Peza repeats call to exempt locators from disincentives

With the number of Covid-19 cases zooming past 400,000, the regulator of economic zone locators reiterated a call to exempt exporters from the provisions of the Corporate Recovery and Tax Incentives for Enterprises Act (Create) bill.

Philippine Economic Zone Authority (Peza) Chief Charito B. Plaza argued investors should be permitted to keep their current fiscal incentives and, therefore, be exempted from the new tax regime to be introduced by the Create bill.

If enacted, the Create bill will reduce corporate income tax to 25 percent, from 30 percent at present. However, it will also remove incentives granted to exporter firms in its current version.

Plaza reiterated her call as investments registered in economic zones have slumped by over a fourth after lockdown measures against the Covid-19 pandemic brought the economy to near-atrophy.

In her speech last Friday, the Peza director general reported investments that flowed from January to October declined by nearly a third (27 percent) to P72.64 billion, from P99.32 billion during the same period last year.

Further, the number of new projects that were registered in the country was reduced by nearly half to 248, from 454 new registrees.

Employment in economic zones as of September also declined by more than 2 percent to 1.53 million workers, from 1.57 million workers during the same period last year.

On the positive side, exports shipped by economic zone firms from January to September grew close to 1 percent to $40.79 billion (about P1.965 trillion), from $40.54 billion (about P1.953 trillion at $1=P48.18), Plaza disclosed.

Resumption of operations in Peza zones is nearing full capacity. At present, Plaza said 87 percent of all Peza firms have reopened their factories in the pandemic, translating to a return to work for 1.2 million workers.

However, at least 13 percent of all economic zone locators have yet to restart their plants, resulting in the joblessness of almost 279,000 workers in a time of recession.

By sector, 89 percent of manufacturing firms have reopened their factories while 84 percent of business-process outsourcing operators have called their workers back to office.

Home Business Banking & Finance Peza repeats call to exempt locators from disincentives

More from author

$500-M clothing deals shift to PHL as strife worsens in Myanmar

AS awkward as it may sound, the Philippines stands to “gain” from the political turmoil haunting its Asean neighbor...

‘Vaccine-before-MGCQ will delay recovery’

INDUSTRY leaders said on Tuesday keeping the nation’s capital under general community quarantine (GCQ) after one year of lockdown...

Coca-Cola to spend $63 million for expansion of PHL plant

Beverage giant Coca-Cola has invested $63 million for its operations here in the Philippines to be used for expanding...

NPC probes data breach in lending app

The National Privacy Commission (NPC) is investigating an online lending app for a data breach in its platform that...

PCC warns MSME pandemic ‘attrition’ may lead to anti-competitive outcome

The Philippine Competition Commission (PCC) on Monday warned the shutdown of micro, small and medium enterprises (MSMEs) may diminish...

BOI approves fiscal perks for EV batteries producer

A manufacturer of fast chargers and retrofit kits has secured fiscal incentives from the Board of Investments (BOI) for...

PHL sets sights on becoming PPE hub in Asia

The Board of Investments (BOI) has asked Japanese manufacturers to turn the Philippines into their Southeast Asian hub for...

Top News


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

More from this section

DBP wants authorized capital hiked to P100B

THE Development Bank of the Philippines (DBP) announced plans to increase its authorized capital to P100 billion citing the move would boost its ability to lend to businesses deeply-affected with the economic recession. The state-run bank said this move is...

Random posts

Tourism firms fret over survival; seek vaccines

THE country’s tourism enterprises live in a constant state of worry during this pandemic, and believe that the stability of public health will be the minimum requirement to fast-track the recovery of their sector. In “The Philippine Travel Survey Report:...

BM Cycling Livestream

Graphic | BM Webinar

BM Broader Look Podcast