MANILA – The country’s largest business group is pushing for the lowering of holiday pay next month amid enhanced community quarantine in Luzon.
In a statement Wednesday, the Philippine Chamber of Commerce and Industry (PCCI) said this would help businesses that have incurred losses as they shut down their operations during the quarantine period.
“In consideration of the present situation where businesses are experiencing losses, to reconsider the holiday pay for workers for April 9, Holy Thursday, which is also Araw ng Kagitingan. The salary computation for the said date would total 300 percent if a business is in operation, and 200 percent if closed,” it said.
The PCCI sought to lower the rate to 200 percent if the business would operate during the holiday and 100 percent if it is closed.
Since the enhanced community quarantine took effect Tuesday, many establishments were forced to shut down, including manufacturing, services, and small-scale businesses providing basic necessities.
The task force on emerging infectious diseases only allows the manufacturing of essential products such as for food and hygiene, as well as export-oriented manufacturing and services, to operate during the enhanced community quarantine period until Apr. 12.
“To say that the business sector is adversely affected is an understatement. Community quarantine means standstill on many economic activities,” the PCCI said.
The business group also called on the Department of Finance to allow tax payments after Apr. 15 and waive penalties and interest charges for delayed tax remittances.
It asked the Bangko Sentral ng Pilipinas to encourage banks to declare a six-month moratorium on loan amortizations for business, consumer, home, and loans to large enterprises.
The PCCI likewise urged the Department of Trade and Industry (DTI) to establish a rehabilitation fund for micro, small, and medium enterprises (MSMEs) in the areas of technical assistance and special financing for working capital and equipment, or machinery acquisition.
In a press briefing in Malacañang Palace late Tuesday, DTI Secretary Ramon Lopez said the department has P1-billion fund under the P3 or the Pondo sa Pagbabago at Pag-asenso that can be tapped to help MSMEs during the quarantine period.
This is included in the P27.1-billion package rolled out by the government’s economic team to help the frontliners fight the COVID-19 pandemic.
DTI’s P3 Program offers a loan with no collateral and interest rate that is not more than five percent.
Lopez said since the P3 Program was rolled out in the past years, it has a repayment rate of 98 percent.(PNA)
