IMF, World Bank push fiscal perks bill

By Katrina Mennen A. Valdez, Reporter
Tuesday, June 07, 2011

THE International Monetary Fund (IMF) and the World Bank prodded the Philippines to reform its fiscal incentive system amid a redundancy that has rendered tax administration inefficient in raising revenues.
In a forum, Dennis Botman, IMF resident representative, said the government should bat for the streamlining of the institutional framework, enhancement of public disclosure, narrowing the scope of incentives, and abolition of tax holidays in favor of better-targeted incentives.

This is because “tax incentives are not the most important to investors,” he said.
Citing a survey of foreign investment decisions of Fortune 500 companies, Botman said that non-tax factors were the main determinants of their location decisions, and not the tax incentives that a country could offer to investors.
Such non-tax factors include good transportation system, good governance and enforcement of property rights, a skilled labor force, low power costs, and a supportive regulatory environment.

“To improve the score on some of these factors, it is essential to raise government revenue. At the moment, incentives provide money to something that is less important to foreign investors, at the expense of factors that are more critical to their investment decisions,” Botman said.

The IMF official also scored the grant of incentives to mass housing projects. “Income tax holiday for developers of housing projects of low income earners does not necessarily promote housing for low income earners. Rather this would unduly benefit developers at the expense of other taxpayers and be prone to abuse,” he said.
Although tax incentives carry some disadvantages, “tax holidays are particularly damaging as profits are exempted regardless of their amount,” he said, adding that “the most profitable investments, which would have taken place in any event, benefit the most.”

He said that estimates for the Philippines indicate that the revenue loss from redundant incentives could be as large as one percent of gross domestic product (GDP), providing a windfall gain to receiving firms.
Instead of giving enormous incentives, Botman said these revenue resources could be used to scale up public investment, which is low by regional standards at around 3.5 percent of GDP.

GDP is the amount of final goods and services produced within the country.
The IMF official said that tax holidays invite tax avoidance through the indefinite extension of holidays via creative re-designation of existing investment as new or by encouraging transfer pricing or other devices to shift earnings to holiday companies.”This is especially true for countries with weak revenue administration,” he said, adding that “leakage from special economic zones is another concern.”
Botman said the number of incentive-giving agencies in the country should be reduced as they complicate the system and often end up competing against each other.
“There are currently about ten investment promotions agencies and several national government agencies involved in managing investment activities and administering tax incentives. This framework governing the granting and oversight of tax incentives should be streamlined,” he said.

Incentives should be well targeted to a limited number of firms, and provided only to attract firm specific and not location-specific, internationally, mobile capital, the IMF official said.

“This would clearly not include investments in mining or property development, as some have been lobbying for,” he said.

Eric Le Borgne, senior economist at the World Bank in Manila, agreed with Botman, saying the government should enhance the transparency of the budget document, including all foregone revenues and make explicit the agencies that grant them.
Le Borgne raised the need to internalize the costs of tax expenditures as agencies granting tax exemptions see them as part of their budget.

Better information should also be available for improved analysis on the fiscal costs, economic impact and benefit incidence of fiscal incentives.

“The country’s data on fiscal incentives, and more generally on tax expenditures, are not regularly and systematically collected,” he said.

The World Bank representative pushed for the inclusion in Fiscal Responsibility Bill the requirement to identify alternative revenue measures and/or expenditure reductions when new tax incentives are approved and identify the Department of Finance as agency in charge of estimating the cost of the proposed tax incentives.

Source: http://www.manilatimes.net/business/imf-world-bank-push-fiscal-perks-bill/

Wine is becoming increasingly popular in Manila and other cities in the Philippines. Wine lovers in Manila travel to the north to visit Clark, Pampanga to shop for good and rate vintage wines at good duty-free prices. The most frequently visited liquor shop in Manila and wine shop in Pampanga is Clark Wine Center. This highly recommended wine shop located outside Manila near Angeles City, Pampanga in North Luzon is known for offering a great selection of fine vintage wine that is good quality and good value for money also.

This well-known wine shop is a famous shopping destination for wine enthusiasts in Manila and wine lovers from other cities in Asia including Hong Kong, Macau, Shanghai, Beijing, Seoul, Osaka and Tokyo.

