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Bloomberg
Philippines Hangs Corporate Tax Cuts to Attract Foreign Investors
(Bloomberg) – The Philippines is opening its doors to foreign investment in its bid to recover from the pandemic, Commerce Secretary Ramón López said on Wednesday by promoting corporate tax cuts and structural reforms that can resist political successions. at a much lower corporate tax rate in the coming months, ”Lopez said in an interview with David Ingles of Bloomberg Television, citing a bill that would cut corporate tax rates from 30% to 25% to start, and eventually to 20%. %. “Over the years, he has seen how the Philippines and especially economic policies have been isolated from changes in government and administrations,” Lopez said. “Essentially, it is a direction to improve the business environment” regardless of who is in power, he said, citing efforts to reform tax incentives and offer other economic support measures. The bill, currently pending in the Senate, seeks flexibility in the tax concession and other incentives as the Philippines competes for high-value investments. The streamlining of tax advantages aims to make the system performance-based, specific and time-bound, although some business groups have expressed concern that it could lead to job cuts and loss of new investment. priority sectors, including automotive, aerospace, electronics, copper nickel products, and IT and business process management. The campaign is “our way of attracting our investor friends from around the world to investigate the Philippines,” Lopez said. The Philippines entered a recession this year as it grapples with the second-worst coronavirus outbreak in Southeast Asia. Consumer confidence weakened after movement restrictions closed businesses and eliminated millions of jobs. Spending is starting to pick up lately, as evidenced by the economy’s quarter-on-quarter growth, Lopez said. Consumer confidence and the pace of recovery remain risks to the outlook, the trade chief said. Subscribe now to stay ahead with the most trusted source of business news. © 2020 Bloomberg LP
