By Louella D. Desiderio, The Philippine Star
MANILA, Philippines - A group of European businessmen with operations in the Philippines is pushing for adjustments on the tax system to make the country competitive in the region.
In a statement yesterday, European Chamber of Commerce of the Philippines (ECCP) president Michael Raeuber said the Philippine government needs to adjust the tax rate imposed on individuals and companies to ensure the country’s competitiveness.
“We have to bring the Philippines forward. The government now has limited time to approve economic legislation and institute reforms. If we do not address the issue now, companies will be going to Vietnam and not here,” he said.
While the ECCP has been encouraging European businesses to set up shop in the Philippines, he said the country must offer the right set of incentives and tax system to be an attractive and competitive location for investments.
Marikina Rep. Romero Quimbo who also chairs the ways and means committee at the House of Representatives is considered an ally of the ECCP in pushing for adjustments on the tax system as the official shares the group’s view of the Philippines being a costlier place for investments compared to its peers in Southeast Asia.
“The cost of doing business in the Philippines is higher than in competing countries in the region. With ASEAN (Association of Southeast Asian Nations) integration starting soon, it makes good economic sense to completely overhaul our corporate and individual income taxes in order to be competitive,” Quimbo said.
The Philippines imposes the highest tax rate of 32 percent on incomes of individuals among countries in the ASEAN.
The country’s tax bracket rates have been in place since 1997 with 86 percent of income taxes being shouldered by only 16 percent of the population.
As the country wants to attract more foreign investments particularly in agriculture and manufacturing, Quimbo said changes in the tax system would be necessary to achieve the government’s goal of making economic growth inclusive.
At present, there are proposals in the House of Representatives to adjust income tax brackets to inflation.
There are also proposals seeking to reduce the corporate income tax rate to 25 percent from 30 percent.
Read more on the Philippine Star.
In a statement yesterday, European Chamber of Commerce of the Philippines (ECCP) president Michael Raeuber said the Philippine government needs to adjust the tax rate imposed on individuals and companies to ensure the country’s competitiveness.
“We have to bring the Philippines forward. The government now has limited time to approve economic legislation and institute reforms. If we do not address the issue now, companies will be going to Vietnam and not here,” he said.
While the ECCP has been encouraging European businesses to set up shop in the Philippines, he said the country must offer the right set of incentives and tax system to be an attractive and competitive location for investments.
Marikina Rep. Romero Quimbo who also chairs the ways and means committee at the House of Representatives is considered an ally of the ECCP in pushing for adjustments on the tax system as the official shares the group’s view of the Philippines being a costlier place for investments compared to its peers in Southeast Asia.
“The cost of doing business in the Philippines is higher than in competing countries in the region. With ASEAN (Association of Southeast Asian Nations) integration starting soon, it makes good economic sense to completely overhaul our corporate and individual income taxes in order to be competitive,” Quimbo said.
The Philippines imposes the highest tax rate of 32 percent on incomes of individuals among countries in the ASEAN.
The country’s tax bracket rates have been in place since 1997 with 86 percent of income taxes being shouldered by only 16 percent of the population.
As the country wants to attract more foreign investments particularly in agriculture and manufacturing, Quimbo said changes in the tax system would be necessary to achieve the government’s goal of making economic growth inclusive.
At present, there are proposals in the House of Representatives to adjust income tax brackets to inflation.
There are also proposals seeking to reduce the corporate income tax rate to 25 percent from 30 percent.
Read more on the Philippine Star.