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Business .
l77o of their total exPenses for
regulato ry complia a\\d zOVa
^ce Figures
for tax requirements.
include both direct and indi-
tant for them, not Politicians
or bureaucrats.
So when politicials like Mr.
Nograles charge billions of

bureaucracies rect payments such as salaries,


transportation, suPPlies, etc.
There, Adam Smith's words
pesos that a Private company
"owes" to the Passengels they
have safely and comfortablY
served, there is clear malice.
from some 243 Years ago are

andregulations still spot on.


Bureaucracies in SMEs can
expand as courPanies become
The more Political harass-
ment f!ompoliticians, the more
restrictions from agencies like
the LTFRB (Land TransPorta-
large. Take the case oftransport
network companies (TNCs). tion Franchising and Regula-
"'l'here is no art which one gw- tory Board) on expanding the
ernment sooner leams of another
MY CUP Recently, PBA Partylist Jericho
supply of accredited cars ol
than that of drcining monEt from T}F LIBISTY Nograles unleashed a Political
attack on one Private company, players, then the more Public
the pockets ofthe people.'' BIENVENIDO S. suffering via long waiting time
saying that "Grab owes govern-
- Adamsmith OPLAS, JR. ment PIs billion in fines for for the few accredited cars, or
The Wealth of Nations 6276), shorter waiting times but more
ove!cha!ging 3 million riders."
dookv Chqpter II, Part II Again, the term "overcharg- expensive rides
sub-topics i[to a table which ing." When peoPle flY business Can new governmeIrt regula-
ast week, on Nov. 28, I acgompanies this column. tions like the Anti-Red TaPe
class or first class instead of
attended a conference The study made the follow- economy class, theY do so vol- Act addtess problems that,gov-
on Cutting Red Tape ing Summary from their sur- untarily and pay for the ticket, brnment agencies themselves
for Small and Medium Enter- vey results:
dqnot\cIy about being over- created? Perhaps Yes
prises (SMES) organized by . SMEs find regulatory charged. When People watch a Methinks that one lastiDg
the AIM Rizalino S. Nava[o compliance, on average, mod- solution is to limit government
concert or sports game with a
Policy Center for Competi- erately burdensome and they ringside ticket instead of lower people from staYing in govern-
tiveness and the Konrad Ad- consider compliance as a gon- for a maximum of 20
box or upper box, they just PaY ment,
enauer Stiftung (KAS) h6ld at cern ad soon as the business is years combined work in local
and do uot cry that they are be-
Discovery Primea in Makati. A being established. and national agencies, aPPoint-
ing over-charged.
very interesting paper, "Cost . Tax and local government ed and elected Positions. ManY
So when peoPle take.an
of Regulatory Compliance regulations are perceived as expensive ride, the fare they government officials inteud to
for SMES in the Philippines: most burdensome, and the already know before clicking be regulators and Politiciaos
Methodology and Survey Re- Bureau of Internal Revenue until retirement, meaning the
"Book a ride,' theyjust PaY for
sults," was presented by the (BIR) and local government hardships theY create and,im-
reasoDs of safety and comfort
authors .Iamil Paolo Francisco units (LGUS) as most difficult piement will not aPPIY to them
and do not cry about being
and Georgina Gonzales. to deal with. and their friends. If they know
. On average, SMES spent 30 over-charged. Otherwise theY
The authors and their team that their taxation, regulations,
can take the ordinary taxi, or
made a survey and they covered hours to comply with regula- motorcycle taxi, or an aircon and prohibitions v/ill aPPIY to
300 SMES from Metro Manila, tions, about a third of which van, jeepney, bus, the MRT/ them somedaY, the:/ will think
145 each from Cebu and Davao was spent on tax compliance. trMo times or ten times about
LRT and save money. A Person
cities, for a total 59o SMES, . The burdens on SMEs are ciafting legislation for irration-
ca!rying six or seven-digits in
$'ith average employment of more on time and effort, so to cash, or important documents, al taxation and regulations. r
29 for Metro Manila, and 18 for save tirhe and effort, almost or rushing to the airport and
Cebu and Davao. The survey a fifth of SMEs surveyed re- paying P50o for a safe TNC
was done from August to Octo- ported making informal pay- ride instead ofPSoo for a regu-
ber this year. BIENVENIDO S. OPLAs, IR.
ments of an avetage of 2Eo of lar taxi or Plso for a motorcy- isthe president of Mininal
The study had some inter- their total expenses. cle taxi will not cry that they Govemment lhinkers.
esting or troubling results. I . When it comes to nonetary
are being over-charged PeoPle mlninalgoYeflment
summirize many charts and costs, businesses spend hround
decide Y/hat rides are imPor- @gnall.com

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