• IBPAP expects to fall short of employment, revenue goals this year

The Information Technology and Business Process Association of the Philippines (IBPAP) expects to fall short of employment and revenue goals this year amid uncertainties in government’s move to rationalize fiscal incentives enjoyed by firms.

IBPAP president and chief executive officer Rey Untal said in a press conference yesterday the new employment and revenue numbers for this year so far, are seen to be below where the industry intends to be.

Under the roadmap, he said the industry expects 100,000 new jobs to be created per year.

“I can tell you now it is not as good,” Untal said when asked if the industry is falling short of its targets for the year.

This, as there are uncertainties as firms wait for the final form of the second package of the government’s tax reform program.

“While people are worried that the impact of tax reform is crafted, in reality, issues or uncertainty is already upon us,” Untal said.

He said firms with existing operations have grown, but potential locators are not as many as they used to be.

Under the Tax Reform for Attracting Better and High Quality Opportunities or TRABAHO Bill, which is the second package of the tax reform program, the government would bring down the corporate income tax gradually to 20 percent from 30 percent and modernize current incentives enjoyed by investors.

The bill would remove an incentive enjoyed by firms in the industry which are registered with the Philippine Economic Zone Authority, particularly the five percent gross income earned tax paid in lieu of all taxes, upon expiration of the income tax holidays.

The IBPAP has asked industry players about the government’s tax reform program and based on the survey, industry players consider the incentives they are enjoying now as important.