The business sector in Negros Oriental praised President Rodrigo Duterte for spearheading tax reforms in the country, like the proposed lowering of corporate and personal income taxes as well as relaxing the bank secrecy law.
Negros Oriental Chamber of Commerce and Industry president, Ed Du, said this is good news for businesses especially for the micro, small and medium scale industries which constitute 99 percent of the country's economy. He said only one percent is considered as large taxpayers who can readily afford to pay the 30 percent income tax.
He said businessmen are pushing for the Singapore model, especially for MSME industries to entice them to invest more because they can already afford to pay a lower corporate tax which is 15 percent, the lowest in the ASEAN region.
However, Duterte did not mention in his State of the Nation Address how much would be the reduction in the individual and corporate tax.
Under the proposal, the sprouting of small businesses is expected. It will also address the existence of the underground economy because of the lowering of corporate tax.
At present, NOCCI believes that the 30 percent corporate tax is not fair to the micro, small and medium scale industries because both the small ones, like the carinderia, and the large players pay the same amount of corporate tax.*JG
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