Finance chief calls out to biz franchisees to pay correct taxes

“You can take a more aggressive stance in terms of the future. Building a country cannot be done by government alone. It is you,” Finance Secretary Cesar Purisima said to the attendees of the Philippine Franchise Association’s Annual Conference held earlier today.

Purisima’s speech added the “best practice” of paying proper taxes, highlighting the crucial role businesses played in the country as the country’s growth is mainly driven by consumption.

“The government accounts for less than 20% of the economy, you account for 80% of the economy. Do your part because no matter how much part we make, it will be for naught.”

Purisima said the PFA can help sustain the country’s average growth of 6.1% over the last three years by using good governance as a key principle in running their businesses.

“I encourage all our franchisees who are still not in the formal economy to come out, declare yourselves to the BIR and pay the right amount of taxes,” the finance chief said.

Purisima added, “With tax evasion, you are hurting yourself and your business. Government is the major recycler of funds in an economy and without these funds, people cannot increase consumption.”

He also encouraged businesses to localize supply chains to further create jobs for Filipinos.

Moreover, Purisima announced the Department of Finance will publish in major broadsheets comparing top-rated establishments in different business categories in different cities of the country.

“You cannot hide,” Purisima said.

The government aims to raise its tax effort to 16% by 2016, from current levels of 12.9%.