Imee tells DOF: Iron out kinks in on-site work, WFH policy

Senator Imee Marcos on Friday urged the Department of Finance (DOF) to "iron out" the inconsistencies in its on-site work and work-from-home policy.

Senator Marcos also claimed that foreign investors are discouraged to enter the country, and the next administration would find difficulties in "keeping investment growth on track."

“Companies in export zones are now afraid of losing their tax incentives if they don’t resume all operations on-site. But their work-from-home programs were approved as early as 2017, which the Telecommuting Act of 2018 also supports,” Marcos said in a statement.

According to Marcos, chairperson of Senate committee on economic affairs, the Philippine Economic Zone Authority (PEZA) had approved the pre-COVID pandemic programs of at least six companies belonging to the information technology and business process management (IT-BPM) sector.

Citing PEZA's data, Marcos said the IT-BPM sector grew its workforce from 8.9% to 10% and its revenue by about 9.5% to 14.5% despite the pandemic and work-from-home arrangements.

However, the lawmaker said the DOF-headed Fiscal Incentives Review Board (FIRB) ordered a return to on-site work at the end of March to prompt the recovery of businesses that depend on the IT-BPM workers.

Marcos pointed out that micro, small, and medium enterprises like small grocery stores, restaurants, and delivery spaces would also thrive if employees will remain working from their residences.

She then expressed support to PEZA's call to extend the remote work programs until the end of the declaration of state of calamity in September, arguing that working from home would also help employees to save on fuel and transportation costs. It will likewise minimize traffic and public transport congestion.

Further, Marcos said problems in internet connection, which the FIRB also recognizes, would also ease as the internet bandwidth will have broader distribution.

Earlier, the DOF said inter-agency FIRB has upheld its Resolution No. 19-21, which allows IT-BPM firms in economic zones to implement WFH arrangements for 90% of their workforce only until March 2022.

The decision of the Cabinet-level inter-agency board during its February 21 meeting to stand by its Resolution No. 19-21 “denies the request of certain groups to implement extensions to the adoption of the WFH arrangement for the IT-BPM sector until after March 2022,” according to the DOF.

PEZA, an investment promotion agency where several IT-BPM firms are locating to enjoy fiscal incentives, has been pushing to extend the WFH arrangements for companies located in economic zones until September 12, 2022.

The Finance Department, however, threatened the IT-BPM firms they may lose their tax incentives should they continue with the WFH arrangements. —LBG, GMA News