The Senate ratified the bicameral conference committee report for the amendments to the Retail Trade Liberalization Act.
The bill seeks to lower the capitalization requirement for foreign retailers from $2.5 million to $500,000, or roughly from P125 million to P25 million.
This is in order to attract more foreign direct investments into the country, thereby fostering competition, lowering market prices, and creating more local jobs.
Senate Majority Leader Migz Zubiri, one of the original authors of the bill, fought to keep the capitalization level at P25 million, against the House version’s proposed P10 million.
“We did this to protect our micro-, small-, and medium enterprises,” Zubiri said.
“We must always prioritize the interests of our local business sector, particularly our MSMEs.”
“Because while we gladly welcome foreign investors, we must always prioritize the interests of our local business sector, particularly our MSMEs who make up 99 percent of our corporate taxpayers. Lalo na ngayong patuloy pa rin and pandemya at marami pa sa kanila ang hindi nakaka-recover mula dito,” the veteran legislator added.
The ratified bicameral conference report also mandates a per-store amount requirement of P10 million for foreign retailers with more than one physical store.
This is seen to prevent foreign retailers from breaking up their investment to create smaller shops that will compete with MSMEs.
“We really had to find a balance between attracting foreign investors and also protecting our local sectors,” the seasoned lawmaker stressed.
“I am especially hopeful about all the employment opportunities that this will open up for our people.”
“And overall I think we have hit a good compromise. I think this is a landmark bill that will do wonders for our economy, particularly as we recover from the pandemic. I am especially hopeful about all the employment opportunities that this will open up for our people,” the senator concluded.
