Exporters urged government to double the budget of the annual Department of Trade and Industry (DTI), 75 percent of which would serve as a yearly subsidy for export promotion and marketing.
The Philippine Exporters Confederation Inc. in the New Normal Export and MSME (micro, small and medium enterprises) Roadmap launched recently, is also pushing for the provision of an export promotion budget as a subsidy for all exporters for at least one year to help them recover from the economic crisis brought by the new coronavirus disease 2019 pandemic.
As business opportunities emerge from the outbreak, Philexport said it is imperative to assist companies to re-purpose their facilities to help boost the production of COVID-19 essentials, and support others in the shift to more viable business options.
The exporters’ group likewise underscored the need to revive a pending bill and pass the Customs Amnesty Act which can be one major source of government revenues much needed to fund crisis recovery programs and projects.
The group reiterated calls to implement programs and policies that can help these enterprises to reopen gradually from the crisis until reaching their full capacity, sustain their operations, and create jobs.
These include the Accelerated Recovery and Investments Stimulus for the Economy (ARISE) Act and the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE).
The House of Representatives has passed on second reading the P1.3-trillion ARISE economic stimulus package that shall provide allocations for interest-free loans, as well as provision of education, training, and guidance, to pandemic-hit MSMEs.
CREATE immediately reduces corporate income tax to 25 percent.
Philexport said the MSME sector, comprising about 99 percent of all industries in the country, has been identified among the three hardest hit sectors of the Covid-19 pandemic, aside from tourism and transportation.
“Increase DTI budget by at least 100 percent every year, with 75 percent of which to serve as (an) annual subsidy for export promotion and marketing,” the roadmap said.
DTI has a budget of P8 billion this year.
