Press Release / National Issues

Statement on Tax Reform Proposals

 
We agree with the President that Congress should revisit our procurement laws, it's the major reason why there's a big chunk of "still" unused funds. Yes, we average more than 500 billion pesos of savings or unused funds for the past five years. Another reason is the absorptive capacity.
 
The Executive should address problems of absorptive capacity and the Congress should fix problems of procurement law before raising new revenues.
 
On the lifting of tax incentives granted to business process outsourcing (BPO) firms, we should study its effects. 
 
The BPO industry is one of the fastest growing job-generating industries in the country. It has produced 187,000 jobs in 2008, and the industry expanded to generating 449,664 jobs in 2013. In 2015, the BPO sector generated 1.2 million direct jobs and US$22 billion in revenues. 
 
We don't want to discourage the BPO sector and hamper its robust growth. Why do we have to take their incentives? While this will add more revenue to the government, this may affect our country's competitiveness as major BPO destination.