|
Republic
of the Philippines
Congress of the
Philippines
Metro
Manila
Twelfth Congress
Second Regular Session
Republic Act No. 9178
AN ACT TO PROMOTE THE ESTABLISHMENT OF BARANGAY MICRO BUSINESS
ENTERPRISES (BMBEs), PROVIDING INCENTIVES AND BENEFITS THEREFOR, AND FOR
OTHER PURPOSES.
Be it
enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:
PRELIMINARY PROVISIONS
SEC. 1.
Short Title -This Act shall be known as the "Barangay Micro Business
Enterprises (BMBEs) Act of 2002."
SEC. 2. Declaration of Policy - It is hereby declared to be the
policy of the State to hasten the country's economic development by
encouraging the formation and growth of barangay micro business
enterprises
which
effectively serve as seedbeds of Filipino entrepreneurial talents, and
integrating those in the informal sector with the mainstream economy,
through the rationalization of bureaucratic restrictions, the active
intervention of the government specially in the local level, and the
granting of incentives and benefits to generate much-needed employment
and alleviate poverty.
SEC. 3.
Definition of Terms - As used in this Act, the following terms shall
mean:
a.
(a) "Barangay
Micro Business Enterprise," hereinafter referred to as BMBE, refers to
any business entity or enterprise engaged in the production, processing
or manufacturing of products or commodities, including agro-processing,
trading and services, whose total assets including those arising from
loans but exclusive of the land on which the particular business
entity's office, plant and equipment are situated, shall not be more
than Three Million Pesos (P3,000,000.00). The above definition shall be
subject to review and upward adjustment by the SMED Council, as mandated
under Republic Act No. 6977, as amended by Republic Act No. 8289.
For the
purpose of this Act, "services" shall exclude those rendered by any one,
who is duly licensed by the government after having passed a government
licensure examination, in connection with the exercise of one's
profession.
b.
(b)
"Certificate of Authority" is the certificate issued granting the
authority to the registered BMBE to operate and be entitled to the
benefits and privileges accorded thereto.
c.
(c)
"Assets" refers to all kinds of properties, real or personal, owned by
the BMBE and used for the conduct of its business as defined by the SMED
Council: Provided, That for the purpose of exemption from taxes and fees
under this Act, this term shall mean all kinds of properties, real or
personal, owned and/or used by the BMBE for the conduct of its business
as defined by the SMED Council.
d.
(d)
"Registration" refers to the inclusion of BMBE in the BMBE Registry of a
city or municipality.
e.
(e)"Financing"
refers to all borrowings of the BMBE from all sources after
registration.
REGISTRATION AND OPERATION OF BMBEs
SEC. 4.
Registration and Fees. - The Office of the Treasurer of each city or
municipality shall register the BMBEs and issue a Certificate of
Authority to enable the BMBE to avail of the benefits under this Act.
Any such application shall be processed within fifteen (15) working days
upon submission of complete documents. Otherwise, the BMBEs shall be
deemed registered. The Municipal or City Mayor may appoint a BMBE
Registration Officer who shall be under the Office of the Treasurer.
Local government units (LGUs) are encouraged to establish a
One-Stop-Business Registration Center to handle the efficient
registration and processing of permits/licenses of BMBEs. Likewise, LGUs
shall make a periodic evaluation of the BMBEs' financial status for
monitoring and reporting purposes.
The LGUs
shall issue the Certificate of Authority promptly and free of charge.
However, to defray the administrative costs of registering and
monitoring the BMBEs, the LGUs may charge a fee not exceeding One
Thousand Pesos (P1,000.00).
The
Certificate of Authority shall be effective for a period of two (2)
years, renewable for a period of two (2) years for every renewal.
As much as
possible, BMBEs shall be subject to minimal bureaucratic requirements
and reasonable fees and charges.
SEC. 5.
Who are Eligible to Register. - Any person, natural or juridical, or
cooperative, or association, having the qualifications as defined in
Section 3(a) hereof may apply for registration as BMBE.
SEC. 6.
Transfer of Ownership. - The BMBE shall report to the city or
municipality of any change in the status of its ownership structure, and
shall surrender the original copy of the BMBE Certificate of Authority
for notation of the transfer.
INCENTIVES AND BENEFITS
SEC. 7.
Exemption from Taxes and Fees. - All BMBEs shall be exempt from
income tax for income arising from the operations of the enterprise.
The LGUs
are encouraged either to reduce the amount of local taxes, fees and
charges imposed or to exempt the BMBEs from local taxes, fees and
charges.
SEC. 8. Exemption from the Coverage of the Minimum Wage Law. The
BMBEs shall be exempt from the coverage of the Minimum Wage Law.
Provided, That all employees covered under this Act shall be entitled to
the same benefits given to any regular employee such as social security
and healthcare benefits.
SEC. 9.
Credit Delivery. - Upon the approval of this Act, the Land Bank of
the Philippines (LBP), the Development Bank of the Philippines (DBP),
the Small Business Guarantee and Finance Corporation (SBGFC), and the
People's Credit and Finance Corporation (PCFC) shall set up a special
credit window that will service the financing needs of BMBEs registered
under this Act consistent with the Bangko Sentral ng Pilipinas (BSP)
policies, rules and regulations. The Government Service Insurance System
(GSIS) shall likewise set up a special credit window that will serve the
financial needs of their respective members who wish to establish a BMBE.
The concerned financial institutions (FIs) are encouraged to wholesale
the funds to accredited private financial institutions including
community-based organizations such as credit, cooperatives,
non-government organizations (NGOs) and people's organizations, which
will in turn, directly provide credit support to BMBEs.
