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Philippines should study impact of tax reforms on the BPO industry

Following the recent approval of House Bill 5636 or the Tax Reform for Acceleration and Inclusion from the House of Representatives, Santos Knight Frank chairman and chief executive Rick Santos cited that the possible removal of the tax incentives for business process outsourcing (BPO) firms must be studied deliberately to assess its impact on the concerned sector. Santos underscored that incentives are great drivers for growth in the BPO industry. He added that the BPO sector is the country’s biggest private employer with 1.5 million direct and 3.7 million indirect employees. The sector also contributed 8% to gross domestic product, with export revenues close to USD25 billion.