Benefits to the economy of companies registered with the Philippine Economic Zone Authority (PEZA) may have exceeded the P10.05 trillion earlier cited by the agency as the figure does not include the other aggregates of benefits going to host local government units (LGUs) in terms of real property taxes and other multiplier effects.
In a statement, PEZA director-general Charito Plaza said the multiplier effect caused by the increase in demand by people with jobs as well as the social progress enjoyed by LGUs through low poverty crime incidence insurgency eradicated.
Plaza reiterated her earlier claim that a total of P10.05 trillion was contributed into the economy and to the government from years 2015 to 2017 by PEZA -registered enterprises despite being called out by the Department of Finance of double-counting.
Plaza also noted every P1 incentive government gives, an equivalent of P11.43 is given back by PEZA companies to the economy.
She added PEZA generate taxes that fund social services.
PEZA said its performance is the highest contributor to export income of the country constituting 64 percent on goods and commodities and 80 percent on export service income in 2018. PEZA’s registered-industries and locators directly employ 1.51 million Filipinos.
“Tax incentives produce multiplier effects in a way that it produces taxes from investors that are paid to national government and local government units hosting economic zones.
Inevitably, these taxes contribute towards funding important social services in the country such as education, security, and health,” said Plaza.
“PEZA incentives should be maintained because certainly they are globally competitive, performing, and attracting investments which contribute to taxes that bankroll social services and that create jobs for the Filipino people and the country. It is a misimpression that the country is losing revenues due to tax incentives,” she added.
