Shoe and leather goods manufacturers in Marikina will get tax relief and exemptions in the city thanks to a new ordinance signed by Mayor Marcy Teodoro.
Under Ordinance No. 110, individuals who would start a business in shoe making and manufacturing of leather goods will be given a free first year in the collection of business tax.
"Zero ang babayaran nila. At dun sa mga susunod na taon ay graduated, 75% discount, 60%, 50%," Teodoro explained to DZRH in an interview.
(They will not pay for anything. And in the following years payment will be graduated, 75% discount, 60%, 50%.)
Meanwhile, existing businesses will get a tax relief of 50% off.
According to the Marikina mayor, makers of shoes and other leather goods in the city lost their market because of the pandemic.
"Itong tax relief at tax exemption natin ay tulong na natin para dun sa ating mga shoe manufacturer at leather goods manufacturer," he said.
(Our tax relief and exemption is our way of helping shoe manufacturers and leather goods manufacturers.)
In addition, the city also brought forward its Business Tax Amnesty for businesses who were not able to pay their taxes in the past year.
It will lift the interest and penalties imposed on them for not being able to pay their taxes as the pandemic wreaked havoc last year.
"Walang interes o walang penalty sila sa kanilang babayaran at pwedeng magbayad on installment basis," Teodoro explained.
(There will be no interests or penalties and they can pay on an installment basis.)
"This is in recognition dun sa hirap na nararanasan natin ngayon sa pagnenegosyo lalo na't industriya ng paggawa ng sapatos," he added.
(This is in recognition to the struggles they are facing now in their businesses, especially since this is the industry of shoe making.)
According to Teodoro, the move will make the local government unit lose 50% of its collected business taxes for shoe manufacturers. But he said he was willing to set that aside so businesses can be protected and jobs will remain abundant.
"Ang nakikita naming ditong mahalaga ay yung mapangalagaan, maproteksyunan yung negosyo, makapagpatuloy yung trabaho," he said.
(The importance of this is to take care and protect businesses so jobs will continue.)
"Isinasantabi muna natin yung koleksyon dahil ganun din naman eh, kung kokolektahin mo yung buwis, gagamitin mo rin naman para sa tao. Ito direkta na mapapakinabangan nila at napakahirap at marami tayong dumadaing na magsasapatos," he added.
(We will set aside the collection because it’s all the same. The money collected for taxes will be used for the people. This way, they can directly benefit from this since a lot of shoemakers have been complaining about this.)
