The allocation of a PHP5 billion fund for the business process outsourcing (BPO) industry is a welcome development according to the Information Technology and Business Process Association of the Philippines (IBPAP). IBPAP vice chairman Catherine Ileto said the budget for the skills upgrade of IT-BPO workers is welcome support from the government. The program aims to ensure that BPO workers and the industry remain competitive in the job market. The amount will be solely used to pay for formal academic or training programs of accredited private or public schools and training centers. The annual PHP5 billion fund will be set up under the latest tax reform legislation— the Tax Reform for Attracting Better and Higher-Quality Opportunities (TRABAHO) bill, which seeks to lower the corporate income tax rate to 20% from 30% and to remove tax incentives. The IT-BPO sector currently enjoys the perpetual 5% gross income earned tax incentive.
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