Press Release
July 17, 2008


"We need to provide greater economic stimulus to address growing concerns arising from the US recession and the spiraling oil and food prices."

Senate Majority Leader and Independent senator Kiko Pangilinan today pushed for a 10-year tax exemption for investments by overseas Filipinos to stimulate more economic activities in the country and aid the Filipinos abroad, especially those in the US who are battling with the recession.

"We need to provide tax exemption from income tax for a period not less than ten years to our kababayans abroad. Now, more than ever, we need to provide greater economic stimulus to address the growing concerns arising from the US recession, the spiraling oil food prices," Kiko said.

Sen. Kiko filed Senate Bill No. 1524 entitled "An Act Promoting the Establishment of Business Enterprises by Overseas Filipinos (OFS), Providing Incentives and Benefits Thereof, and for other purposes" on July 18, 2007. Included in the tax incentives are: (a) income tax exemptions (b) tax and duty exemptions on capital equipment and accompanying spare parts, and (c) tax credit for taxes and duties on raw materials.

"Bringing in greater investments from Filipinos overseas will stimulate the economy, create jobs and infuse fresh capital into the local scene, hence this incentive. More than foreign investors, it is our very own fellow Filipinos overseas who will see the need and have the desire to invest in the country. Let's give them the tax holidays. They deserve a break after the sacrifices they have made by leaving the country and finding jobs abroad," Kiko added.

"We must look at new methods and new strategies to bring our economy outside the boom bust cycle. We cannot stick to old economic programs and outmoded development plans and expect results. We need to employ new, untried methods. We must innovate and experiment if we want to see genuine sustainable economic growth," Kiko ended.

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