THE 20th Davao City Council approved on second reading the ordinance amending the Revenue Code which requires delivery riders to obtain a business permit, on Tuesday morning, December 3, 2024, at the Sangguniang Panlungsod. The amended ordinance now requires that delivery riders only need to pay P125 for an occupational permit.
Councilor Myrna Dalodo-Ortiz, chairperson of the Committee on Finance, Ways and Means, and Appropriations, and the proponent of the ordinance, said in a media interview that delivery riders will only need to pay for the occupational permit at the City Treasurer’s Office on or before January 31.
“We deemed it proper for the removal of the business permit ug ang ilahang pagabayaran na lang ang occupational permit fee which is P125 only so mao na ang sulod sa ordinansa ug amoa nang gi-repeal (We deemed it proper for the removal of the business permit and they only need to pay for the occupational permit which is P125 only so that is what the ordinance and we already repealed it),” she said.
Ortiz explained that the City Ordinance 0612-21 is an amendment of the Revenue Code of 2017, which required delivery riders to pay around P3,000 for their business permit, which would increase to P5,000 by 2025. Such an amount is considered “too high” for delivery riders.
The councilor added that since delivery riders now only need to pay P125 for their occupational permit, all she is asking is that they pay on time. She emphasized that the payment must be made on or before January 31; failure to do so will result in a 25 percent annual surcharge.
She further stressed that four committees have been involved in the process, namely the Committees on Finance, Ways and Means, and Appropriations; Trade, Commerce, and Industry; Rules and Privileges, chaired by Councilor Jesus Joseph Zozobrado III; and Labor and Employment, chaired by Bai Hundra Cassandra Dominique N. Advincula.
The committees concluded that delivery riders should not be required to obtain a business permit, as they are not business owners but are engaged in delivery services.
Ortiz explained that since they do not have a formal employer-employee contract and do not operate offices or buildings, there is no need for them to secure certifications from the relevant offices and agencies.
Jeffrey Cuyos, secretary of the United Davao Delivery Riders Association (UDDRA), said that they had been advocating since 2021 for delivery riders to be exempted from obtaining business permits. He expressed satisfaction that the 20th City Council has finally approved the amendment on second reading.
“Nakuha na gyud namo ang amoang gipaningkamutan nga makab-an na ang amoang business permit nga mawala na gyud ug mapulihan ug bag-o nga ihatag sa amoa ang angay nga namo unsa para sa among occupational permit (We have finally achieved what we have been striving for, which is to abolish the business permit requirement. It will be replaced with a new permit, the occupational permit),” he said.
Cuyos shared that the fee of P125, which is a huge reduction from the original P3,000, has significantly alleviated the financial burden on delivery riders.
He said the P125 fee is much more manageable than the previous fees of P3,000 to P5,000, revealing that delivery riders had to take loans to pay such amounts. He estimated that around 3,000 delivery riders from Grab, 700 from Maxim, and 1,500 from Food Panda will benefit from this change.
Meanwhile, former Councilor Pamela Librado-Morata, who has been advocating for the rights of delivery riders since 2021, expressed her gratitude for the riders who stood their ground and for the city council’s passage of the ordinance. She said that the P125 occupational permit fee is a welcome change.
“Dako kaayo ni siya nga tabang compared atung gipatawan sila ug katong magkuha og business permit nga mao gyud ang nagpaluyo sa kalisod sa ilahang panginabuhian (This is a huge help compared to the large amount they used to pay for business permits, which was a significant burden on their livelihoods),” she said.
The ordinance proposed by Ortiz seeks to repeal seven provisions of the 2017 Revenue Code, specifically Section 5, Paragraph (C30), and Sections 79, 97, 229, 231, and 233, in order to align with the provisions of the Anti-Red Tape Authority-Department of Trade and Industry-Department of the Interior and Local Government-Department of Information and Communications Technology Joint Memorandum Circular No. 01, Series of 2021, titled “Guidelines for Processing Business Permits, Related Clearances, and Licenses in All Cities and Municipalities,” as well as the Department of Finance Local Finance Circular No. 001-2022.
Earlier, Davao City Mayor Sebastian “Baste” Duterte, during his Basta Dabawenyo podcast episode on November 24, 2024, stated that delivery riders should be exempt from obtaining business permits. He mentioned that while no law currently supports this exemption, the city could refer to recent Supreme Court rulings to craft an ordinance for delivery riders.
To recall, UDDRA has been advocating for the abolition of the business permit requirement for delivery riders since January 2024, arguing that they are not business owners but service providers affiliated with delivery companies. On November 5, 2024, UDDRA representatives staged a protest outside the Sangguniang Panlungsod, urging Duterte and other city officials to exempt them from the business permit requirement.
In April 2024, UDDRA announced plans to draft a position letter advocating for amendments to the 2021 Revenue Code after the committee hearing. On January 23, 2024, Councilor Bernie Al-ag proposed repealing the ordinance requiring delivery riders to obtain business permits during his privilege speech. This followed a meeting between UDDRA representatives and Duterte on January 22, 2024. RGP
