THE government will give incentives to companies engaged in the manufacture and importation of essential products and is poised to give more assistance to micro, small and medium enterprises during the enhanced community quarantine (ECQ).
The Department of Trade and Industry (DTI) and the Department of Finance (DOF) through the Joint Memorandum Circular (JMC) No. 20-02, series of 2020 issued on April 1, 2020 will ensure the availability of essential goods and require businesses to prioritize contracts, subject to fair and reasonable terms, for materials and services needed by the government in its campaign against the COVID-19 pandemic.
The importation of these goods shall be exempt from import duties, taxes, and other fees.
Under Republic Act No. 11469 or the “Bayanihan to Heal as One Act,” DTI and DOF are authorized to liberalize the grant of incentives for the manufacture and importation of critical equipment or supplies.
The JMC covers the production and manufacture of medicines identified critical by the Department of Health , medical equipment and devices, personal protective equipment, surgical equipment and supplies, as well as laboratory equipment and its reagents.
The JMC likewise covers raw materials and packaging materials exclusively used for the production of the above-mentioned products.
“We need to ensure that the disruptions in the supply chain are minimized, as well as give enterprises a reprieve from commonly imposed taxes,” said DTI Secretary Ramon Lopez.
“We will help our manufacturers, especially those partnering with medical institutions and hospitals, procure or produce these essential goods at reduced costs by providing them with tax breaks during this global health crisis,” said DOF Secretary Carlos Dominguez III.
Dominguez assured the Bureau of Customs (BOC) will assist in the timely release of the imports of raw materials, packaging, and articles required in the supply chain of production.
MSMEs
In a text message, Lopez said more support program are being
planned or MSMEs aside from the P3 (Pondo sa Pagbabago at Pag-asenso) special loan program with 0.5 percent monthly interest.
Lopez refers to the provisions of the Bayanihan law to realign the budget of 2020 during the period of contagion
The DTI specifically DTI will reallocate funds to assistance to l MSMEs by subsidizing the salaries of their employees who are mostly in the lower middle class.
The DTI has allotted P1 billion for the P3 of the SB Corp. where
micro and small enterprises with at least one year continuous operation prior to March 2020, and whose businesses suffered drastic reduction in sales during the ensuing epidemic may access the loan fund.
Micro enterprises with asset size of not more than P3.0 million may borrow P10.0 thousand up to P200.0 thousand.
Small enterprises with asset size of not more than P10.0 million may borrow a higher loan amount but not to exceed P500.0 thousand.
PCCI petition
The Philippine Chamber of Commerce and Industry has urged government to use conditional cash transfer to subsidize micro and small Businesses.
