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Fiscal Incentives and Investment in the Philippines

Fiscal Incentives and Investment in the Philippines

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Published by: epra on Aug 21, 2008
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09/11/2013

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RenatoReside Jr., Ph. D.March 2006
FISCAL INCENTIVES ABDINVESTMENT IN THEPHILIPPINES
 
 
DISCLAIMER
“The views expressed in this report are strictly those of the authors and do not necessarily reflect those of the United States Agency for International Development (USAID) and the Ateneo de Manila University”.
 
Abstract
This newsletter discusses main points of EPRA’s major study on the current system of fiscal incentives in the country. The study finds that a large amount of fiscal incentivesbeing provided to corporations in the Philippines are redundant – they are given to manyfirms that would have invested anyway without them. The newsletter explains theredundancy, its costs to the country, and the failure of current fiscal incentives to spurinvestment, target the right set of investors, and their insignificance in the locationdecisions of investors. The discussion includes reforms that must be made to rationalizefiscal incentives and lighten the load for all.

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