Retain incentives to entice more BPOs in PHL provinces–CCAP

Business-process outsourcing (BPO) firms belonging to the Contact Center Association of the Philippines (CCAP) urged the government to maintain the current fiscal incentives scheme if it wants to attract investors in provincial areas.

CCAP President Benedict Hernandez made this pronouncement during the media launch of the 11th International Contact Center Conference & Expo (ICCCE) held in Pasay City on Wednesday.

The statement was made amid the efforts of the Duterte administration to cut corporate- and personal-income tax—a move which has raised concerns that the government could slash incentives to compensate for the revenue loss.

“If you were to ask us what could help [BPOs], that would be retaining the current fiscal incentives scheme. We will also welcome extra support that we can get to develop the provinces,” Hernandez told reporters in a news briefing.

He said the CCAP has yet to determine if lowering the corporate-income tax will be more favorable than the 5-percent tax on gross income earned offered by the Philippine Economic Zone Authority (Peza).

“But the current scheme has been sufficient for us to be competitive,” Hernandez said.

The “most sought-after” Peza incentive is the income-tax holiday (ITH) of up to six years, which could be extended, followed by a special 5-percent tax on gross income earned after the ITH availment period lapses.

CCAP is drafting an industry road map with consultancy firm Frost & Sullivan. Part of this road map is an examination of government incentive schemes in top BPO destinations.

Based on this study, CCAP said it would be able to determine whether changing the current fiscal incentives scheme would make the Philippines less competitive.

In view of the Duterte administration’s aim to develop rural areas, Hernandez said he hopes there will be additional government support, such as those indicated in the Next Wave Cities project, to lure BPOs to the countryside.

CCAP said it has invited some 100 investors and companies to its annual conference slated on September 27 and 28 at the Marriott Grand Ballroom Hotel.

With the theme “Contact Islands: Opportunities in the Ultimate Customer Experience Paradise,” the 11th ICCCE marks the first time that CCAP will be bringing in investors.

The delegation would consist of Europeans, Americans and Australians in the IT-business-process management (BPM) subsectors of health care, telecommunications, financial and hospitality.

The local IT-BPM industry is targeting to employ 1.3 million workers and earn $25 billion this year.

The contact-center sector continues to employs the bulk of workers in the IT-BPM industry, accounting for 65 percent of the estimated employment of 1.2 million workers last year.

Source: http://goo.gl/ONZZG1