By Cai U. Ordinario
Filipino taxpayers extended P2.2 billion worth of subsidies to the wholesale and retail trade, as well as the repair of motor vehicles and motorcycles in 2013.
The Philippine Statistics Authority (PSA) said these subsidies include special grants, such as financial assistance and tax exemption or privileges.
The agency explained that these subsidies were extended by the government to develop industries and protect against competition.
“Wholesale of food, beverages and tobacco, and retail sale in non-specialized stores establishments, both located in the NCR [National Capital Region], received subsidies from the government amounting to P2.1 billion and P62.7 million, respectively,” the PSA said.
The government subsidies to the sector in 2013 were significantly lower than the P28.8 billion extended in 2010. In that year, only the wholesale of food, beverages and tobacco industry sector was awarded subsidies.
Meanwhile, the PSA said the wholesale and retail trade and motorcycle repair sector’s total value added stands at P224.4 billion in 2013.
The industries with the top 5 highest value accounted for as much as 67.1 percent of the total value added in 2013.
These sectors were the retail sale in nonspecialized stores, with P46.7 billion, or 20.8 percent of the total; wholesale of household goods, P38.5 billion, or 17.2 percent; and other specialized wholesale, P30.2 billion, or 13.5 percent.
The top 5 industries also include the wholesale of food, beverages and tobacco, which had a value added of P18.5 billion, or 8.3 percent of the total; and retail sale of other household equipment in specialized stores, with P16.6 billion, or 7.4 percent of the total.
The PSA said value added is gross output less intermediate input. Gross output for the sector is the sum of total income less rent, delivery charges, interest income and franchise income, among others.
Intermediate input, the PSA explained, is equal to the sum of the expense or cost items, such as materials and supplies; fuels, lubricants, oils and greases; electricity; water; and cost of repairs, maintenance and installation work, among others.
In 2013 8,392 establishments with total employment of 20 and over in the formal sector of the economy were engaged in wholesale and retail trade, repair of motor vehicles and motorcycles.
More than half, or 56.4 percent, of the total establishments were engaged in retail trade activities. Among industries, retail sale in nonspecialized stores had the highest number of establishments, with 1,429, or 17 percent of the total count.
Retail sale of other household equipment in specialized stores ranked second, with 1,173 establishments, or 14 percent share; followed by retail sale of other goods in specialized stores, with 1,082 establishments, or 12.9 percent.