Economic Enterprise

in the
PHILIPPINES

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

Page 3

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

Republic Act 7160, otherwise known as the
Local Government Code under Section 17
1
states that... (IX) public markets,
slaughterhouses and other municipal
enterprises; (X) public cemetery Under2section
17, the phrase and others is added, which
connotes that any other utilities or services
3 can
be considered as economic enterprises,
provided they generate income or revenues.
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PROBLEMS OF
ECONOMIC
ENTERPRISES

PROBLEMS OF ECONOMIC ENTERPRISE

1. MOST OPERATE AT A LOSS

1
2
3

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PROBLEMS OF ECONOMIC ENTERPRISE

2. TRADITIONAL

1
2
3

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PROBLEMS OF ECONOMIC ENTERPRISE

3. INEFFICIENTLY MANAGED
1
2
3

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PROBLEMS OF ECONOMIC ENTERPRISE

4. POOR PRODUCTS AND

1
SERVICES
2
3

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PROBLEMS OF ECONOMIC ENTERPRISE

5. ESTABLISHED
OPPORTUNISTICALLY

1
2
3

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OTHER REVENUE
MEASURES IN THE
PHILIPPINES

Other Revenue Measures

Aside from the regular allotments, local
government units also receive other
forms
1
of aid from the national government funds
such as:
2
Philippine Charity Sweepstakes
3
Philippine Horse Racing Commission

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Other Revenue Measures

Philippine Charity Sweepstakes:
=is the principal government agency
for
1
raising and providing funds for health
programs, medical assistance and2
services, and charities of national
character.
3

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Other Revenue Measures

Philippine Charity Sweepstakes:
=mandated by virtue of a special law to contribute
1

funds for the following government entities:

the Philippine Sports Commission, the Commission on
Higher Education, the Comprehensive and Integrated
2
Shelter and Urban Development Financing Program,
the Philippine Centennial Commission, the National
3
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

Philippine Charity Sweepstakes:
=the PCSO generates its revenues from
the
1

sale of sweepstakes and lotto tickets. To arrive

at the amount of net receipts, the printing cost
2 of the
which shall not exceed two percent (2%)
gross receipts, is deducted from the gross
receipts generated from the sales of 3
sweepstakes and lotto tickets.

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Other Revenue Measures

Philippine Horse Racing Industry
=The most important segment of the local
1
horseracing industry, being its source of income
is the betting public. Their continued patronage
2 of
of the sport sustains the viable operation
horseracing in the country. Betting generates
income for the government. Of the Php35,919
Billion sales registered in 2001, Php 880 Million
in taxes were contributed to the national coffers.
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LOCAL
LEVIES

LEVIED BY PROVINCES
Tax on transfer of ownership
Tax on business of printing and publication
1
Franchise tax
Tax on gravel and sand and other quarry
recources but proceeds distributed as 2
follows:
Province 30%, City/Municipality 30%, Barangay
40%
3
Annual professional tax
Annual fixed tax for delivery truck or van of
manufacturers
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LEVIED BY MUNICIPALITIES
Business tax on wholesalers, distriutors,
dealers, manifacturers etc.
1
Fees and charges on business and occupation
or practice of profession not reserved to the
2
province.
Fees for sealing and licensing og weights and
measures
3
Fishery rentals, fees and charges
Community tax paid by every resident at least
18 years old.
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LEVIED BY CITIES
Fees and charges that may be imposed
by the province or municipality. However,
1
those levied by highly urbanized cities and
independent component cities accrue
2
exclusively to them.
3

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LEVIED BY BARANGAYS
Taxes on stores and retailers with fixed buiness
establishments with gross receipts not exceeding
1
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 or2
municipality for business or any activity.
Fees and charges on commercial breeding 3of fighting
cocks, cockfights and cockpits
Fees and charges on billboards, signages, neon signs,
outdoor advertisements
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OTHER SOURCES OF REVENUE

Local Governments are empowered
to enter into credit and financial1
transactions to finance local
2
infrastructure, and socioeconomic
development projects and to avail of
3
credit lines to stabilize local finances.

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REVENUE RAISING
POWERS COMMON TO
ALL LOCAL
GOVERNMENT UNITS

Fees and charges for services rendered

Charges for operation of public utilities
owned,operated and maintined by them 1
within
their jurisdiction
Toll fees and charges for use of public road, pier,
2
wharf, waterway, bridg etc.
Any tax, fee or charge on any base not mentined
3
by laws provided that it is not unjust, oppressive,
excessive, confiscatory, or contrary to national
policy and public hearing shall be conducted.
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Thank You
"Life is beautiful"

Merle Dawn S.
dawncomidoy@yahoo.com
Comidoy