Taguig City – Contrary to what appears in some news articles, the Philippine Economic Zone Authority (PEZA) Director General Charito B. Plaza has clarified its support to Corporate Income Tax and Incentives Rationalization Act (CITIRA) bill and the Department of Finance’s (DOF) revenuQe generating measures.
“CITIRA must be passed the soonest to remove the agony of waiting by existing export industries whether to expand, to exit, or to transfer their businesses to other countries,” said Plaza.
Plaza has explained that “for two years in a row, export industries kept hold their expansion plans while new investors are having a ‘wait-and-see’ attitude, hoping for an enhancement instead of a decrease of incentives given by PEZA to its investors.” The PEZA Chief said that “the incentives compensate to the high cost of doing business in the Philippines and the absence of the efficiency factors such as the high power rate, the lack of infrastructure, transportation, logistics hubs, and communication facilities and the mismatch or the lack of skills of Filipino workers.”
“CITIRA is best for the domestic enterprises who long deserve government incentives to maximize their production, manufacturing, and export capability and for them to complete the supply chain; thus, we will attract more export industries to the country,” recommends DG Plaza.
Furthermore, Plaza emphasized that “we should provide our export industries a longer transition period to make adjustments being very vulnerable to man-made and natural disasters and calamities as well as trade and military wars.”
PEZA’s incentives and its best practices in providing the ease of doing business has attracted various exporters to the country, which has increased to 4,478 locator companies and 404 economic zones and created 1.5 million direct jobs to the Filipinos, despite the absence of the efficiency factors.
In addition, with President Duterte’s Administrative Order no. 18 which will create ecozones to the countryside and spread jobs to fully utilize our idle lands, the LGUs and the private sector are now motivated to make attractive their local communities to investors, providing jobs and livelihood for their constituents.
“We support CITIRA’s goals and submit our proposed amendments to Congress for our lawmakers to see the general picture and conditions of our country’s competitiveness in the eyes of our global export companies who are competing in the global market,” said Plaza.
“In the midst of continuous natural and man-made disasters going on in the country and in the world, we appeal for crucial consideration and for the wise judgment of our lawmakers to pass an investor-friendly CITIRA law, to put order and stability in our investment and economic policies, laws and program,” quips the Director General.
The agency’s management has submitted its position to the Congress in November 18, 2019 after the agreement in the PEZA Board meeting presided by its chairman, Department of Trade and Industry (DTI) Secretary Ramon Lopez and in consultation and participation of the different industry, labor sectors, and stakeholders. #