Entrepreneurs don't like to pay taxes
Yesterday I was at the briefing on the Barangay Micro Business Enterprises(BMBE)Act of 2002 (RA No. 9178) conducted by the DTI's Bureau of Small and Medium Enterprise Development. Briefly, the BMBE law encourages the formation and growth of barangay micro business enterprises by granting them incentives and other benefits. Registered BMBEs with three million or less assets are exempted from income taxes and are not required to abide by minimum wage requirements for its workers.
The discussion became animated when the lecturer started discussing the process of availing the tax exemptions. At one point, the DTI lecturer, exasperated by the sheer insistence of one man in his forties, all but advised the audience to find an accountant that would bring down the business's assets to three million in order to qualify for the exemption. But then again, she was quick to remind, the BIR may find out.
Another was asking what about if his employee asked for a raise. How can he fend off the request? The lecturer said that the BMBE law only provides that the wage should be a consensual agreement between the employer and the employee. The employee should have agreed with the wage rate beforehand. But, said the lecturer: "Sir, you also have to be human."
One lady who sat beside me was there looking for a low-interest loan. A friend, who was operating a animal feed supply enterprise, recommended that she attend the briefing. According to this lady, her friend got a two million loan with very minimal inerest rate.
If you are interested to attend this series of DTI briefings for would-be entrepreneurs, call BSMED-DTI at 897-1693 or e-mail bsmed AT dti DOT gov DOT ph.