Iloilo: The Sangguniang Panlungsod (City Council) on Friday passed an ordinance granting incentives on regulatory and administrative fees to nano enterprises in Iloilo City. Ordinance author, Councilor Jose Maria Miguel Tre±as, said the ordinance is meant to support the smallest establishments operating in this highly urbanized city.
According to Philippines News Agency, Tre±as explained that the ordinance aims to grant nano enterprises a special discount on their regulatory fees and business tax. The initiative seeks to alleviate financial burdens and promote growth and legitimacy within the city’s economy. The ordinance specifically targets sari-sari (convenience) stores, ‘carinderias’ (food stalls), and digital startups, while excluding ambulant vendors from its coverage.
In the first year, eligible enterprises can avail a 75 percent discount on regulatory and administrative fees, followed by a 50 percent discount in the second year, and a 25 percent discount in the third year. Councilor Jose Maria Dela Llana, vice chair of the Committee on Ways and Means, emphasized that the measure is designed to reduce the burden faced by individuals and families engaged in small-scale livelihood activities who remain unregistered due to limited capital and compliance challenges.
During a committee hearing, resource persons highlighted that nano enterprises constitute a significant segment of the city’s grassroots economy, providing essential income opportunities, particularly for low-income households. The City Treasurer’s Office and the Local Economic Development and Investment Promotion office confirmed that although the program may initially lead to reduced revenue collection, the long-term benefits are more substantial.
The ordinance is expected to lead to increased formalization of nano enterprises, expansion of the taxable base, improved regulatory compliance, and enhanced economic mobility among low-income residents. The committee report indicated that the ordinance aligns with the city government’s objectives for inclusive growth, ease of doing business, and sustainable local development.
