House panel OK’s bill boosting social enterprises
A PANEL of the House of Representatives approved on Tuesday a substitute bill consolidating measures to promote the growth of social enterprises as a means to alleviate poverty in the country.
In approving the unnumbered substitute bill, the House Committee on Ways and Means intends to enhance social enterprises’ poverty-alleviating capabilities by offering a tax deduction.
“The bill aims to provide the framework for the implementation of national poverty reduction through social entrepreneurship, integrating its programs into the overall poverty reduction strategy of the government,” Bukidnon Rep. Jose Manuel F. Alba told the committee.
The panel recommended granting social enterprises an additional deduction equal to 25% of total salaries and wages paid to employees.
Social enterprises in this context refer to organizations that employ manpower from the marginalized sectors in their business operations. Under the bill, social enterprises are mandated to invest back “at least 60% of net revenues into sustaining their social missions” to qualify as such an enterprise.
“This is not an ordinary business, it is a business that supports a particular social mission — which is to address poverty in our country,” said Mr. Alba.
He said the measure also includes hybrid financing models as well as opportunities that could help stimulate the development of social enterprises by “mandating the government to allot resources” to promote its growth.
The panel noted in their discussion the need for the government to support the capacity-building programs of social enterprises so that they may further generate jobs which also aid in reducing poverty.
“Social enterprises will be treated with a more special concern because we see the importance of multiplier effect that social enterprises can provide to micro, small, and medium enterprises (MSMEs) in terms of job generation and poverty alleviation,” Department of Trade and Industry Liaison Mikaela Sulit told the panel. — Kenneth Christiane L. Basilio
