MANILA, Philippines - Investment incentives on industries that attract many businesses will be removed in order to make way for a more robust revenue collection by the government.
In an interview at the sidelines of yesterday’s turnover ceremony, newly appointed Trade Secretary Gregory L. Domingo said that there is a need to rationalize the fiscal incentives given by the government.
This is in reaction to the statement of Finance Secretary Cesar V. Purisima who said that the government must cut the tax breaks given to investors.
According to Domingo, the incentives on industries that receive sizeable investments must be removed already. He said that if investors will come in anyway, then there is no need to provide tax breaks. He said the focus of the incentives must be reevaluated. The secretary explained that when he was undersecretary, the focus of the DTI was information technology.
Domingo did not name which industries will retain the incentives program. He said they will have to study the current incentive package.
At the same time, Domingo said there is a need to give the Board of Investments (BOI) more leeway in terms of giving incentives for special circumstances. He said that especially when the Philippines is competing against another country for a big investment, the BOI must be given powers to help make the Philippines more attractive. Of course he said there should be restrictions and safe guards so that the authority will not be abused.
Domingo said he is still considering who will replace retired BOI Managing Head Elmer C. Hernandez. Aside from Hernandez, Senior Undersecretary Thomas G. Aquino also retired last Monday. He said he is still considering who will fill up the two positions.