A business group is backing the Department of Finance’s bid to pass the “Corporate Recovery and Tax Incentives for Enterprises” or the Create Act, which the government said would help businesses recover amid the coronavirus disease (Covid-19) pandemic.
The Philippine Chamber of Commerce and Industry, in a statement, said “the business sector needs the package of reforms to help businesses recover, ensure their resilience and create more sustainable economic opportunities.”
PCCI represents about 30,000 large and micro, small and medium enterprises (MSMEs).
Finance Assistant Secretary Tony Lambino said the Create Act was already at the advanced stage of the legislative process, having passed as the “Citira” or the Corporate Income Tax and Incentives Reform Act at the House of Representatives.
“At the Senate it is already in the period of interpolation and President Duterte has certified this as an urgent bill,” Lambino said.
Create seeks to reduce the 30 percent corporate tax rate to 25 percent by July and rationalize tax incentives after a four-year transition period.
An Ateneo de Manila professor has cautioned against rushing the bill, citing previous reform legislation that had negative effects on the poor.
“Let’s not rush TRAIN2/CITIRA/CREATE (or whatever they are calling it now) and make an effort to get it done better compared to TRAIN1 and rice tariffication,” said Ateneo School of Government Dean Ronald Mendoza. (Jojo Mangahis)