About 5,000 top caliber and financially rewarding jobs in a subsector of the Philippines business process outsourcing (BPO) industry will be adversely affected if the new tax reform bill pushes through. The Philippine government under Duterte’s administration seeks to increase consumption taxes and remove incentives enjoyed by BPO companies, including the 15-percent preferential tax rate. According to a Philippine Inquirer report, there is a real concern the country may potentially lose a lot of top Filipino talent to other countries with lower income tax rates like Singapore, Malaysia, and Hong Kong. The same source pointed out that the preferential treatment was originally made in order to attract and retain top-tier talent.
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