MORE than 50 private
sector groups are urging lawmakers to instantaneously pass
a bill that would cut corporate
income tax and streamline fiscal incentives.
Legislators are set to convene the bicameral conference
committee to reconcile contradictory provisions in the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act passed by the Senate
in November and the House
version a year earlier.
The 51 private sector
groups represent the banking,
real estate, insurance, and outsourcing sectors, along with
foreign chambers representing Spain, France, and Nordic
countries. The Management
Association of the Philippines,
Makati Business Club, university groups, and other business
councils are also represented.
“We join the multisectoral
call for the passage of this important legislative measure with
urgency. After three years of
deliberation, every day of delay
comes at the risk of losing more
jobs and hemorrhaging more investments,” the groups said.
CREATE streamlines the
tax incentives system to make
it more time-bound and performance-based.
It would also reduce corporate income tax to 25% from
30% starting July 2020, and
then by one percentage point
each year from 2023 to 2027.
The rate falls to 20% for local
smaller companies with net
taxable income of P5 million or
lower and total assets less than
“These would instantly
bring the country’s CIT (corporate income tax) rate closer to
the ASEAN average of 21.65%
and give us more resources to
retain our employees and to
keep up with financial difficulties,” the groups said, adding
that the reduced tax would help
Under CREATE, Investment Promotions Agencies
(IPAs) like the Philippine Economic Zone Authority will review investment projects valued at P1 billion or lower, while
the Fiscal Incentives Review
Board (FIRB) approves larger
Semiconductor and Electronics Industries in the Philippines Inc. (SEIPI) SEIPI wants
to raise this threshold for quicker approval under IPAs.
Trade Secretary Ramon M.
Lopez, in a recent meeting with
the new chairman of the House
committee on trade and industry asked to include CREATE
among priority measures this
He also asked Navotas
Representative John Reynald
M. Tiangco to prioritize the
passage of a revised Consumer
Act of the Philippines, as well
as an expanded Price Act.