MBC cites winners, losers in tax reform
The Makati Business Club (MBC) remains supportive of the first package of the government’s Comprehensive Tax Reform Program despite observations there is a need to recalibrate some of its provisions.
“We support the tax reform of the government because that is needed by the DOF (Department of Finance). There may be some refinements needed in terms of some areas. There are five tranches, so perhaps just calibration,” MBC chair Edgar Chua told
The STAR, without specifying on the measures.
Several provisions under the first package of the DOF sponsored tax reform program have already faced opposition from various industry groups, particularly the business process outsourcing (BPO), automotive and food and beverage sectors.
The business group, however, said it should not be a surprise if there will be winners and losers in line with the tax reform program.
“On the tax reform, the business community has one voice saying that it is important, it is needed to keep up and help us become more competitive. Various sectors have expressed reservations. MBC is of the position that we would like to support the DOF initiative but of course as it went through Congress, different concerns by stakeholders was listened to. And some maybe listened to more than others, which always happened in a democratic process,” MBC executive director Peter Perfecto told reporters.
“But once the bill is passed, there will be winners and losers. It will be part of it. As business always does, we will have to make the adjustments and continue to still work on trying the get right policies passed,” he added.
Perfecto, however, pointed out it is unfortunate if a sector like BPO ends up on the losing end.
“If it does impact negatively on the BPO, definitely it should be a concern because it is one of our major contributors to growth and the potential for growth for the BPO sector is so huge. They’re part of our services sector and that’s been our strength in terms of global supply and value chain,” Perfecto said.