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Wednesday, June 04, 2003
Small companies told: Apply for BMBE status
By Jessica B. Natad
THE government is urging micro business enterprises in Cebu to assert their rights to tax privileges as provided for in the Barangay Micro Business Enterprises (BMBE) Act of 2002 even if the local government unit (LGU) where the business is operating claims to be unaware of the law.
According to Lilia Estellore of the Department of Labor and Employment (Dole), applications not being acted upon by the Office of the Treasurer of the concerned municipality or city after 15 days will be deemed approved.
“If the Municipal or City Treasurer will not act upon the application after 15 days, the applicant automatically becomes a BMBE,” she said during the Visayas area business conference at the City Sports Club-Cebu over the weekend.
The law defines a BMBE as business “engaged in the production, processing or manufacturing of products or commodities, including agro-processing, trading and services,” whose total assets do not exceed P3 million.
Total assets exclude the land on which the business entity’s office, plant and equipment are situated.
BMBEs benefits include income tax exemption, possible reduction in the rates of local business taxes applicable to BMBEs, exemption from coverage of the minimum wage law and special credit windows with government financial institutions. Loans to BMBEs will be considered alternative compliance to the Agri-Agra law.
Robert Go of the Cebu Retailers Association said the BMBE is a big boost to the business sector especially during this time of stiff competition with China.
“Many manufacturing companies have already closed shop because they could not compete price-wise with the products from China, which are slowly penetrating other cities in the country and slowly killing the local industries,” he said.
BMBE applicants may approach their City or Municipal Treasurer and ask for BMBE application forms.
Department of Trade and Industry (DTI)-Cebu Provincial Director Nelia Navarro said in a separate interview that the DTI will be inviting all the Municipal and City Treasurers in the province to attend a one-day seminar on the BMBE to give them no excuse in failing to implement the law in their respective areas.
Since the law’s passage in November last year, no micro business has applied to become a BMBE, she said.
(June 4, 2003 issue)
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