by Ian Nicolas Cigaral with a report from The STAR/Louella Desiderio, 12 Nov 2019
MANILA, Philippines — The Philippines’ IT-BPM industry slashed its growth targets for the remainder of President Rodrigo Duterte’s term as the government’s plan to scale back tax incentives continues to fray the industry’s nerve.
The country’s IT-BPM sector now expects revenue to grow by around 3.5%-7.5% to a range of $29 billion-$32 billion by 2022.
The industry also forecast headcount growth to clock in at 3%-7% to around 1.42 million-1.57 million.
The new targets are lower than the sector’s original goal of generating $38.9 billion revenue and creating 1.8 million jobs by 2022.
The industry’s downwardly revised targets were announced at Tuesday’s IT and Business Process Association of the Philippines’ 11th International Innovation Summit.
Under Corporate Income Tax and Incentives Rationalization Act, or CITIRA bill, corporate income tax rate will be gradually reduced from 30% to 20% while tax perks, among Southeast Asia’s most generous, will be “rationalize”.
Business groups fear that the bill would force companies to cut jobs and would drive away foreign investors. —