Economy


30-day business permit bill filed in House




Posted on August 22, 2016


REP. Vilma Santos-Recto (Batangas, 6th district) has filed ease-of-doing-business legislation that will seek to make business permits automatically approved after the lapse of 30 days without action.

Rep. Vilma Santos-Recto -- BW FILE PHOTO
House Bill 2171 or the proposed “Fast Business Permit Act” aims to reduce the burdens on business from long waiting times for permits as well as their quick expirations.

“All applications for business permits shall be deemed approved after thirty days of inaction from the receipt of such application by the approving authority, provided that all required documents have been submitted and fees and charges have been paid,” the bill read.

The bill also fixes the validity of such permits as one year from the date of issue instead of the current practice of setting expiration at the end of the fiscal year when it was filed.

Ms. Santos-Recto explained that the short validity period of the permits is “burdensome to the business community.”

“Reducing the barriers to business formalization can stimulate enterprise growth and create decent work opportunities,” Ms. Santos-Recto said in her statement of purpose for the legislation.

“A bigger and formal economy would mean a higher tax base thereby potentially increasing revenue for the government,” Ms. Santos-Recto, who also chairs the House committee on civil service and professional regulation, added.

In the 2016 World Bank Ease of Doing Business Report, the Philippines was ranked 103rd out of 189 economies, down six places from its adjusted 97th position in 2015.

“The low ranking not only reflects the possibility of lower foreign direct investment but is also seen as a barrier for micro, small and medium enterprise growth and development,” the lawmaker said.

The measure has been referred to the House committee on trade and industry chaired by AGAP party-list Rep. Rico B. Geron. -- Raynan F. Javil