President Rodrigo Duterte on Monday ordered all government agencies under his administration to implement anti-red tape measures as part of the Ease of Doing Business Law.
In his third State of the Nation Address, the President said that alongside efforts to rid the government of corrupt officials, the administration will also enhance the delivery of frontline services.
“I thank Congress for the swift passage of the Ease of Doing Business [Act], which is a significant fight against corruption and improving service delivery. We need to sustain our momentum,” Duterte told both chambers of Congress.
“I hereby direct all local government units, please listen, and government agencies to faithfully implement this law and simply simplify the process. I ask this to all under my control and supervision in the government. Please do not go wrong,” Duterte said.
“I particularly call the attention of the agencies with the [most] number of red tape-related reports from the public. Make your services truly customer-friendly,” he said.
“Our people deserve efficient, effective, and responsive government services. They deserve nothing less.”
On May 28, Duterte signed into law Republic Act No. 11032 or the Ease of Doing Business and Efficient Government Service Delivery Act.
The law, which seeks to make the process of putting up and running a business easier and more efficient for Filipinos, addresses the failure of the Anti-Red Tape Act of 2007.
It will also introduce simplified requirements and streamline procedures that spare the public from long waiting times and long lines in government agencies.
Under the new law, government agencies are required to treat simple transactions within three consecutive days, complex transactions within seven days, and highly technical transactions within 20 days.
The law also restricts to three the number of signatories for applications for licenses, clearance and permits.
The said law was issued months after the World Bank released a report showing the Philippines in 113th place out of 190 countries in terms of ease of doing business in 2017, posting a 14-point drop from 99th in 2016.
In his address, Duterte also defended the Tax Reform for Acceleration and Inclusion Law (TRAIN), which has raised prices for basic commodities and fuel.
“Some suggested to stop the TRAIN implementation.. we cannot and should not. We need this for sustainable growth that leaves no Filipino behind. TRAIN is already helping poor families and senior citizens cope up with the rising prices,” Duterte said.
Duterte said he was committed to a comprehensive tax reform and he asked the Congress to pass package two, which will lower corporate income taxes, especially for smaller businesses.
“Lower taxes mean they will have more money to invest and create more jobs. More than 99 percent of our businesses are micro, small and medium enterprises and employ around 65 percent of our workers,” he said. Duterte cited a number of congressmen who filed the House version of the package two, and egged the Senate to follow suit. “Maybe tomorrow, sir?” he said.
He said tax reform was an urgent matter and told lawmakers not to be part of the problem by ignoring it.
“I hope to sign Package 2 before the year ends. I urge Congress to pass it in a form that satisfies our goals and the interest of the many, not just the wealthy few. By end of July 2018, all five packages of my tax reform would have been submitted to Congress,” the President said.
Duterte said there was no chance the government could deliver its promises “without an equitable tax system.”
In his speech, the President also called on lawmakers to pass legislation to end illegal contractualization.
While the government has ordered some companies to regularize workers, Duterte said this did not satisfy all sectors—an apparent reference to labor groups that were protesting outside the Batasan complex.
“As I would like to do the impossible, that power is not vested upon me by the Constitution and neither will I make both ends meet even if I violate the laws to achieve that purpose. It’s not part of my territory,” he said.
