MANILA, Philippines — The Philippine Economic Zone Authority (PEZA) is at odds with the Department of Finance (DOF) over figures on foregone revenues from the grant of tax incentives.
PEZA manager for promotion and public relations Elmer San Pascual said DOF figures citing that the government gave away a total of P235.307 billion to PEZA companies in 2015 in the form of tax incentives is too big compared to computations made by his agency.
He said PEZA computations showed the amount only reached about P41 billion for 2015.
“I don’t know where that figures came from. I don’t know where they got it. We are the only ones supposed to submit that since IPAs (investment promotion agencies) are the ones supposed to submit to either DOF for the tax incentives as well as the other investment data to the National Economic and Development Authority (NEDA),” San Pascual said.
“We also submitted a different figure. We have our own data which we submitted to both DOF, BIR (Bureau of Internal Revenue), and another set to NEDA,” he added.
PEZA has vowed to fight for the retention of the current set of incentives it is offering investors amid ongoing moves to rationalize fiscal perks.
The agency claims that incentives are the primary reason foreign industries are investing in the Philippines, and the possibility of removal under the second tax reform package has caused some companies to hold back on their new investment and expansion plans.
PEZA said the DOF should not focus solely on foregone revenues due to the incentives being handed out by the government, but instead appreciate the total development and social progress PEZA industries have contributed to the economy.