I was thinking about the RIGHTFUL concern that the debt accumulated during the COVID-19 crisis is getting higher. The big question is where will the Philippines get that MONEY to pay off whatever debts were accumulated? There's also the big stupidity of wanting the foreign debts repaid yet they don't want to open up sectors to Foreign Direct Investment (FDI). What's their fear of FDIs about? The usual excuses start off with "But only they will get rich! We will get poor!", the lie that FDIs will endanger all local businesses, or that FDIs are invaders. All of these are nonsense propagated to keep the oligarchy and Filipino communists in their position of power. Others are too stupid to believe it which led to the problem that Filipinos kept fighting against reforms that could've benefited them.
Then I remembered an article for CoRRECT Philippines titled "Benign0 of GRP does NOT understand FDI at all". Yes, he DOES NOT understand it. His ignorance is blatantly shown in that article. Benign0 apparently thinks that FDI also involves OFWs. Then you have others who think that inviting FDIs here to invest (such as Multinational Corporations or MNCs) will mean the Philippines will accumulate more debt. The idea itself is really stupid for this reason - FDI is NOT the same as the OFW program or borrowing money from other countries.
How do FDIs work even if the nonsense 60-40 restriction is removed? Again, 60-40 is NOT about land ownership. A good example is when a person rents a space in a commercial building of any kind - does the landlord have a 60% ownership of that branch? Does the tenant pay 60% of his earnings to the landlord? No, he pays rentals. I'm not for foreign land ownership the same way that any landowner won't sell his parcel of land to his tenant. FDIs are treated as tenants while the Philippines should be treated as a commercial space. FDIs are allowed to invest in the Philippines with or without a Filipino partner. However, they can't buy land and they must pay taxes. Every FDI must be registered in the Philippines as a player. It's like how a businessman must declare every last branch he has as a taxpaying entity to the BIR.
FDIs will be registered as taxpayers. Do you know what that means? Taxes collected by the BIR mean more MONEY for the Philippines to use. They can enrich themselves while they are required to pay their taxes and rent to their landowners. Every last earning they have will be declared taxable since they really earn plenty of money. When the FDI earns a huge income in the Philippines then that money is automatically taxable under Philippine law. The money is paid for by the FDI to the Filipino government in exchange for the right to do business in the Philippines. It's just like tenants pay rent to their landowners in exchange for their right to use the commercial space for business. The revenues given to the government will be used to pay back the debt. Instead, it's other countries' businesses owe the Philippines its taxes whenever they earn taxable income in the said country.
Comments
Post a Comment