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Article: IMF urges corporate tax rate, perks cut
- Article from:
- The Manila Times
- Article date:
- April 16, 2008
- Author:
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Copyright informationCopyright Content Parnership Pty Ltd Apr 16, 2008. Provided by ProQuest LLC. (Hide copyright information)
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THE International Monetary Fund (IMF) wants the Philippines to streamline the country's fiscal incentives for investors and cut the corporate tax rate.
Reza Baqir, IMF resident representative, said the Philippines has one of the highest corporate income tax rates in Asia, adding the government should look at lowering it to 25 percent from the present 35 percent.
To compensate the expected losses due to a lower tax rate, the government should cancel fiscal perks offered to investors, the IMF official said.
"Let's say you give a company a P1-billion worth of tax incentives, so that's P1 billion that they don't have to pay the [Bureau of Internal Revenue]. The opposite cost of it is that ...