Fiscal Incentives Revisited

This short paper attempts to clarify some of the issues and provide suggestions for reforms in the fiscal incentive system. In particular, it focuses on the Investment Incentive System embodied in the Omnibus Investment Code. The paper attempts to provide some estimate of revenues forgone, specifically from income tax holiday under different assumptions. It urges that the government should be aware of these costs, be very choosy in granting incentives, and should make sure that social benefits from preferred activities compensate for the costs. Toward this end, the paper proposes a two-tiered approach for reforms--generic and special incentives.investment incentive system, fiscal incentives

Environmental Impact of Trade Policy Reforms on Pollution Intensity

The paper attempts to provide a theoretical analysis as well as some indicators of the linkage between trade policy and the environment. It looks at what has happened to the share of manufacturing industries by pollution classification overtime and finds tat the share of non-pollutive/non-hazardous industries has grown over the years covering the period of trade reforms. It also analyzes the impact of trade policy on the environment using a simulation model, which predicts what happens to pollution intensity with and without trade reforms. The results indicate some positive impact of trade reforms on the environment and that the Philippines should pursue its greater trade liberalization and implement the corresponding environmental measures.trade reforms, pollution, environmental issues, trade policies, environmental management

Philippine Trade Policy: Reflecting on its Effects on the Environment

How have our trade and industrial policies affected the environment? Have they led to increased environmental degradation? Citing empirical support, the author looked into how the trade policy reforms undertaken in the past decade have affected the country's environment.trade sector, environmental issues, environmental management

Fiscal Incentives Revisited

This short paper attempts to clarify some of the issues and provide suggestions for reforms in the fiscal incentive system. In particular, it focuses on the Investment Incentive System embodied in the Omnibus Investment Code. The paper attempts to provide some estimate of revenues forgone, specifically from income tax holiday under different assumptions. It urges that the government should be aware of these costs, be very choosy in granting incentives, and should make sure that social benefits from preferred activities compensate for the costs. Toward this end, the paper proposes a two-tiered approach for reforms--generic and special incentives.investment incentive system, fiscal incentives

Fiscal Incentives Revisited

Pointing out that fiscal incentives have costs that must be compensated by net benefits to society, this Policy Notes recommends a revisit of the government's policy and scheme on fiscal incentives and suggests limiting the number of preferred areas in the Investment Priorities Plan (IPP) to a few focused areas at a time.investment incentive system, fiscal incentives

ASEAN Rules of Origin: Lessons and Recommendations for Best Practice

Rules of Origin (ROO) set the criteria in determining the nationality of a product and where a product was made. The importance of ROO has increased in the past years as more countries engage in Free Trade Agreements (FTAs) and begun treating goods differently according to where the product was made, along with trade-specific preferences or restrictions to the imported good once its origin is determined. This study is done to cull the lessons from ASEAN's experience in determining and implementing the Rules of Origin. It draws the important lessons and makes recommendations for best practice that would contribute to the cooperation and integration efforts in the region. The paper examines the various design and implementation practice in ROO regimes, focusing on RTAs where the ASEAN is involved. The paper presents findings from recent studies on the cost of ROO compliance and the FTA utilization rates. It concludes with recommendations on simplification of ROO and some reforms on administrative procedures, bringing in the development country dimension, and some general guidelines to follow to improve ROOs.Rules of Origin, Free Trade Agreements, ASEAN.

"No" to Policy Reversal: Backsliding in Tariff Policy Can Do More Harm than Good

In recent months, growing evidence has shown that there seems to be an apparent trend for backsliding or reversal of the government policy on tariff reduction. Why is this happening? And what is its implication? The authors claim that backsliding in the government's tariff policy can do more harm than good--this Notes explains why.trade liberalization, trade reforms, tariff reduction, tariff policy

The Impact of ASEAN-China FTA Early Harvest Program: the Case of the Philippines with Focus on Short-run Effects on the Agriculture Sector

This paper aims to provide some information on the implications for the Philippine agriculture sector of the ASEAN-China Free Trade Agreement. In particular, the paper explores the possible impact of the agreement, with emphasis on the Early Harvest Program (EHP). It also provides a brief background on the state of the Philippine agriculture system, the liberalization initiatives undertaken, as well as some policy gaps and interventions done to address these. The paper also revisits a simulation exercise conducted on the possible short-run impact of an EHP to identify the vulnerable sectors.agriculture sector, China, agricultural liberalization, ASEAN-China Free Trade Agreement, Early Harvest Program (EHP)

The Philippine Industrial Sector: Policies, Programs and Performance

Shortly after the assumption of President Aquino to the office, the government has instituted a wide-ranging set of sociopolitical and economic reforms. This paper evaluates the ongoing program of industrial restructuring and development in the Philippines. Preliminary to its purpose, it reviews the major developments during the 1970s and 1980s. The discussion of the performance of the industry as well as changes in the industrial structure serves as the point of departure for the subsequent assessment of trade and industrial policy reforms and programs.industry sector, industrial policies, industrial growth, industrial waste

The Effects of Shifting to Transaction Value and Other Issues

This study takes off from an earlier inquiry on the effects of Home Consumption Value (HCV) valuation. It is intended to assist policymakers in examining the requirements for an effective implementation of the General Agreements on Tariffs and Trade Valuation Code (GVC). This study identifies several advantages and disadvantages under the GVC regime. Nevertheless, based on the findings of the study, the gains from implementing the GVC outweigh the potential losses as long as the legal framework and institutions for the World Trade Organization (WTO) compliance are in place.transaction value, trade sector