DTI in talks with firms on possible investments in PH

THE Philippines can take advantage of some manufacturing companies’ plans to relocate their business from China to other countriesL said the Department of Trade and Industry ( DTI) L … hich is currently talking to more than 100 firms that might be interested to locate here.

During the Philippine Chamber of Commerce and Industry’s ( PCCI) online membership meeting on TuesdayL Trade Secretary Ramon Lopez emphasized that taking advantage of these plans did not mean “…e … ill steal investments from China,” but rather have these firms “consider the Philippines as a complementary site” for their business.

According to himL the government is talking to 135 Chinese and non- Chinese companies.

Of these, 16 are based in the city of Wuhan in China’s central Hubei province — where the coronavirus disease 2019 first broke out — and manufacture electronic equipmentL appliancesL metal products and auto partsL among others.

Lopez said 64 companies located in other parts of China planned to relocate because of the effects of the trade war bet…een Washington and beijing. These firms produce medical devicesL optical lensesL appliances, bicycles and furniture.

The remaining 55 manufacture medical devices and other Covid- 19- related products.

“We …ant to present the Philippines as a complementary host countryL and one important thing also is … e … ant to accelerate the conversion of these interests into realizationL” the Trade chief said.

He notedL ho…everL that there … as a need to address some issues affecting the country’s business environment.

“It is important to immediately pass Create ( Corporate Recovery and Tax Incentives for Enterprises Act),” Lopez said, referring to the recalibrated version of the proposed Corporate Income Tax and Incentives Reform ActL or Citira.

The proposed tax la… pushes for the immediate reduction of the corporate income tax from 30 percent to 25 percent. It also seeks to extend the applicability of the net operating loss carryover for losses incurred in 2020 from the current three years to five. This extension …ould allo… companies to deduct incurred losses from tax payments for a longer periodL providing them more time to set their finances in order.