Cebu City Council passes two-year business permit ordinance

CEBU CITY, Philippines — Business establishments have one less thing to worry about.

This is because the Cebu City Council finally passed during a regular session on Tuesday, December 10, an ordinance that makes business permits valid for two years from the previous one-year validity

The approval of the ordinance is a good move for the city, according to economist Fernando “Perry” Fajardo.

“Good, aron walay daghan hasol (so there’s not many hassles),” Fajardo told CDN Digital.

Fajardo said the Cebu City Government should also look into dividing the approval of business permits into two batches using certain business classifications.

One will be registered in January, while the other will be registered in July or after six months.

Fajardo said the businesses can also grouped into four batches: January for the first group, April for the second group, July for the third group, and October for the fourth group.

He said the current practice of having the annual registration approved at the start of the year tends to “get messy.”

The former assistant regional director of National Economic Development Authority in Central Visayas said that the staggered registration will smoothen the city’s cash flow.

“Dili pareho karon nga sa (It’s not like the current arrangement that when it’s) January, dako ang sa (there is a huge collection from) business registration then after that, wala na sad (there’s no more collection),” he said.

Fajardo said the Cebu City Government should also look into providing incentives to new businesses.

“As an incentive, a newly-organized business may be registered [for] free in the first year. In the US, some LGUs (local government units) even give financial incentives to attract new business,” added Fajardo.

The ordinance was proposed by Cebu City Council Raymond Garcia.

It was deferred three times in the past sessions because the council members expressed the need to further examine the measure before they cast their votes.

Garcia, who is also the majority floor leader, said the ordinance will allow business establishments to apply for a business permits that would last for two years.

This is line with the promise of Cebu City Mayor Edgardo Labella to make processes at the Cebu City Hall more friendly for business.

“The ordinance will be implemented fifteen days after publication. Businesses can now apply for a two-year permit starting January [2020],” said Garcia. 

Garcia said the Licensing and Business Permit Office has been anticipating for the implementation of the ordinance as renewal will once again start on January 2020. 

He said the executive department is prepared to enact the ordinance. 

The ordinance only needs the signature of Labella for its enactment. 

Meanwhile, the Council also approved the third supplemental budget amounting to P118 million that would be used for the bonus of the City Hall employees.

Cebu City Hall employees will receive P20,000 each.

The supplemental budget also includes the cash assistance that will be extended to public school teachers.

Each teacher will receive P10,000. / celr