Position Papers

Dear Secretary Teves:

The Joint Foreign Chambers (JFC) represent a substantial share of investors operating in the Philippines and are almost always the first point of contact of new investors. In our efforts to achieve a level playing field for investors and continue to bring new investors to the country, especially in manufacturing, we are watching the dispute between government agencies and Pilipinas Shell with deep concern – for three reasons:

1. Double taxation, taxing both intermediates and the final product, undermines the JFC’s efforts to encourage manufacturing investments in the Philippines. Double taxation favors trading over manufacturing which cannot be in the interest of Philippine economic policy makers. We suggest that this policy be urgently addressed as it is detrimental to the vision of growth in manufacturing.

2. While we understand that government may have to change rules and regulations, we have always reiterated that the following principles are important for business:

a. consistency
b. predictability
c. fairness
d. due process
e. no retroactive changes.

Given the Shell / BIR / BOC debate, some of these principles are severely compromised and will discourage future investments. Again we request government to review this case in this light.

3. The JFC members are concerned about the heavy hand of government in this case, threatening to confiscate future shipments, endangering the supply of vital products to the economy, on the basis of retroactive changes in government regulations. In our view, government should also review this part of the BIR/BOC/Shell issue.

The JFC organizations and their members trust that this severe issue - affecting the environment in which business is done in this country – can be resolved fairly.

Again we request government to review this case in the light of the above.


Sincerely yours,

AUSTEN CHAMBERLAIN
President
American Chamber of Commerce
of the Philippines, Inc.

RICHARD BARCLAY
President
Australian-New Zealand Chamber
of Commerce of the Philippines, Inc.

JULIAN PAYNE
President
Canadian Chamber of Commerce
of the Philippines, Inc.

HUBERT D’ABOVILLE
President
European Chamber of Commerce
of the Philippines, Inc.

YASUHIKO ARIMITSU
President
Japanese Chamber of Commerce
& Industry of the Philippines, Inc.

EUN GAP CHANG
President
Korean Chamber of Commerce
of the Philippines, Inc.

SHAMEEM QURASHI
President
Philippine Association of Multinational Companies
Regional Headquarters, Inc.


Cc: Department of Trade and Industry, Sec. Peter Favila Bureau of Internal Revenue, Commissioner Joel Tan-Torres Bureau of Customs, Commissioner Napoleon Morales