A LOCAL lawmaker proposes an ordinance to repeal a previous ordinance that requires delivery riders to get business permits.
Davao City Councilor Bernie Al-ag said during his privilege speech on Tuesday morning, January 23, 2024, at the Sangguniang Panlungsod that the 19th City Council passed the City Ordinance 0612-21 series of 2021, otherwise known as an ordinance amending the ordinance 02917 series of 2017 also known as the Revenue Code of Davao City, specifically its Chapter 1, Section 5 c30 Number 4 to expressively define and distinguish independent service contractors directly offering their service.
He explained that in the ordinance delivery riders were considered independent service contractors thus, requiring them to apply for business permits. But in the joint memorandum circular number 1 series of 2021, which was jointly issued by the Anti-Red Tape Authority (ARTA), Department of Trade and Industry (DTI), Department of the Interior and Local Government (DILG), and Department of Information and Communications Technology (DICT), one of its sections states that it exempts individuals to secure business permit who provides personal services and does not fall under the exercise of their profession as well as those who not have a retail space.
“Although the delivery riders and those who are similarly situated to them are doing business here in the city they are expressively exempted by law to secure a business permit before they can offer their services to the public,” Al-ag said.
A mandate in the memorandum states that the City Government of Davao as a Local Government Unit (LGU) must adapt to the guidelines set forth by the memorandum concerning the delivery riders.
The 20th City Council then approved the resolution and the proposed ordinance by Al-ag to repeal the City Ordinance 0612-21 series of 2021, on the first reading.
In a media interview, Al-ag said that for the time being since City Ordinance 0612-21 series of 2021 has not yet been repealed, delivery riders should still comply and get their business permit.
He added that possibly by next year, they would no longer have to comply with it.
Al-ag said the repeal is not about the monetary collection but following what was provided by the national law which states that delivery riders are exempted from getting business permits.
He is also optimistic that it will be passed this year because there is a solid basis for repealing the ordinance, which is the joint memorandum.
Although a group of delivery riders sought an audience with Davao City Mayor Sebastian Duterte on Monday, January 22, 2024, regarding the matter, Al-ag said that his proposed ordinance was drafted after he received a separate petition. RGP
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