Converge Tax Perks at Stake, if the Firm Fails to Uphold its Commitments

The Fiscal Incentives Review Board (FIRB) has urged Converge ICT Solutions to uphold its commitment to a faster internet connection. Failure to do so would lead the company to lose its tax perks. The broadband provider earlier secured tax and other incentives from the Board of Investments (BOI). This was mostly due to its promise of providing a minimum internet speed of 100 Mbps at “a price not exceeding the prevailing market rate,” prioritizing unserved areas.

The FIRB approved the package of fiscal perks in May. It includes four years of income tax holiday and five years of enhanced deductions. Additionally, it granted 11 years of duty exemption on importations of capital equipment and other accessories. To monitor Converge’s commitments, the interagency body also established a technical team with the BOI and the National Telecommunications Commission (NTC).

“The internet speed floor of 100 Mbps shall only apply to the download throughput of all plans and upload throughput for business plans,” explained the FIRB. “whereas upload throughput for household plans, jitter, latency, and packet loss should be tied to national/international medians, whichever is higher, up to 100 Mbps.” Converge’s subscription plan, likewise, should not exceed the cheapest price of the top three internet service providers (ISPs) equivalent plan.

“Converge must provide projections on when it will achieve 100-percent service coverage of its most basic household internet plan in all regions in the Philippines, based on the municipalities covered in its project,” added the interagency body. In an effort to maintain its commitment, the FIRB requires the broadband service provider to submit a compliance report. However, an independent, third-party auditor report must accomplish the aforementioned report.

Source: Inquirer