SUBIC BAY FREEPORT — Several locators here are toying the idea of relocating to other countries if the proposed Tax Reform for Acceleration and Inclusion (TRAIN 2) law is enacted.
“I have heard that there are locators who would relocate to other countries if the proposed new version of TRAIN law is passed because they might reduce if not lose their present incentives,” said Danny Piano, president of the 200-strong member Subic Bay Freeport Chamber of Commerce.
Piano lamented that although the locators have spent huge amount of money in constructing and rehabilitating their buildings here “the locators may prefer to relocate to other countries if they could save a lot,” pointed out Piano.
He said that for them to recover their lost incentives and to make up the increased operational cost brought about by the government’s tax reform package the locators will also increase or adjust their prices in the international market. But he pointed out however that if they do so, their products’ prices being exported abroad will no longer become competitive.
Piano also lamented the proposed bill under TRAIN law will also cut the corporate income tax from 30 percent to 20 percent at a rate of two percent every other year from 2021 to 2029.
Piano vowed to go full blast on their opposition move against the proposed new law as he encouraged other locators to also act against it.
Asked by this writer if he is totally against the TRAIN 2 law, Piano said no, however.
But Piano said that he is also invoking that the cross-border doctrine be upheld on freeports and SEZs.
