The Semiconductor and Electronics Industries of he Philippines Inc. (SEIPI) expressed hope the next administration will resolve the hanging issues – ranging from tax to fees – besetting the industry, its chairman Glenn Everett said.
Everett told the SEIPI general membership meeting yesterday the group has obtained support from the Philippine Economic Zone Authority (PEZA), the Anti-Red Tape Authority (ARTA) and some senators to resolve and improve these concerns, including the PEZA-Bureau of Internal Revenue (BIR) work on-site rule , Electronic Tracking of Containerized Cargo (ETRACC) requirements and new interpretations of the value added tax (VAT).
“As SEIPI strives to improve the environment for electronics investments in the Philippines during the ongoing pandemic, regulatory roadblocks are encountered,” said Dan Lachica, SEIPI president.
Lachica was referring to the change in VAT rules from the BIR Revenue Memorandum Circular (RMC) No. 24- 2022, logistics delays caused by the implementation of the Commission on Elections gun ban, and the Bureau of Customs’ implementation, overtime charges, and X-Ray Selectivity System.
Lachica said despite this, the organization continues to work with government partners at the Department of Trade and Industry , ARTA, PEZA and the Export Development Council to enhance the investment environment by promoting the Ease of Doing Business to enhance the country’s competitiveness.
Lachica said SEIPI has maintained its growth forecast for the year at 10 percent.
Electronics exports grew 12.9 percent in 2021 to an all-time high of $45.92 billion and 6 percent higher than the pre-pandemic exports of $43.3 billion.
As of March, cumulative electronics exports reached $11.79 billion, a 9.3 percent increase from last year’s figures and accounted for 60.7 percent of the $19.42 billion total commodity exports, thus retaining its position as the country’s top commodity exporter. – Irma Isip
