EIGHTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
)
SENATE 
S. No. 2319
¥
BILLS
NDb
Introduced by SENATOR LEILA M. DE LIMA
AN ACT
TO PROMOTE INCLUSIVE BUSINESS FOR MARGINALIZED SECTORS 
TO SUPPORT AND ACCELERATE INCLUSIVE DEVELOPMENT AT THE 
NATIONAL AND LOCAL LEVELS THROUGH PRIVATE SECTOR
INVOLVEMENT
EXPLANATORY NOTE
The 1987 Constitution, Article II, Section 9, provides that “[t]he State shall 
promote a just and dynamic social order that will ensure the prosperity and 
independence of the nation and free the people from poverty through policies that 
will provide adequate social services, promote full employment, and a rising 
standard of living, and can improve quality of life for all.”
Section 20, Article II of the same states that “[t]he State recognizes the 
indispensable role of the private sector, encourages private enterprise, and provides 
incentives to needed investments.”
In 2018, the Philippines had more than 16% of the population living below the 
poverty line, and around 17.6 million Filipinos continue to struggle to afford 
necessities1. With the pandemic still looming over the country, it is outright apparent 
that the numbers have upsurged rapidly. The United Nation’s World Food 
Programme (WFP) predicted that 200 million worldwide would be terribly affected 
by the pandemic and that access to basic necessities will be difficult. The poor and 
other marginalized sectors will be the most distressed. The 2020 SWS Hunger 
Survey revealed that Filipinos who were involuntarily hungry in May 2020 (16.7% or
1 Tantuco, Vernise. Rappler. Expect increase in poverty as COVID-19 ushers in Dutertc's 4'h year. 2 July 2020. 
Retrieved from https://www.rappler.com/newsbreak/iq/expect-increase-poverty-covid-19-ushers-duterte-4th- 
year


4.2 million families) doubled since December 2019, the highest hunger percentage 
since 2014.
The COVID-19 pandemic indeed caused worldwide damage, particularly in the 
economy of almost all countries, and the Philippines had it worst.2 According to the 
study conducted by the Asian Development Bank (ADB), 70% of Philippine micro, 
small, and medium enterprises (MSMEs) had cash flow problems, and around 58.8% 
of the MSMEs reported zero income. As a result, owners resorted to borrowing to 
keep their business from closing while others opt to just temporarily close.3
Keeping in mind these numbers and facts, it is clear that the 
institutionalization and expansion of Inclusive Business (IB) models will allow 
poverty reduction through the prudent engagement of business in leveling economic 
opportunities.
Inclusive business is defined as “commercially viable private business activity 
that fosters systemic changes in solving problems relevant to the lives of low-income 
people.”^ The Philippines is no stranger to this concept as it has created, through the 
Philippine Board of Investments (BOI), the Inclusive Business Program management 
Office (IB PMO) to pilot IB models in the agri-business and tourism sectors. It has 
since been pushing for the adoption of IB investments, particularly the inclusion of 
small community enterprises into the formal economy. To date, there are five (5) 
registered IB projects. It is projected that this will increase within the year. In 
addition, IB has an excellent capability to alleviate the plight of women and improve 
their capacity to spur economic changes.s
The IB seeks to refocus the traditional business model to integrate low-income 
communities in its business operations and as part of its value chain. According to 
the Initiatives for Dialogue and Empowerment through Alternative Legal Services 
(IDEALS), the incorporation of the poor in the IB value chain will constructively
2 Rivas, Ralf. Rappler. PH with most business closures, layoffs peers during pandemic-ADB. 16 September 
2020. Retrieved from https://www.rappler,eom/business/adb-study-philippines-closures-layoffs-peers- 
coronavirus-pandemic 
■’ Ibid
4 Asian Development Bank. How Inclusive is Inclusive Business for Women? Examples from Asia and Latin 
America. Retrieved from https://www.adb.0rg/sites/default/f1les/publication/l 83942/inclusive-business­
women.pdf
5 Ibid


