DAVAO CITY—President-elect Rodrigo Duterte on Tuesday agreed to review the recommendations submitted by businessmen, including comprehensive tax reforms.
About 450 businessmen went to this city and joined the Sulong Pilipinas business consultation forum, which generated hundreds of recommendations based on the incoming administration’s 10-point economic agenda.
“I assure [you] we will study and review it. It’s just a matter of doing it,” Duterte told the businessmen.
The businessmen and entrepreneurs, who attended the two-day forum, pushed for the adoption of a comprehensive tax reform program, including the expansion of the value added tax and the simplification of tax payments by micro-, small- and medium- enterprises.
They also suggested the reduction of the corporate, personal and capital gains tax rates.
“The tax rates may be pegged with Hong Kong and Singapore or even down to the Asean neighbors and make a little lower to attract investors,” Mindanao Business Club president George Lau said, referring to the collective recommendations.
The businessmen want to increase excise taxes by expanding the definition of luxury goods to compensate for the expected deficit resulting from reduced income tax rates.
Participants in the forum also cited need for a national ID system to allow government agencies to provide more targeted social services and prevent double-counting or leakage.
“The system is expected to improve access health, education, food, shelter and conditional cash transfer programs, aside from enhancing peace and order,” they said.
Third on the list was the call for the automation and streamlining of processes at the local and national levels to reduce processing time for permits and bottlenecks in land titling.
Other suggestions to cut red tape were expansion of the “single window” concept, extension of validity for various licenses and use of “negative confirmation” for government approvals.
Amending the existing telecommunication law or Republic Act 7925 should be prioritized, along with the passage of a law to regulate wireless/mobile internet services to make the country competitive with Asean neighbors, according to the businessmen.
“To ensure enhanced connectivity, workshop participants recommended the creation of internet cooperatives in far-flung areas similar to existing electric coops,” they said.
Delegates also proposed the adoption of value-chain development in rural-based enterprises, including agriculture and mariculture. Recognizing the vast untapped potential of the agri-sector, they recommended a support system through financing, technology and logistics to raise rural productivity and employment.
Participants also want the next administration to limit and gradually eliminate the export of mineral ore. Instead, they recommended a shift to value-added processing to facilitate a strong domestic mineral products industry.
They cited the need for a national strategy to determine sectors where the country has the greatest competitive advantage and optimize the value of land, people and other resources. Delegates suggested an action plan to identify industry clusters and regions where SMEs should locate to avail of lower transport, energy and logistics costs.
A clamor to fast-track infrastructure projects nationwide resonated among the participants. They said the priority should be the development of regional airports, seaports and mass transit projects such as the North-South Railway, C-6 Expressway, Cebu Bus Rapid Transit and Davao Port projects.
