The Rationalization of Fiscal Incentives (RFI) bill is not progressing thanks to the gaping difference in the position of the Department of Trade and Industry (DTI) and the Department of Finance (DOF).
Instead of making progress and coming to an agreement on contentious points every time they meet, the two agencies are actually regressing, with the once touted “80-percent to 90-percent” consolidated bill returning to a mere 35-percent consolidated, House Ways and Means Committee Chairman, Rep. Romero S. Quimbo noted during the eighth committee hearing on the proposed measure.
Trade Undersecretary Adrian S. Cristobal Jr. during the hearing bared four contentious issues:
1. Implement of a uniform incentive package for all economic zones consisting of a four-year income tax holiday (ITH), after which a choice of either a 5-percent reduced tax on gross income earned (GIE) or a 15-percent corporate income tax (CIT) for 11 years (total of 15 years).