affect the countiy’s growth and development and transform it to make it more 
gender-responsive.
The bill thus seeks to eradicate barriers to participation and construct an 
empowering environment for government and businesses to adopt inclusive business 
models in their entire operations, focusing on key processes in their supply chains, 
especially processes that strive to increase and foster the involvement and benefit of 
women and small-scale producers.
This measure further aims to enhance the MSMEs in their productivity and 
potential to proactively engage with Inclusive Business Companies. The 
incentivization provided under this bill ensures the heightening of productivity, the 
enhancing of the access to affordable and quality goods and services, the spawning of 
new and higher income and livelihood for the poor and other marginalized sectors.
Towards this end, the State shall aim and direct an inclusive growth strategy 
that will stimulate and uphold the development of a vigorous and flourishing 
inclusive business sector in the countiy.
In view of the foregoing, the passage of this bill is earnestly sought.
iJeilam. delima


EIGHTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
)
SENATE 
S. No. 2319
GILLS
NDfc X
Introduced by SENATOR LEILA M. DE LIMA
AN ACT
TO PROMOTE INCLUSIVE BUSINESS FOR MARGINALIZED SECTORS 
TO SUPPORT AND ACCELERATE INCLUSIVE DEVELOPMENT AT THE 
NATIONAL AND LOCAL LEVELS THROUGH PRIVATE SECTOR
INVOLVEMENT
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
Section i. Short Title. - This Act shall be known as the “Inclusive Business Act
2 
of 2021.”
3 
Sec. 2. Declaration of Policy. - It is the policy of the State to create enabling
4 
environments for inclusive business models to thrive and become a significant
5 
standard for doing business in the Philippines. The State commits to the Philippine
6 
Development Plan, to develop Inclusive Business as one of the strategies to expand
7 
economic opportunities for the population, and the national plans, such as the zero
8 
to lo-point Socio-Economic Agenda, to promote rural and value chain development,
9 
and Ambisyon Natin 2040 in making growth more inclusive and poverty-reducing.
10 
The State recognizes the important role of the private sector in achieving
11 
inclusive growth and sustainable development in the country. By adopting inclusive
12 
business models, the private sector companies can spur innovation, deepen
13 
investments in low income communities, enable inclusive value chains, provide
14 
decent work, boost productivity, enhance access to affordable and quality goods and
15 
services, and generate new and higher income and livelihood for the poor,
16 
particularly, the women and other marginalized sectors.
17 
The State likewise recognizes its role in facilitating a business enabling
18 
environment so that the private sector may adopt and promote Inclusive Business


1 
models. By incentivizing and ensuring the ease of doing business for the private
2 
sector, the base of the pyramid is lessened and the number of taxpayers increased
3 
with the end goal of promoting social justice through Inclusive Business models.
4 
Sec. 3. Definition of Terms. - As used in this Act, the following terms shall
5 
mean:
6 
a. Base of the Pyramid (BOP) - refers to the poorest segment of economic
7 
human pyramid, which is 21% of the Philippine population;
8 
b. Business Enabling Environment - a set of policy, institutional, regulatory,
9 
infrastructure and cultural conditions that govern formal and informal
10 
business activities. This includes the administration and enforcement of
11 
government policy, and national and local institutional arrangements that
12 
affect the behavior of relevant actors who, together, comprise many of the
13 
important players;
14 
c. Decent work - means productive work in which rights are protected, which
15 
generates an adequate income, and with adequate social protection. It also
16 
means sufficient work, in the sense that all should have full access to income-
17 
earning opportunities as defined by the International Labor Office (ILO) in
18 
the report of the Director-General: Decent work during the 87th Geneva
19 
Session in June 1999. Further, decent work also includes safe working space
20 
for workers, particularly women who often experience sexual violence in the
21 
workplace;
22 
d. Inclusive Business (IB) - a business model approach that provides decent
23 
work, respects Constitutional provisions on workers, and economic
24 
opportunities and livelihood, or relevant and affordable goods or services, for
25 
poor and low income earners, to people at the base of the pyramid, as
26 
consumers, workers, owners or business partners, and making them part of
27 
the value chain of the core business operations of the IB Company; Provided,
28 
That there is direct contribution to improved living standards, poverty
29 
reduction, and systematic inclusion in a manner that is sustainable, in scale or
30 
scalable, and replicable;
31 
e. Inclusive Business (IB) Project - the part of the core business operation of an
32 
IB company where the IB model or approach is applied;


