'Negative na': Small Manila businesses cut staff, take loans over steep garbage fees

MANILA, Philippines — Small business owners in Manila are reeling from a sharp increase in garbage collection fees imposed during this year's business permit renewal.

Already struggling with operating costs, business owners interviewed by Philstar.com said the higher fees have pushed their finances further into the red, forcing some to cut staff or take out loans. At least one establishment was also ordered closed by the Manila local government over unpaid permit-related fees.

For Vince Canlas, owner of El Latte Cafe on Taft Avenue, the new fees have made the reality of doing business in Manila an uphill battle.

Originally starting as a milk tea shop in Olongapo, the business relocated to Manila to tap into the large student market near major universities.

The 100-square-meter cafe has just five employees. So when he renewed the permit, he was shocked at what he was asked to pay.

"Nagulat kami sa garbage fee. Na sobrang laki. Nakakagulat lang talaga. Hindi namin in-expect na mangyayari pala sa amin," Canlas told Philstar.com in an interview.

(We were taken aback by how high the garbage fee was. It was really surprising. We never expected this would happen to us.)

Canlas said the cafe incurred nearly P107,000 in fees for its business permit renewal. Around P60,000 was for garbage collection, including interest due to late payment.

"Sabi ko manager ko, 'Sir, gaano ba karami ang tinatapon natin daily?' Sabi niya, 'Boss, ano lang 'to, nasa one to two bags lang.' Sobrang baba so hindi talaga makatarungan ang P60,000," Canlas said.

(I asked my manager how much garbage we generate daily, and he said it was only around one or two bags. Given how little waste we produce, a P60,000 garbage fee is simply unreasonable.)

To survive, Canlas reduced his employees' working days, resulting in lower take-home pay.

"Wala kaming choice kasi wala naman kaming ibang pwedeng i-cut na ano eh. Para lang mabawasan 'yung alam mo 'yun, 'yung gastusin eh," Canlas said.

(We had no choice because there really wasn't anything else we could cut. We just needed to bring down our expenses.)

Making things worse, the Manila local government ordered the closure of his cafe on September 1 after he struggled to settle the fees.

To save the cafe, Canlas took out a new loan to pay the nearly P107,000 assessment on the same day.

After settling the amount, howver, Canlas said the city still required them to pay another P6,200 in penalties before they were allowed to reopen.

"Baka tapusin na lang itong year na 'to. Isara na lang namin ang cafe; wala na talaga eh, negative na dahil sa mga bills," Canlas said.

(We might just finish out this year and shut down the cafe. We really have no choice left. We're already operating at a loss because of all these bills.)

"Grabe, nakaka-iyak sa Manila. Parang tingin nila pinupulot namin ang pera," he added.

Reduced staff

For Kriska Castillejos, owner of a food stall near Manila's Fusion Alley in Sampaloc, the financial pressure meant letting go of nine of her 15 employees.

Like other business owners interviewed by Philstar.com, Castillejos said her stall suffered financially because of what she described as a sudden spike in costs of business in the city.

For the previous year, she paid about P14,000 in renewal fees. In 2026, the amount ballooned to P64,000.

"Malaki 'yung ano niya, 'yung impact niya talaga. Lalo na kami maliliit, nagpapasahod kami ng tao," Castillejos said in a Philstar.com interview.

(It really has a huge impact, especially on small business owners like us who have employees to pay.)

The ordinance

In January 2026, the Manila local government began implementing revised garbage collection fees under Ordinance 9151, with some commercial rates rising to 12 times their previous levels.

Before the revised schedule, Manila followed the garbage collection rates under its 2013 Omnibus Revenue Code.

For instance, the quarterly garbage fee for the main office of a commercial bank was previously P1,250, while each branch was charged P225.

Under the revised schedule, both a commercial bank's main office and each branch are charged P15,000 per quarter.

Public eating places with an aggregate area of 100 to less than 200 square meters, meanwhile, are now charged P16,800 per quarter.

Call for fairer fees

Business owners urged Manila Mayor Isko Moreno Domagoso to reconsider the steep increases.

