Davao City junks business permits for delivery riders

DAVAO CITY – Delivery riders here are no longer required to secure business permits after the Davao City Council approved changes to the revenue code ordinance on Thursday morning, Dec.  5.  

Councilor Myrna Dalodo-Ortiz, chairperson of the Committees on Trade, Commerce, and Industry and Finance, Ways and Means, and Appropriations, proposed the amendment that removes the need for delivery riders to obtain business permits.

Ortiz said in her privilege speech that delivery riders must only pay P125 annually for an occupational permit, saving them from a financial burden of P3,000 to P4,000 yearly.

The committee repealed Ordinance No. 0612-21, Series of 2021, and amended Ordinance No. 0291-17, Series of 2017, or the 2017 Revenue Code of Davao City, that expanded the coverage of service contractors by including those who essentially provide personal services that do not fall under the exercise of a profession, such as, but not limited to, delivery riders.

“Delivery riders are an essential part of our community, working tirelessly to ensure the timely delivery of goods and services. The imposition of business permit fees places an unnecessary financial burden on them, especially given the nature of their work,” Ortiz said.

She said that various committees deemed it proper to remove the business permit fee to ease the burden. Instead, they focused on a more reasonable solution, such as paying for the occupational permit.

“This would help reduce unnecessary costs for riders while ensuring they are properly registered and compliant with local regulations. Such a change would acknowledge their important role while easing the burden these riders face in the old ordinance,” she added.

Ortiz said the proposed ordinance covers workers or individuals providing personal services here – whether employed temporarily, permanently, outsourced, or working remotely (including telecommuting and work-from-home arrangements). She added that the ordinance enacted would benefit all these workers in this city.

The measure came following a formal request from freelance delivery riders  who appealed to the city council through a letter to review and revoke City Ordinance No. 0612-21, Series of 2021, requiring them to secure business permits and pay operational fees.

Mayor Sebastian Duterte backed the amendment. 

He emphasized the importance of easing the burden on delivery workers, whose earnings are often modest despite the physical demands of their job.

“We cannot impose heavy fees on the delivery riders because their earnings are minimal, and their work is physically demanding,” Duterte said.

The local chief executive expressed disappointment over political opponents allegedly exploiting the delivery riders’ plight to criticize the city government. He dismissed claims that delivery riders’ concerns were ignored and highlighted efforts to address their concerns.