1 
1. Registered Project - approval of application by an IB company to receive
2 
incentives, as provided by the Board of Investments (BOI); or
3 
2. Accredited Project - act of application by an IB Company for the use of the
4 
IB Logo and Branding, and other incentives;
5 
f. Industrial Development - synthesis of contributions from four major factors,
6 
namely, business, technology, government and labor;
7 
g. Low-Income Communities - Households whose income fall between the
8 
poverty threshold and twice the poverty threshold as defined by the National
9 
Economic and Development Authority (NEDA);
10 
h. Marginalized - the basic, disadvantaged, or vulnerable persons or groups who
11 
are mostly living in poverty and have little or no access to land and other
12 
resources, basic social and economic services such as health care, education,
13 
water and sanitation, employment and livelihood opportunities, housing,
14 
social security, physical infrastructure, and the justice system;
15 
i. Performance-based incentives - include both monetary and non-monetary
16 
incentives to encourage performance and contribution to the accomplishment
17 
of the project;
18 
j. Poor - Individuals and households whose income fall below the poverty
19 
threshold as defined by NEDA and/or cannot afford in a sustained manner to
20 
provide their minimum basic needs for food, health, education, housing and
21 
other essential amenities in life, as defined under Republic Act No. 8425,
22 
otherwise known as the “Social Reform and Poverty Alleviation Act.” In
23 
determining who constitutes the poor, the Multidimensional Poverty Index
24 
determined by the Philippine Statistics Authority (PSA) shall be considered, as
25 
provided by Republic Act No. 11291, otherwise known as the “Magna Carta of
26 
the Poor”;
27 
k. Social Enterprise - a private sector or non-government organization that
28 
primarily pursues social value and uses business approaches and innovations
29 
to do so;
30 
1. Social Value - the increase in the welfare of a society, or identified sectors of
31 
society, that is derived from a particular course of action or activity;
32 
m. Small scale producers - include subsistence farmers, cottage industries, and
33 
other micro enterprises as defined under the Magna Carta for Micro, Small
34 
and Medium Enterprises (MSMEs); and


1 
n. Value chain - value-adding economic activities where a business is interlinked
2 
with the process of producing goods and/or services to serve its chosen
3 
market, and not extend to the business operations. A value chain consists of,
4 
but is not limited to, the following:
5 
1. Raw materials processing;
6 
2. Inbound distribution or logistics;
7 
3. Manufacturing operations;
8 
4. Outbound distribution or logistics;
9 
5. Marketing and selling; and
10 
6. After sales service.
11 
These activities are supported by purchasing or procurement, research and
12 
development, human resources development, and organizational development.
13 
CREATION OF A COORDINATING COUNCIL AND ESTABLISHMENT
14 
OF NATIONAL ACTION PLAN AND STRATEGY FOR INCLUSIVE
15 
BUSINESS (NAPSIB)
16 
Sec. 4. Creation of the National Inclusive Business Coordinating Council. -
17 
There is hereby created the National Inclusive Business Coordinating Council
18 
(NIBCC) which shall be an attached agency to the Department of Trade and Industry
19 
(DTI). The NIBCC shall lead the implementation of the National Action Plan and
20 
Strategy for Inclusive Business (NAPSIB).
21 
Sec. 5. Composition. - The members of the Coordinating Council shall be the
22 
following:
23 
A. Chairperson: Secretary of the DTI
24 
B. As Permanent Members:
25 
1. Secretary of Interior and Local Government;
26 
2. Secretary of Agriculture;
27 
3. Secretary of Labor and Employment;
28 
4. Secretary of Social Welfare and Development;
29 
5. Secretary of Socio-Economic Planning;
30 
6. Secretary of Budget and Management;
31 
7. Chair Philippine Commission on Women;


