Manila Small Businesses Cut Staff, Take Loans Over Steep Garbage Fees
New municipal rules implemented in January 2026 have increased waste collection costs by up to 12 times for some enterprises, forcing staff reductions and loan applications to cover rising operating expenses.
Manila's New Waste Collection Charges
Small businesses in Manila are grappling with significantly higher garbage collection fees, introduced by the city's local government in January 2026. These revised charges, implemented under Ordinance 9151, have pushed operational costs sharply upwards for many enterprises.
Business owners report that the sudden increase is jeopardising their financial viability, with some establishments facing closure. The higher fees were notably imposed during this year's business permit renewal cycle, catching many operators by surprise and straining their already tight budgets.
Rising Costs Force Staff Reductions and Loans
The impact of the new fees is driving businesses to drastic measures. Vince Canlas, owner of El Latte Cafe on Taft Avenue, reported a garbage collection fee of P60,000 as part of his nearly P107,000 business permit renewal. This was despite his 100-square-metre cafe generating only one to two bags of waste daily.
To manage the burden, Canlas reduced employee working days, resulting in lower take-home pay. His cafe was temporarily closed on 1 September after he struggled to settle the fees, prompting him to secure a new loan for payment.
Significant Fee Increases Across Sectors
The revised fee schedule has led to substantial increases, with some commercial rates rising to 12 times their previous levels. For example, a food stall owner near Manila's Fusion Alley, Kriska Castillejos, saw her annual renewal fees jump from approximately P14,000 last year to P64,000 this year. This financial pressure compelled her to dismiss nine of her 15 employees.
Under the new ordinance, a commercial bank's main office and each branch are now charged P15,000 per quarter, a sharp rise from the previous P1,250 and P225, respectively.
Consequences for Manila's Small Enterprise Sector
The escalated waste collection fees pose a significant threat to the survival of small and medium-sized enterprises (SMEs) in Manila. Businesses like El Latte Cafe are considering permanent closure by the end of this year due to accumulating bills. The increased operational costs could deter new business formation and force existing operators to scale down or exit the market.
Business owners have urged Manila Mayor Isko Moreno Domagoso to review the increases, highlighting the need for policies that support rather than burden small enterprises within the city's economy.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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