It came out on April 11, 2020 at the GMA News Online website that House Ways and Means Chairman and Albay 2nd District Representative Joey Salceda proposed a P45-billion wage subsidy scheme for some six million workers in micro, small, and medium enterprises (MSMEs) hit by the Luzon-wide enhanced community quarantine.
The lawmaker, citing his note to the President, said that a payroll support program would likely be necessary to support MSMEs that faced liquidity issues in the wake of the enhanced community quarantine “as well as their workers, who are at risk of being terminated if these MSMEs are unable to pay their wages and maintain operations.”
Well, that and/or the BIR to refund to the MSMEs their prepaid taxes that have accumulated in the hands of BIR as excess withholding taxes (WHT). These monies are actually booked as assets in the MSMEs balance sheets, but they cannot use these financial assets because it is hard to refund them from BIR. The liquidity will help in the post-Covid19 recovery of MSMEs, so it should be seriously considered. Doing this veers away from dole-out, and cleans up the accounts payable of government to MSMEs.
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