MANILA, Philippines - The Investments Priorities Plan (IPP), one of the tools the government is using in order to discourage businesses from laying off workers, is expected to be signed by the President very soon, Trade and Industry Secretary Peter B. Favila said.
According to Favila, he has already signed the IPP and the final nod of the President is the only thing that is keeping it from being implemented. Favila said he expects the approval of the IPP to happen very soon.
The IPP should have been ready last March. However, consultations with various industry groups have delayed the proceedings.
The 2009 IPP is very important because not only will it encourage investments to come in the country by giving tax breaks, the new feature of the IPP likewise gives incentives to firms that will not remove workers.
The 2009 IPP will be similar to the one passed in 2008 except for the job saving/job creation projects.
“This is an option to existing firms on how they can avoid laying off workers,” BOI Undersecretary Elmer C. Hernandez said. “These are difficult times and extraordinary measures are needed,” he added.
Hernandez said that under the law, firms that will not have additional investments do not qualify for income tax holidays. However, because these are extraordinary times, Hernandez said the government will give additional deduction for labor expense. This would bring their taxable revenues down thus reducing tax payments to the government.