Tax perks for local investors may be cut

Published by rudy Date posted on November 30, 2010

THE Finance and Trade departments will come up with a common position aimed at giving out the least possible tax incentives and other perks to investors.

“We have agreed that incentives are still necessary since the Philippines still has issues on infrastructure and it needs to be competitive in getting investors to come in. However, we likewise agreed that such incentives should be reduced to as few as possible,” Finance Secretary Cesar Purisima told reporters.

The finance chief said the Philippines has “too many agencies administering incentives, and these should likewise be cut to as few as possible.”

He is pertaining to agencies such as the Board of Investments, Philippine Economic Zone Authority, Subic Bay Metropolitan Authority, Clark Development Corp., Cagayan Economic Zone Authority, and Aurora Special Economic Zone Authority.

Part of the plan, Purisima said is to strengthen the “sunset” provision, which he said is susceptible to extension each time it nears its prescriptive period.

Under the current law, the government grants by up to six years of ITH, and duty free importation of equipment in favor of investments approved by incentive-giving bodies.

“Incentives are necessary, but only insofar as big ticket investments are concerned and would not otherwise come [in the Philippines] without the incentives,” Purisima said.

“We must minimize the grant of incentives to domestic companies that would make the investments here anyway so we don’t waste incentives. We must offer incentives not as a set but must be flexible,” he said.

He said agencies such as the Departments of Finance (DOF), of Trade and Industry (DTI), and the National Economic and
Development Authority (NEDA) are studying the matter through its joint technical working group to draft the new proposal to Congress.

“The NEDA’s input would be very useful in respect to the rationalization of fiscal incentives, through which we will determine the overall economic impact of our proposal before we submit it to Congress,” Purisima said.

He said that such proposal would come out within the first quarter of next year as Congress would resume its session within the same period after its adjournment on December 18.

“We are one in agreement that we need to revise the incentives law,” he said. –Katrina Mennen A. Valdez, Reporter, Manila Times

March 2025

It’s women’s month!

“Support women every day of the year!”

Invoke Article 33 of the ILO constitution
against the military junta in Myanmar to carry out the 2021 ILO Commission of Inquiry recommendations against serious violations of Forced Labour and Freedom of Association protocols.

Accept National Unity Government
(NUG) of Myanmar.
Reject Military!
#WearMask #WashHands #Distancing #TakePicturesVideos

Time to support & empower survivors.
Time to spark a global conversation.
Time for #GenerationEquality to #orangetheworld!

Monthly Observances:
Women’s Role in History Month

Weekly Observances:
Week 1: Environmental Week
Women’s Week
Week 3: Philippine Industry and Made-in-the-Philippines
Products Week
Last Week: Protection and Gender-Fair Treatment
of the Girl Child Week

Daily Observances:
March 8: Women’s Rights and
International Peace Day;
National Women’s Day
Mar 4— Employee Appreciation Day
Mar 15 — World Consumer Rights Day
Mar 18 — Global Recycling Day
Mar 21 — International Day for the Elimination of Racial Discrimination
Mar 23 — International Day for the Right to the Truth concerning Gross Human Rights Violations and for the Dignity of Victims
Mar 25 — International Day of Remembrance of the Victims of Slavery and the Transatlantic Slave Trade
Mar 27 — Earth Hour

Trade Union Solidarity Campaigns
Get Email from NTUC
Article Categories