Business
Government touts Reforms on Ease of Doing
Business ahead of World Bank survey
Photo: (L-R): BIR Representatives,
SEC Commissioner Jayvee Francisco,
Quezon City Represetative, DTI
Undersecretary Rowel S. Barba and
LRA Representative
F
ollowing the protest by the Philippine government on World
Bank’s 2019 Doing Business (DB) Report, the Department of
Trade and Industry kicked off a communication campaign in
its bid for better results in the 2020 cycle by reporting to the
public, the various Ease of Doing Business reforms initiated by
various agencies of government.
DTI organized a briefing of respondents which participated
in the 2019 DB survey composed of lawyers, contractors,
accounting firms, and other professionals. Key officials
from SEC, BIR, LRA, and the QC Government presented the
various programs, and policies issued by agencies aimed at
promoting efficiency in government.
During the briefing, DTI Undersecretary Rowel S. Barba underscored the whole-
of-government approach.
“We are proud of the reforms instituted by the Legislative, Executive, and
One of the key official discusses
the various “Ease of Doing
Business” reforms initiated by
various agencies of government
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Judicial branches of government to promote Ease of Doing Business. We need
to catapult the Philippines, and we need Congress, the Supreme Court, and the
executive branch to closely work together,” Undersecretary Barba said.
The trade undersecretary's statement was in reference to the recent enactments
by the legislative and the Supreme Court. Three of these major reforms were
the Revised Corporation Code, Personal Property Security Act, and the Supreme
Court’s new rule on small claims coverage. DTI is looking to the three and their
resulting initiatives to have an impact on the country's performance in the 2020
survey and succeeding survey cycles.
The Revised Corporation Code, signed into law on 20 February 2019, removes
the minimum paid-in capital requirement, promotes electronic filing of articles
of incorporation, and directs the SEC to issue rules and regulations to protect
minority investors and improve corporate governance in accordance with
international best practices.
Businesses will also have greater access to credit through the Personal Property
Security Act, which allows borrowers to use other personal property like inventory,
accounts receivable, and agricultural products as collateral.
Meanwhile, the Supreme Court’s increase in the amount covered in small claims
cases from Php300,000 to 400,000 will allow more cases to be filed in Metropolitan
Trial Courts and reduce the costs associated with debt collection.
During the briefing, SEC Commissioner Jayvee Francisco presented the Lane for
Express Application Process (LEAP) which will drastically improve the processing
of simple applications. The Bureau of Internal Revenue (BIR) meanwhile
reported on the issuance by the Commissioner of Internal Revenue Caesar Dulay
of Revenue Memorandum Circulars 6-2018, 19-2018, 27-2019, and 29-2019
streamlining requirements and procedures to allow new business taxpayers in
QC to immediately start its business operations while waiting for the printing and
delivery of its receipts/invoices by BIR accredited printers.
Undersecretary Barba said these reforms are in line with the President socio-
economic Agenda, to promote competitiveness and ease of doing business,
adding that, “Beyond our objective of improving the Philippines’ rank and score,
the steps we have taken signify our commitment to create a competitive business
environment and foster innovation and entrepreneurship. We are confident that
the reforms initiated by the Supreme Court, Congress, and the executive branch
will make doing business in the Philippines easier”. www.dti.gov.ph