Cebu business group tell govt ‘be cautious’ on TRAIN 2
The Cebu Chamber of Commerce and Industry has again called on the government to be more cautious in rationalizing investors’ incentives. This is to avoid losing competitiveness. CCCI President Antonio Chiu said the government should not be ungenerous in giving out incentives. The second package of tax reform, or the Tax Reform for Attracting Better and High-Quality Opportunities, aims to reduce corporate income rates from 30% to as low as 20%. It also plans to rationalize fiscal incentives by removing tax perks. The removal of some tax incentives will reportedly discourage businesses from investing in the country and result in job losses. Aside from TRAIN 2, Chiu said the country is also facing difficulty in attracting one of the largest employment-generating industries, the manufacturing industry. The country’s business process outsourcing sector is also threatened by the new policy. The Philippines has been urged to maintain an investor-friendly environment to continue attracting investors.