1 
8. Three (3) representatives from the private sector, which shall be
2 
determined through a private-sector led initiative designed to support
3 
IB;and
4 
9. One (1) representative from small scale producers’ group.
5 
Sec. 6. Othei' Members and Assistance. - The NIBCC shall call upon other
6 
relevant agencies to provide assistance and resource on matters depending on the
7 
sector and issue needed to be resolved. This includes NGAs and representatives from
8 
the private and non-government development sector.
9 
Sec. 7. Partnership with National Councils, Technical Working Groups,
10 
Local Government Units (LGUs), Private Sector Organizations, and Civil Society
11 
Organizations. - The NIBCC shall partner with the Micro, Small and Medium
12 
Enterprise Development Council, other National Councils, such as the National
13 
Competitive Council, National Convergence Council, Ease of Doing Business, Anti-
14 
Red Tape Advisory Council, and National Innovation Council, Technical Working
15 
Groups, LGUs, private sector organizations, and civil society organizations,
16 
particularly those directly involved with IB community partners and IB companies,
17 
in the implementation, monitoring, evaluation of the NAPSIB.
18 
Sec. 8. Commitment of Member Agencies to the National Action Plan and
19 
Strategy for Inclusive Business. - Each member-agency of the NIBCC shall align
20 
their programs, plans and strategies to ensure that the NAPSIB is fully implemented,
21 
anchoring on similar objectives of promoting Ease of Doing Business and Efficient
22 
Government Service Delivery, as provided under Republic Act No. 11032, or
23 
otherwise known as “Ease of Doing Business and Efficient Government Service
24 
Delivery Act of 2018.”
25 
Sec. 9. Organizing and Staffing Pattern for the Secretariat. - The
26 
Chairperson of the Coordinating Council shall prescribe and approve the
27 
organization and staffing of the Coordinating Council Secretariat in consultation with
28 
the Department of Budget and Management (DBM). Gender parity in the
29 
composition of the organization staffing is highly encouraged.
30 
Sec. 10. Powers and Functions of the Coordinating Council. - The NIBCC
31 
shall be the lead coordinating office and hub for the development and


1 
implementation of the NAPSIB. The Coordinating Council shall be tasked to do the
2 
following:
3 
A. Draft, formulate, and implement the NAPSIB, with a commitment to
4 
regularly updating the same;
5 
B. Monitor and assess the implementation of the NAPSIB and regularly
6 
submit reports to the President and to Congress;
7 
C. Ensure NAPSIB is aligned to and reflected in the Philippine Development
8 
Plan (PDP);
9 
D. Coordinate with national government agencies, local government units
10 
(LGUs), LGU associations, technical working groups, national councils, IBs,
11 
IB Community partners, and other stakeholders in the development and
12 
implementation of the NAPSIB and its competent plans, programs 
and
13 
projects;
14 
E. Update and revise the Inclusive Business Roadmap, as needed;
15 
F. Coordinate and align the existing Roadmaps of the government towards
16 
the objectives of the NAPSIB, with particular emphasis on the integration
17 
of small producers and marginalized groups in value chains;
18 
G. Coordinate IB-related studies and researches as a basis for
19 
recommendation of sectors, taking into account the recommendations
20 
related to integration and concerns of small producers and marginalized
21 
groups in value chains, which will be areas for particular focus of the
22 
implementation of the NAPSIB; Provided, further, that any
23 
recommendations made shall be presented to the Coordinating Council for
24 
approval;
25 
H. Provide business development, advisory and facilitation services to the IBs
26 
and IB community partners, especially small producers and marginalized
27 
groups in value chains, in coordination with relevant agencies and LGUs;
28 
I. Coordinate and provide a service lane for processing IB projects. This
29 
includes, but is not limited to, providing advisory and facilitation services
30 
in the processing of relevant government permits, licenses and other
31 
requirements for the implementation of IB projects. The coordinating
32 
council shall have the power to direct specific agencies to attend to the
33 
bottlenecks and problems hindering the implementation and effectiveness
34 
of IB Projects;


