Press Release
May 28, 2018

Villanueva lauds signing of law curbing red tape in applying, operating businesses in PH

Senator Joel Villanueva on Monday hailed the signing into law of a landmark legislation which seeks to address delays and inaction in issuing licenses, clearances, and/ or permits (LCPs) by government agencies.

Republic Act (RA) No. 11032 or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018 (Expanded Anti-Red Tape Act) shortens the length of prescribed processing time for the issuance of LCPs to business entities in a bid to cut the bureaucratic red tape, dismantle graft and corrupt practices, and improve the efficiency of delivering frontline services by government agencies.

According to the 2017 World Bank report, the country's ranking in the ease of doing business slid to 113th from 99th in 2016 out of 190 countries covered.

"For over a decade, we have been steadfast in our fight to come up with a legislation that will not only curb corruption but will also improve our country's competitiveness in doing business. The signing into law of RA 11032 would give more teeth to our present laws, curb the ills of corruption, and improve the ease of doing business in our country," Villanueva said.

The new law amends the Anti-Red Tape Act of 2007, a landmark legislation aimed at combating corruption, which Villanueva principally sponsored in the 14th Congress when he was still representative of Citizens' Battle Against Corruption (CIBAC) party-list.

Under the law, the prescribed processing time for the applications of business entities classified as micro, small and medium enterprises (MSMEs) shall take no longer than three working days for simple applications and 10 working days for complex applications from the time the application is received.

For special type of businesses requiring technical valuation or under necessary condition for LCP issuance, prescribed time shall be no longer than 30 working days or as determined by agency.

The law also considers applications for LCPs which were not acted upon within the prescribed period as automatically approved, given that agency has not informed applicant of the error, omissions, or additional required submissions and all documents and fees have been completed and paid, respectively.

Meanwhile, applications for renewal of LCPs shall be deemed automatically extended if not acted upon within the prescribed period, until a decision or resolution is rendered.

"We believe that by reducing the requirements and waiting time for the approval of applications submitted by the public would greatly enhance the efficiency of our government agencies and entice more businessmen to invest in our country. We are definitely elated that a new law has been passed that would provide a conducive business environment and promote transparency in government transactions," Villanueva said.

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