ECCP and EPBN had the opportunity to meet Ms. Paola Deles, Policy Head of the Office of Sen. Bam Aquino.
Among the items discussed were:
TRAIN Packages 1 and 2
- On the subject of ROHQ incentives, JFC believes that status quo should be maintained in that, 15% preferential tax rate should be retained for existing ROHQs. However, DOF and BIR are interpreting this otherwise.
- PAMURI shares that despite positive outcomes of feasibility studies, 4 to 5 ROHQs refused to enter the Philippine market due to the threat of removal of the said incentives.
- Preferential tax rate is one of the biggest incentives for ROHQs. The removal of this incentive will reduce operations and employment; decrease spending and incur losses in terms of income tax; and lower competitive advantage.
- ROHQs are awaiting issuance of revenue regulations for final word and basis of next steps. The said RR is expected to be out within this month.
Amendments to the Public Service Act
- The amendment for PSA has been referred to the Committee on Public Services of Sen. Grace Poe.
- An initial hearing schedule was already set last December, however, was postponed by Sen. Poe, moving it to early February.
Retail Trade Liberalization
- This was introduced to the House by Cong. Arthur Yap, and to the Senate through Senator Sherwin Gatchalian.
- JFC is thrilled to take note of the support of DTI Sec. Lopez and NEDA Sec. Pernia in lowering the current minimum paid-up capital for the retail industry to $200,000 from the current $2.5 million threshold.