Marikina shoe, leather traders given tax relief
To help enliven the shoe industry in Marikina, the city government is offering business tax exemption and relief to the city’s local manufacturers of footwear and other leather goods.
In a statement issued on Friday, Marikina Mayor Del de Guzman announced the passage of City Ordinance 16, Series of 2011, otherwise known as Ordinance on Business Tax Exemption and Relief to Local Footwear Manufacturer and Other Leather Goods of Marikina.
Under the said ordinance, new footwear and leather goods businesses shall be granted tax relief, including the exemption from paying business tax upon license application, on the first year of operation.
Manufacturers will be given 75 percent discount on business tax upon license application on the second year of operation; 50 percent on the third year; and 25 percent discount on business tax on their fourth year of operation.
The city also offers 30 percent discount on business tax effective in five years for businesses that are currently in operation.
De Guzman said the business owners, however, should still pay the regulatory fees related to the conduct of business such as the garbage fee, sanitary permit fee, fire inspection fee, health certificate fee, and building inspection fee.
The mayor sees the passage of the ordinance as a significant step in supporting the industry that has put Marikina in the forefront of shoe manufacturing.
The city has been known as the Shoe Capital of the Philippines since 1980s.
“We hope that the implementation of this ordinance will enable our shoe manufacturers ease their financial burdens so they can improve their craftsmanship as a whole,” he added.
Even if the shoe industry has weakened due to globalization, world economic crisis, and competition, De Guzman, whose father was a shoemaker, was confident that the quality of footwear in Marikina remained superior in style, material and workmanship.
The Business Permits and Licensing Office (BPLO) disclosed that six shoe manufacturers have already applied and availed themselves of the business tax exemption.
For queries on the said business tax exemption and relief, inquire at the BPLO at 646-2354.
