New Bills Propose 5-Year Business Permit Validity & Higher Idle Land Taxes

Bills seeking to extend the validity of business permits from one to five years, as well as increase the tax on idle lands from 5% to 10%, have been proposed in the House of Representatives. Kamanggagawa Partylist Rep. Elijah “Eli” San Fernando made the proposal under House Bills 7213 and 7212, respectively, saying these initiatives will alleviate the plight of workers. Business permits House Bill 7213 seeks to amend the Anti-Red Tape Act and the Ease of Doing Business Law by providing local businesses with business permits valid for five years “unless there are material changes in their operations.” San Fernando said that this will remove the hassle of having to undergo annual permit renewals. Likewise, the bill states that local governments will retain their regulatory authority, but administrative renewals may be done on the fifth year or on the permit’s anniversary, instead of every January. “The measure is intended to ease the recurring administrative and financial burden on businesses, particularly micro, small, and medium enterprises (MSMEs), which account for more than 99 percent of registered establishments and employ nearly two-thirds of the private workforce,” San Fernando added. Idle lands House Bill 7212, meanwhile, seeks to amend Section 236 of the Local Government Code of 1991 by pegging the allowable idle land tax to 10% of the assessed value of the property, double the existing figure at 5%. San Fernando said the bill will discourage land speculation, push landowners to develop or release idle properties for productive use, and give local governments a more effective tool to promote inclusive growth. In addition, San Fernando said revenues from the increased tax may also be used to support local services, infrastructure, and social programs that benefit working communities. “Vast tracts of idle and underutilized land, especially in urban and peri-urban areas, continue to worsen housing shortages, inflate land prices, and limit access to jobs and basic services,” San Fernando said on Wednesday. "Ang pagmamay-ari ng lupa ay may kaakibat na pananagutan sa lipunan,” he added.