1
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32
33
J. Serve as the primary data source of IB issues and challenges that need to 
be addressed to encourage local participation and adoption by the private 
sector, especially issues of small producers and marginalized groups in 
value chains;
K. Coordinate and direct information, advisory and training services for 
government agencies and institutions to enhance their understanding of 
and capacity to support IBs and IB community partners in the 
implementation of IB projects;
L. Coordinate with the Intellectual Property of the Philippines (IPO PH) in 
assisting IB Companies and IB Community partners in getting patents, 
copyright, trademark, and other forms of pursuing protection of their work 
and creation;
M. Provide technical assistance and support to agencies in the formulation of 
social value specifications in their procurement processes. The 
Coordinating Council shall partner with non-government, research and 
training institutions for this;
N. Establish and implement the criteria, process and guidelines for the 
accreditation of IB models, and establish an Accreditation Committee for 
this purpose;
O. Establish and maintain an IB information registry;
P. Coordinate with donors, government financial institutions, commercial 
and rural banks, and social impact investors on financing mechanisms for 
IBs and IB Community partners;
Q. Initiate public-private partnerships to enhance the viability of IB projects 
in identified priority geographic areas or industries, taking into 
consideration the specific needs of small producers and marginalized 
groups in value chains. The NIBCC may call on other relevant agencies and 
other government agencies for this purpose;
R. Design and manage a campaign or program inviting young professionals to 
work with IBs or IB community partners as community organizers and/or 
special entrepreneurs;
S. Recommend, on behalf of the President, to other government agencies and 
institutions various policies and programs to promote and support IBs;


1
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30
T. Integrate and coordinate existing initiatives for target IB Community 
partners and IB Companies, such as the Rural Agro-Industrial Partnership 
for Inclusive Development and Growth (RAPID Growth) 2019, National 
Convergence Initiative, and other initiatives;
U. Integrate and maximize the use of trade preferences, such as the European 
Union Generalised Scheme of Preferences Plus (EU GSP+) and United 
States GSP, but likewise ensure compliance with conditionalities provided, 
such as labor rights, human rights, environmental rights, good governance, 
and the like;
V. Encourage the academe and research organizations to include in the 
curricula of schools the Inclusive Business model and assist in developing 
further impact analysis of the program;
W. Through the Legislative Executive Development Advisory Council 
(LEDAC), recommend to Congress, proposed legislation to promote and 
support IBs;
X. Through the Philippine Commission on Women (PCW) and in-line with its 
Gender Equality and Women Empowerment (GEWE) Plan, provide 
technical assistance to facilitate and Increase compliance of women small- 
scale producers and women in value chains to business regulatory 
frameworks and standards. Institutionalize sex disaggregated data 
collection and analysis for gender-responsive and evidence-based 
policymaking and program development on IBs and for women small scale 
producers and women in value chains, ensure and/or facilitate 
participation and representation of women small-scale producers and 
women in value chains in trade or business negotiations and develop 
and/or enhance the delivery of programs aimed at increasing access of 
women small-scale producers to social protection; and
Y. All other functions necessary for the implementation of the law. Provided, 
That they are not already being performed or exercised by existing 
government agencies and instrumentalities.
31 
INCLUSIVE BUSINESS ACCREDITATION
32 
Sec. 11. IB Accreditation Criteria. - The NIBCC, in consultation with resource
33 
persons from private sector industry groups, the academe, and relevant social


1 
development institutions, shall establish a system and criteria for accrediting IBs
2 
based on their IB project. Accreditation of IBs may consider but is not limited to the
3 
following main criteria, to be developed by the coordinating council.
4 
A. Social value;
5 
1. Reach - the IB project of the company must reach or target to reach
6 
poor/low income or marginalized sectors at scale;
7 
2. Depth - the IB project of the company must lead to measurable
8 
improvements in the quality of life for poor/low income or marginalized
9 
sectors through income generation or access to relevant and affordable
10 
services and products;
11 
3- Systemic Impact. - The IB project of the company must address relevant
12 
poverty dimensions and provide a systemic contribution to poverty
13 
reduction and social inclusion.
14 
B. Innovation and Sustainability:
15 
1. Innovation - the IB project of the company must include innovative
16 
features that lead to improvements in areas such as but not limited to,
17 
profitability, governance, social value, social equity, gender equality, and
18 
environmental sustainability.
19 
2. Financial viability of the company - the company that adopts the IB model
20 
must be financially viable.
21 
3. Financial viability of the company’s IB model - the IB project of the
22 
company must contribute substantially towards the financial viability of
23 
the company with positive returns on investment.
24 
The NIBCC and Accreditation Committee shall propose for approval the
25 
specific percentage weight and measurable indications to be assigned to each
26 
accreditation criteria, as well as any additional criteria. Criteria weights and
27 
indicators shall be established on a per industry basis subject to approval. Provided,
28 
That the final criteria approved for each industry shall be applied consistently to all
29 
applicants from the same industry without exceptions.
30 
Sec. 12. IB Accreditation Process. - The accreditation process shall involve the
31 
following steps, in accordance with guidelines to be established by the NIBCC:
32 
a. Submission to Accreditation Committee of the completed application form,
33 
business plan, and required supporting documentation by the company;


