The Philippines Economic Zone Authority is looking forward to a reasonable revision of taxes on all economic zones and their locators under the second package of the Tax Reform for Acceleration and Inclusion law, especially the proposed 12 percent value added tax on local purchases.
Peza director general Chairto Plaza said the agency was grateful to the Finance Department for the maintaining status quo on Peza incentives to locators.
“We have all the reasons to be optimistic that’s why we are targeting a 10 percent growth in investments pledges this year. But we are also worried that locators might find the Philippine unattractive if the incentives they are currently enjoying will be challenged by the law,” she said.
The proposed 12 percent VAT on local purchases, for one, will ultimately affect the locators and local suppliers, which are mostly Filipino micro, small and medium enterprises.