Report on Philippine Economic Enterprise at University of Southeastern Philippines

1. Economic Enterprise
in the
PHILIPPINES

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PUBLIC ECONOMIC ENTERPRISES
=a business like entity, wholly or partially
owned by local government that sells a
product or service to meet a perceived
specific public demand
Common PEEs in the Philippines are:
public markets, slaughterhouses, bus
terminals, waterworks and cemeteries

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PURPOSEFUL PEE
=is the one that contributes to the
sustainable development and quality
service delivery goals of the local
government unit (LGU) and the nation

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ECONOMIC ENTERPRISES INCLUDE:
a. public market

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ECONOMIC ENTERPRISES INCLUDE:
b. transport terminals (bus, jeepney,
parking, piers)

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ECONOMIC ENTERPRISES INCLUDE:
c. slaughterhouses, livestock trading and
cattle fattening

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ECONOMIC ENTERPRISES INCLUDE:
d. fish landing and cold storage facilities, e.
post harvest facilities (grain storage, drying,
milling)

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ECONOMIC ENTERPRISES INCLUDE:
e. water supply

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ECONOMIC ENTERPRISES INCLUDE:
f. sanitation (local drainage, sewerage,
solid waste collection and disposal)

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ECONOMIC ENTERPRISES INCLUDE:
g. public parks, sports and recreational
facilities

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ECONOMIC ENTERPRISES INCLUDE:
h. public cemeteries

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How do Purposeful PEEs contribute to
poverty reduction?
1. Require less subsidy from government
and generate profit.
2. Equitable delivery of products and
services will increase the access of
marginalized groups to local services.
3. Quality services such as utilities,
markets and transportation will attract
potential investors to the LGUs.

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LOCAL GOVERNMENT CODE
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Republic Act 7160, otherwise known as the
Local Government Code under Section 17
states that... (IX) public markets,
slaughterhouses and other municipal
enterprises; (X) public cemetery Under section
17, the phrase “ and others” is added, which
connotes that any other utilities or services can
be considered as economic enterprises,
provided they generate income or revenues.

14. PROBLEMS OF
ECONOMIC
ENTERPRISES

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PROBLEMS OF ECONOMIC ENTERPRISE
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2
3
1. MOST OPERATE AT A LOSS

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PROBLEMS OF ECONOMIC ENTERPRISE
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3
2. TRADITIONAL

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PROBLEMS OF ECONOMIC ENTERPRISE
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2
3
3. INEFFICIENTLY MANAGED

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PROBLEMS OF ECONOMIC ENTERPRISE
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2
3
4. POOR PRODUCTS AND
SERVICES

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PROBLEMS OF ECONOMIC ENTERPRISE
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2
3
5. ESTABLISHED
OPPORTUNISTICALLY

20. OTHER REVENUE
MEASURES IN THE
PHILIPPINES

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Other Revenue Measures
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2
3
Aside from the regular allotments, local
government units also receive other forms
of aid from the national government funds
such as:
•Philippine Charity Sweepstakes
•Philippine Horse Racing Commission

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Other Revenue Measures
1
2
3
•Philippine Charity Sweepstakes:
=is the principal government agency for
raising and providing funds for health
programs, medical assistance and
services, and charities of national
character.

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Other Revenue Measures
1
2
3
•Philippine Charity Sweepstakes:
=mandated by virtue of a special law to contribute
funds for the following government entities:
the Philippine Sports Commission, the Commission on
Higher Education, the Comprehensive and Integrated
Shelter and Urban Development Financing Program,
the Philippine Centennial Commission, the National
Commission on Indigenous People, the Overseas
Workers Welfare Administration, theDepartment of
Foreign Affairs and the Quirino Memorial Medical
Center.

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Other Revenue Measures
1
2
3
•Philippine Charity Sweepstakes:
=the PCSO generates its revenues from the
sale of sweepstakes and lotto tickets. To arrive
at the amount of net receipts, the printing cost
which shall not exceed two percent (2%) of the
gross receipts, is deducted from the gross
receipts generated from the sales of
sweepstakes and lotto tickets.

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Other Revenue Measures
1
2
3
•Philippine Horse Racing Industry
=The most important segment of the local
horseracing industry, being its source of income
is the betting public. Their continued patronage
of the sport sustains the viable operation of
horseracing in the country. Betting generates
income for the government. Of the Php 5,919
Billion sales registered in 2001, Php 880 Million
in taxes were contributed to the national coffers.

26. LOCAL
LEVIES

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LEVIED BY PROVINCES
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•Tax on transfer of ownership
•Tax on business of printing and publication
•Franchise tax
•Tax on gravel and sand and other quarry
recources but proceeds distributed as follows:
Province 30%, City/Municipality 30%, Barangay
40%
•Annual professional tax
•Annual fixed tax for delivery truck or van of
manufacturers

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LEVIED BY MUNICIPALITIES
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2
3
•Business tax on wholesalers, distriutors,
dealers, manifacturers etc.
•Fees and charges on business and occupation
or practice of profession not reserved to the
province.
•Fees for sealing and licensing og weights and
measures
•Fishery rentals, fees and charges
•Community tax paid by every resident at least
18 years old.

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LEVIED BY CITIES
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•Fees and charges that may be imposed
by the province or municipality. However,
those levied by highly urbanized cities and
independent component cities accrue
exclusively to them.

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LEVIED BY BARANGAYS
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•Taxes on stores and retailers with fixed buiness
establishments with gross receipts not exceeding
P50,000 in cities and P30,000 in municipalities
•Fees and charges for services rendered in connection
with the use of barangay-owned properties.
•Clearance fees on license permits by city or
municipality for business or any activity.
•Fees and charges on commercial breeding of fighting
cocks, cockfights and cockpits
•Fees and charges on billboards, signages, neon signs,
outdoor advertisements

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OTHER SOURCES OF REVENUE
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•Local Governments are empowered
to enter into credit and financial
transactions to finance local
infrastructure, and socioeconomic
development projects and to avail of
credit lines to stabilize local finances.

32. REVENUE RAISING
POWERS COMMON TO
ALL LOCAL
GOVERNMENT UNITS

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1
2
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•Fees and charges for services rendered
•Charges for operation of public utilities
owned,operated and maintined by them within
their jurisdiction
•Toll fees and charges for use of public road, pier,
wharf, waterway, bridg etc.
•Any tax, fee or charge on any base not mentined
by laws provided that it is not unjust, oppressive,
excessive, confiscatory, or contrary to national
policy and public hearing shall be conducted.

34. Thank You
"Life is beautiful"
Merle Dawn S.
Comidoydawncomidoy@yahoo.com