1 
b. Initial interview and review of company documentation by 
the
2 
Accreditation Committee;
3 
c. Site visit by Accreditation Committee to validate the social 
and
4 
environmental acceptability and objectives as described in the company’s
5 
application and business plan;
6 
d. Evaluation and recommendation by the Accreditation Committee to the
7 
DIT Executive Committee;
8 
e. The DTI Executive Committee decision to approve or disapprove
9 
company’s accreditation;
10 
f. Accreditation for approved applications;
11 
g. Regular monitoring and assessment;
12 
h. Renewal of accreditation and continuation of project; and
13 
i. End of project impact review and reporting.
14 
Accredited IBs shall be subject to regular monitoring, reporting and
15 
assessment to ensure that the company’s IB project is being implemented according
16 
to the approved business plan and achieving approved social value, innovation and
17 
sustainability target specifications. Failure to pass the regular monitoring and
18 
assessment by the Accreditation Committee may lead to the revocation of the IB’s
19 
accreditation. Motions for project extension will be considered on a per project basis.
20 
The Accreditation Committee shall disclose to companies with disapproved
21 
accreditation applications the reason/s for disapproval to enable said companies to
22 
improve or change their business projects accordingly. Companies with disapproved
23 
applications may re-apply for IB accreditation subject to the guidelines provided by
24 
the Coordinating Council.
25 
Notwithstanding the eligibility of a company, the Accreditation Committee
26 
reserves the right to review the qualifications of the company at any stage of the
27 
accreditation process if the Committee has reasonable grounds to believe that a
28 
misrepresentation has been made by the Company, or that there has been a change
29 
in the company’s capability to undertake the project from the time it submitted its
30 
completed application. Should such review uncover any misrepresentation made in
31 
the application, statements or documents, or any changes in the situation of the
32 
company which will affect the capability of the company to undertake the project so
33 
that it fails the accreditation criteria, the Accreditation Committee shall consider the
10


1 
Company as ineligible and shall disqualify it from obtaining accreditation to use the
2 
IB logo and branding.
3 
BENEFITS, INCENTIVES, AND SUPPORT FOR INCLUSIVE
4 
BUSINESS
5 
Sec. 13. Use of IB Logo and Branding. - Accredited IBs may affix the
6 
Philippine IB logo on related packaging, letterheads, brochures, leaflets, and other
7 
forms of information and communication collaterals, in various media outlets, with
8 
permission from and subject to the policies and guidelines from the Coordinating
9 
Council; Provided, further, that upon the end of the project the logo may not be used
10 
further, unless an extension of the accreditation or registration has been granted;
11 
Provided, finally, that there is no finding by the Coordinating Council that the project
12 
has failed to pass the regular monitoring and assessment.
13 
Sec. 14. IB Information Registi'y. - The Coordinating Council shall establish
14 
and maintain an online public IB registry and database, which shall serve as the main
15 
repository of information on IBs. The IB registry shall be disseminated nationwide;
16 
Provided, further, that the Coordinating Council shall call on the DTI Negosyo
17 
Centers to promote ease of dissemination to LGUs and local communities. To
18 
facilitate collaboration on potential and existing IB projects, the registry shall include
19 
information and status on accredited IBs, IB community partners, and IB Projects. It
20 
shall also include information on business development service providers, financial
21 
service providers, and social impact investors, specifically catering to IBs and IB
22 
community partners.
23 
Sec. 15. Government Support for IB Community Partners. - IB Community
24 
Partners, which include MSMEs, of accredited IBs shall be prioritized by government
25 
agencies in the provision or distribution of relevant government support programs
26 
and services that may improve or strengthen their capacity and resources to
27 
effectively engage in the IB project. These government programs and services include,
28 
but are not limited to, public infrastructure, shared service facilities, enterprise
29 
capacity building and training support, technical assistance developing micro-equity
30 
finance and business models, marketing assistance, value chain financing, business
31 
incubation and technology transfer, business facilitation, support for marginalized
32 
sectors, and women’s economic empowerment. Provided, further, that the potential
11


