PEZA remains optimistic on investment growth

MANILA, Philippines — Investment promotion agency Philippine Economic Zone Authority (PEZA) remains upbeat that investments in economic zones this year will grow, even as investors have adopted a wait-and-see attitude given the proposed second tax package that would rationalize incentives being offered by government. 

“I am still very optimistic,” PEZA director general Charito Plaza said when asked if there would be growth in investments registered with the agency this year.

She said while investors are on a wait-and-see given uncertainties on the outcome of the second package of the Tax Reform for Acceleration and Inclusion (TRAIN), the PEZA continues to assure investors it would push for the retention of incentives.

“We are urging our current investors to give us their trust and confidence because PEZA, for one, is really fighting that we will retain the incentives they have been enjoying and even increase and add more incentives because we want industries to be spread in the countryside,” she said. 

The proposed second package of the government’s tax reform seeks to reduce the corporate income tax rates in the country, while rationalizing the fiscal incentives system.

Plaza said PEZA is also encouraged by the support provided by the Union of Local Authorities of the Philippines (ULAP) which groups all leagues of local government units and locally elected government officials.

“They (ULAP) passed a resolution which says they’re appealing to the President and to Congress to exempt PEZA from the TRAIN Law, TRAIN 2, to let it continue with its promotion of investments to the countryside, to the LGUs (local government units),” she said. 

She said ULAP has provided copies of the resolution to members of Congress.

“I know Congress, both the Senate and the House, will also give some considerations to let us not be too drastic in removing the incentives and imposing new taxes,” she said.

Latest data available showed investment pledges registered with the PEZA fell 58.6 percent to P39.09 billion in the January to April period from P94.39 billion in the same period last year. 

Investment pledges with the PEZA reached P237.57 billion last year, 8.89 percent higher than the P218.18 billion in 2016.