FOREIGN investors could veer away from the Philippines over any perceived “instability” in the business environment that could arise from the second package of the Tax Reform for Acceleration and Inclusion (TRAIN) Act.
Deputy Speaker Sharon Garin said this as the House Committee on Ways and Means recently approved in principle the second package of tax reforms, which aims to rationalize fiscal incentives and lower corporate income taxes.
“Magandang bill ito pero nakakatakot kung ikaw yung investor di ba? Ano bang manyayari? Baka next year iba na naman yung tax natin o baka next year wala na ‘yung (tax) incentives natin,” Garin said Sunday in an interview over Radyo Inquirer.
“Ang instability ng ating business environment is the biggest downfall nitong proposal ng DOF (Department of Finance),” she added.
Garin urged the DOF to fully explain the proposed law to avoid any misunderstanding.
She noted that the “insecurity” of businessmen – more than the effect of the law – could affect the decision of foreigners to do business in the county.
The House Committee on Ways and Means recently approved “in principle” the second package of tax reforms.
A technical working group will be created to craft a substitute bill that would combine all of the inputs gathered after the hearings with the DOF officials, lawmakers and other stakeholders.
Garin added that she hoped the substitute bill would be passed as soon as possible to help lure foreign investors.