1 
and interested individuals and/or organizations seeking to be IB Community
2 
Partners, shall likewise be capacitated by NGAs and LGUs providing relevant
3 
trainings, support, and capacity building sought by IB Companies. NGAs and LGUs
4 
may seek assistance with civil society organization for providing the same.
5 
Towards this end, each member-agency of the Coordinating Council shall
6 
formulate and issue policies that shall facilitate these support programs and services,
7 
and automatically provide information of the same to the IB registry. It shall, at the
8 
same time, regularly update information on these support programs and services,
9 
Sec. i6. Incentives for Inclusive Business Projects. - An IB Project may qualify
10 
for incentives under this law and be entitled to the following for five (5) consecutive
11 
years starting from the declared commencement data of the IB Project, as approved
12 
by the Coordinating Council;
13 
A. Double Deduction for Labor Expense - Expenses incurred of a registered
14 
IB project for wages of persons hired from the identified government
15 
databases, such recipients of government subsidy programs or those living
16 
below poverty threshold or benefitting 50% women workers, shall be
17 
deductible from the gross income for income tax purposes to the extent of
18 
two hundred percent (200%) on the year said labor expense was incurred;
19 
Provided, That the hiring is an incremental to the number of direct labor.
20 
B. Double Deduction for Training - Expenses incurred for training, identified
21 
and approved by the BOI, given to persons hired and to be hired from
22 
identified government databases and those living below the poverty
23 
threshold, and part of IB community partners, especially those IB
24 
companies providing capacity building needs of small producers and
25 
marginalized groups in value chains, shall be deductible from the gross
26 
income for income tax purposes to the extent of two hundred percent
27 
(200%) on the year the said training expense was incurred.
28 
C. Additional Deduction for Goods, Materials and Logistics Resources
29 
Sourced from Micro, Small and Medium Enterprises (MSMEs) - A
30 
registered IB Project may be allowed an additional deduction from the
31 
taxable income of twenty-five percent (25%) of the cost of goods, materials
32 
and logistics resources sourced from micro, small and medium enterprises.
12


1 
community enterprises, social enterprises, especially from small producers
2 
on the year the said expenses were incurred.
3 
D. Double Deduction for Research and Development — Expenses incurred for
4 
research and development activities, especially in relation to small
5 
producers and marginalized groups in value chains, identified and
6 
approved by DTI, shall be deductible from the gross income for income tax
7 
purposes to the extent of two hundred percent (200%) on the year the said
8 
research and development expense was incurred.
9 
Sec. 17. Other IB Incentives. — An accredited IB shall qualify for other
10 
incentives made available by law, executive issuances, and local ordinances, as
11 
recommended and in consultation with the Coordinating Council; Provided, That
12 
double deductions of the same or substantially similar incentives shall not be allowed
13 
unless explicitly allowed by law, executive issuances, and local ordinances.
14 
Guidelines and procedure for availing of all incentives shall be provided by the
15 
NIBCC.
16 
Sec. 18. Financial and Loan Assistance from Government Banks. - Loan
17 
assistance from the commercial production of the product of the IB Project, either
18 
locally or for export and duly registered or accredited with the NIBCC Secretariat
19 
created under this Act, shall be extended by government banks; Provided, that said
20 
IB Project meets the criteria and would enhance the economy of the country and the
21 
community, provide technical capacity, or generate regular employment
22 
opportunities for the IB Community; Provided, That the loans shall be guaranteed by
23 
the Small Business Guarantee and Finance Corporation (SBGFC) and/or the IB
24 
Project.
25 
The SBGFC shall offer its existing products, and further develop products to
26 
encourage adoption of the IB model by both the IB Companies and Communities.
27 
Sec. 19. Government Agencies Assistance. - In order to facilitate the granting
28 
of financial assistance by any government bank, all government agencies concerned
29 
are required to extend all possible assistance, such as the use of its facilities in the
30 
preparation of project feasibility studies and evaluations, and products to be
31 
produced by the IB Company or Community.
32 
Sec. 20. Penalties. - (a) Any IB company in violation of the use of the IB Logo
33 
and Branding, or Section 13 of this Act, shall be fined Twenty Thousand Pesos
13