All loans
from whatever resources granted to BMBEs under this Act shall be
considered as part of alternative compliance to Presidential Decree No.
717, otherwise known as the Agri-Agra Law, or to Republic Act No. 6977,
known as the Magna Carta for Small and Medium Enterprises, as amended.
For purposes of compliance with Presidential Decree No. 717 and Republic
Act No. 6977, as amended, loans granted to BMBEs under this Act shall be
computed at twice the amount of the face value of the loans.
Any
existing laws to the contrary notwithstanding, interests, commissions
and discounts derived from the loans by the LBP, DBP, PCFC and SBGFC
granted to BMBEs as well as loans extended by the GSIS and SSS to their
respective member-employees under this Act shall be exempt from gross
receipts tax (GRT).
To
minimize the risk in lending to the BMBEs, the SBGFC and the Quedan and
Rural Credit Guarantee Corporation (QUEDANCOR) under the Department of
Agriculture, in case of agribusiness activities, shall set up a special
guarantee window to provide the necessary credit guarantee to BMBEs
under their respective guarantee programs.
The LBP,
DBP, PCFC, SBGFC, SSS, GSIS, and QUEDANCOR shall annually report to the
appropriate Committees of both Houses of Congress on the status of the
implementation of this provision.
The BSP
shall formulate the rules for the implementation of this provision and
shall likewise establish the incentive programs to encourage and improve
credit delivery to the BMBEs.
SEC. 10. Technology Transfer, Production and
Management
Training, and Marketing Assistance. - A BMBE Development Fund shall be set up with an endowment
of Three Hundred Million Pesos (P300,000,00) from the Philippine
Amusement and Gaming Corporation (PAGCOR) and shall be administered by
the SMED Council.
The
Department of Trade and Industry (DTI), the Department of Science and
Technology (DOST), the University of the Philippines Institute for Small
Scale Industries (UP ISSI), Cooperative Development Authority (CDA),
Technical Education and Skills Development Authority (TESDA), and
Technology and Livelihood Resource Center (TLRC) may avail of the said
Fund for technology transfer, production and management training and
marketing assistance to BMBEs.
The DTI,
in coordination with the private sector and non-government organizations
(NGOs), shall explore the possibilities of linking or matching-up BMBEs
with small, medium and large enterprises, and likewise establish
incentives therefor.
The DTI,
in behalf of the DOST, UP ISSI, CDA, TESDA and TLRC shall be required to
furnish the appropriate Committees of both Houses of Congress a yearly
report on the development and accomplishments of their projects and
programs in relation to technology transfer, production and management
training and marketing assistance extended to BMBEs.
SEC. 11.
Trade and Investment Promotion. - The data gathered from business
registration shall be made accessible to and shall be utilized by
private sector organizations and non-government organizations for
purposes of business matching, trade and investment promotion.
INFORMATION DISSEMINATION
SEC. 12.
Information Dissemination. - The Philippine Information Agency (PIA),
in coordination with the Department of Labor and Employment (DOLE), the
DILG and the DTI, shall ensure the proper and adequate information
dissemination of the contents and benefits of this Act to the general
public especially to its intended beneficiaries specifically in the
barangay level.
PENALTY
SEC. 13. Penalty. - Any person who shall willfully violate any
provision of this Act or who shall in any manner commit any act to
defeat any provision of this Act shall, upon conviction, be punished by
a fine of not less than Twenty-five Thousand Pesos (P25,000.00) but not
more than Fifty Thousand Pesos (P50,000.00) and
suffer
imprisonment of not less than six (6) months but not more than two (2)
years.
In case of
non-compliance with the provisions of Section 9 of this Act, the BSP
shall impose administrative sanctions and other penalties on the
concerned government financial institutions, including a fine not less
than Five Hundred Thousand Pesos (P500,000.00).
MISCELLANEOUS PROVISIONS
SEC. 14
Annual Report. - The DILG, DTI, and BSP shall submit an annual
report to the Congress on the status of the implementation of this Act.
SEC. 15.
Implementing Rules and Regulations. - The Secretary of the
Department of Trade and Industry, in consultation with the Secretaries
of the DILG, DOF, and the BSP Governor shall formulate the necessary
rules and regulations to implement the provisions of this Act within
ninety (90) days after its approval. The rules and regulations issued
pursuant to this section shall take effect fifteen (15) days after its
publication in a newspaper of general circulation.
SEC. 16.
Separability Clause. - If any provision or part hereof, is held
invalid or unconstitutional, the remainder of the law or the provision
not otherwise affected shall remain valid and subsisting.
SEC. 17.
Repealing Clause. - Existing laws, presidential decrees, executive
orders, proclamations or administrative regulations that are
inconsistent with the provisions of this Act are hereby amended,
modified, superseded or repealed accordingly.
SEC. 18.
Effectivity. - This Act shall take effect fifteen (15) days after
its publication in the Official Gazette or in at least two (2)
newspapers of general circulation.
Approved,
|
(Sgd.) JOSE DE VENECIA,
JR. |
(Sgd.) FRANKLIN M. DRILON |
|
Speaker of the House of
Representatives |
President of the Senate |
This Act,
which is a consolidation of Senate Bill No. 1855 and House Bill No. 4871
was finally passed by the Senate and the House of Representatives on
October 24, 2002 and
October
23, 2002, respectively.
|
(Sgd.) ROBERTO P. NAZARENO |
(Sgd.) OSCAR G. YABES |
|
Secretary General |
Secretary of the Senate |
Source: The Department of Trade &
Industry (DTI) |
