For the past years, the Philippines have been overly generous in giving special
treatment to some investors who have enjoyed this special status for 30, 30, or 40 years.
What is the current status of the Philippines tax incentives system?
- Php 301 billion estimated foregone revenue in 2015 due to tax incentives,
- Complex and Unfair,
- Firms with no incentives pay the regular rate of 30%,
- Lack of monitoring and evaluation,
- The government has been supporting the firms unnecessarily by forever granting tax incentives,
- Lack of accountability and transparency.
Every peso granted as a tax incentive is a peso that could have been spent on infrastructure, health, education, and social protection. It is only in the Philippines where tax incentives are forever granted.