Amid moves to rationalize the fiscal incentives being granted by the government to investors, foreign businessmen want “generous” tax perks retained for those who would pour capital and create jobs in the country’s poorest provinces.
During the recent House hearing on the various bills seeking the rationalization of fiscal incentives, representatives of the European Chamber of Commerce of the Philippines (ECCP) and the American Chamber of Commerce of the Philippines (AmCham) told legislators that “generous incentives should be provided for domestic as well as export projects in the poorest provinces, as determined by Neda [National Economic and Development Authority].”
While retaining the perks for investors in undeveloped areas, foreign businessmen are amenable to scrapping the incentives on sectors that are now profitable.
“At a minimum, it is time to end redundant and costly fiscal incentives for mature industries, as proposed first in 1995,” ECCP and AmCham said.
The foreign business groups also said that only strategic or high-value projects in terms of investment cost, employment and technology transfer should be made eligible for generous fiscal incentives, subject to the approval of the President.