MANILA - A tax break for those doing managerial or technical work in the outsourcing industry should be retained for existing workers, and lifted only for incoming employees, a lawmaker said Tuesday.
Those holding such jobs in regional or area headquarters as defined by the Bureau of Internal Revenue can avail of a 15-percent preferential tax rate, which is being repealed under one of the proposals pending in the Senate.
"For us to repeal it right away, and you’re only talking about 1,495 employees and for the next 5 years, you’re only getting P200 to 300 million, so why not give it to them?" Sen. Joel Villanueva told ANC's Headstart.
"I-retain mo yun tapos yung mga papasok, dun mo na lang i-start," he said.
(Retain it, then impose it for those who are just starting.)
Villanueva, a former director of the Technical Education and Skills Development Authority, said the Philippines needed to look into retaining tax perks to make it more competitive in Southeast Asia.
"When I was in TESDA, we were courting lots of manufacturing companies to come here, and they were talking about that—taxes, electricity cost, etc. So we really have to do something about it," he said.