The Department of Trade and Industry (DTI) is pushing for initiatives, including the amendment of a law on micro, small and medium enterprises (MSMEs), that will make businesses in step with the changes in technology and digitalization.
DTI Secretary Alfredo Pascual said the agency is pushing for the amendments in the Magna Carta for MSMEs and supports the taxation on electric commerce taxation.
“We are reviewing the Magna Carta for MSMEs. We have to review the definition of what constitutes a micro, a small or a medium enterprise because the law has been passed many years back,” he said.
The Magna Carta for MSMEs or Republic Act 9501 or 2008 bases the definition on total assets: micro, not more P3 million; small, above P3 million to P15 million and; medium, above P15 million to P100 million
Pascual said the support needed by, and requirements of MSMEs, have now become more digital from simple mentoring.
“Now training has become more organized. The role of technology is significant so we have to consider that as a mandatory support to MSMEs,” Pascual said.
Pascual said the DTI’s shared services facility program continues to run to respond to immediate needs of small businesses.
“But now technology is evolving, from manual (implements) like tools, we now have 3D printing parts of machines and products that can be customized for clients, “ he said.
Pascual said physical facilities will continue to serve clients within the localities.
He added nano enterprises, which are even smaller than micro, generate new jobs and create a new generation of forms of livelihood and businesses.
“Today, a person with a motorcycle can be a business owner as a delivery rider or a motorcycle taxi rider,” he said.
On taxing digital transactions, Pascual said this move will not affect government’s efforts to promote investments.
“Other countries have this tax.
We don’t want to be left behind. Government can earn from Internet transactions.
When we buy in a physical store, we pay 12 percent value-added tax but if we order online, we are not sure if the merchant/platform pays VAT. Government does not capture revenue in those transactions,” he added. Irma Isip
