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Monday, October 27, 2003
Veggie farmers have chance to become barangay micro-businessmen
BUGUIAS -- Officials here welcomed the implementation of Republic Act (RA) 9178 or the Barangay Micro-Business Enterprise (Bambe) Law as small vegetable farmers groups could become legal businessmen but raised concerns about the possible reduction of the Internal Revenue Allocation (IRA) for the town.
Vice Mayor Thomas Palileng Sr. aired the concern over the IRA during the forum on the Bambe law here Thursday morning timed with the meeting of the Municipal Council and joined in by barangay captains and council members.
Department of Trade and Industry (DTI) division chief Freda Gawisan mentioned in her talk that one of the benefits of a Bambe-certified business is exemption from paying income taxes as well as from the operation of the minimum wage law.
Palileng said the IRA is based on the revenue collections of the Bureau of Internal Revenue (BIR), in particular towns. "If all business with capitalization lower than P3-million would register, be certified as Bambe's and thus exempted from income taxes, what would happen to our local IRA?"
On the other hand, Councilor Ireneo Calwag said because small businesses would have to get their local taxes and business permits, this would still redound to the benefit of the town. This is because local taxes would increase where as for national taxes, only 40 percent will be remitted back to the local governments.
It was agreed that further meetings would be held in the presence of BIR officials to clarify and explain further whether the operation of RA 9178 will affect their revenue collection and consequently, the IRA of towns.
Buguias town folk also wanted those from banks and other government financing institutions to discuss further the "special credit window" that will be opened for certified Bambe businesses.
Councilor Felicio Bayacsan added the objective of the law to encourage small businesses like vegetable farmers to form associations and come out in the open to secure mayor's and business permits is noble.
He said this eliminates apprehension because these small businessmen would have to secure local permits first, making them legal and regular payers of local taxes, before registering as Bambe's.
Aside from the Cooperative Development Authority (CDA) for coops and the Securities and Exchange Commission (SEC) for business organizations, Senior Labor and Employment officer Asterio Palsi said farmers associations could also be registered with the Department of Labor and Employment (Dole) at a lower cost.
Having been accredited and attained such legal personality, they could now get the necessary mayor's and business permits. Nathan Alcantara
(October 27, 2003 issue)
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