NEDA Preparing Package of Tax Cuts to Combat Economic Crisis

MANILA, Philippines — The government has come up with measures to cushion the impact of the worsening global economic crisis – including a reduction in the corporate income tax rate, exemption of minimum wage earners from paying taxes, and increase in personal exemption of non-minimum wage earners.

The measures are aimed a encouraging business expansion and entrepreneurship to create more jobs, the National Ecomomic Development Authority (NEDA) said on Wednesday. "These initiatives are multi-pronged in creating and safeguarding Filipino employment and livelihood," NEDA Director General Ralph Recto said in an article posted at the Philippine government website (www.gov.ph).

In a memorandum to President Gloria Macapagal Arroyo, Recto said the "government will speed up the creation of employment by ensuring that the allocated budget is fully and efficiently spent."

He added that "resources will be shifted from slow to fast-moving and uncomplicated projects with visible employment results."

In this light, he called on the business and labor sectors to go hand in hand with the government in coming up with mechanisms that would "preserve as much employment as possible, while making industries cost-effective and productive." Another measure for employment generation, Recto explained, is to provide more training vouchers and scholarships for the young labor force. "This initiative will help create a better human resource that is ready for the economic upturn," he added.

A report of the National Statistics Office noted that the total number of employed persons in the country increased to 34.5 million from 33.7 million in the same period last year. - Aie Balagtas See,

from GMANews.TV