The Philippine Economic Zone Authority and its industry partners recently submitted their recommendations to improve the proposed Corporate Income Tax and Incentives Rationalization Act.
PEZA director-general Charito Plaza said the agency aimed to address the possible exit by foreign investors from ecozones, which could result in massive job losses in the country.
“The refinements are the result of the various formal consultations PEZA undertook over the last month with its export and IT enterprises, ecozone developers and industry partners,” Plaza said.
She said the partners include Philippine Ecozones Association, Semiconductor and Electronics Industries in the Philippines Foundation Inc., Information Technology and Business Process Association of the Philippines, Confederation of Wearable Exports of the Philippines and the Joint Foreign Chambers of the Philippines.
The proposed enhancement of CITIRA bill aims to implement the grandfather rule and extend the transition period to 15 years for the shift from PEZA’s current tax incentives to the new menu of incentives under the CITIRA bill.
Such enhancements were based on 10 principles that are important both to the agency and its valued partners.
These involve the elimination of the risk of massive unemployment in the CITIRA Bill, red-tape and the threat on the Ease-of-Doing Business, constitutional infirmities, un-competitiveness, complicated items, controversy, the shotgun approach in the bill and the risk of the backlash from the international and global export manufacturing and exporters of IT services.
PEZA is also keen on saving the P21-billion fund intended for the structural adjustment in the CITIRA bill and save the reputation of investment promotion agencies as honorable members of the global business community.