A P24 billion European investment put on hold because of tax reform delay

A P24 billion European investment put on hold because of tax reform delay

Because of uncertainties over the present tax incentive scheme in the Philippines, a European company’s manufacturing project with an investment of P25 billion is being put on hold, according to a top official of the European Chamber of Commerce of the Philippines (ECCP). The chamber’s executive director Florian Gottein said this would have been one of the largest investment projects from a European firm in the Philippines that has been deferred because of the incentives issue. He said there are also a handful of other firms that have said that they are taking a wait-and-see attitude for the same reason. Critics say that the pending Trabaho bill, which plans to lower the corporate income tax rate while reducing tax perks, is creating uncertainty among businesses that have set up shop in the Philippines, particularly those from business process outsourcing firms, and this is delaying investment.

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