SP approves P125 occupational fee, replacing business permit

Move provides much-needed relief for the city's hardworking delivery workforce
THE United Davao Delivery Riders Association (Uddra) has urged Davao City officials, including Mayor Sebastian 'Baste' Duterte, to exempt delivery riders from business permit requirements. On Tuesday morning, November 5, 2024, Uddra representatives made their appeal outside the Sangguniang Panlungsod in Davao City.
THE United Davao Delivery Riders Association (Uddra) has urged Davao City officials, including Mayor Sebastian 'Baste' Duterte, to exempt delivery riders from business permit requirements. On Tuesday morning, November 5, 2024, Uddra representatives made their appeal outside the Sangguniang Panlungsod in Davao City. Rojean Grace Patumbon/SunStar Photo
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DELIVERY riders in Davao City celebrated as the 20th City Council approved an ordinance amending the 2017 Revenue Code, eliminating the need for business permits and replacing them with an annual occupational fee of just ₱125.

The United Davao Delivery Riders Association (Uddra) hailed the move as a victory for the city’s delivery riders, who had been required to obtain business permits for the past three years. 

“Ang panaghiusa ug pagka-kusganon sa tingog sa mga riders maoy nag-una nga pwersa nga nagpawagtang sa business permit nga rekisito (The unity and strong will of the riders were the driving forces behind the abolishment of the business permit requirement),” Uddra said in a statement.

The group expressed gratitude to the City Council for addressing their concerns, as well as to former Councilor Pamela Librado-Morata, who supported them over the years. 

Uddra also thanked the public for their empathy toward the plight of delivery riders.

Despite this progress, Uddra said that challenges remain and vowed to continue advocating for the rights and welfare of delivery riders in the city.

The council approved the ordinance on its third and final reading at the Sangguniang Panlungsod. The ordinance seeks to repeal seven provisions of the 2017 Revenue Code, specifically Section 5, Paragraph (C30), and Sections 79, 97, 229, 231, and 233. This amendment aligns the code with 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.

The amended ordinance reduces the financial burden on delivery riders, who previously paid ₱3,000 to ₱5,000 for business permits. A 25 percent surcharge will be imposed on those who fail to pay the occupational fee.

The measure was championed by several council committees, including Finance, Trade, Labor, and Rules, led by Councilors Myrna Dalodo-Ortiz, Jesus Joseph Zozobrado III, and Bai Hundra Cassandra Dominique N. Advincula.

Four committees played a role in the process: Finance, Ways and Means, and Appropriations (chaired by Councilor Myrna Dalodo-Ortiz), 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).

Since January 2024, Uddra has advocated for removing the business permit requirement for delivery riders, who they argue are service providers, not business owners. On November 5, 2024, UDDRA held a protest outside the Sangguniang Panlungsod, urging Mayor Sebastian “Baste” Duterte to grant an exemption.

In April 2024, UDDRA announced plans to draft a position letter advocating for amendments to the 2021 Revenue Code following a 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, which followed a meeting between Uddra representatives and Mayor Duterte on January 22, 2024. RGP

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