Philippines – COOPER GENERAL NEWS

A new Singapore-inspired tax bill will lower corporate taxes and boost foreign investment in the Philippines, Treasury Secretary Carlos Dominguez told CNBC as the country seeks to accelerate its economic recovery.

The Philippines’s so-called Business Recovery and Business Tax Incentives Act (CREATE), which came into force last month, aims to provide financial relief to businesses in need while increasing the country’s competitiveness in the region, he told CNBC on Tuesday.

The law lowers the corporate income tax rate – formerly the highest among Southeast Asian countries at 30% – to 25% for large companies and 20% for small companies.

It also unifies the government’s inbound investment program, bringing it closer to financial centers like Singapore, and giving the president more powers to give non-tax incentives to businesses, Dominguez said.

“We have modeled our program on the Singaporean system,” he said, referring to his coordinated strategy of attracting foreign investment and creating incentives.

“In the past we had 13 independent investment promotion agencies in the country that were poorly coordinated,” he continued.

People wearing protective masks are seen walking on a busy street in Manila, Philippines on March 20, 2021.

Xinhua News Agency | Getty Images

“Now we’re coordinating them and making sure these agencies offer incentives that are transparent, time-bound, performance-driven and that attract the investments we actually want in this country.”

The reduced corporate tax is the latest in a series of tax reforms introduced by President Rodrigo Dutertes PDP Laban Party since taking office in 2016.

The finance secretary said the plans would return cash to distressed small and medium-sized businesses, which can then invest in jobs and economic growth again. However, critics have questioned the merits of reducing already stressed public finances as the country battles the coronavirus pandemic.

“We estimate the portion we are giving up will be around 1 trillion pesos ($ 20.65 billion) over a 10-year period. However, we believe this is a time to do so,” Dominguez said.

Businesses need fiscal incentives, number one. Second, that it will attract more investment into our country over a long period of time

Carlos Dominguez

Minister of Finance of the Philippine Government

“Companies need fiscal incentives, number one. And second, that they will attract more investment into our country over a long period of time,” he said.

The Philippines have so far maintained their BBB ratings from Fitch Ratings, BAA2 from Moody’s and BBB + from Japan’s Rating and Investment Information Agency (R&I). This is despite the global downturn and its disproportionate impact on emerging markets.

“Not just the rating agencies, but the people who actually put their money where their mouth is, have invested in the long-term profitability and prospects of the Philippines,” he said, citing the strong bond trading activity.

The Finance Secretary’s comments come as the Philippines faces a surge in cases in its capital, Manila. Dominguez said the country’s resources are currently “sufficient” to handle the surge, adding that by the end of this year it had ordered enough vaccines to vaccinate its 70 million adult population.

“This Covid contagion is just a slip-up in our history. We still have our solid fundamentals, which represent our very strong fiscal and monetary system in the Philippines,” said Dominguez.

“We have a very young and talented workforce and so far we have improved the infrastructure. So this CREATE (law) will only add to our ability to attract more investment into this country.”

A group of islands in the northernmost region of the Philippines is so far away that it is actually closer to Taiwan than most parts of the Philippines.

The islands are 100 miles north of Luzon, the largest and most populous island in the country and home to the capital, Manila. However, you couldn’t be further from the stereotypical tropical scene of swaying palm trees and white sand beaches associated with the Philippine archipelago.

Imagine windswept emerald hills dotted with cattle, quaint stone towns with flower-lined paths, rugged cliffs plunging into a deep sea of crashing white-tipped waves, and lighthouses steadfast and strong, much like that Locals themselves.

This is Batanes – a fascinating and magical place that feels more like the historical drama “Outlander” than “The Beach”.

Pastoral landscapes, peaceful people

Batanes is made up of three main islands – Batan, Sabtang, and Itbayat – that lie between the North Pacific and the South China Seas. Often times, Batanes is hit by implacable typhoons that form on both waters.

It is also located on the Circum-Pacific Belt, better known as the Ring of Fire, and is prone to the frequent earthquakes that damaged Itbayat Island in July 2019.

The pastoral landscape of Naidi Hills near the Basco Lighthouse.

Scott A. Woodward

Here the land is forged by the elements and, in many ways, by the people too.

There is a mysterious atmosphere that shrouds the indigenous people of Batanes, the Ivatans. Due to their isolation, challenging climate and difficult landscape, the locals have built a society that values trust and real connection.

