ILOILO CITY – The Sangguniang Panlungsod (City Council) on Friday passed an ordinance granting incentives on regulatory and administrative fees to nano enterprises in Iloilo City.

Ordinance author, Councilor Jose Maria Miguel Treñas, said the ordinance is meant to support the smallest establishments operating in this highly urbanized city.

"It aims to grant nano enterprises a special discount on their regulatory fees and business tax. The goal is to ease their financial burden and encourage their growth and legitimacy within the city's economy," he said during the council deliberation.

Treñas said the ordinance targets to cover sari-sari (convenience) stores, “carinderias” (food stalls), and digital startups.

Excluded from the coverage, however, are the ambulant vendors.

In the first year, they can avail of a 75 percent discount on regulatory and administrative fees, 50 percent on the second year, and 25 percent on the third year.

Councilor Jose Maria Dela Llana, vice chair of the Committee on Ways and Means, in his report, said the measure intends to reduce the burden experienced by individuals and families engaged in extremely small-scale livelihood activities who remain unregistered due to limited capital and have difficulty complying with regulatory requirements.

He said that during their committee hearing, their resource persons acknowledged that the "nano enterprises form a meaningful segment of the city's grassroots economy, providing essential income opportunities, especially among low-income households."

"During the hearing, the CTO (City Treasurer's Office) and the LEDIP (Local Economic Development and Investment Promotion) office confirmed that although the program may result in reduced revenue collection in the short term, the impact outweighed the long-term benefit," he said.

Among the benefits are increased formalization of nano enterprises, expansion of taxable base, improved regulatory compliance, and greater economic mobility among low-income constituents, he added.

The committee report further said that the ordinance is aligned with the goal of the city government for inclusive growth, ease of doing business, and sustainable local development.