By Donnabelle
L. Gatdula (The Philippine Star) | Updated May 31, 2013
MANILA,
Philippines - Big industry players are against the government’s proposal to
remove the income tax holiday (ITH) being enjoyed by hoteliers in Metro Manila
and Central Visayas, and nearby provinces, saying that this is a violation of
the Tourism Act.
Rajah Tours
Philippines president Alejandra Clemente, who had been privy to the crafting of
Republic 9593 or Tourism Act of 2009 since day one, said the scrapping of the
tax perks is a blatant disregard of the existing law.
“If they want
to change the rules, they have to amend the bill,” she said, adding that the
removal of the ITH is sending a wrong signal to existing and future
international and local investors.
Because of
this Clemente said it is likely that the Philippines will not be able to meet
its 10 million tourist arrival target for 2016.
“While the
DOT is spending a lot of money encouraging investors and tourists to come in,
here comes one agency trying to lure them away. Let’s talk about consistency
and coordination here. How can you expect investors to pour in money here with
all these uncertainties,” she said.
Clemente
raised doubts on the potential revenue losses being allegedly incurred by the
government in giving out the ITH.
“They are
presenting figures (revenue loss) and savings from the removal of ITH. I doubt
it. Show us the figures and let’s discuss them,” she said, pointing out the
government has not even consulted them on this proposal.
In a
memorandum sent to Malacañang dated April 5, 2013, Tourism Secretary Ramon
Jimenez Jr. pointed out that since the Philippines has not much to offer in
terms of infrastructure, it aims to compensate in the are a of granting
attractive fiscal incentives.
Jimenez
stressed that for one to fully avail of these incentives, the necessary
administration guidelines still have to be issued by concerned government
agencies.
Republic 9593
gave the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) formerly
the Philippine Tourism Authority, an additional function to designate Tourism
Enterprise Zones (TEZs). The TEZs are envisioned to attract investment through
the designation and development of areas with varied and integrated tourism
activities. Through TIEZA that these incentives such as the ITH should have
been given to investors.
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