On Sept. 11, President Rodrigo Duterte signed the Bayanihan to Recover as One Act or Bayanihan 2 into law. This provides a P165 billion economic stimulus package to respond to the ongoing health crisis which crippled businesses and led to the decline of the economy.
To combat this, here are some of the provisions of Bayanihan 2 for businesses:
- Bills and loans that are due on or before Dec. 31, 2020 have a 60-day grace period.
- Water, electricity, telecommunications and other similar services will provide a 30-day moratorium for bills that fall within the period of enhanced community quarantine or modified enhanced community quarantine. This also applies to payment of residential and commercial rent of lessees not permitted to work within the community quarantine period.
- Net operating loss of businesses for the taxable years 2020 and 2021 will be deductible from gross income for the next five taxable years.
- Retirement benefits of workers in private firms received between June 5 to Dec. 31, 2020 are exempted from taxation.
- P39.5 billion will be received by government financial institutions to provide low-interest loans. Of this, P10 billion will fund the Small Business Corp. for its COVID-19 Assistance to Restart program.
- Landbank will receive P18.5 billion for low-interest loans while the Development Bank of the Philippines will receive P6 billion. The Philippine Guarantee Corp. will also get P5 billion for its credit guarantee program.
- P13 billion for cash-for-work programs and unemployment or involuntary separation assistance for displaced workers, self-employed, freelancers and overseas Filipino workers.
- P24 billion for direct cash or loan interest rate subsidies to farmers, fisherfolk, agri-fishery enterprises and cooperatives to finance the Department of Agriculture’s Plant, Plant, Plant program.
- P9.5 billion will go to the Department of Transportation. P2.6 billion is allotted to critically affected transport businesses, P5.6 billion to provide temporary livelihood for displaced public utility vehicle drivers, P1.3 billion for the setting up of bicycle lanes and sidewalks.
- P100 million for training and subsidies of tourist guides.
- P4 billion for the tourism industry, of which P1 billion goes to tourism infrastructure and P3 billion for displaced tourism sector workers.
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