The Department of Finance-Domestic Finance Group (DOF-DFG) states in its report the loss of some ₱481.7 billion worth of Government income becaue of tax incentives given to favored companies.
MANILA — These include the income tax holidays accounting for ₱68.4 billion (14.2 percent); the special income tax rate for IPA-registered enterprises accounting for ₱66.41 billion (13.8 percent); and the income tax incentives for cooperatives accounting for ₱14.47 billion (three percent), says Assistant Secretary Ma. Teresa Habitan of the DFG during a DOF executive committee meeting.
The incentives for the value-added tax (VAT) account for ₱283.45 billion (58.8 percent) of the incentives; exemptions from customs duties, ₱47.59 billion (9.88 percent) and the percentage tax incentive availed by cooperatives, ₱1.38 billion (0.29 percent), she adds.
The DOF study covered 11,431 enterprises that filed their tax returns, of which 5,749 were IPA-registered firms and 5,682 were cooperatives.
This substantial amount already represents a decrease from the ₱518.7 billion in tax perks given away by the Government in 2018 through the various investment promotion agencies (IPAs) and through fiscal incentives granted to cooperatives, says the DOF. (HMP/The MiNT)