In contrast to the exuberant and charmingly chaotic landscapes of the Philippines, which feel more like karaoke than an idyllic paradise, Batanes and its residents are calm, thoughtful, orderly and peaceful. The Ivatans are warm and sincere and strive to be honest with visitors who want to learn more about their culture.

A fisherman in the village of Diura.

Scott A. Woodward

The Ivatans live in symbiosis with nature and maintain their natural heritage with an almost spiritual passion. They recognize the country as a source of their wellbeing and wellbeing and are committed to sustainability.

The best example would be the lack of markets in the province; Agricultural practices aim to produce just enough food for the population, with very little excess.

Here Christian faith and spirituality permeate everyday life. The word “Dius” or God is used in many expressions: “Dius mamajes!” – or God will repay you, is their way of saying thank you; “Dius machivan!” – May God go with you, is their parting; or just “Dius?” asking if anyone is home. There the visitors often hear “Dius mavidin!” or may God be with you, they greet guests.

Where to sleep

Unlike most of the Philippines, Batanes is sparsely populated.

The 2015 census counted only 17,246 people, which is roughly 205 people per mile.

Strict measures are being taken to prevent overtourism, such as limiting the number of flights to the islands. The area is also subject to the Batanes Responsible Tourism Act, according to which the Philippine government declared the province a “Responsible, Community-Based Cultural Heritage and Ecotourism Zone” in 2016.

As a result, travelers can expect to find host families and small inns rather than branded hotels.

The Bed & Breakfast Fundacion Pacita.

Scott A. Woodward

One facility really stands out.

Fundacion Pacita, the former residence of the late artist Pacita Abad, is a charming bed and breakfast on a lush grass slope overlooking the sea.

Built in traditional stone fashion paired with whitewashed adobe walls, it’s quirky decorated with brightly colored tiles, repurposed furniture, and Abad’s vibrant artwork.

Food from the Cafe du Tukon; Patsy, the niece of the late artist Pacita Abad.

Scott A. Woodward

Her niece Patsy, who often walks through the premises with a happy smile and a glass of wine, now runs the inn. She recently opened the fabulous Café du Tukon, which serves delicious contemporary interpretations of local delicacies like carbonara pasta with salted dolphin fish called arayu instead of bacon or guanciale.

What should I do

Batan is the main island of Batanes. Due to the choppy water and unpredictable weather, it can be difficult to cross the Batanes Islands. Fortunately, Batan has a lot to offer and is easy to get to via commercial flights.

It is imperative to work with an accredited travel agency such as IBS Tours and Travels before organizing any trip. The agency can coordinate a car and guide to navigate the stunning coastal road that circles the island.

The Tayid Lighthouse on Batan Island.

Scott A. Woodward

Agencies can also arrange stops at notable locations like the famous Basco Lighthouse and Tayid Lighthouse, the sloping hills of Rakuh a Payaman, and the colorful waters of the Homoron Blue Lagoon.

It’s also worth stopping at small, peaceful towns like Mahatao and Ivana, known for their churches and Spanish bridges, as well as Diura, home of the Mataw caste of mystical fishermen.

A woman in Chavayan wears a hand-sewn palm frond vakul.

Scott A. Woodward

If the weather is nice, Sabtang Island can be reached by a 40-minute ferry ride. The breathtaking views from the cliffs of Chamantad Tiñan are well worth it, as is the stone village of Chavayan, where vakul are made. These are traditional headgear made from stripped palm fronds that protect field workers from the elements.

Arrival to Batanes

The only real way to get there is by flying. Flights can take anywhere from 80 to 100 minutes and can be booked with Skyjet, Cebu Pacific and Philippine Airlines before the pandemic.

Homoron Blue Lagoon.

Scott A. Woodward

A trip to Batanes must be planned in advance and booked through accredited tour operators. The local government is very focused on sustainable tourism and the preservation of the province’s natural and cultural heritage. There are a number of rules and guidelines – such as no bikinis on the beach – that tourists must understand and adhere to while traveling.

When should i go

While the Philippines is currently closed to international tourism, officials last month expressed an interest in establishing “international travel bubbles” or travel corridors with strict health protocols with neighboring countries.

Basco lighthouse.

Scott A. Woodward

Batanes, which registered its third Covid-19 case in December 2020, is currently even closed to local tourists. Local authorities are looking for ways to safely reopen with 14-day quarantines and meet other health requirements.

Batanes’ “good season” runs from November to May. June to October is typhoon time and should be avoided. Travelers are advised to bring a light rain jacket for spontaneous downpours and a light sweater for cool nights on the cool mountain tops.