Trade dept hopeful on Trabaho bill’s passage

THE Department of Trade and Industry (DTI) is hoping for the passage of the Tax Reform for Attracting Better and High- quality Opportunities (Trabaho) bill within the year.

“Hopefully,we can still pass it on December with the provisions that we want, that we are discussing with the other agencies,” Trade Secretary Ramon Lopez told reporters in an interview.

To recall, the Trade department is currently in talks with the Department of Finance ( DOF) to discuss some of the provisions of the bill which seeks to rationalize

DTI in particular, wants to extend the income tax holiday (ITH) proposed in the bill. It also wants to extend other income tax-based incentives to five years instead of two.

Other provisions the DTI are pushing for include the reduction of the export threshold for those who will qualify for VAT incentives to 70 percent instead of the 90 percent originally proposed; perpetual exemption of ecozone locators from import duties; maintaining the “one-stop-shop” character of economic zones and free ports; and the removal of the provision allowing the head of the DOF the exclusivity to interpret provisions on incentives in the proposed bill.

“The [ discussion] is ongoing and we don’t want to cast the details. This is part of the government discussion on how we can reform. The provision that will address the stakeholders concern, that is why we are talking about longer transition,” he said.

The trade chief said the discussion will allow the DTI and

aligned” stand once the Senate resumes its session.

“Ever since, we are always com-