MANILA, Philippines - The Department of Trade and Industry is opposing the proposed Tax Incentives Management and Transparency Act (TIMTA).
Trade Secretary Gregory Domingo confirmed an Inquirer report that he opposes the TIMTA tax bill because he says it will put a cap on incentives the country needs to attract investment.
TIMTA is meant to make sure tax breaks are accounted for and their usefulness can be studied.
"The Department supports disclosure, gusto namin transparency din. But we are against putting anything there that requires putting in the budget the incentives to be given out for the following year. That puts a cap on incentives. The nature of this business is you can't predict," Domingo said.
Domingo said he is for transparency reporting how much incentives were granted after they are granted, but against putting a number in the budget beforehand.
He said the budgetary requirement has been removed from the Senate version, but remains in the House bill authored by congresswoman Leni Robredo.
The TIMTA bill is a companion to the so-called fiscal incentives rationalization bill, essentially reducing and cleaning up corporate tax breaks.
Congress is considering the bill again this year, almost 20 years after it was first filed.