THE National Economic and Development Authority (Neda) 7 projects a favorable environment for budding businesses, as the effects of the Ease of Doing Business Law will be felt this year.
Neda 7 Director Efren Carreon said Republic Act 11032 will be a major step for the local economy in the region.
“The law actually provides for the environment that will facilitate conduct of businesses, the applications and others by reducing bureaucratic red tape, especially in government agencies and local government units,” Carreon said.
The provisions include a standard deadline for government transactions, a single application form for taxes, clearances and permits, a business one-stop-shop, an automated electronic system for local government units (LGUs), zero-contact policy to eliminate corruption, and a central business portal to receive all business applications.
An agency must finish simple transactions in three working days, while complex transactions should be completed in seven days. Highly technical transactions are given up to 20 days.
Failure of an agency to finish within the prescribed number of days will mean automatic approval of the request.
“This is a major step towards bringing or improving competitiveness of our businesses, not only in the cities, but also the countryside,” Carreon said.
He said that government agencies and LGUs are warned to avoid the penalty, which includes a two-strike policy against government officials and employees found in violation of the law.
“This will be monitored with the creation of the Anti-Red Tape Authority (Arta), which is tasked to do the monitoring. The government is very conscious about this, and all government agencies are advised to strictly follow the provisions of the law,” he said.
He admitted that last year, the effects of the law were not yet felt by the business community. He assured that this year, it will be implemented, especially under the scrutiny of the Arta.
“Maybe it hasn’t really sunk in yet because of its passage in 2018. But we expect this year, everybody will be implementing this one,” he said.
President Rodrigo Duterte approved RA 11032 on May 28 last year, in a bid to help individuals putting up a business by cutting processing days short.
In the World Bank’s Doing Business Index, the Philippines slipped from 113th place in 2017 to 124th in 2018 out of 190 economies.