The implementation of Corporate Income Tax and Incentive Rationalization Bill, government red-tape, worsening traffic congestion, expensive electricity are main reasons for the surge of joblessness, according to a big labor group.
The Trade Union Congress of the Philippines cited the Social Weather Stations report which revealed that the number of unemployed Filipinos grew from 9.4 million in March 2019 to 10 million in September 2019.
“Because of these problems, many investors are leaving the country and go to other ASEAN countries to invest there,” Trade Union Congress of the Philippines spokesperson Alan Tanjusay said.
“The unaddressed problem on the high cost of electricity, traffic congestion, and red tape and poor and aging transport and logictics are the traditional main drivers of recent survey showing an increase in unemployment rate,” the labor group said.
There are no new factories or companies putting up because of these worsening and unaddressed problems, he said.
“With no assurance, some divests from the country and go to other ASEAN countries and invests there. So with the new college and K-12 graduates recently vis-a-vis a few opportunity, we surely have a surge in the way we have now,” Tanjusay said.
He said the fear and uncertainty of business owners of the implementation of CITIRA bill now pending at the legislature were pushing away foreign investors.
“Once enacted into law, CITIRA would rationalize corporate income tax and will remove some tax incentives that these businesses have been enjoying for decades. So as early as now, they begin to retrench employees and anticipate a full-blown shutdown and transfer as soon as CITIRA becomes a law,” said Tanjusay.
“There is also poor employment opportunity on the promise of direct and indirect employment generation in the Build, Build, Build government centerpiece program and its supply chains,” he added. Vito Barcelo