GMA TV, Philippines

JPEPA to cost RP P4B in foregone revenues

29 May 2007

The Philippines’ Finance department expects its most recent trade agreement with Japan to cost P4 billion a year in lost duties from Japanese imports.

However, Finance officials said foregone revenues from the implementation of the Japan-Philippines Economic Partnership Agreement would be compensated by increased trade with the country?s second largest bilateral partner.

Finance Undersecretary Gil Beltran told reporters on Monday that the implementation of JPEPA signed by President Gloria Macapagal Arroyo and Japan Prime Minister Junichiro Koizumi in Finland last September would result to foregone revenues of between P3 billion and P4 billion a year.

?In these times, revenue no longer form part of the equation. Everybody is going into it (free trade), if you don?t you will be left behind," he said.

However, Beltran said higher trade volumes would result into increased value added tax collections on the part of the Bureau of Internal Revenue.

The JPEPA,which would eliminate tariffs on almost all industrial goods within 10 years from its effectivity in 2007, has yet to be ratified by the Philippine Senate. - GMANews.TV