The Philippine government should rationalize the tax incentives granted to corporates in order to level the playing field, especially for small, medium and small enterprises (SMEs), an International Monetary Fund (IMF) official said on Tuesday.
Speaking at the sidelines of The Manila Times 3rd Business Forum, IMF Resident Representative Shanaka Jayanath Peiris said the present tax perks system had made doing business in the Philippines difficult.
“Under the present taxation regime, the big corporations have tax incentives or exemptions. One other way to do this to rationalize those incentives for the big corporations and exporters,”
The government, he said, should work on achieving a “more level playing field so that everybody benefits, including the SMEs, because right now, SMEs may be disadvantaged because the big corporations and exporters have these incentives but some of the SMEs do not,” Peiris said.