Dominguez: We don’t need new businesses relying on incentives to prosper
Heavy reliance on tax breaks isn’t a sign of a thriving business.
Finance Secretary Carlos Dominguez III found yet another way to dismiss critics of package two of tax reform, saying that investors who need hefty tax perks aren’t the ones which the Philippines needs.
The top economic manager slammed the Philippine Economic Zone Authority (PEZA) anew as it asserted the need for substantial fiscal incentives to bring in more money.
For Dominguez this can only mean that “they are trying to attract investments that cannot be viable without unreasonable incentives.”
“These are not the investments we need to become a strong economy. The more meaningful investments are being made by competitive companies that do not ask for tax holidays and other incentives,” he said.
Dominguez added that relying mainly on incentives to attract investments has produced “hardly spectacular” results for the economy, which renders the perks useless.