Bill eyes agency to create jobs, give fiscal perks to foreign biz

ALAWMAKER is pushing for the passage of a bill mandating the creation of permanent jobs as the main criteria for granting fiscal incentives to foreign investors.

House Assistant Majority Floor Leader and Tarlac Rep. Jaime D. Cojuangco said job creation should be the primary criteria for the grant of incentives to foreign investors.

“It was reported by our investment promotion agencies that, for the first quarter of this year, the total foreign investments approved were at P8.98 billion,” Cojuangco added. “The irony of this is that these investments are projected to create only around 14,416 jobs. This is a ratio of around P615,000 investment for just one job created.”

The lawmaker said the jobs that would be created by these investments are too low as these investors would locate in economic zone areas.

“As such, they will be entitled to fiscal incentives that would translate to hundreds of millions of pesos in lost government revenues,” added Cojuangco, the youngest member of the House of Representatives.

In his House Bill (HB) 2074, Cojuangco is seeking to amend Section 28 of the Omnibus Investments Code by mandating that no economic activity shall be included in the Investment Priorities Plan (IPP) unless it is shown to create regular and permanent employment opportunities for Filipinos.

Also, the bill states that the determination of preferred areas of investment to be listed in the IPP shall be based on the creation, perpetuation, growth and development of regular and permanent employment opportunities.

“The usual requirement in the grant of fiscal incentives is the amount of investment. There is not much regard for the jobs to be created. In such a case, the loss in government revenues may outweigh whatever economic benefit such an investment may bring,” Cojuangco said.

The Board of Investments (BOI) is the agency responsible for promoting investments in the country. The BOI is also responsible for regulating investments. Its primary duty is to prepare the Annual Investment Priorities Plan. The plan contains a listing of specific activities that can qualify for incentives. This plan will be submitted to the President for his approval.