Small business owners asked the government to provide tax relief to micro, small and medium enterprises (MSMEs).
Members of the Philippine Franchise Association (PFA) are seeking at least three years of tax relief to allow MSMEs to catch up and recover from three years of pandemic.
“If you invest in an LGU [local government unit], I think it’s only right for them to give MSMEs three to five years of tax relief. If they can give tax holiday to other companies, why not to MSMEs,” PFA chairman Sherill Quintana said in an interview during the 3-day International Franchise Expo held on Oct. 27 to 29, 2023 at the SMX Convention Center Manila.
She said taxes paid to the national government and the LGUS are among the bottlenecks experienced by small entrepreneurs in growing their businesses.
Quintana said franchisors would consider it a big deal if the government would provide tax breaks to PFA members.
She said the Philippines could learn from the Singaporean government’s efforts to help their own brands by giving them three to five years of tax relief until they fully recovered from the spoils of the pandemic.
The government can also extend support to MSMEs through trade fairs. Private sector-led trade fairs are usually more expensive compared to government-sponsored trade fairs that are usually free for select MSMEs.
The PFA is extending lower priced booths for MSME upstarts who are expanding through franchising.
“To help build the economy, revive the economy, we need support,” Quintana said.
The International Franchise show was the biggest held in the Philippines since 2011. More than 1,000 brands participated in the event from more than 350 local and international participants.
Asia is expected to be the next biggest venue for international brands and franchises, according to the PFA.
The Philippines’ franchising industry expects the industry to grow 13 percent in 2023 to P30.5 billion from P27 billion in 2022, as more local brands expanded overseas.
