TAX perks and other subsidies received by hospital and other human health and social-sector firms nearly doubled in 2016, according to the Philippine Statistics Authority (PSA).
Based on the preliminary results of the 2016 Annual Survey of Philippine Business and Industry (ASPBI)-Human Health and Social Work Activities Sector For Establishments with Total Employment of 20 and over, the government extended P102.6 million worth of subsidies to these firms.
PSA data showed that this is 90 percent higher than the P54-million subsidies extended by the government to these firms in 2015.
“Subsidies are all special grants in the form of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry,” the PSA explained.
In 2016, the bulk, or 71.1 percent or P72.9 million—of subsidies the government extended went to hospital activities of the sector.
The other industries that received subsidies were other social work activities without accommodation, n.e.c. with P27.49 million; residential care activities for mental retardation, mental health and substance abuse, as well as residential care activities for the elderly and disabled, P1.56 million; and other residential care activities, n.e.c., P607,000.
In terms of region, Calabarzon led other regions in terms of subsidy received from the government, amounting to P89.4 million, or 87.2 percent of the total.
Other regions that received subsidies were Soccsksargen with P7.99 million; Central Visayas, P2.96 million; Northern Mindanao, P1.56 million; Metro Manila or the National Capital Region, P607,000; and Mimaropa, P28,000.
Generated income
Meanwhile, income generated by the sector for establishments with total employment of 20 and over reached P150.7 billion in 2016.
Hospital activities contributed the highest income amounting to P125.3 billion, or 83.2 percent of the total income, followed by medical and dental practice activities with P12.3 billion, or 8.2 percent.
Completing the top highest income generating industries of the sector in 2016 was other social work activities without accommodation, with P10.4 billion, or 6.9 percent of the total.
The top 3 regions in terms of income generation comprised 66.3 percent of the total income. NCR earned the highest income amounting to P67.1 billion, or 44.5 percent of total income.
This was followed by Calabarzon and Central Visayas with P20.3 billion, or 13.5 percent, and P12.5 billion, or 8.3 percent of the total, respectively.
Total expense
ON the other hand, total expense generated by the sector amounted to P129.7 billion. Hospital activities incurred the highest expense of P107 billion, or 82.5 percent of total expense.
This was followed by medical and dental practice activities and other social work activities without accommodation, with total expense of P10.8 billion, or 8.4 percent, and P9.9 billion, or 7.6 percent, respectively.
Among industry groups, hospital activities registered the highest number of establishments, with 696 establishments, or 65.2 percent of the total; followed by medical and dental practice activities with 262 establishments, or 24.5 percent. Other social work activities without accommodation ranked third with 49 establishments or 4.6 percent.
At the regional level, NCR accounted for the most number of establishments for the sector with 317, or 29.7 percent of the total. Calabarzon and Central Luzon placed a far second and third with 170 establishments, or 16 percent, and 98 establishments, or 9.2 percent, respectively.
The 2016 ASPBI is one of the designated statistical activities of the PSA. Data collected from the survey provide information on the levels, structure, performance and trends of economic activities of the formal sector in the entire country for the year 2016.
The survey was conducted nationwide in 2017 with the year 2016 as the reference period of data, except for employment, which is as of November 15, 2016.
Image credits: Nonoy Lacza