With weak peso, government urged to help business - BusinessMirror

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The further depreciation of the peso to another record low should prompt the government to extend incentives and subsidies to firms, especially those importing raw materials, according to local economists. Know more:

THE further depreciation of the peso to another record low should prompt the government to extend incentives and subsidies to firms, especially those importing raw materials, according to local economists.

Clarete said there may also be a need to provide additional tax credits on top of exemptions from paying value-added tax and excise on imported raw materials. “Investments can be redirected to industries that are more labor-industries. The government can help support firms in these transitions,” he added.

“The issue is how to let markets determine which industry should prosper and identify the cases for government intervention when market failures are seen,” Lanzona said. Terosa said these are already being done by the government. However, since no policy is perfect, there will always be room to improve these efforts.

 

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Business Mondays with BM: September 5, 2022The Business Mondays is a segment of the BusinessMirror’s Broader Look podcast that tackles the performance of the Philippine stock market.
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