A proposed Senate measure seeks to ease the tax burden on micro businesses as small entrepreneurs continue to face economic uncertainty and rising oil prices.
The proposed “GINHAWA” measure aims to help small businesses sustain operations, protect jobs, and expand livelihood opportunities by granting additional tax deductions for labor expenses.
Sen. Sherwin Gatchalian, vice chairperson of the Senate Committee on Ways and Means, said easing taxes for small enterprises would allow them to grow and continue supporting workers.
“Kapag pinagaan natin ang buwis ng maliliit na negosyo, mas mapapalago nila ang kanilang kabuhayan at masisiguro ang tuloy-tuloy nilang kita at trabaho para sa kanilang mga empleyado,” Gatchalian said.
The proposed measure, formally titled the Granting Increase in Take-Home Pay for All Working Filipinos Act, would allow micro-entrepreneurs to claim an additional deductible expense equivalent to 50 percent of their labor costs.
The bill is expected to benefit community-based enterprises such as sari-sari stores, carinderias, tailoring shops, laundry services, food stalls, and small e-commerce businesses, among others.
According to Gatchalian, lowering taxes for small enterprises could also encourage more informal businesses to formally register.
He said registration would help small entrepreneurs gain access to bank financing, expansion opportunities, and government support programs.
The senator stressed that micro businesses remain a key source of employment and livelihood for many Filipino communities.
Under Ease of Paying Taxes Act or Republic Act No. 11976, micro taxpayers are defined as businesses with gross annual sales of less than P3 million.