DTI will not support call to retain tax perks for BPOs
The Department of Trade and Industry (DTI) will not support the call of the Information Technology and Business Process Association of the Philippines (IBPAP) to retain the tax incentives for the industry. DTI Secretary Ramon Lopez said the fiscal incentives given to the business process outsourcing (BPO) sector will be among the first to be removed under the government’s tax reform program. IBPAP earlier said the removal of tax exemption would make the country’s IT-BPM industry less competitive compared to other countries. Without the exemption, transactions would now be subject to a VAT equivalent to 12% of gross receipts.
