PEZA Taps Out – Now Supports Comprehensive Income Tax and Incentive Rationalization Act!

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[pushAUX.com] The Philippine Economic Zone Authority (PEZA) has signaled a formal retreat in the fight to exempt BPO’s operating in special economic zones from the administrations tax incentive rationalization (removal) plan.

The PEZA board has now thrown its support to the Duterte powered second tax reform package, PEZA is now pro CITIRA (Comprehensive Income Tax and Incentive Rationalization Act).

PEZA statement

“We had to explain fully that there are ongoing refinements in certain provisions of the bill to address the serious concerns of the stakeholders, especially the existing PEZA locators, and a number of senators who are equally concerned on minimizing any possible repercussion on jobs if some firms leave the country…”

According to PEZA board Secretary, Ramon Lopez, PEZA Director General Charito Plaza will no longer fight for the status quo or the exemption of BPO’s from CITIRA.

(pushAUX: Looks like our PEZA champion, the defiant Charito Plaza, was silenced.)

Citira Devastator!

The Citira Bill aims to lessen or remove tax incentives given to foreign investors – essentially, BPO’s will cost more to operate, which may lead to job losses.

PEZA’s Charito Plaza has been fighting for more than a year against the Duterte tax reform program, stating that even the idea of a compromise may be dangerous to the industry.

Charito Plaza however, had capitulated and is now aligned with DTI Secretary Ramon Lopez.

(pushAUX: Do note that the request of DTI for a gradual or phased lessening or removal of foreign investor tax incentives is yet to be reflected in the bill. It may be that these guys also get betrayed in the end)

Charito Plaza, PEZA

“PEZA wants to end the agony of waiting and uncertainty caused by pending tax reform that has affected new investments and expansion projects of current PEZA-registered industries…”

Aside from BPO’s, other sectors may get royally fucked by CITIRA, these include garments manufacturing, and various electronics exporters.