurate, precise information about local
economic activity, which can be used to develop more
effective support programs. For businesses, it limits
access to key resources, support and the potential for
growth. Informal enterprises do not contribute taxes
and licensing fees to the local resources, constraining
further the government’s ability to support them,” said
Marshall.
Building
on an ongoing subnational “Doing Business” survey, the
IFC will focus initially on simplifying procedures for
obtaining licenses and permits for business activity.
“IFC’s
advisory-services program for business simplification is
consistent with our city’s aim to streamline business
procedures, given the continuous expansion of local
businesses and the demand from the private sector for
more efficient procedures. We welcome this partnership
as both timely and beneficial for our city,” said Mayor
Feliciano Belmonte.
Quezon City’s
cash on hand as of January 31 had soared to an
unprecedented P6.95 billion. It recorded a gross revenue
of P2.2 billion, up from P2.12 billion from the same
period last year, while business taxes registered an
all-time high at P1.36 billion, against last year’s P
1.19 billion.
“The
adoption of hassle-free tax collection and payment
scheme at the instance of Mayor Belmonte relieved
taxpayers of inconvenience and, as a corollary,
dramatically increased collection that galvanized the
city’s fiscal sustainability,” said city treasurer
Victor Endriga. |
