THE SECOND wave of the tax reform package may threaten the fate of the Business Process Outsourcing – Information Technology (IT) industry, but Cebu City Mayor Tomas Osmeña is still determined to promote and develop it.
“I’m very worried … You know what, the BPO industry is more important than taxes. The money there goes directly to the people, the agents. If you cut that off, the urban poor does not have their income anymore,” said Osmeña.
At a press conference on Thursday, Osmeña said he will push through with the ‘Call Center City’ project at the South Road Properties (SRP) this year, which will be a one-stop-shop for outsourcing, with amenities to be offered to agents working there.
He said providing jobs is more important than taxes, especially for Cebu City which has been reliant on the BPO – IT industry.
The Department of Finance is pushing for the implementation of the second tranche of the Tax Reform for Acceleration and Inclusion (Train 2), but the bill is still pending in Congress.
The IT and business process management sector in Cebu anticipate a slowdown in the wake of a Train 2. This time, the government is eyeing the withdrawal of tax incentives.
“I have not studied it (tax reform package) but we need the call centers. And I see what they’re doing for Cebu, especially Cebu City. They have become our lifeblood. I’m pushing strongly for this Call Center City. This is the only real economic wave for Cebu City. It’s more real than tourism,” said Osmeña.
Several business leaders in Cebu, particularly those engaged in the BPO – IT industry, appealed to government to reconsider its plans to remove tax incentives, which they cited as one of the country’s selling points for foreign investors.
Call Center City
The Cebu City Government plans to launch the Call Center City project within the year.
It will house various amenities like a dormitory, offices for call centers, facilities for education, gyms, restaurants, among others.
Osmeña earlier said some multi-billion companies that have expressed interest to invest in a call center at the SRP in 2017 are set to establish a framework for the project’s kick-off this year.
“We’re going to have to set up the framework for the first one this year and we’re going to start as soon as we can. This is going to be my last major effort in my productive life. I want to give equal opportunity to everybody especially with our young people who can end up with a good paying job,” he added.