ARTA taps petroleum industry giants to slash red tape

In a decisive move to streamline the energy sector and foster a more competitive business environment, the Anti-Red Tape Authority (ARTA) convened a high-level Standard Cost Model (SCM) Workshop for the petroleum industry at the ARTA Innovation Hub, UP Ayala Technohub.

The workshop was triggered by mounting concerns from private sector stakeholders regarding the Bureau of Internal Revenue’s (BIR) imposition of the Importer’s Surety Bond. Currently, this bond is a mandatory prerequisite for obtaining permits to operate as importers, dealers, traders, or manufacturers of petroleum and automobile products.

In response to these industry bottlenecks, the BIR has formally sought ARTA’s technical assistance and advisory opinion. The primary focus of the review is to determine the continued relevance of Section 160 of the National Internal Revenue Code (NIRC) of 1997 when measured against the mandates of Republic Act No. 11032, also known as the Ease of Doing Business and Efficient Government Service Delivery Act of 2018.

Using the Standard Cost Model, ARTA aims to:

• Quantify the administrative burden placed on petroleum companies.

• Identify redundancies in the permitting process.

• Propose regulatory reforms that balance government revenue protection with ease of operations.

The insights gathered during the workshop will be shared with the BIR, the Department of Energy (DOE), and the Bureau of Customs (BOC). This inter-agency collaboration is expected to serve as the blueprint for potential amendments to existing regulatory processes.

“In the midst of the ongoing crisis, it is a relief to know there is a government agency like ARTA that we can turn to,” remarked Ms. Nimfa Villamayor of the Philippine Institute of Petroleum (PIP).

Secretary Ernesto V. Perez, Director General of ARTA, personally assured the industry leaders that their sentiments would not fall on deaf ears.

“We are committed to closely monitoring this review and ensuring the results are presented to the relevant agencies,” Secretary Perez stated. “By helping the government identify where processes are failing, you are helping us build a more business-friendly Philippines.”

The workshop saw active participation from the major players and associations within the sector, including:

The SCM Workshop marks a significant step forward in ARTA’s mission to eliminate bureaucratic friction and ensure that the petroleum industry—a backbone of the Philippine economy—remains resilient and efficient.