Tuesday, July 08, 2008 Group set to launch guidebook for new business permit system
A more efficient and effective business permit and licensing system (BPLS) will soon be in place in 40 local government units (LGUs) in Central Visayas.
The launching of the BPLS guidebook titled, “Towards One Business Permit and Licensing System,” tomorrow will mark the rollout of a package of assistance that will help LGUs make the transition towards a more investor-friendly system.
The German Technical Cooperation (GTZ), in partnership with the Central Visayas offices of the Department of the Interior and Local Government and the Department of Trade and Industry, are facilitating the harmonization of the business licensing system in the region.
GTZ is an international development cooperation enterprise owned by the German government. BPLS is one of its several technical assistance packages in the Visayas and is designed to assist LGUs in establishing systems and procedures for a more effective administration of new and renewed business permits.
The BPLS reforms are expected to bring in added revenues for participating LGUs and improve the delivery of mandated business regulatory services.
The BPLS was piloted in the municipalities of Barili and Consolacion in Cebu, as well as in Ormoc City, Bacolod City in Negros Occidental, Iloilo City, and Palompon, Leyte last year.
By end-January 2008, Barili registered a 47-percent increase in revenues generated from business taxes and permits while the other four LGUs posted an average increase of 26 percent in the same revenue category.
The rollout in Central Visayas will involve 10 LGUs in Cebu Province.
Among the reforms that will be implemented would be the shortening of the business permitting procedures to five steps within five days for new business permit applications and four steps within less than an hour for business permit renewals.
The application form for business permits will also be standardized to entail no more than three authorized signatories and fewer documentary requirements.
The application of the BPLS reforms will take effect in January 2009 when LGUs are mandated to accept and process applications for business permit renewals.
A business one-stop-shop (Boss) setup in participating LGUs will facilitate the reformed system, complemented by an information, education and communication campaign aimed at reaching out to the business community.
The project dubbed, “Towards One Business Permit and Licensing System,” takes off from the National Competitiveness Summit of 2006, an initiative of the National Government that aims to improve the competitiveness ranking of the country.
The summit was called to address the observations in a World Bank report, which noted that doing business in third world countries, including the Philippines, is hampered by unnecessarily voluminous requirements and transaction processes.
As many as 37 local government units participated in a GTZ-sponsored workshop that followed the summit in Cebu City in July 2007. The workshop provided the data on which the manual is based.
A field research commissioned to the Development Academy of the Philippines in Manila and Leaders Link in Cebu revealed that the long process of business permitting is compounded by the requirements of National Government agencies that require licenses and clearances from business permit applicants.
Mayors have since advocated reforms in the start-up business licensing procedure and permit renewal of existing businesses. They recognize that reducing regulatory and administrative costs for local businesses means more economic activity contributing to government revenues through the tax system.
More earnings mean more services and programs for local constituents.
Dr. Herwig Mayer, GTZ-DP program manager, in the foreword to the guidebook, asserts that although it is only the first among many reforms that should be instituted to improve the business climate, “streamlining the business permit and licensing system is at the core (of the reform program).”
“We look forward to seeing procedural steps and costs cut down to the barest essential while keeping reforms operating to the maximum benefit of both local governments and the business sector,” Mayer said.
Expected guests to the launching include Sen. Francis Pangilinan, DILG Undersecretary Austere Panadero and Development Academy of the Phiippines’ Jimmy Yaokasiin, Jr. The launching will be immediately followed by a work planning session among GTZ, DILG-VII, DTI-Cebu and the participating LGUs for the rollout process. (PR)
