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Manila’s Rising Garbage Fee Crisis Threatens Business Survival

Manila: The issue of garbage fees in Manila City has become a growing concern for business owners, especially small and medium enterprises (SMEs). What was once a manageable operating expense has now turned into an overwhelming financial burden. The astronomical increase in garbage fees is no longer just an administrative issue; it is a serious threat to the survival of many businesses and to the overall economic health of the city. According to Philippines News Agency, for small and medium businesses, every peso matters. These enterprises operate on thin margins and are already struggling with high rent, electricity costs, labor expenses, and inflation. The sudden and steep rise in garbage fees has added yet another layer of pressure. Many business owners report that their garbage fees have increased several times over previous rates, without a clear explanation or consultation. For some, the increase is so drastic that it feels punitive rather than reasonable. The astronomical increase in garbage fees als o has a serious and often overlooked impact on cooperatives. Cooperatives are businesses themselves, but unlike large corporations, they are owned and run by their members-mostly workers, urban poor, consumers, farmers, and small entrepreneurs. There are only a limited number of large cooperatives, while the vast majority are small cooperatives with very limited resources. When garbage fees rise sharply, these costs directly affect their operations and sustainability. Small cooperatives are forced to divert funds meant for member services, livelihood programs, or community support just to pay for basic city charges. Consequently, cooperatives may be compelled to raise the prices of their goods and services, thereby balancing their commodities between affordability and survival. This undermines the very purpose of cooperatives, which is to provide reasonably priced goods and economic relief to their members and the wider community. What makes the situation even more alarming is that, in many cases, the garbag e fee has become higher than the business permit fee itself. This raises serious questions about fairness and proportionality. Business permit fees are supposed to reflect the privilege of operating within the city, while garbage fees should be based on actual waste generation and services rendered. When garbage fees exceed permit fees, it sends the wrong signal-that businesses are being treated more as revenue sources than as partners in local development. This imbalance has real consequences. Faced with soaring costs, some business owners are now considering relocating to other cities. Quezon City, often described as a business-friendly city, has become a common alternative. Its relatively predictable fees, clearer regulations, and more responsive systems are attractive to entrepreneurs who feel squeezed in Manila. When businesses leave, the city does not just lose garbage fees-it loses jobs, investments, and long-term tax revenue. Ironically, the high garbage fees would be easier to accept if garbage col lection services were efficient and reliable. Unfortunately, this is not always the case. There are persistent complaints about irregular garbage collection, missed pick-ups, and unsanitary conditions in many parts of the city. Some businesses still experience piles of uncollected trash despite paying high fees. This gap between the amount paid and the quality of service received fuels frustration and deepens distrust. Garbage collection is a basic public service. When it fails, public health, environmental safety, and the city's image all suffer. Business owners ask a simple question: if fees are increasing dramatically, why does the service not improve at the same pace? Transparency in billing, clear schedules, and visible accountability are still lacking in many areas. Adding to the controversy are reports circulating in the business community and media that the owner of the garbage collection company contracted by the Manila local government is a close associate of Mayor Isko Moreno. Although the public has not definitively resolved these reports, their mere existence prompts concerns about potential conflicts of interest. In public service, perception matters. Even the appearance of favoritism can erode trust, especially when fees imposed on businesses are unusually high. This issue underscores the need for transparency in government contracts. To ensure efficient and fair delivery of public services, we need competitive bidding, full disclosure, and independent oversight. Without these safeguards, both businesses and residents may question the decision-making process's alignment with the public interest or private gain. It is important to acknowledge that garbage collection and disposal are real problems faced by all cities. Waste management becomes expensive and complex due to urban density, population growth, and environmental regulations. Local governments have a duty to address these challenges and to fund sustainable waste systems. However, local governments should avoid passing on these costs in a way that cripples businesses, particularly those that provide employment and essential services. A balanced approach is needed. Garbage fees should be reasonable, predictable, and based on actual waste volume. Small businesses should not be charged the same rates as large commercial establishments. Clear guidelines, proper consultation, and grievance mechanisms should be in place for those who feel overcharged. Most importantly, fees must correspond to reliable and efficient service. Manila City finds itself at a crucial juncture. It can continue down a path where rising fees push businesses away, or it can reform its policies to create a more supportive environment for entrepreneurs. A city thrives when businesses prosper. Excessive garbage fees, coupled with poor service and unanswered questions, risk undermining that foundation. In the end, garbage management is not just about waste-it is about governance, fairness, and trust. Manila's leaders must ensure that solutions to urban problems do not come at the expense of the very businesses that keep the city alive.