Improve the processes in starting, maintaining and closing a business

Streamlining of Application Processes

• BIR: Comm. Jose Mario Buñag issued a Memorandum dated September 2006 to all revenue officials and agency employees to ensure that all applications for the issuance of TIN and VAT registrations are processed by the respective offices within one (1) day, provided that the requirements under existing issuances are substantially complied with by the applicants. The agency’s officials and employees are also directed to refrain from requiring the submission of documents which are not required under existing issuances (e.g. Barangay and Homeowner’s clearances). Attached is the BIR memorandum dated 08 September 2006 addressed to all Revenue Officials, employees and other concerned offices on the Processing of Application for Tax Payer Identification Number and VAT registration.

• SSS:
  
  1. SSS Chief Actuary and EVP for Operations Horacio Templo issued a Memorandum to all Group Heads of the Operations Sector requiring the officials to process and release the Employer Registration (SS Form R-1) and Employment Report (SS Form R-1A – Initial) to the employer/employer representative within the day that the registration forms are submitted. Attached is the SSS memorandum dated 26 October 2006 to Group Heads on processing time for employer registration.
  2. In lieu of the Anti-Red Tape Act, SSS drafted a concept paper for their agency’s proposed set of guidelines on frontline service delivery covering the following topics:
     
     1. Citizen’s Charter
     2. Workflow Chart
     3. Accessing Frontline Services
     4. Violations and Penalties
     5. Rewards System

  Upon approval of the guidelines, full implementation will be completed by August of 2007.

• PhilHealth: PhilHealth has a public commitment as per the agency’s Manual of Operations that applications for PhilHealth registration will be released in one (1) dayupon submission of the complete set of requirements by the applicant.

3.1     Consistency in implementing Business Rules in NGAs and LGUs (BOI)

The Philippine competitiveness is failing as evidenced by several international publications. In the 2006 World Competitiveness Yearbook (WCY) published by the International Institute for Management Development, the Philippines ranked 49 out of 61 economies in terms of ease of doing business.  Similarly in the same year, out of the 175 countries surveyed in the World Bank (WB) Doing Business Report, the country ranked 126 on ease of doing business. In that WB Report, the Philippines particularly ranked low in the following areas: starting a business (108); dealing with licenses (113); getting credit (101); protecting investors (151); paying taxes (106); and closing a business (147). 

In terms of transaction costs and flows, the continuing decline of the country’s competitiveness can be attributed mainly to the high cost of doing business. One of the contributing factors is the inconsistency in implementing business rules at the national government agencies (NGAs) and local government units (LGUs). There are some cases that the policies and directions of NGAs are not consistent with the LGUs. In this connection, the NCC-TCF is working with the IFC in improving the competitiveness rank of the country by conducting the “Doing Business” activity starting with a workshop held lat 31 May which was attended by participants from the private and public sector. The workshop aimed  (1) To provide more information and understanding on Doing Business (DB) methodology, Philippines ranking, and share best practices on how to reform (using case studies). (2) To explain DB as a diagnostic tool for benchmarking and implementing business environment reforms in order to improve consistency in the implementation of business rules at the national and local levels. (3) To introduce the Doing Business Sub-national benchmarking tool to help the NCC advocate business environment reforms in priority cities (Metro Manila). At present, IFC with AIM and NCC-TCF is conducting a Road Tour to orient the 20 priority LGUs about the NCC and the Doing Business Program which aims to establish the partnership of LGUs with the NCC in improving the competitiveness rank of the country.

 
3.2     Streamlining of procedures through  business support tools (DTI)

1. Philippine Business Registry System (PBR)
2. Streamlining of procedures on business transactions of DENR (DENR-2007-2008) – Focusing on the ECC application (proposed to be transferred to Project 3.1:  consistency in the implementation of  Business Rules at the National and Local Levels as discussed during the NCC-TCFWG preparatory meeting of May 2, 2007)

   During the NCC-TCFWG preparatory meeting held last May 2, 2007,  the group proposed to transfer this item to Project 3.1:  Consistency in the Implementation of   Business Rules at the National and Local  levels.  Based on our latest information, the draft of the guidelines for the streamlining of the application for the Environmental Compliance Certificate has yet to be signed by the DENR Secretary.

3. Virtual Call Center (CICT 2007-2008) - This project is more of providing government services using one number dubbed as CITIZEN CALL (proposed to be transferred under the Technical Working Group on Efficient and Private Sector Management as discussed during the NCC-TCFWG preparatory meeting of May 2, 2007).

   This project was also proposed to be transferred to the Technical Working Group on Efficient and Private Sector Management as discussed during the NCC-TCFWG preparatory meeting held last May 2, 2007.  We no longer keep an update on this project.

4. Establishment of business support tools (e.g. OSS, CCD, etc.) and streamlining procedures in selected local areas (LGUs and NGAs in the localities 2007-2010) – Recognizing the role of LGUs in doing business in the Philippines that contributed a lot in its recent competitiveness ranking, the government already started some initiatives in improving the business transaction at the local level.  There were already some known local unit’s best practices initiated by the NGAs/LGUs with development partners (e.g. Citizen’s Charter, GTZ-DTI joint project on Streamlining Business Registration in LGUs, etc.)

   There were already some known local unit’s best practices initiated by the NGAs/LGUs with development partners (e.g., Citizen’s Charter, GTZ-DTI joint project on Streamlining Business Registration in LGUs, etc.)

   Other foreign-funded institutions  are also  joining the bandwagon of coming up with studies on best practices with development partners.