DTI urges removal of foreign ownership caps, focus on job creation

THE Department of Trade and Industry (DTI) said it wants nationality restrictions to be removed from investment rules to help the government shift its priority to creating more jobs.

“We see the imperative for and agree to the proposed removal of the nationality requirements… What is important is that jobs are created here in the Philippines for the Filipino people, regardless of ownership or market to be served,” Trade Secretary Ramon M. Lopez was quoted as saying in a statement Tuesday.

The speech was delivered during a Congressional hearing on the second phase of tax reform, which hopes to rationalize investment incentives while reducing corporate tax rates.

The DTI added that it is open to input from the business sector on the second package of the tax reform program but noted that these proposals ”should comply with the fundamental principles of focused, time-bound, performance- based and transparent incentives; and the recommendations or proposals must be supported by data.”

In addition, the DTI added that it is collaborating with the Department of Finance (DoF) to come up with unified estimates of the bill’s impact, and plans to conduct further consultations with stakeholders.

So far stakeholders have proposed to harmonize the taxes and fees which Local Government Units can impose and a reasonable transition period to the new regime.

Others have also sought clarification on the application of rules governing VAT exemptions, zero rating, and refunds for locators in economic zones. —