Ecozone locators: Prepare for job cuts, weak exports if TRAIN 2 is passed

by Bilyonaryo, Aug 30, 2018

The country will lose its luster as an investment destination if the tax perks are removed.

The government should say goodbye to foreign investments if it is so bent on passing package two of the tax reform program, the Philippine Ecozones Association (PHILEA) said.

PHILEA represents companies doing business in various economic zones and enjoy tax incentives from the government.

In a statement, PHILEA said the country has more to lose if Tax Reform for Acceleration and Inclusion (TRAIN) 2 is signed into law.

“The tax reform measures being put forth will reverse the progress that the private sector, hand in hand with the government, have attained thus far in contributing to nation-building through strengthening of the industrial sectors of manufacturing, information technology, business process outsourcing, and many others,” PHILEA President F. Francisco S. Zaldarriaga said in statement.

“Disincentivizing foreign investors leaves little room for Philippine industries to pose any remaining attractive propositions given the reality of lack of solid infrastructure, limited business ownership laws, high utility costs and many other constraints,” he added.

What’s more, PHILEA said bidding adieu to these fiscal perks could force them to remove workers, reduce output and exports, and pull capital from the country.