Canlas said he does not hold any personal animosity toward the local government but believes its current policies are putting more pressure on small enterprises.

"Sana ma-hear kami na magiging balance lang sa lahat. May proyekto para sa mahirap, may proyekto para sa mga small business owners," Canlas said.

(I hope we are heard and that there will be balance for everyone, with projects for the poor as well as projects for small business owners.)

"Hindi naman namin hinihiling na malaki ang bumalik sa amin. Ang gusto lang talaga namin makapag-operate nang wala kaming iniisip na, hala, may bayarin malaking ganito. Mabubuhay, makakapag-operate pa ba tayo para sa mga employees natin?" he added.

(We aren't asking for huge returns. All we really want is to operate without constantly worrying about massive bills and wondering whether we can survive and continue operating for our employees.)

Castillejos, meanwhile, urged the city hall to focus on strict waste segregation, penalties for littering and investments in recycling rather than imposing increasingly heavy fees on already struggling businesses.

"Kasi talagang may basura naman tayo eh. Kailangan nating magbayad para sa ika-uunlad din natin. Ang ano ko lang is dapat hindi sobrang taas," Castillejos said.

(We recognize that we generate waste and need to pay our share. My only point is that the fee should not be this high.)

Comparison with other cities

Under Manila's revised schedule, public eating places with an aggregate area of 100 to less than 200 square meters are assessed a quarterly garbage fee of P16,800, or P67,200 annually.

The amount is notably higher than waste collection fees described by other local governments in responses to Philstar.com:

• San Juan City: Annual garbage fees range from P200 to P15,000 depending on the size and type of business and are collected during the application or renewal of business permits, according to San Juan Mayor Francis Zamora.
• Marikina City: Restaurants are charged annual garbage fees of around P3,000 to P5,000, while catering services are charged P12,000 per year. Rates for smaller establishments vary depending on their classification.
• Las Piñas: Businesses are charged annual fees ranging from P3,000 to P20,000.
• Pasig City: Restaurants and cafes are charged P5 per square meter monthly. For a 100-square-meter cafe, this amounts to P500 a month, or P6,000 annually.
• Navotas City: The Assessment Department of Business Permits and Licensing told Philstar.com that the city collects P1,500 to P7,500 as garbage disposal fees for food businesses' annual payments.

What did the Manila LGU say?

Philstar.com has reached out to the Manila Public Information Office for comment but has yet to receive a response as of press time.

In a January statement, the Manila local government defended Ordinance No. 9151 as "lawful and constitutionally sound."

City officials said an earlier Supreme Court ruling involving Quezon City's garbage fees did not apply to Manila's ordinance because the city's revised charges were imposed on businesses as regulatory fees rather than as taxes.

"In contrast, he said, Manila's revised garbage collection fees apply exclusively to business establishments and are imposed as regulatory fees, not taxes, consistent with jurisprudence recognizing the validity of cost-based garbage charges," the Manila LGU's January statement read.

City Legal Officer Luch Gempis Jr. said the rates had not been updated since 2013 despite increases in commercial waste volumes and garbage hauling costs, particularly after Manila was advised to redirect its waste to the New San Mateo Sanitary Landfill in Rizal.

City Treasurer Paul Vega similarly said the revised rates were intended to narrow the gap between the cost of garbage collection and the revenue generated from the fees.

Bureau of Permits Director Levi Facundo, meanwhile, said fee assessments are automatically generated based on the schedules under the ordinance and advised business owners with billing concerns to coordinate with the appropriate city departments.

Supreme Court junks plea

The implementation of the garbage fee ordinance was challenged before the Supreme Court on February 5, 2026.

The petition was filed by Las Piñas-based senior high school teacher John Barry Tayam, who invoked the "doctrine of transcendental importance" and sought a temporary restraining order against the implementation of the ordinance.

In a February 25 resolution, however, the Supreme Court dismissed the petition, ruling that Tayam lacked legal standing for not being a Manila resident.

It also ruled that the petitioner violated the doctrine of hierarchy of courts by filing the case directly with the high tribunal. — with additional reporting by Ella Mae Soriano