THE Philippine Economic Zone Authority (PEZA) said there’s a need to resolve issues of locators related to the Bureau of Internal Revenue’s (BIR) rules on zero value-added tax (VAT) rating incentive.
PEZA Officer-in-Charge Tereso O. Panga said his office has been meeting with the BIR regarding the concerns of locators under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law.
“We have been meeting with the BIR and we raised with them the locators’ issues with [revenue memorandum circulars] on CREATE concerns,” Panga told the BusinessMirror on Thursday.
The PEZA chief said some locators want the government to have uniform, simple and transparent guidelines for the conduct, particularly on tax assessment.
“If BIR can be more proactive in assisting the locators in terms of compliance with documentary/audit requirements. This is where the government can enhance the regulatory relief mechanism so locators can bring up their concerns with higher authorities other than the BIR and the [Court of Tax Appeals] CTA,” Panga said.
Last month, PEZA said the country has attracted nearly P40 billion in investments for 148 new and expansion projects in January to September.
However, data from the PEZA showed that the amount of investments greenlighted by the investment promotion agency (IPA) was 22.6 percent lower than the P51.202 billion it approved last year. The number of projects was also lower this year compared to the 189 recorded in 2021.
Meanwhile, the PEZA chief said there are 13 pending economic zones as of October which are expected to bring in investments amounting to more than P17 billion.
Panga said there are seven pending manufacturing ecozones, four for IT Parks and Centers, one for the Knowledge, Innovation, Science, and Technology (KIST) Park, and one agro-industrial ecozone which are all located outside Metro Manila.
The PEZA chief earlier said the agency remains bullish that it will be able to achieve its 6-7 percent investments target for the year taking into consideration the firm growth forecasts for 2022.
Panga cited the “winner ecozone sectors”—the Information Technology and Business Process Association of the Philippines (IBPAP) at 10-15 percent and Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) with a 10 percent target.
As for the agency’s outlook for the last quarter of the year, Panga said PEZA remains optimistic that the Philippines can attract more investments particularly in the electronics and IT sectors.
The agency earlier said its missions to Taiwan, South Korea, and Japan will help generate more interest in the Philippines.
In fact, PEZA divulged two weeks ago that it has recorded seven investment pledges amounting to $65 million during its investment mission in Taiwan.
Meanwhile, without disclosing figures, PEZA said it is optimistic that it has at least four big companies of lead of new locators and one potential joint collaboration on waste management with South Korea.
As for Japan, Panga revealed on Thursday in a televised interview that the agency signed a registration agreement with an electronics company. While the PEZA chief did not disclose figures, he said, “Mala-king investment po ‘yan dahil they got a five-hectare lot for their high-tech manufacturing.”
Panga said the electronics firm will operate in Aboitiz-led LIMA Land in Batangas.
Moreover, the PEZA chief said the investment promotion agency signed a memorandum of understanding (MOU) with a prospective Japanese investor into biotech and blockchain technology.