Competitiveness should not depend on incentives – Finance Secretary

Finance Secretary

Finance Secretary Carlos Dominguez said it is not the job of his office to make companies competitive, but rather it is the job of the companies themselves. Dominguez issued the statement as companies continue to argue that they need assistance from the government to remain competitive. Dominguez said the Philippine government will push through with a tax reform program that may put off foreign investors and may prompt some to consider leaving the country. He said that the current corporate tax and fiscal incentives regime is not fair to local small enterprises that have been operating under a 30% levy. The country’s business process outsourcing industry, a main beneficiary of the existing incentives, has asked the government to reconsider its plan. The Philippine Economic Zone Authority, which grants many of the fiscal benefits, has warned that the proposed tax reform has unnerved foreign investors.

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