The primordial objective of the BTEP is to promote LGUs autonomy and self-reliance, through the following means:         

F    Increasing locally sourced revenues of selected LGUs and reduce their dependency on the IRA;

F    Accelerating growth of local business tax collections;

F    Training of LGU qualified personnel in the examination of books of accounts of business to determine gross receipts;

F    Introduction of innovative practices to enlist the cooperation of business tax payers;

F    Training of LGUs on the “Presumptive Income Level” (PIL) in the estimation of business gross receipts and refer to the Income Tax Return (ITR) for the same purpose; and

F    Improving over all LGUs management systems in business tax collections.

The target beneficiaries of the BTEP are the Cities and Municipalities whose Internal Revenue Allotment (IRA) dependency based on the immediate preceding year Statement of Income and Expenditures (SIE) is at 51% or higher and respective cities and municipalities which have in their registry not less than One Thousand (1,000) Business Tax Units (BTUs) or either have realized business tax collections from the immediate preceeding year in the amount not less than Seven Million Pesos (P7,000,000.00)

BTEP shall provide financial assistance to undertake various activities meant at establishing effective business tax collection systems; such as; 

·          Business Tax Mapping – Method of identifying the Business, establishing business location, determining business nature or type and discovering undeclared business.

·          RECORDS CONVERSION AND MANAGEMENT – Involves the conversion of business mapping information to individual business records, classification, estimate of its capitalization or value and preparation of business records and installation and maintenance of basic business records management system in the Local Business Tax Office

·          TAX COLLECTION ENFORCEMENT – Involves the review and revision of existing procedures on the collection recording, accounting and disposition of business taxes.  The objective is to develop improved methods and techniques and to improve LGUs with models for tax information and collection enforcement that they may adopt for their respective localities.

·          DATA COMPUTERIZATION – encompasses all activities leading to the establishment and operationalization of a computer assisted database for BTEP among which includes the familiarization/training of key personnel, encoding and validation of data acquisition and installation of standard BTEP system, generation of reports and preparation of complementary manual of procedures. 

The project shall be offered based on the following Terms and Conditions:

The loan component must be within the borrowing capacity of the LGU. The loan portion of the sub-project will be subjected to an interest of 12% inclusive of all charges and fees the payment of principal and interest is for a maximum of five years through ten (10) equal semi-annual amortization with a grace period of one (1) year on the principal payment. 

The interest rate may be adjusted depending on the market reference rate.  However, the prevailing rate during the signing is fixed for the entire duration of the loan amortization.