ILOILO City – Despite the coronavirus disease 2019 (COVID-19) pandemic, this southern city keeps on attracting investors that bring in more job opportunities to the Ilonggos.
For the past three years, the city government did not increase the real property tax (RPT) and businesses taxes and this contributed to the city’s good business climate, according to Mayor Jerry Treñas.
This reprieve in tax hikes will continue for the next three years, he added.
Treñas emphasized that even without increasing the taxes, the city government’s revenues improved because of new businesses were coming in.
Because of the improved tax collection, the city government was able to deliver basic services and even added more such as providing free dialysis to qualified city residents, said Treñas. And city health centers and facilities were upgraded, too, even during the pandemic, he added.
According to Treñas, the city government also started offering this year other tax incentives to investors that set up shop in new growth zones.
Businesses that will settle along road networks identified as investment hubs will be able to avail themselves of tax discounts for the next three years.
Under Regulation Ordinance No. 2021-196 (The Iloilo City Investment Incentives for Specific Areas of Development), these areas include the entire stretch of the circumferential, coastal and radial roads.
The applicable tax holidays are 100 percent on the first year, 75 percent on the second year, and 50 percent on the third year of operation.
Meanwhile, real estate and business process outsourcing (BPOs) are only among the booming industries in the city. The BPO sector alone has so far employed over 36,000 Ilonggos and non-Ilonggos.
“I’m so happy because employment opportunities are available para sa aton mga kabataan. With a very good business climate, daw sige-sige na ang investments,” he said.
EASE OF DOING BUSINESS IN ILOILO CITY
The city government has carried out different approaches to make doing business easy.
“First, mahapos magkadto diri. Permits mahapos magkuha. Waay ta napabudlayan ang mga negosyante. Iloilo City is considered one of the economic drivers of the Philippines as a regional center kag kadamo sang tawo gakadto diri,” Treñas said.
The Business One Stop Shops situated in malls are also big help for easy and convenient transactions with the city government.
According to Treñas, these “satellites offices” in malls will be further developed.
“Kon mabayad ka taxes, makwa ka cedula, diri ka na lang kadto sa mga. Indi na mabudlay sa mga pumoluyo nga magkadto pa sa city hall,” said Treñas.
The city government also made innovations in securing business permits.
Processing of business permits for private establishments is now separate and can be done through the new office of the Office of the Building Official (OBO).
The issuance of building permits by the OBO is now being digitized.
“Sang una, ang problema sang mga negosyante kon may annual inspection, ginapangitaan sila building plans, indi nila ma-provide. Subong ya indi na kita hagay pangita sang mga plans kay ara na sa OBO kay digitized na,” said Treñas.
Another thing why Iloilo continues to attract investors is the quality of its graduates, especially for the BPO sector.
“I think we should be proud nga ang graduates naton diri very trainable,” said the mayor.
BPO firms and other businesses also prefer Iloilo City because they feel safe here and the power rate is low, he added.
BUSINESS GROUPS THANKFUL
The Iloilo Business Club (IBC) cited the city government for also looking after businesses especially during the pandemic.
“We thank them for always recognizing the plight of our local businesses and for their continued support to the sector,” said IBC executive director Atty. Eunice Guadalope.
During the past two pandemic-hit years characterized by lockdowns and restrictions, the business sector suffered heavily, with low business turnover and the accrual of fixed expenses like rentals and property taxes.
With Iloilo City now under the less restrictive pandemic Alert Level 1, Guadalope said businesses are just starting to recover and regain their previous levels of productivity. And most of them are micro, small and medium enterprises (MSMEs).
“We deem it prudent of the local government to not increase the real property and business taxes,” Guadalope said.
Their group also cited the good partnership of the business sector and the city government.
“As a result, we have fostered a business-friendly and productive atmosphere and turned Iloilo City into a prime destination for domestic and foreign investors that it is known today,” according to Guadalope.
Meanwhile, Iloilo Economic Development Foundation (ILED) head Francisco Gentoral said the freeze in tax hikes will provide some cash flow to MSMEs.
“Bringing back businesses to life would increase the opportunities for job creation,” he said.
Gentoral also lauded the revisions and enhancement of the investment incentives especially supporting business recovery, the improvement and maintenance of natural and physical facilities, global and national networks of investors and partners invited by the city and or received by the city.
“All these are ingredients for economic recovery,” he added.
ILED is a public-private partnership, founded in 2007, among the business community, professional groups, civil society, and the provincial and city governments of Iloilo.
Its work is to make Iloilo an attractive investment destination. It also supports local governments to make their localities attractive investment destinations./PN
