Senatorial aspirant bats for installment payment system for MSME taxes

DTI ROMEO CASTANAGA

SORSOGON Governor Francis Joseph “Chiz” G. Escudero, who is seeking a return to the Senate in the May 9 elections, said on Monday that he aims to push for a law that will give micro, small and medium enterprises (MSMEs) a five-year time frame for paying income and business taxes.  

“Give them a grace period when it comes to paying taxes — three to five years, they can pay taxes in installments,” he said in a statement in Filipino.   

Currently, MSMEs can apply for delayed payment from the Bureau of Internal Revenue, which collects income taxes.  

Local governments across the country, which collect fees for business permits, have maintained the annual payment system.   

Mr. Escudero said a tax payment extension will provide MSMES some fiscal space to recover from the pandemic. It would also allow them to invest their money in their business operations instead of using it to pay taxes lump-sum.   

Data from the Philippine Statistics Authority show MSMEs comprised 99.5% or 952,969 of the 957,620 business enterprises operating in the country in 2020. Of these, micro enterprises accounted for 88.77%.  

“If we are able to help the MSMEs progress, it will be as if we have recovered 99% of our economy,” Mr. Escudero said. — Alyssa Nicole O. Tan

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