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Councilor pushes for riders’ exemption from biz permit

A LAWMAKER pushed to repeal an ordinance requiring delivery riders to secure business permits before they can start providing a service. 

Councilor Bernard Al-ag proposed the passage of a resolution and ordinance to repeal Ordinance No. 0612-21 to institutionalize their exemption from paying fees. 

The councilor received a petition letter from an association of food delivery riders who complained of the additional burden. 

Depending on the income declared by the delivery riders, they are required to pay an amount ranging from P3,000 to P6,000 along with additional tax.

It can be noted that the ordinance passed in 2021 categorized all food delivery riders as individual service contractors and therefore, must secure business permits.

Al-ag stressed that the riders should be exempted as what is stated in the Joint Memorandum Circular (JMC) No. 1 Series of 2021 or the Guidelines for Processing Business Permits, which was jointly issued by Anti Red Tape Authority, Department of Trade and Industry, Department of Interior and Local Government and Department of Information and Communications and Technology.

“Although the delivery riders, and those that are similarly situated to them, are doing business here in the City, they are expressly exempted by law to secure permits before they can offer their service to the public,” Al-ag said during the 2nd regular session of the 20th city council, Jan. 23.

Section 6.2.2 of the JMC states that “business permits shall not be required from individuals or those registered in the Securities and Exchange Commission, as a One Person Corporation who provides personal services that do not fall under the exercise of a profession; provided further that, the individual does not occupy a permanent work or retail space, whether inside the residence or in any commercial space.” 

“We want to follow what is provided by the National law which states that they are exempted,” Al-ag told the media.

The privilege speech of Al-ag was considered to have been read in the first reading and was referred to the Committee on Rules, jointly with the Committee on Trade, Commerce and Industry, and the Committee on Labor and Employment Opportunities.

The councilor said while the renewal of business permits is ongoing, they are still required to comply since they are still covered unless the ordinance is repealed.

“In case the ordinance will be repealed, they will be required to retire their business permit,” Al-ag said. However, they are still required to obtain an occupational permit costing P125. 



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