The Information Technology Business Process Association of the Philippines (IBPAP) remains optimistic about its growth prospects this year amid the government’s plan to rationalize fiscal incentives.
“2017 was not a good year, 2018 was also lower than expected. We are very hopeful about 2019 but we have yet to see,” said Lito Tayag, chairman of IBPAP and country managing director at Accenture Philippines.
Last year, the business process outsourcing sector grew 5.1 percent, below the 8% annual growth target under Roadmap 2022.
The country’s BPO sector, however, continued to grow faster than the average global market growth of 3-4% in 2018. It had a total of 1.23 million employees as of the end of December last year.
Under the new roadmap, IBPAP is eyeing $40 billion worth of revenues and 1.8 million direct employees by 2022.
Tayag said the industry is also monitoring the impact of the proposed Tax Reform for Attracting Better and High Quality Opportunities (TRABAHO) bill on the industry.
The TRABAHO bill seeks to remove the five percent tax on gross income earned paid in lieu of all national and local taxes by the firms registered in economic zones. It also cut the corporate income tax rate gradually to 20 percent from 30 percent.