IBPAP seeks longer ‘sunset’ period for tax incentives
The IT and Business Process Association of the Philippines (IBPAP) is hoping that the industry will be given a longer sunset period by the government in its planned rationalization of tax incentives given to the business process outsourcing (BPO) sector. The sunset period refers to a provision in the law that will allow the incentives to remain for a specified period of time before they will no longer be in effect. During a hearing at the House of Representatives, IBPAP President and CEO Rey Untal declared that removing the perks under the proposed second package of tax reforms as submitted by the Department of Finance to Congress in January, will be detrimental to the industry. Untal also said that should the government push through with the plan, removing the current tax incentives should at least be done gradually.