In order to fasttrack the processing of business permits, Interior and Local Government Secretary Jesse M. Robredo called on all local chief executives nationwide to “promote the ease of doing business in the country” by limiting the documentary requirements for the issuance of a business permit to those required by law, zoning ordinance or other regulations.
Robredo made the call after his office received reports of the long list of administrative requirements imposed by some local government units (LGUs) in the issuance of business permits.
“Unnecessary requirements appear repugnant to efforts aimed at promoting a climate that is conducive to business in the country,” said Robredo, who stressed that such requirements should be simplified and rationalized.
In his directive, Robredoalso urged mayors to issue a conditional permit to a business where the only lacking clearances are those of SSS, PHILHEALTH and PAG-IBIG, with the understanding that such clearances will have to be submitted within one month from the issuance of such permit.
“Failure to submit such clearances within the one-month period can result in the revocation or non-renewal of a business permit,” Robredo said.
The DILG chief also noted that the barangay clearance is becoming an impediment in doing business considering the unnecessary documentations and unreasonable costs imposed by some barangays.
“Additional requirements beyond those which are legally required and verbal impositions by action or processing officers must be stopped,” he added.
Citing Sections 147 and 151 of the Local Government Code, the DILG secretary said that a municipality and a city may impose and collect reasonable fees and charges on business commensurate with the cost of regulation, inspection and licensing before any person may engage in a business.
Similarly, Section 152 of the same Code provides that “no city or municipality may issue any license or permit for any business unless a clearance is first obtained from the barangay where such business is located or conducted. For such clearance, the sangguniang barangay may impose a reasonable fee. The application for clearance shall be acted upon within seven working days from the filing thereof.”
Relatedly, Robredo urged city and municipal mayors to direct the formulation of a citizens’ charter for every barangay to be posted within the barangay hall premises, with a copy furnished to the local business permit and licensing office.
The barangay citizens charter is a document containing its frontline services and the time allotted to accomplish said services, including the issuance of barangay clearance.