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Philippines: PEZA targets 7% hike in investments
MANILA, Philippines — The Philippine Economic Zone Authority (PEZA) is targeting a seven percent uptick in approved investments in economic zones this year as it expects a new law that introduces changes to the incentives system would make the country more attractive to investors.
In a press conference yesterday, PEZA deputy director general Tereso Panga said the investment promotions agency’s target is an improvement from last year’s P95.03 billion.
“So we’re looking at an increment of about P6 billion and we have a strong basis for this projection because of the increasing FDI (foreign direct investments). And we’re confident we can attract more investments, especially with the passage of CREATE (Corporate Recovery and Tax Incentives for Enterprises),” he said.
Signed into law earlier this year, CREATE reduces the corporate income tax rate and modernizes the system for the grant of incentives to investors.
As of the first quarter, investments approved by PEZA reached P25.38 billion, 54 percent higher than the P16.50 billion in the same period last year.
As part of efforts to encourage investments, particularly in the information technology (IT) sector, PEZA will seek clarification on a request made by the agency to lift the moratorium on new ecozones in Metro Manila under Administrative Order 18 issued by President Duterte.
Panga cited the provisions of the CREATE law that allows the operations of eligible projects in Metro Manila with incentives including IT projects, and as such, it is supposed to supersede the order issued by the President.
“But nonetheless, the strategy of PEZA is to get the categorical position from OP (Office of the President) if we can already proceed with proclamation of ecozones in Metro Manila,” he said.
He said PEZA would also get clarification on the matter with the Department of Finance (DOF) and the Fiscal Incentives Review Board which oversees the administration and grant of tax incentives by investment promotion agencies.
Earlier, Trade Undersecretary Ceferino Rodolfo said based on discussions with the DOF, it may be possible to remove the location restriction for IT – business process outsourcing (BPO) firms in the National Capital Region, but the ban on new proclamations of ecozones would remain.
PEZA director general Charito Plaza said the agency would want the moratorium to be lifted given the jobs to be created by IT-BPO firms.
She said cities in Metro Manila that currently do not host IT zones are also seeking the lifting of the moratorium.
On the call of the IT-BPO firms to extend the work-from-home (WFH) authorization granted by PEZA beyond September this year, she said it would depend on the President’s declaration of state of calamity due to the coronavirus pandemic.
Source: https://www.philstar.com/business/2021/06/30/2108999/peza-targets-7-hike-investments