Business Breakfast: TRAIN Law II by Dennis Pabelico

On January 23, 2020, the British Chamber of Commerce Philippines (BCCP) hosted a breakfast forum on Train Law II. Invited as guest speaker was Atty. Benedicta Du-Baladad, founding partner, chair, and CEO of Du-Baladad and Associates. About 20 people attended the forum to learn more about the said law over breakfast and coffee.

After the formal introduction, Atty. Dick (as she is fondly called) started her presentation. Here are some key points from her presentation:

• The Philippines has the highest corporate income tax (CIT) rate in the region at 30 percent. Our country has to lower the CIT rate and make it regionally competitive. The objective is to lower the rate down to 20 percent by 2029 and bring back jobs.
• Even if the Philippines is currently giving the most generous incentives, export competitiveness is still in decline. Domestic industries have weak linkages to the export industry and heavily rely on imported parts, which results to weak domestic content.
• Our country’s foreign direct investment pales in comparison to our neighbors.
• Granting tax incentives is not the only way to directly help firms. The government can use more efficient and targeted subsidiaries. The real solution then is to address infrastructure gaps, corruption, inefficiencies in the government, and complex business regulations.
• Lastly, more than the tax incentives, investors need a skilled and hardworking talent pool. This then calls for sufficient human capital investments.

At the end of the presentation, Atty. Dick said that she is confident that Train Law II will be critical in strengthening the Philippines’ tax system, spur the growth of the country’s economy, reduce poverty and inequality, and achieve upper middle-income status. The beneficiary, the next generation of Filipinos.

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About the author:

Dennis is an avid collector of authentic NBA jerseys. He also sells some of them on his online store. Despite his busy work schedule, he makes sure that he goes to the gym for a workout and an aerobic class at least once a week. During his free time, he reads spiritual books and attends meditation classes.