FINANCIAL TRANSACTIONS. The city government is giving an incentive to business establishments that will provide an alternative mode of payment other than cash by pushing for the use of the online mode of payment for goods and services. The ordinance passed by the city council on Nov. 28 gives establishments a 2.5 percent cut on their business taxes. (Photo courtesy of PIO-Baguio Facebook page)
BAGUIO CITY – Businesses in the city that will provide an online mode of payment for services and goods will be entitled to a 2.5 percent cut in their business tax.
“Ordinance 71-2022 includes all public market vendors, all stores and business establishments, including, but not limited to sari-sari stores, ambulant vendors and hawkers and all public transport groups,” Vice Mayor Faustino Olowan said in a message on Wednesday.
The ordinance passed on Nov. 28, 2022 states that “all business owners who shall provide QR PH (quick response Philippines) as an alternative mode of payment will be granted incentives such as the 2.5 percent discount which shall be applied on their business taxes on the first year of adoption.”
This is in support of the Paleng-QR program of the national government that aims to ease transactions and allow the public to have a cashless mode of payment transactions.
Olowan also enjoined not just the business establishments but local public transportation service providers in the city to adopt the QR PH digital payments which are aligned to the Paleng-QR PH program and financial inclusion program of the Bangko Sentral ng Pilipinas.
The ordinance also imposes confidentiality in the transactions as provided for by Republic Act 10173 or the Data Privacy Act.
The ordinance said payments are basic financial transactions and as demonstrated at the height of the coronavirus disease 2019 (Covid-19) pandemic, the digitalization of payments proved to be effective in facilitating the continuation of business and government transactions amid mobility restrictions.
It also enabled the government and private institutions to provide lifelines of support to the vulnerable sectors to transact digital payments.
The Paleng-QR had its pilot launch in the city last Aug. 14, 2022, where the FSPs rendered onboarding services to interested vendors and merchants at the city market.
BSP Northern Luzon director Noel Malimbane earlier said Baguio City is among the local government units that are drumming up adoption of the Paleng-QR, encouraging the establishments to provide an alternative mode of payment for goods and services such as the use of online payment.
He said by having a bank account, a person will not only safely save money but can also conveniently send and receive money to and from anyone for transactions such as receiving salaries and cash assistance, collecting payments from customers, and paying taxes, purchases and bills. (PNA)
