ILOILO City – Local businesses are pressured by various factors currently influencing the economy, according to the Iloilo Business Club.
They feel “very vulnerable,” said club president Lea Lara.
Iloilo Business Club members are concerned about the rising inflation and the apparent adverse impact of the Tax Reform for Acceleration and Inclusion Act on consumers, said Lara.
At the same time they are worried about the possible effects of federalism – should the shift in the system of government push through – on taxation, among other aspects of the economy, she said.
“We are feeling the pressure from all sides,” said Lara. “The market is … stable, pero vulnerable sia.”
The Duterte administration is pushing for the shift to a federal system of government primarily for the decentralization of powers from the country’s capital.
Meanwhile the annual inflation climbed to its highest in more than five years at 5.7 percent in July, prompting the central bank to raise interest rates for a third time this year on Aug. 9.
“We will be subjected to new taxes (under the federal government) as that will be due to the model,” Lara said.
She said the Iloilo Business Club is looking for experts who can further explain the impact of the government system shift to local entrepreneurs.
“Right now there are a lot of market forces affecting local businesses so they feel very vulnerable,” said Lara. “[These are] challenging times – very challenging times.”/PN
