Yolanda-hit areas need capital, not tax breaks for ‘outsiders’ – BIR's Henares

Internal Revenue chief Kim Henares on Thursday rejected a proposal from newly-installed rehabilitation czar Panfilo Lacson to award tax concessions to encourage businesses to spring up anew in areas ravaged by Yolanda in November.

 

In an interview with reporters in Manila, Henares said local traders in central Visayas, which was hardest hit by Yolanda, should be given capital by the government to restart their businesses instead of giving tax concessions to attract "outsiders" or traders from non-affected areas.

 

"Kapag sila ay nasa gitna ng sakuna, anong tax incentive [ibibigay mo, eh] wala nga sila capital?" said Henares. 

 

"Ang mas importante is to make capital available to them in a more concessionary rate. A long-term rate at lower interest," she added.

 

The Revenue chief said the BIR was not "taking advantage of the misery" of the typhoon victims, but merely wanted local traders to restart their businesses instead of "outsiders."

 

"Siguro the concession that should be given is not really [in terms of] tax. It should be what the secretary of Finance wants to do, [that] is to provide funding for capital because what you want to do is help people in the locality rise up," Henares said.

 

Lacson earlier revealed his plan to have the private sector take a more active role in rehabilitating the devastated areas, and that the government should be prepared to give the private sector perks like tax concessions.

 

These tax breaks, Lacson argued, would encourage the private sector to come in as the main implementer of the rehabilitation efforts. The government, meanwhile, comes in as an "enabler," Lacson added.

 

Henares said she saw nothing wrong with Lacson's proposal for the private sector to take the lead, but specified that it should be the "local private sector" that does it.

 

"You want the benefit to go to them [locals]. So, if you look it that way, an incentive now is useless," she said.

 

Henares said unlike the local businessmen and businesswomen in Yolanda-hit areas, traders coming from non-affected areas would not need capital and are likely to "take advantage of the misery of others." 

 

"You don't want competitors from outside to come in and take advantage because, in all disasters, there are a lot of opportunities to make money. You want that opportunity to make money to [go to] the locals," she said. — JDS, GMA News