Amendments on BMBE Get Support

Cebu lawmakers support the proposed amendments on the Barangay Micro Business Enterprises (BMBE) Act of 2002 during the public hearing held last September 23 at the Capitol Social Hall.

BMBE Act of 2002 was made in acknowledgement of the importance of micro enterprises as the drivers of the country’s economy.

The law was aimed at encouraging small businesses to develop and grow through granting of incentives and benefits and active intervention of government.

The house committee on Small Business Entrepreneurship and Development conducted their first public hearing in Cebu to get inputs from concerned sectors on the proposed changes in the law.

Congressman Teddy Casiño, chair of the committee, said the law has been “underutilized” because not all entrepreneurs are able to take advantage of it.

Micro business entrepreneurs have not registered their businesses because of bureaucratic restrictions.

Cebu congressmen Pablo Garcia, Pablo John Garcia, Benhur Salimbangon, and Luigi Quisumbing were one in supporting the proposed amendments.

Salimbangon said the main concern of the MBEs is the knowledge on how to access credit to banks that will help them start up business or get aid in improving their small businesses.

It was discussed in the hearing that entrepreneurs get discouraged to register their business because they are bombarded with so many applications and there is discrimination of MBEs in processing of application.

Casiño said schemes of credit access and delivery are being gathered so that they will be able to pattern good working models to include in the amendments.

One issue also discussed was the amendment on tax, fees and charges exemptions.

Pablo John said he is glad to know that the committee took the effort to “strike a balance of the needs of the local government unit and the needs of the micro business entrepreneurs”.

Casiño said they still need to resolve this issue because in the original law, exempting MBEs from local taxes is there however; it is not being implemented because LGUs are saying that it will affect their source of revenues.

He added that this caused MBEs not to register their business. “Nahihirapan sila magkuha (ng permits) kasi (ang pangbayad) pang.capital na nila yon.”

Casiño’s committee aims to finish the data consolidation, hearings and finalization of the substitute bill within the year so that by 2012, they will be able to pass the said amendments.

The BMBE Forum in Cebu was made possible with the assistance of the Department of Trade and Industry and the SB Corporation.


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