Gov?t gave away P104 B tax perks in 2015 ? DOF
Was it worth it?
The Department of Finance has discovered that the government gave up P104.4 billion as incentives to companies in 2015 alone. The amount represents 0.8 percent of the local economy.
This is the first dataset acquired following the passage of the Tax Incentives Management and Transparency Act in 2016.
Of this amount, P53.77 billion were from income tax holidays, P32.48 billion from special tax rates, and P18.14 billion in import duty incentives, according to Finance Undersecretary Karl Kendrick Chua.
Exemptions to value-added tax raised the figure to P301 billion in foregone revenues for that year alone.
This is what the government wants to cure under package two of the tax reform program, which the DOF forwarded to Congress this January.