Asia Society Transparency 2.0 Leveling the Playing Field. GUILLERMO M. LUZ Private Sector Co- Chairman September 17, 2013
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1 Asia Society Transparency 2.0 Leveling the Playing Field GUILLERMO M. LUZ Private Sector Co- Chairman September 17, 2013
2 I. Simplification and Streamlining of Procedures Ease of Doing Business Measured by the Interna?onal Finance Corpora?on in its Ease of Doing Business Report 2013 Rank 2012 Rank Change ASEAN Next Report 138/ /183 NONE 8 of 9 Oct- 13 Goal: Move the country to the TOP THIRD of the world ranking by 2016
3 World Rankings of ASEAN Countries COUNTRIES 2013 (185 economies) 2012 (183 economies) 2011 (183 economies) 2010 (183 economies) 2009 (181 economies) SINGAPORE MALAYSIA THAILAND BRUNEI DARUSSALAM VIETNAM INDONESIA CAMBODIA PHILIPPINES LAOS
4 2013 World Rankings of ASEAN Countries by Indicator Country StarXng a Business Dealing w/ ConstrucXon Permits GeZng Electricity Registering Property GeZng Credit ProtecXng Investors Paying Taxes Trading Across Borders Enforcing Contracts Resolving Insolvency Singapore Malaysia Thailand Brunei Vietnam Indonesia Cambodia Philippines Laos
5 Gameplan for Competitiveness Created Ease of Doing Business Task Force by virtue of Administra?ve Order No. 38 With work teams based on the 10 indicators Composed of government agencies and private sector partners Designed and implemented reform targets by benchmarking against ASEAN countries
6 Starting a Business Number of Steps, Number of Days,
7 Starting a Business Number of Steps, Number of Days,
8 Indicator: Starting a Business STAR T Verify and reserve company name with SEC. Deposit paid- up capital and obtain bank cer?ficate. Notarize ar?cles of incorpora?on and treasurer's affidavit. Register the company with SEC and receive pre- registered TIN. Buy special books of account at bookstore. Obtain business permit from BPLO. Pay annual community tax and obtain community tax cer?ficate. Obtain barangay clearance. Apply and pay for Cer?ficate of Registra?on and obtain TIN at BIR. Pay registra?on fee and documentary stamp taxes Obtain authority to print receipts and invoices from BIR. Print receipts and invoices. END Register with Pag- IBIG. Register with Phil. Register with SSS. Have books of accounts and Printer's Cer?ficate of Delivery stamped by BIR.
9 Indicator: Starting a Business STAR T Verify and reserve company name with SEC. Deposit paid- up capital and obtain bank cer?ficate. Notarize ar?cles of incorpora?on and treasurer's affidavit. Register the company with SEC and receive pre- registered TIN. Pay Buy annual special tax and obtain books community of tax account cer?ficate and business bookstore. permit. Obtain business permit from BPLO. Pay annual community tax and obtain community tax cer?ficate. Obtain barangay clearance. Apply and pay for Cer?ficate of Registra?on and obtain TIN at BIR. Pay registra?on fee and documentary stamp taxes Obtain authority to print receipts and invoices from BIR. Print receipts and invoices. END Register Register with SSS, with Phil, Pag- and Pag- IBIG. Register with Phil. Register with SSS. Have Buy books special of books accounts of account and have books and Printer's Cer?ficate of accounts and Printer's of Delivery stamped by Cer?ficate of Delivery stamped BIR. by BIR.
10 Indicator: Starting a Business STAR T Verify and reserve company name with SEC. Notarize ar?cles of incorpora?on and treasurer's affidavit. Register the company with SEC and receive pre- registered TIN. Pay annual tax and obtain community tax cer?ficate and business permit. Obtain barangay clearance. Register with SSS, Phil, and Pag- IBIG. Apply and pay for Cer?ficate of Registra?on and obtain TIN at BIR. Pay registra?on fee and documentary stamp taxes Obtain authority to print receipts and invoices from BIR. Print receipts and invoices. END Buy special books of account and have books of accounts and Printer's Cer?ficate of Delivery stamped by BIR.
