European businesses want Phi incentives regime intact

June 08, 2018 News

The European business community wants the Philippines to retain its current incentives regimes to keep the country's competitive edge intact amid moves to rationalize fiscal incentives under the second tax reform package. "With regard to the rationalization of fiscal incentives or the creation of a competitive fiscal regime, we also call for the retention of current incentives regimes already in effect," European Chamber ofCommerce of the Philippines (ECCP) executive director andEU­Philippines Business Network (EPBN) executive director Florian Gottein said."We suggest that, at the minimum,any additional reforms should be benchmarked against existing fiscal incentives granted to investors. Improving the Philippines' competitiveness should also be the core of any fiscal regime rationalization," he added. Gottein said the administration's second tax reform package is of particular importance to the business community as it is expected to cover both rationalization of fiscal incentives and corporate income tax (CIT). He said the country's CIT, being one of the highest in the region, is one of the points that makes it challenging for the ECCP to convince investors to consider the Philippines over its Asian neighbors. "The ECCP, along with the EPBN, has long strived to create an attractive investment and trade environment for business in the Philippines. The European business community recognizes the importance of a more attractive Philippine investment environment and fiscal regime for foreign and domestic investors in order to maintain our competitiveness on both a regional and global view," Gottein said.