Tax breaks in economic zones must stay: official

ABS-CBN News

Posted at Feb 09 2017 11:33 AM

 

MANILA - Economic zones must be spared from the government's crackdown on tax incentives, as the government body in charge of the hubs said Thursday it aims to triple investments.

Lawmakers are deliberating on President Rodrigo Duterte's tax reform plan, which seeks to offset a planned reduction in income taxes with new levies and the removal of some exemptions.

Tax incentives are the biggest attraction for the 3,961 companies that operate in 316 Philippine Economic Zone Authority zones, said director general Charito Plaza.

"The stability of the policies and laws must be assured to our investors," Plaza told ANC's "Market Edge with Cathy Yang."

"We don’t have to fix anything that is not broken," she added.

Plaza said the PEZA attracted P218.2 billion in investments and remitted P17.7 billion to the treasury in 2016. She said the agency hoped to triple the amounts this year.