Members of the Joint Foreign Chambers of the Philippines (JFC) have expressed their opposition to the government’s move to rationalize tax incentives. Former European Chamber of Commerce of the Philippines president Michael Raeuber said in a press conference that the first tax reform program had already caused concerns among investors, but the second tranche of the tax law will now discourage the entry of new locators. The BPO industry is expected to be badly hit from the rationalization of incentives, as a number of BPO firms will lose tax benefits derived from their location in economic zones operated by the Philippine Economic Zone Authority (Peza). The Philippines may also see a further decline in exports, thus widening the trade deficit, if the proposed tax bill is enacted into law, said Julian H. Payne, president and CEO of the Canadian Chamber of Commerce of the Philippines.
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