PHILIPPINE ECONOMIC ENTERPRISE- Merle Dawn Comidoy

Economic Enterprisein the

PHILIPPINES

PUBLIC ECONOMIC ENTERPRISES

=a business like entity, wholly or partially owned by local government that sells a product or service to meet a perceived specific public demand Common PEEs in the Philippines are: public markets, slaughterhouses, bus terminals, waterworks and cemeteries

PURPOSEFUL PEE

=is the one that contributes to the sustainable development and quality service delivery goals of the local government unit (LGU) and the nation

ECONOMIC ENTERPRISES INCLUDE:

a. public market


b. transport terminals (bus, jeepney, parking, piers)


c. slaughterhouses, livestock trading and cattle fattening


d. fish landing and cold storage facilities, e. post harvest facilities (grain storage, drying, milling)


e. water supply


f. sanitation (local drainage, sewerage, solid waste collection and disposal)


g. public parks, sports and recreational facilities


h. public cemeteries

How do Purposeful PEEs contribute to poverty reduction?

1. Require less subsidy from government and generate profit. 2. Equitable delivery of products and services will increase the access of marginalized groups to local services.3. Quality services such as utilities, markets and transportation will attract potential investors to the LGUs.

LOCAL GOVERNMENT CODE

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Republic Act 7160, otherwise known as the Local Government Code under Section 17 states that... (IX) public markets, slaughterhouses and other municipal enterprises; (X) public cemetery Under section 17, the phrase “ and others” is added, which connotes that any other utilities or services can be considered as economic enterprises, provided they generate income or revenues.

PROBLEMS OF ECONOMIC

ENTERPRISES

PROBLEMS OF ECONOMIC ENTERPRISE

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1. MOST OPERATE AT A LOSS


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2. TRADITIONAL


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3. INEFFICIENTLY MANAGED


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4. POOR PRODUCTS AND SERVICES


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5. ESTABLISHED OPPORTUNISTICALLY

OTHER REVENUE MEASURES IN THE

PHILIPPINES

Other Revenue Measures

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Aside from the regular allotments, local government units also receive other forms of aid from the national government funds such as:

•Philippine Charity Sweepstakes•Philippine Horse Racing Commission


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•Philippine Charity Sweepstakes:=is the principal government agency for raising and providing funds for health programs, medical assistance and services, and charities of national character.


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•Philippine Charity Sweepstakes:=mandated by virtue of a special law to contribute funds for the following government entities: the Philippine Sports Commission, the Commission on Higher Education, the Comprehensive and Integrated Shelter and Urban Development Financing Program, the Philippine Centennial Commission, the National Commission on Indigenous People, the Overseas Workers Welfare Administration, theDepartment of Foreign Affairs and the Quirino Memorial Medical Center.


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•Philippine Charity Sweepstakes:=the PCSO generates its revenues from the sale of sweepstakes and lotto tickets. To arrive at the amount of net receipts, the printing cost which shall not exceed two percent (2%) of the gross receipts, is deducted from the gross receipts generated from the sales of sweepstakes and lotto tickets.


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•Philippine Horse Racing Industry=The most important segment of the local horseracing industry, being its source of income is the betting public. Their continued patronage of the sport sustains the viable operation of horseracing in the country. Betting generates income for the government. Of the Php 5,919 Billion sales registered in 2001, Php 880 Million in taxes were contributed to the national coffers.

LOCAL

LEVIES

LEVIED BY PROVINCES

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•Tax on transfer of ownership•Tax on business of printing and publication•Franchise tax•Tax on gravel and sand and other quarry recources but proceeds distributed as follows: Province 30%, City/Municipality 30%, Barangay 40%•Annual professional tax•Annual fixed tax for delivery truck or van of manufacturers

LEVIED BY MUNICIPALITIES

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•Business tax on wholesalers, distriutors, dealers, manifacturers etc.•Fees and charges on business and occupation or practice of profession not reserved to the province.•Fees for sealing and licensing og weights and measures•Fishery rentals, fees and charges•Community tax paid by every resident at least 18 years old.

LEVIED BY CITIES

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•Fees and charges that may be imposed by the province or municipality. However, those levied by highly urbanized cities and independent component cities accrue exclusively to them.

LEVIED BY BARANGAYS

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•Taxes on stores and retailers with fixed buiness establishments with gross receipts not exceeding P50,000 in cities and P30,000 in municipalities•Fees and charges for services rendered in connection with the use of barangay-owned properties.•Clearance fees on license permits by city or municipality for business or any activity.•Fees and charges on commercial breeding of fighting cocks, cockfights and cockpits•Fees and charges on billboards, signages, neon signs, outdoor advertisements

OTHER SOURCES OF REVENUE

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•Local Governments are empowered to enter into credit and financial transactions to finance local infrastructure, and socioeconomic development projects and to avail of credit lines to stabilize local finances.

REVENUE RAISING

POWERS COMMON TO

ALL LOCAL

GOVERNMENT UNITS

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•Fees and charges for services rendered•Charges for operation of public utilities owned,operated and maintined by them within their jurisdiction•Toll fees and charges for use of public road, pier, wharf, waterway, bridg etc.•Any tax, fee or charge on any base not mentined by laws provided that it is not unjust, oppressive, excessive, confiscatory, or contrary to national policy and public hearing shall be conducted.

Thank You"Life is beautiful"

Merle Dawn S. [email protected]

PHILIPPINE ECONOMIC ENTERPRISE- Merle Dawn Comidoy

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