PEZA seeking to make SMEs ‘indirect exporters’
A NEW scheme targeting small and medium enterprises (SME) in the manufacturing industry is in the works, with the intention of bringing such companies into the supply chains of larger firms registered with the Philippine Economic Zone Authority (PEZA).
The plan is to co-locate SMEs in existing manufacturing zones for exporters, where they can work with and possibly supply larger firms.
PEZA Director- General Charito B. Plaza said in an interview that the strategy will first turn the SMEs into “indirect exporters” until these companies are big enough to become direct exporters themselves.
“We’re in a hurry actually because the SMEs are enthusiastic [since] if they are in the zone, the parameters are clear and… they will also enjoy the incentives,” she added.
“This will [also] put in order the construction of industries in the locality, and their CLUP (Comprehensive Land Use Plan) so now we are encouraging the local government units to use the ecozone concept, [to] convert their lands into different types of ecozones.”
So far, PEZA has only accredited one cooperative to receive fiscal and non- fiscal incentives despite the absence of a firm agreement on specific incentives with the Department of Finance.
“PEZA is recommending the incentives [where] they will only pay 5% of their gross income but will have a cap. We recommended 10 to 15 years that they will only pay 5% of their gross income so they will also enjoy… non-fiscal incentives but these are still all on the table,” Ms. Plaza said.
Ms. Plaza said the scheme is designed to bring many small firms out of the underground economy, thereby broadening the tax base, among other benefits. —