11 Dealing with Construction Permits Number of Steps, Number of Days,
12 Dealing with Construction Permits Number of Steps, Number of Days,
13 STAR T Indicator: Dealing with Construction Permits Receive final inspec?on for the FSIC from the BFP. Obtain cer?fied true copy of the land?tle. Apply for the Fire Safety Inspec?on Cer?ficate. Obtain lot plan with site map from the geode?c engineer. Obtain barangay clearance. Receive inspec?on from DBO during construc?on. Apply for loca?onal clearance at the CPDO. Receive inspec?on from BFP during construc?on. Receive inspec?on for the loca?onal clearance from CPDO. Apply, pay and obtain building permit and ancillary permits. Obtain loca?onal clearance from CPDO. Apply and obtain Fire Safety Evalua?on Clearance. Obtain the FSIC from the BFP. Apply for health cer?ficate at the City Office. Receive inspec?on for the health cer?ficate. Obtain the health cer?ficate from the CHO. Apply for the Cer?ficate of Final Electrical Inspec?on. Receive final inspec?on for the CFEI from the DBO. Receive inspec?on for water and sewage connec?on. Apply for water and sewage connec?on. Obtain the Cer?ficate of Occupancy from the DBO. Pay Cer?ficate of Occupancy Fees at City Treasurer's Office. Apply for the Cer?ficate of Occupancy at the DBO. Obtain the CFEI from the DBO. Obtain water and sewage connec?on. Obtain telephone connec?on. Apply for tax declara?on of improvement at CAO.. Receive inspec?on from the Appraiser of CAO. Apply & obtain tax declara?on of improvement from CAO. END
14 STAR T Indicator: Dealing with Construction Permits Receive final inspec?on for the FSIC from the BFP. Obtain Obtain cer?fied true cer?fied copy of true the land copy?tle and of the lot plan land with?tle. site map. Obtain lot plan with site Obtain map from barangay the geode?c clearance. engineer. Apply for the Cer?ficate Fire Safety of Final Inspec?on Electrical Inspec?on Cer?ficate. Apply for, receive Apply and obtain Receive Fire Apply for Obtain inspec?on, and Safety Evalua?on inspec?on for loca?onal barangay obtain loca?onal Clearance the and loca?onal clearance at clearance. from the receive inspec?on clearance from the CPDO. CPDO. from BFP CPDO. Receive Receive Apply, pay and Apply, obtain pay and Apply for, receive inspec?on inspec?on building permit obtain and building inspec?on, and obtain from DBO from BFP ancillary permits permit and and Fire Safety Inspec?on during during receive inspec?on ancillary Cer?ficate from BFP. construc?on. construc?on. from DBO. permits. Obtain loca?onal clearance from CPDO. Apply and obtain Fire Safety Evalua?on Clearance. Obtain the FSIC from the BFP. Receive Apply for final inspec?on health for cer?ficate the CFEI from at the City the DBO. Office. Receive Obtain the inspec?on for CFEI from the the health DBO. cer?ficate. Obtain Apply the for the health Cer?ficate of cer?ficate Occupancy at from the CHO. DBO. Pay Cer?ficate Apply of for Occupancy the Cer?ficate Fees at of City Final Electrical Treasurer's Inspec?on. Office. Receive final inspec?on for the CFEI from the DBO. Receive inspec?on Obtain for telephone water and connec?on. sewage connec?on. Obtain Apply water for and water sewage and connec?on. sewage connec?on. Receive inspec?on Obtain the for Cer?ficate water and of Occupancy sewage from connec?on. the DBO. Pay Cer?ficate of Occupancy Fees at City Treasurer's Office. Obtain the Apply Cer?ficate for the of Cer?ficate Occupancy of Occupancy from the at the DBO. DBO. Obtain the CFEI from the DBO. Apply for, receive inspec?on, Obtain water and obtain tax Obtain declara?on and sewage of improvement telephone connec?on. at CAO. connec?on. Apply for tax declara?on of improvement at CAO. Receive inspec?on from the Appraiser of CAO. Apply & obtain tax declara?on of improvement from CAO. END
