PRESIDENT-ELECT Rodrigo Duterte said on Tuesday, June 21, that his administration will consider the top 10 recommendations made by over 450 business leaders during the two-day Consultative workshop and economic forum at the SMX Convention Center, Davao City.
"I assure you, we will study it. I see nothing wrong with it, it's doable, it is just a matter of doing it," Duterte said.
The two-day workshop organized by the economic cluster cabinet of the incoming administration dubbed as Sulong Pilipinas: Hakbang Tungo sa Kaunlaran conference is led by appointed Department of Finance (DOF) secretary Carlos "Sonny" Dominguez, co-organized by the Philippine Chamber of Commerce and Industry, Inc. (PCCI) and Mindanao Business Council (MINBC).
The comprehensive tax reform topped the business sector's ten identified consolidated recommendations as their wish list for the Duterte administration which will assume office on June 30.
Discussions revolved around the 10-Point Socioeconomic Agenda presented by Dominguez last Monday, June 20.
The workshop generated hundreds of recommendations based on various industry problems voiced out by the participants who were divided into 10 breakout groups.
MINBC chair Vicente Lao said that they are hopeful and positive that the recommendations will be carried.
"Well, we are positive that they rally accept those (recommendations) because that is really the purpose of this workshop, forum," he said. Here are the list of the top 10 recommendations that emanated from the comprehensive discussions among the business community.
Comprehensive Tax Reform
The comprehensive tax reform package include the reduction of corporate and personal income taxes as well as lower capital gains tax rates patterned after the taxation systems of Singapore and Hong Kong. "To compensate for the deficit resulting from reduced tax rates, the foremost suggestion is to increase excise taxes by expanding the definition of luxury goods."
Lao said that reduction of taxes will be good for the economy as people will have more disposable income paving way for a more moving economy.
But he was quick to add the negative impact of it will be on the government's income.
"But there will be residual effects, the government will surely source their income to other sources," Lao said.
National ID System
The proposed ID system is seen to allow government agencies "to provide more targeted social services and prevent double-counting or leakage. The system is expected to improve access health, education, food, shelter, and conditional cash transfer programs, aside from enhancing peace and order."
Ease of Doing Business
To reduce processing time for permits and bottlenecks in land titling, automation and streamlining of processes at the local and national levels were recommended.
There were also suggestions "to cut red tape were: expansion of the "single window" concept, extension of validity for various licenses, and use of "negative confirmation" for government approvals."
Improvement Of Internet and Telecom Services
The need to amend the existing telecommunication law or Republic Act 7925 must be prioritized, the business sector said to regulate wireless/mobile internet services to make the country competitive with the Asean neighbors.
To ensure enhanced connectivity, the creation of internet cooperatives in far-flung areas similar to existing electric coops was also proposed.
Support Services for Farmers Delegates proposed the adoption of value-chain development in rural-based enterprises, including agriculture and mariculture.
Recognizing the vast untapped potential of the agri-sector, they recommended a support system through financing, technology, and logistics to raise rural productivity and employment.
Value-added chain, Responsible Mining
Limitation and gradual elimination of the export of mineral ore and instead recommended a shift to value-added processing that would facilitate a strong domestic mineral products industry.
Development of Regional Industries
A national strategy to determine sectors where the country has the greatest competitive advantage and optimize the value of our land, people, and other resources. An action plan to identify industry clusters and regions where SMEs should locate to avail of lower transport, energy, and logistics costs was recommended.
Improvement of Transport Networks Developments of regional airports, seaports, and mass transit projects such as the North-South Railway, C-6 Expressway, Cebu Bus Rapid Transit, and Davao Sasa Port projects should be prioritized as suggested by the businessmen.
Review Of Conditional Cash Transfer Program To do away in promoting dependency on government, the CCT is said to be reviewed "to allow for long-term intervention that teaches the poor to catch fish rather than receive dole-outs. Participants suggested enhancing social protection initiatives through skills development, cash for work, livelihood projects, among others."
Reduction of Public-Private Partnership (PPP) Bottlenecks and Respect for Contracts Speedy implementation of vital infra projects, such as right-of-way issues and lack of synergy between Local Government Units (LGUs) and national government agencies. Also, existing and future contracts shall be honored.
Meanwhile the 10-point socioeconomic agenda laid by the Duterte administration are focused on continuation of Macroeconomic policies, tax reform, ease of doing business, infrastructure spending, rural development, land administration, human capital development, science, technology, arts, social protection program and reproductive health.