The Joint Foreign Chambers on Wednesday asked legislators to exempt the Philippine Economic Zone Authority from the proposed rationalization of fiscal incentives under the second package of the Tax Reform for Acceleration and Inclusion law.
The foreign chambers said in a news briefing during the Arangkada Forum 2018 in Pasay City that the Philippine government should “leave Peza alone.”
“Please don’t touch Peza,” the seven member groups of JFC said in a joint statement.
JFC also pushed for the reduction of corporate income tax to 20 percent within five years, instead of 10 to 15 years as proposed under the second package of Train law.
The American Chamber of Commerce of the Philippines asked the government to expedite the planned rate of tax reduction to compensate for incentives to be lost under Train 2 or the so-called “Trabaho” bill.
“The government should lower the CIT sooner. Why? Because we’re forced to cut incentives in 2019. So why don’t they cut it faster,” Amcham president Ebb Hinchcliffe said in a separate interview.
He said that as the Philippine government wanted to reduce CIT in 10 to 15 years, it would remain the country in Southeast Asia imposing the highest CIT rate even after six years.
“It is not fast enough to attract investors right now. We need to create jobs now, not later,” he said.
Hinchcliffe said the JFC recognized that the government needed money to finance the ‘Build, Build, Build’ program, “an initiative that we all support.”