15 STAR T Indicator: Dealing with Construction Permits Obtain cer?fied true copy of the land?tle and lot plan with site map. Apply for the Cer?ficate of Final Electrical Inspec?on. Obtain barangay clearance. Apply for, receive inspec?on, and obtain loca?onal clearance from the CPDO. Apply for, receive inspec?on, and obtain Fire Safety Inspec?on Cer?ficate from BFP. Apply and obtain Fire Safety Evalua?on Clearance and receive inspec?on from BFP Apply, pay and obtain building permit and ancillary permits and receive inspec?on from DBO. Receive final inspec?on for the CFEI from the DBO. Obtain the CFEI from the DBO. Apply for the Cer?ficate of Occupancy at the DBO. Pay Cer?ficate of Occupancy Fees at City Treasurer's Office. Obtain telephone connec?on. Obtain water and sewage connec?on. Receive inspec?on for water and sewage connec?on. Apply for water and sewage connec?on. Obtain the Cer?ficate of Occupancy from the DBO. Apply for, receive inspec?on, and obtain tax declara?on of improvement at CAO. END
16 Getting Electricity Number of Steps, Number of Days,
17 Getting Electricity Number of Steps, Number of Days,
18 Registering Property Number of Days,
19 Registering Property Number of Days,
20 Indicator: Paying Taxes Number of Payments, Number of Hours,
21 Indicator: Paying Taxes Number of Payments, Number of Hours, <193
22 Indicator: Paying Taxes Corporate Income Tax Local Business Tax SSS SSS SSS SSS SSS SSS SSS SSS SSS SSS SSS SSS Real Property Tax Tax on Interest Community Tax Cer?ficate Environmental Tax Employer Compensa?on Value Added Tax Tax on Check Transac?ons Tax on Contracts Stamp Duty
23 Indicator: Paying Taxes Corporate Income Tax Local Business Tax SSS SSS SSS SSS SSS SSS SSS SSS SSS SSS SSS SSS Real Property Tax Tax on Interest Community Tax Cer?ficate Environmental Tax Employer Compensa?on Value Added Tax Tax on Check Transac?ons Tax on Contracts Stamp Duty
24 Indicator: Paying Taxes Corporate Income Tax Local Business Tax SSS Real Property Tax Tax on Interest Community Tax Cer?ficate Environmental Tax Employer Compensa?on Value Added Tax Tax on Check Transac?ons Tax on Contracts Stamp Duty
25 I. Simplification and Streamlining of Procedures Business Permits and Licensing System BPLS Streamlining Project Simplify issuance of Mayor s permits < 5 steps < 5 days 1 form 2 signatures As of March 2013, 926 LGUs have streamlined their BPLS. All 1,634 LGUs na?onwide are targeted to be streamlined by 2016.
26 Impact of Streamlining Lapu- Lapu City, Cebu STEPS TIME in DAYS (new) TIME in DAYS (renewal) SIGNATORIES FORM: Unified
27 Impact of Streamlining Lapu- Lapu City, Cebu STEPS TIME in DAYS (new) TIME in DAYS (renewal) SIGNATORIES FORM: Unified
28 Impact of Streamlining Lapu- Lapu City, Cebu REVENUE GENERATED, 2009 PHP M
29 Impact of Streamlining Lapu- Lapu City, Cebu REVENUE GENERATED, 2010 PHP M 7%
30 Impact of Streamlining San Fernando City, Pampanga STEPS 2 TIME 25 minutes SIGNATORIES 1 FORM: Unified
31 Impact of Streamlining San Fernando City, Pampanga REVENUE GENERATED, Q PHP M
32 Impact of Streamlining San Fernando City, Pampanga REVENUE GENERATED, Q PHP M 12.6%
33 II. Monitoring and Evaluation BPLS Customer SaXsfacXon Surveys Conducted every January- February to validate the reforms reported by the LGUs Assess the experience of businessmen in applying for permits in ci?es and municipali?es
34 II. Monitoring and Evaluation 63% 1% 6% 3% 4% 23% Extremely DissaXsfied DissaXsfied Somewhat DissaXsfied Somewhat SaXsfied SaXsfied Extremely SaXsfied 2012 BPLS Customer SaXsfacXon Survey Out of more than 800 respondents, 63% reported that they were sa?sfied with the BPLS in their respec?ve LGUs.
