Elevated inflation rates reported earlier this year dampened sentiments of both the business community and the consuming public, but inflationary pressures are easing up in the closing weeks of 2018.
“Congress has approved a rice tariffication bill that will reduce inflation by almost 1%, and oil prices, both global and domestic, have started to decline.” Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo explains reasons to be optimistic.
Philippine Chamber of Commerce and Industry (PCCI) chairman also expresses positivity regarding the economy, noting that the private sector will collaborate with government in efforts to enhance the business climate.
Such collaboration occurred last week when Finance Secretary Carlos Dominguez III joined captains of the business community (both foreign and Filipino) at the Wallace business forum. He requested that they review the administration’s comprehensive tax reform program that aims to lower the corporate income tax. He expressed hopes that they would “come to the same conclusion as we did: that the reforms will be beneficial to our domestic economy.”
Investor incentives detailed in the plan include: 50 percent deduction on incremental labor costs; 100 percent deduction on training, research and development; and 50 percent deduction on purchases of local raw materials.
Such tax reforms coupled with the shortened Foreign Investment Negative List that allows 100% foreign ownership of internet businesses, wellness centers, training centers for high level skills and financing companies present fantastic opportunities for investors in the Philippines.
Jennifer Simons Castillo
+63917 546 3969