An Ilongga lawmaker filed a bill that seeks to re-evaluate incentives given to businesses in the country.
AAMBIS-Owa (Ang Asosasyon Sang Manguguma Nga Bisaya-OWA Mangunguma Inc.) Representative Sharon Garin emphasized that “investment incentives are the primary factor that attracts businesses to invest and expand in the country.”
She said foreign direct investment (FDI) is one of the major external sources of financing the growing economy.
Garin noted that for the first quarter of 2016 alone the country recorded an increase of P26005.13 million.
“We have to consistently increase FDIs, create and strengthen a proper environment for industries that will enhance healthy competition and promote industries and enterprises,” she said.
House Bill 3359 or the Rationalization of Fiscal Incentives Act, which is now pending with the Committee on Ways and Means, is expected to create a robust and stable investment climate in the Philippines.
Under EO No. 226 also known as the Omnibus Investment Code of 1987, investors are given corporate income tax holidays for up to 8 years.
“It is important to re-evaluate these incentives given to business, and identify those that will remain and those that need to be done away with. Not only will it avoid redundancy, it will also be able to provide more support to exporting industries, micro, small and medium enterprises, and research and development,” Deputy Speaker Garin said.
She is hoping that the measure, once enacted into law, will balance the tension between creating attractive fiscal incentives for domestic and foreign investors and achieving social and economic goals.
“Businesses are the main source of tax revenues which contribute to public funding for better infrastructure, health, education, and other services,” Garin said. IMT