CCAP: TRAIN 2 may put thousands of jobs in peril

CEBU, Philippines — The Contact Center Association of the Philippines (CCAP) is asking the government to retain investment packages in TRAIN-2 (Tax Reform Acceleration and Inclusion) as scrapping fiscal perks could endanger thousands of jobs.

In an interview yesterday, CCAP president Jojo J. Uligan reiterated the industry's appeal to the government to re-visit some of the proposed tax reforms under the second tranche, specifically the proposed modernization of incentives.

According to Uligan, the Philippines has already become one of the most expensive outsourcing destinations and the incentives is one of the reasons investors are setting up facilities here. If the incentives are taken out, it will cripple not only the ability to attract more big employers in the outsourcing sector and other industries in general.

CCAP has formally joined other industry associations to pressure the government to take a second look and examine carefully the adverse effects on investments.

Operating in the Philippines is now 10 percent more expensive than India in terms of cost of doing business. If incentives will be taken off the table, companies might consider relocating.

TRAIN-2 seeks to rationalize fiscal incentives and reduce corporate income tax rates gradually to no less than 25 percent from 30 percent.

This provision of the pending tax reform policy, largely alarmed the outsourcing and IT industries, and this is not being re-considered, the country should prepare for strong headwinds.

Uligan was in Cebu yesterday to formally launch the "Contact Islands 2018," conference slated on July 25-26, 2018 at Shangri-La's Mactan Resort and Spa.

Of the 1.2 million people now employed in the outsourcing sector, 800 thousand of whom are doing the voice-related services or the contact center agents.

Despite these fears openly voiced by the private sector players, Uligan said what is re-assuring about this situation is the government is opening its ears to hear appeals and suggestions from the private sector.

CCAP and other industry organizations in the outsourcing industry are also working closely with concerned agencies in the government, on a regular basis.

The Philippine contact center sector alone generated US$13 billion in 2017, which is expected to grow by seven percent to nine percent by the end of 2018.

CCAP is the umbrella organization of the Philippine contact center industry. It serves as the focal point of sectors that enable the Philippines to sustain its leadership in the global contact center industry. (FREEMAN)