By Bernie Cahiles-Magkilat
The country 19 19 Investment Promotion Agencies (IPAs) are working on a Unified Country Branding, instead of each IPAs working independently and in silo.
Trade and Industry Secretary Ramon M. Lopez said this is to complement the planned harmonization of tax incentives under the Corporate Income Tax and Incentives Rationalization Act ( CITIRA) bill.
“We basically want a clear and focused messaging of the Philippines’ value proposition to investors—the country as an investment destination especially during this administration, given the meaningful reforms and solid macro fundamentals with respect to specific sectors,” said Lopez.
If CITIRA is meant to harmonize the incentive regime from the policy-side, the trade chief said, “We are also doing the same from the promo-side. This is for the effectiveness and efficient use of government’s limited resources.”
Some of the IPAs include the Board of Investments, the Philippine Economic Zone Authority, Bases Conversion Development Authority, Subic Bay Metropolitan Authority, Clark Development Corp., Authority of the Freeport Area of Bataan, among others.
The CITIRA bill seeks to remove the perpetual 5 percent tax on gross income earned being enjoyed by exporters registered with the Philippine Economic Zone Authority. The removal of this generous tax perk would be replaced by reduced corporate income tax from the current 30 percent to 20 percent overtime.
Export-oriented enterprises continued to oppose the removal of the 5 percent GIE but were open to longer transition period.