The Congress moved forward despite opposition coming from domestic associations and international players who are long-term investors in the Philippines. Companies base investment decisions on a range of factors—and stability and pragmatism of tax and fiscal policies are very important. Thus, this discriminatory SSB tax provision sends the wrong message at exactly the wrong moment. Even the Philippines Department of Foreign Affairs has warned that the two-tier SSB tax structure is discriminatory under WTO rules. These consequences would undermine the Duterte administration’s 10-point socio-economic plan and directly contradict initiatives to improve the investment climate by easing restrictions on foreign investment, reducing red tape, and increasing spending on infrastructure.
Source: Philippine Star December 07, 2017 02:26 UTC