Following a call from the Management Association of the Philippines (MAP) to “substantially deregulate the micro, small and medium enterprises (MSMEs),” Secretary Alfredo Pascual of the Department of Trade and Industry (DTI said digitalization could help lead to the possibility of waiving some of the reportorial requirements to small companies.
In yesterday’s turnover rites of the MAP presidency from Pascual to Rogelio Singson, the latter proposed to the former for the DTI and other concerned government agencies both national and local to substantially deregulate MSMEs by doing away with some regulations that serve to harass these entities.
Singson also proposed to freeze all field tax audits of MSMEs unless an apparent crime is being committed to avoid huge friction costs, and eliminate this source of harassment.
Singson also called on big businesses comprising MAP and government institutions to support MSMEs in the procurement of supplies and materials and ensure timely payment.
“Please pay them within 30 days or shorter, but don’t pay them after 120 days to help them from predatory lenders,” he said.
He called on these entities to make room for MSMEs in purchases and supply requirements.
“Let them grow for heaven’s sake, let them grow as fast as they can instead of harassing them and regulating them even before they can start. Let them contribute to the economy and employment generation especially in the countryside, there is no need to spend scarce government resources trying to regulate these small and micro enterprises,” Singson said.
To this, Pascual responded that digitalization of MSME operations using a standard software can make them more efficient in dealing with businesses.
“And we can truly implement MAP’s recommendation that a small business… the regulatory requirement is initial registration, but a couple of years (after, there will be) no other reporting or compliance requirements,” Pascual said.