35 II. Monitoring and Evaluation 2012 Annual Enterprise Survey on CorrupXon Conducted July- October th run since 2000 Largest sample and area coverage so far with 972 businessmen from NCR, Metro Angeles, Calamba/ Laguna/Batangas, Metro Iloilo, Metro Cebu, Metro Davao, and CDO- Iligan
36 II. Monitoring and Evaluation 2012 Annual Enterprise Survey on CorrupXon 20 government agencies covered City/Municipal Government
37 II. Monitoring and Evaluation 2012 Annual Enterprise Survey on CorrupXon 43% see a lot of corrup?on in the public sector lowest since % say most/almost all in their sector give bribes to win public sector contracts lowest since % know of corrup?on in their sector in the last 3 months lowest since % see less corrup?on now; only 3% see more corrup?on now, compared to the previous administra?on.
38 II. Monitoring and Evaluation 2012 Annual Enterprise Survey on CorrupXon Ra?ngs of sincerity in figh?ng corrup?on have improved for 17 of 20 ins?tu?ons. Those that did not were City Government, Supreme Court, and COMELEC. Top 4 agencies Office of the President (Excellent) DOH, DTI, and DepEd (Very Good)
39 II. Monitoring and Evaluation Office of the President EXCELLENT SINCERITY RATINGS IN * % VERY/SOMEWHAT Sincere MINUS % SOMEWHAT/VERY INSINCERE, correctly rounded. Qs PLEASE EVALUATE THE FOLLOWING INSTITUTIONS IN TERMS OF SINCERITY IN FIGHTING OR PREVENTING PUBLIC SECTOR CORRUPTION IN THE PHILIPPINES. [Very sincere; Somewhat sincere; Undecided if sincere or not; Somewhat insincere; Very insincere]
40 II. Monitoring and Evaluation VERY GOOD SINCERITY RATINGS IN Dept. of Dept. of Trade and Industry Dept. of Education Qs PLEASE EVALUATE THE FOLLOWING INSTITUTIONS IN TERMS OF SINCERITY IN FIGHTING OR PREVENTING PUBLIC SECTOR CORRUPTION IN THE PHILIPPINES. [Very sincere; Somewhat sincere; Undecided if sincere or not; Somewhat insincere; Very insincere]
41 II. Monitoring and Evaluation 2012 Annual Enterprise Survey on CorrupXon Majori?es see corrup?on cases in court going fairly, but too slowly. 50% were solicited for a bribe, versus 60% in the 2009 survey; but repor?ng of solicita?on to authori?es remains very low.
42 II. Monitoring and Evaluation 2012 Annual Enterprise Survey on CorrupXon Corrup?on is less in the private sector than in the public sector, but is also serious, and has not improved. Although companies say success in figh?ng corrup?on will make them more profitable, they are not helping much to pay the bill. The extent of honest business prac?ces is unsa?sfactory and not improving. Business prospects have never been beper; execu?ves give much credit to the Na?onal Government for this.
43 III. Budget Transparency hdp:// Electronic Transparency Accountability IniXaXves for Lump Sum AppropriaXons System (e- TAILS)
44 III. Budget Transparency hdp://pdaf.dbm.gov.ph/
45 III. Budget Transparency hdp://pdaf.dbm.gov.ph/
46 III. Budget Transparency hdp://budgetngbayan.com/
47
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