Government agencies involved in the granting of tax credit incentives on raw materials have decided to uphold the validity of at least P1 billion worth of tax credits issued to at least 50 firms under the Ramos administration.
The landmark decision puts to rest a controversial plan by the Department of Finance (DoF) to cancel tax credits which were granted from 1994-1998 based on the 10-year expiry rule.
In a resolution, the executive committee of the DoF's One Stop Shop and Duty Drawback Center, (OSS) headed by Finance Undersecretary Cornelio C. Gison, said the 10-year period within which companies can avail of tax credit incentives applies only to firms registered under Batas Pambansa (BP) Blg. 391 and Executive Order (EO) No. 226, or the Omnibus Investments Code.
Companies which …