A woman sells souvenir car plates with images and slogans of presumptive president Rodrigo Duterte along a sidewalk in Davao City on Wednesday. Davaoeños are ecstatic with the results of the general elections, with their mayor expected to set a historical first for Mindanao. (MNS photo)
MANILA (Mabuhay) – Presumptive president Rodrigo Duterte will focus on easing restrictions on foreign direct investments specifically on land ownership and share of capital, Ernesto Pernia, one of the members of his economic team, said on Monday.
“He’s willing to go for a land lease for 50 years, renewable for another 50 years. And then on the share between the capital of foreign investors and local investors, now it’s 60 percent local, 40 foreign. He said he is willing raise the foreign share up to 70 percent and 30 percent to local investors,” Pernia said.
“Those are what foreign investors are interested or have been complaining about in the past. If those measures are combined along with easing of constitutional restrictions in foreign direct investment, I’m sure we will have a surge in foreign direct investments in the coming years,” he added.
Pernia, also the University of the Philippines economics professor emeritus, said they also plan to raise infrastructure investment to 5 percent of the gross domestic product, where infrastructure spending shall go to the improvement of the agriculture sector in the regions.
Meanwhile, the next administration plans to lower marginal tax rates on low and middle income earners, and increase taxes of the upper income class.
Corporate taxes will also be reviewed and compared with other ASEAN countries.
Pernia said the foregone revenues will be compensated by reduced losses from tax evasion, smuggling, and other illegal activities.
He also stressed a need to rebalance the gains of the economy, where a bigger share of the economy’s growth will go to the poor rather than the upper income class.
But he clarified that the fiscal and monetary policies of the Aquino administration will be maintained.
“Those things will be continued and maintained, they’re good. To complement good macroeconomic policies, you need good sectoral and micro policies at the lower levels,” said Pernia. (MNS)