NEDA bucks new tax perks to prevent firms from firing workers

MANILA, Philippines - Socioeconomic Planning Secretary Ralph Recto on Monday bucked proposals to extend tax perks to companies to keep them from laying off workers. In an interview, Recto said there was no assurance that firms will be persuaded to keep their workforce in exchange for more tax benefits. “I’d rather that we give these money to displaced workers, come up with programs for these workers…," he said. Recto, however, said he is willing to listen to the proposal to give tax holidays to companies to help them weather the global financial storm. The Board of Investments is reportedly proposing to give incentives, such as tax perks, to companies to encourage them to spend and generate more jobs regardless of their industry. Previously, only companies operating new ventures specified by the Investment Promotion Plan were given the incentive of deducting half of the cost of wages of additional workers from taxable income. The BoI is also studying tax incentives for firms that will keep their work force or even assist retrenched workers in setting up their own businesses. The BoI proposal will still have to be approved by an inter-agency committee which includes the Finance department and the National Economic and Development Authority, among others. GMANews.TV