BOI prepares unified fiscal incentives plan
Ma. Elisa P. Osorio
Philippine Star
The Board of Investments (BOI) is close to rationalizing the country’s fiscal incentive program as the consolidated version of the bill is expected to be presented in the House of Representatives “very soon,” BOI managing head Elmer C. Hernandez said.
Earlier, the Department of Trade and Industry (DTI) said it will fight for the retention of tax perks for small and medium sized enterprises (SMEs) and exporters.
Trade Secretary Peter B. Favila said he has told his fellow economic managers that the income tax holiday (ITH) for SMEs and exporters must be retained.
“We have to reconcile the sentiments of DTI as the one who promotes investments and the DOF (Department of Finance) as the one who takes care of the revenues,” Favila explained.
Favila said how the House of Representatives will handle the fiscal rationalization bill will send signals to potential investors.
Fiscal incentives are given as sweeteners to attract more investors to invest in the country.
“I don’t think we are prepared for such a scenario where you take away something (the investors) will ask you what’s in it for me. What will you give me in its place?” Favila said.
“Everyone in the region (ASEAN) is offering fiscal and non fiscal incentives. We need it to be competitive,” Favila said in an earlier interview.
According to Favila, the competition among ASEAN member nations for foreign locators is very stiff.
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