Makati City govt to help pan­demic-hit firms

BusinessMirror - - Companies - By Eli­jah Felice E. Ros­ales @alyas­jah

The Makati City gov­ern­ment said it is al­lo­cat­ing a to­tal of P2.5bil­lion worth of grants to be dis­trib­uted to reg­is­tered busi­nesses in the city for their re­cov­ery.

In a state­ment on Mon­day, Makati City Mayor Abby Bi­nay said she re­layed to the city coun­cil a pro­posal to pro­vide P2.5 bil­lion of sub­si­dies for firms af­fected by the Covid-19 pan­demic. She ex­plained many busi­nesses are suf­fer­ing from low vol­ume of cus­tomers nowa­days, and are in need of state in­ter­ven­tion to carry through.

Un­der Bi­nay’s or­di­nance, the more than 78,000 reg­is­tered en­ter­prises in Makati can get up to P100,000 in grant from the lo­cal gov­ern­ment de­pend­ing on how many em­ploy­ees they sus­tain.

“I have en­dorsed to the city coun­cil to­day an or­di­nance for the

P2.5-bil­lion Makati as­sis­tance and sup­port for the busi­ness pro­gram,” Bi­nay said. “Makati-based busi­nesses can get a grant of up to P100,000 de­pend­ing on the num­ber of Maka­ti­zens they em­ploy.”

“The tar­get is to help some 78,000 busi­nesses reg­is­tered in Makati,” she added, stress­ing the as­sis­tance is not a loan but a form of sub­sidy.

In ex­change, busi­nesses that will ob­tain fi­nan­cial sup­port from the gov­ern­ment will be re­quired to keep their Makati-based work­ers for two years. Like­wise, they should be able to sus­tain op­er­a­tions for un­til 2022, and is there­fore pro­hib­ited to shut down.

Fur­ther, they are man­dated to en­force min­i­mum health stan­dards in their es­tab­lish­ments to make sure cus­tomers and work­ers alike are safe from the virus.

On top of the fi­nan­cial sup­port, Bi­nay an­nounced she sub­mit­ted to the city coun­cil a separate pro­posal to turn Makati into the coun­try’s on­line busi­ness hub. As such, the mayor is ask­ing all on­line sell­ers to reg­is­ter with the gov­ern­ment and pay their proper taxes.

She vowed Makati will im­ple­ment the low­est tax rate there is for dig­i­tal re­tail­ers, and will roll out a sim­ple process in reg­is­tra­tion to shun red tape.

As for the food ser­vice sec­tor, the Makati mayor is al­low­ing her cit­i­zens to buy from fast food and restau­rants for up to 10 in the evening, two hours later than the cur­few ob­served in the city. She said cus­tomers just need to present the re­ceipt as proof they bought their food within the win­dow pe­riod.

Bi­nay said this should help restau­rants and fast food chains to get back on their feet, as an ex­tended op­er­at­ing time will mean higher rev­enues for their firms.

“In a nut­shell, Makati’s ma­jor ini­tia­tives are to help busi­nesses. First, we helped our cit­i­zens. Sec­ond, we are now help­ing our busi­nesses re­cover. We need to give them as­sis­tance for them to sur­vive and con­tinue pro­vid­ing jobs to our kababayans,” she said.

Busi­ness­mir­ror file photo

The sky­line at Makati City, the coun­try’s main fi­nan­cial dis­trict, is seen in this July 9, 2019, photo.

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