MANILA -- Executives from various foreign chambers of commerce in the country threw their support behind the Philippine Economic Zone Authority (PEZA) saying that current policies, including perks, extended by government to their members ought to be maintained.
In a press conference during the Arangkada Philippines Forum 2018 Wednesday, members of the Joint Foreign Chambers (JFC) of the Philippines reiterated their call to keep fiscal incentives under PEZA as well as the system of transacting with the agency.
Aside from the income tax holiday, the PEZA is providing 5-percent gross income earned (GIE) tax incentives to its locators as long as they are operating in the country.
Foreign investors also prefer to locate their businesses in PEZA economic zones because of the ease of doing business in the agency. PEZA-registered companies transact directly with the investment promotion agency and skip the lengthy bureaucracy attendant to dealing with local government units.
“PEZA brings such confidence to foreign investments,” Australia-New Zealand Chamber of Commerce Philippines President Daniel Alexander said.
Philippine Association of Multinational Companies Regional Headquarters, Inc. Director Celeste Ilagan, on the other hand, said the business group is supporting the rationalization of fiscal incentives under the second package of tax reform program.
However, Ilagan noted that this reform should still make the Philippines competitive with the rest of the region.
American Chamber of Commerce of the Philippines Executive Director Ebb Hinchliffe said policymakers should “leave PEZA alone” in pushing for the next tax reform package.
Instead of cutting fiscal incentives, the government should craft policies that would invite investors to participate in building key infrastructure projects in the country, he said. (PNA)
