TRAFFIC OF THE SEASON Photo taken on Nov. 28 shows the usual traffic congestion on Edsa. 鈥擥rig C. Montegrande
MANILA, Philippines 鈥� The country鈥檚 largest retailers protested on Saturday the Metropolitan Manila Development Authority鈥檚 (MMDA) prohibition against mall-wide sales this Christmas season.
Philippine Retailers Association (PRA) president Roberto Claudio told the Inquirer that the MMDA did not fully appreciate the doubtful effect of the ban on Christmas season traffic and its impact on the economic gains of the Marcos administration.
鈥淚t鈥檚 a poor appreciation, on the part of MMDA, of the Christmas spirit of Filipinos,鈥� Claudio said in an interview.
READ: MMDA wants ban on mall sales during weekdays starting November
In 2019, the MMDA already tried to ban weekday sales in Metro Manila malls for two months, but it did not decongest traffic and resulted in 鈥渨eekend nightmares鈥� for motorists and commuters.
鈥淚t鈥檚 Christmas. You cannot stop consumers from doing their shopping. MMDA cannot stop consumer consumption, but they do manage the traffic problems associated with it,鈥� Claudio said.
But the effects, he said, can last beyond the Christmas season and affect the Marcos administration鈥檚 attempts to grow the economy.
Worse, the ban will also have a serious impact on the retail sector, which contributes about 18.6 percent of the country鈥檚 gross domestic product, according to the PRA official.
Claudio said this translates to an estimated P750-billion contribution yearly.
Hit on tax collection
鈥淭his will also affect the VAT (value-added tax) revenue intake of government with the reduced consumption of the Metro Manila economy,鈥� he added.
The government has not even finalized a VAT proposal to implement a refund process that is meant to promote the Philippines as a shopping hub in Asia.
Frederick Go, President Marcos鈥� special assistant for investment and economic affairs, said it is possible to turn the country into Asia鈥檚 shopping capital.
But the government would have to work out its system for electronic visas and a refund process for VAT refunds, which are both operational in other Asian countries.
鈥淭his is a major breakthrough for retail,鈥� he said at the National Retail Conference and Expo last August, adding that nine Asian countries already have such a system in place.
Discouraging policy
Discouraging policies, like the MMDA鈥檚 ban on mall-wide sales during the Christmas season, would only derail the government鈥檚 economic gains.
鈥淒epriving consumers of information on sales and promo this Christmas season is against free enterprise,鈥� Claudio said in a Viber message.
The PRA instead suggested that the MMDA consider their proposal to schedule mall sales so they are not held at the same dates and times.
Even before the announcement of the ban, malls in Metro Manila on Nov. 18 started to open at 11 a.m. to help decongest traffic. It has not worked so far.
Malls will be maintaining this schedule until Christmas day, Dec. 25.
The MMDA has also ordered malls earlier to adjust their delivery schedule, allowing these only between 11 p.m. and 5 a.m.
According to the MMDA, there are 131 malls located in Metro Manila, 29 of which are along Edsa.