1 
(P20,ooo.oo) for the first offense; Fifty Thousand Pesos (P50,ooo) for the second
2 
offense; One Hundred Thousand Pesos (Pioo,ooo) and blacklisted from
3 
accreditation for the third offense, subject to the guidelines of the coordinating
4 
council; Provided, further, that a company neither registered nor accredited as an IB
5 
Company shall be penalized under letter b of this section.
6 
(b) Tampering, alteration, forgery, and imitation of the IB Logo, and
7 
misrepresentation thereof, shall be punished with a fine of not less than Fifty
8 
thousand pesos (P50,ooo) but not more than One hundred thousand pesos
9 
(Pioo,ooo) for each and every instance proven, without prejudice to other penalties
10 
imposed by Republic Act No. 7394 or the “Consumer Act of the Philippines;”
11 
Provided, That the Coordinating Council is hereby empowered, after publication, to
12 
increase or adjust the amount of the fines prescribed in this section once every five (5)
13 
years in the amount not exceeding ten per centum (10%) of existing rates.
14 
(c) Any IB company in violation of the rights of the community or any member
15 
thereof shall be directly responsible for damages and blacklisted from accreditation
16 
without prejudice to other remedies available under the law especially those enacted
17 
laws protecting women and children as specified under the Republic Act No 9710 or
18 
the “Magna Carta of Women.”
19 
Sec. 21. Monitoring, Evaluation, Review, and Assessment. —The
20 
Coordinating Council, in consultation with IB Companies, IB Community Partners,
21 
National Government Agencies (NGAs), and LGUs concerned as necessary, shall
22 
regularly monitor, evaluate, review, and assess the impact and effectiveness of the
23 
NAPSIB.
24 
The Coordinating Council shall, likewise, submit to Congress a periodic review
25 
on the implementation of this Act at the end of the third year from the date of its
26 
effectiveness and every year thereafter.
27 
Sec. 22. Nationwide Public Information Campaign. - The Coordinating
28 
Council, in coordination with its member-agencies, the Philippine Information
29 
Agency, LGUs, private agencies, and relevant organizations shall undertake a
30 
sustained, intensive, and targeted Information campaign to promote greater
31 
awareness and practice of IB among key stakeholders, particularly large and
32 
medium-size companies operating in priority industries and marginalized areas, and
14


1 
encourage the coordinated support of relevant government agencies to IB
2 
investments.
3 
Sec. 23. Implementing Rules and Regulations. - The Coordinating Council, as
4 
led by the Department of Trade and Industry, in consultation with its member-
5 
agencies, shall issue the rules and regulations necessary to implement the provisions
6 
of this Act ninety (90) days from the effectivity of this Act.
7 
Sec. 24. Appropriations. - The initial amount necessary for the
8 
implementation of this Act shall be charged against the current appropriation of DTI;
9 
Provided, That the amount necessary for the continued implementation of this Act
10 
shall be included in the annual General Appropriations Act.
11 
Sec. 25. Separability Clause. - If any provisions of this Act, or part hereof, is
12 
held invalid or unconstitutional, the remainder of the law or provision not otherwise
13 
affected shall remain valid and subsisting.
14 
Sec. 26. Repealing Clause. - All provisions of laws, presidential decrees,
15 
letters of instruction and other presidential issuances that are incompatible or
16 
inconsistent with the provisions of this Act are hereby deemed amended or repealed.
17 
Sec. 27. Ejfeetivitg. — This Act shall take effect within fifteen (15) days after its
18 
publication in the Official Gazette or in at least two (2) national newspapers of
19 
general circulation.
Approved,
15