House OKs bill on ease of doing business

MANILA, Philippines — The House of Representatives has unanimously approved on third and final reading a bill that seeks to ease doing business in any part of country.

Bill 6579, “An act establishing a national policy on ease of doing business, creating for the purpose the Ease of Doing Business Commission, and for other purposes, prescribes a processing time of one working day for barangays, and three working days for national agencies and other LGUs in case of simple applications and 10 working days for “complex” issuances.”

Under the measure, national government agencies issuing any kind of permit, license or clearance, and local government units (LGUs), including barangays, shall post in their offices and websites a list of requirements for such issuances, and a step-by-step procedure in applying for them.

For other complicated permits or licenses that require extensive evaluation, the bill fixes a maximum processing time of 30 working days.

In case the application is denied, the agency or LGU shall state the reason for the denial and remedial measures open to the applicant.

Licenses or permits shall be valid for a period not shorter than one year.

As far as practicable, national agencies and LGUs are mandated to establish a one-stop shop for the processing of business permits or licenses.

The bill creates a seven-member commission that will oversee the implementation of the proposed national policy on ease of doing business.

It will be composed of a chairperson appointed by the President, and one representative each from the small, micro, medium, and large business sectors.

The Secretary of Trade and Industry and Secretary of Finance would sit in the commission as ex-officio members.

The measure provides penalties for violators: suspension for 30 days without pay for the first offense, suspension for three months without pay for the second violation and dismissal, perpetual disqualification from public office and forfeiture of benefits for the third offense.

Bill 6579 is a consolidation of seven related measures authored by Vilma Santos-Recto of Batangas, Luis Raymund Villafuerte of Camarines Sur, Ferjenel Biron of Iloilo, Arthur Yap of Bohol, Gus Tambunting of Parañaque, Manuel Zubiri of Bukidnon, and Winston Castelo of Quezon City.

Villafuerte, a businessman before seeking public office, said the country is the 171st in the world out of 185 countries surveyed this year in terms of ease of doing business.

He said most of the reasons cited are difficulties in getting business permits and clearances.

Castelo said investors often encounter problems with the bureaucracy in starting a business.

 “The tedious business regulations not only discourage investors but also make it hard for small and medium enterprises to flourish,” he said.