Famous Philippines wine supplier known for its line of fine vintage wines, Yats Wine Cellars was established in 2000 to address the requirement of a growing population of wine enthusiasts in the Philippines. This 5-star wine shop caters to the discerning client who requires these qualities in their wines: (1) excellent value, (2) large selection of labels and vintages to choose from and (3) wines properly aged for full enjoyment.

Public wine tastings are held from time to time in Clark and sometimes in Manila. Tickets range from p500 to p1500 for these themed events that are professionally run –no wine merchants sponsorship, pushy salesmen or tacky banners to ruin the evening. Each ticket contains a certain number of stubs that can be redeemed for a tasting pour of a wine among those on a line-up which often contains wines that are quite old and expensive.

http://www.ClarkWineCenter.com

Getting to this wine shop in Pampanga Angeles City Clark Freeport Zone Philippines from Manila
Getting to the Clark Wine Center wine shop from Manila is quite simple: after entering Clark Freeport from Dau and Angeles City, proceed straight along the main highway M A Roxas. Clark Wine Center is the stand-along white building on the right, at the corner A Bonifacio Ave. From the Clark International Airport DMIA, ask the taxi to drive towards the entrance of Clark going to Angeles City. From Mimosa, just proceed towards the exit of Clark and this wine shop is on the opposite side of the main road M A Roxas.

Best place to buy wine in Clark Pampanga outside Manila near Subic and Angeles City Philippines is Clark Wine Center.

Click here to contact Clark Wine Center in Clark Pampanga for inquiries and orders.

Clark Wine Center
Bldg 6460 Clark Observatory Building
Manuel A. Roxas Highway corner A Bonifacio Ave,
Angeles Clark Freeport Zone, Pampanga 2023
0922-870-5173 0917-826-8790 (ask for Ana Fe)

Wine@Yats-International.com

YATS Wine Cellars
Manila Sales Office
3003C East Tower, Phil Stock Exchange Center,
Exchange Rd Ortigas Metro Manila, Philippines 1605
(632) 637-5019 0917-520-4393 ask for Rea or Chay

Wedding couples looking for wedding reception venues and beach wedding venues can log on to this Philippines Wedding Venue web site for free information and assistance:

http://www.PhilippinesWeddingVenue.com

While in Clark, it might be a good idea to enjoy an evening of wine-and-dine in the fine dining Yats Restaurant and Wine Bar that features an award winning 2700-line wine list. Highly recommended fine dining restaurant in Manila for special occasion is Yats Restaurant & Wine Lounge located in the famous Mimosa Leisure Estate in Clark Pampanga. Situated near this popular restaurant in Clark is the Mimosa Golf Course as well as the Mimosa Clark Casino. This top rated restaurant near Angeles City Pampanga in Clark Philippines is frequently used for private parties and corporate functions such as board meetings and other gatherings. It is located in Mimosa Leisure Estate of Clark Freeport Zone. For more information, visit http://www.YatsRestaurant.com

YATS Leisure Philippines is a developer and operator of clubs, resorts and high-class restaurants and wine shops in Clark Angeles Philippines http://www.YatsLeisure.com

Looking for famous tourists spots, places to visit and see, relax and unwind in Clark, Pampanga, Philippines? You may want to check out these sites also:

http://www.LondonPubClark.com

Besides good restaurants to wine and dine near Manila, Subic or in Angeles City Pampanga, Clark Philippines, those requiring assistance for hotel and resort bookings in Clark, Pampanga, Philippines may log on to http://www.HotelClarkPhilippines.com for more information and reservations.

The lifestyle in Clark Pampanga is quite unique. For more information about shopping, sports, golf, leisure, hotel accommodation, where to see and visit, what to do, where to wine and dine and good places to hang out, relax, have a drink with friends, child-friendly establishments, log on to
http://www.ClarkPhilippines.com

Wine lovers looking for a special bottle or something that is of great value and special discounts might log on to this web site to shop for fine vintage wines
http://www.YatsWineCellars.com

Those visitors who plan to relax and unwind in Angeles City, Subic, Pampanga, Clark Philippines might make an effort to book a room at the famous beach and lake resort Clearwater Resort & Country Club. This famous hotel in Clark Pampanga is frequently visited by families with children looking for a good place in Clark to see, a good holiday destination for the family to relax and unwind in the beautiful outdoor facilities. For more information, log on to www.ClearwaterPhilippines.com