DAVAO City Councilor Ralph Abella has proposed an ordinance to extend the validity of business permits from one year to three years, aiming to reduce the annual renewal burden for business owners.
The proposed ordinance, titled “An Ordinance Extending the Validity of Business Permits to Up to Three Years for All Business Establishments in Davao City, and Adjusting Corresponding Fees,” seeks to decongest permit renewal queues and create a more predictable, investor-friendly environment.
“Aside from reducing congestion, this will also promote a more stable, predictable, and investor-friendly environment, especially for those who have consistently complied with city and national regulations,” Abella said on Tuesday, August 26, 2025, at the Sangguniang Panlungsod.
The ordinance includes a 10 percent increase in regular business permit fees to reflect administrative costs. Businesses opting for a three-year permit would pay a 10 percent premium upfront.
To ensure compliance, holders of three-year permits must submit annual updates, such as fire inspection certificates, sanitary permits, and other clearances. Failure to comply may result in revocation of the three-year permit or a return to annual renewal.
“This is a strategic reform to streamline our processes, reduce bottlenecks, and promote long-term planning for the government and the private sector,” he said.
The councilor noted that the Business Bureau and City Treasurer’s Office face congestion during renewal season, with long lines causing stress for entrepreneurs and staff alike, who often work overtime to meet demand.
Abella formally moved for his privilege speech to be considered as first reading and referred to the appropriate committee for further study.
As of January 22, 2025, the Business Bureau processed a total of 37,135 permit renewals. To accommodate the high volume, the office extended operating hours and remained open on January 28 ahead of the deadline. RGP