Philippines footwear producers receive tax exemption
03/08/2011
The government has passed an ordinance on ‘Business Tax Exemption and Relief to Local Footwear Manufacturer and Other Leather Goods of Marikina’ granting tax relief to new footwear and leather products businesses.
City Mayor Del de Guzman said the manufacturers will be exempted from paying business tax in the first year of their operation from the date of their application for license. They will get 75%, 50% and 25% discounts in business tax in their second, third and fourth years of operation, respectively.
For businesses that are already in operation, the ordinance offers a relief by way of 30% discount for five years on business tax. Business owners will still have to pay several regulatory fees related to the conduct of business.
Mr Guzman said the ordinance as an important step to support the shoe manufacturing industry. He was hopeful that it would ease the financial constraints being faced by footwear manufacturers and they will be able to deliver better products.
Share this story:
