Ambiguity Over BPO Perks

The incentives that are offered for those who work come under the Philippine Economic Zone Authority (PEZA) are now stuck due to the recent change in the Government administration. With the entry of the Duterte administration, the fiscal and non-fiscal incentives for been pending for many companies and as a result of which, the expansion plans have come to a halt.

Not only have development strategies gone off kilter but the minimal PEZA proclamation has had a massive financial impact on those companies who are eligible for these benefits since they are in the PEZA IT (Information Technology) Zone. While the applications of the PEZA eligible companies have reached the President’s office for authorization, the lack of response has created a sense of uncertainty. The Business Process Outsourcing Industry has been affected the most as the recent proposed Investment Priority Plan under the Duterte Government only favors the manufacturing and agriculture sectors along with projects outside the NCR or National Capital Region.

If the new Government plans to phase out the incentives offered under PEZA, then it could have larger implications of establishing Philippines as an alternative BPO industry to India.