The amount, the DOF said, accounted for the lion's share of the tax incentives
and exemptions given away by the country's IPAs during that period, totaling P1.12 trillion that 'could have gone to constructing roads, classrooms or health centers.'
According to the DOF, among the investment promotions agencies (IPAs) that granted incentives to registered enterprises, the Philippine Economic Zone Authority (Peza) gave away the lion's share -about P879.1 billion of tax incentives
, or about 78 percent of the three-year total.
It said companies making IPOs approved by the SECC and listed with the security exchange are required to submit the proper forms to the GDT within three years of the effective date of the sub-decree to obtain the tax incentive
. The forms are to be completed through the SECC before the end of each tax year.
The proposed provision reads: "Existing registered activities granted the income tax holiday shall be allowed to continue with the availment of the said incentive for the remaining period of the ITH under its certificate of registration provided that other tax incentives
granted to existing registered export activities such as the 5 percent tax on gross income earned (GIE) in lieu of all taxes, both national and local, shall be entitled to the reduced corporate income tax under section 294 (A) (2) to continue until 2029.
According to Chua, "the first important step towards a fairer and more accountable tax incentives
system was taken" by the previous Congress and then-Aquino administration when they enacted the TIMTA in 2015.
The group urged the Federal Government to set up a parliamentary committee to supervise the bodies that grants tax incentives
such as the Nigerian Investment Promotion Council and the Free Zones Tax Administration.
are not equally beneficial to all types of R&D performers.
"One way to raise extra resources is to increase tax revenues (and) by reducing or eliminating tax incentives
especially on corporations," Juma said.
have various definitions; Bolnick (2004) defines tax incentives
as fiscal measures used by governments to attract investment domestically and internationally in certain key sectors of the economy.
The literature review generally focuses on studies that econometrically analyze the impact of R&D tax incentives
on the key policy goal--to raise R&D spending by enterprises (Trandafir & Luminita, 2014).
He said that the essence of the tax incentives
was to minimize the size of parallel economy that was growing at jet speed.