(NAR) VOL. 7 NO. 2 / APRIL-JUNE 1996; 92 OG No. 26, 3965 (June 24, 1996)
WHEREAS, in consonance with Presidential Proclamation No. 595, declaring 1996 as the Small Enterprises Development Year;
WHEREAS,
as embodied in Republic Act 6977, otherwise known as the Magna Carta
for Small Enterprises, it is the policy of the State to promote,
support, strengthen and encourage the growth and development of small
and medium enterprises in all productive sectors of the economy towards
countryside industrialization;
WHEREAS, cognizant of the fact
that the most rapid way of advancing the commercial and economic
interests of the micro, cottage and small enterprises, as defined by the
Small and Medium Enterprises Development Council, is by providing them
access to available financing facilities of government financing
institutions;
WHEREAS, recognizing that a great number of micro,
cottage and small enterprises which are not able to prepare necessary
financial statements and income tax returns, in accordance with
Executive Order 10, resort to informal and unrecognized financing
alternatives, thereby tolerating the existence of loan sharks and
usurers;
WHEREAS, realizing the imperative objective of the
prevailing Tax Reform Program of the Government, and in facilitation
thereof, heightened revenues could be potentially generated should these
micro, cottage and small enterprises be drawn into the formal economic
sphere;
WHEREAS, the government financing institutions, in their
lending programs shall educate these enterprises in the preparation of
financial statements and income tax returns, and require them to file
with the Bureau of Internal Revenue;
NOW, THEREFORE, I, FIDEL V.
RAMOS, President of the Republic of the Philippines, by virtue of the
powers vested in me by the Constitution, do hereby suspend the
requirements of Executive Order No. 10; Provided:
a) That this
suspension shall only apply to micro, cottage and small enterprises, as
defined by the Small and Medium Enterprises Development Council (SMED
Council);
b) That these micro, cottage and small enterprises can avail of the benefit only once;
c) That this suspension shall be in effect for a period of five (5) years from date thereof; and
d)
That, finally, this suspension shall be consistent and run parallel to
the Comprehensive Tax Reform Program of the Government.
This Executive Order shall take effect immediately.
Adopted: 17 April 1996
(SGD.) FIDEL V. RAMOS
President of the Philippines
By the President:
(SGD.) RUBEN D. TORRES
Executive Secretary