Former gov’t execs, experts endorse CREATE
Former Secretaries of finance and socioeconomic planning along with government bankers, eminent economists and industrialists are seeking the immediate congressional passage of the repacked second tax reform bill.
In a joint statement released by the Department of Finance (DOF), its 17 signatories threw their support behind the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act now pending in the Senate.
According to the DOF, among the “initial” signatories include former Bangko Sentral ng Pilipinas Governor (BSP) Amando Tetangco Jr., former Finance Secretaries Roberto de Ocampo, Margarito Teves, Jose Camacho and Jose Pardo and former Prime Minister Cesar Virata.
“The signatories expressed their full ‘support for the immediate passage of the CREATE Act, formerly known as the Corporate Income Tax and Incentives Rationalization Act (CITIRA), as a much-needed boost to the recovery of the Philippine economy,” the DOF said.
The bill is "a necessary policy tool for retaining and creating jobs that will help our people secure their livelihoods against the adverse impacts of COVID-19,” it added.
Other signatories include BSP Monetary Board Member and former Socioeconomic Planning Secretary Felipe Medalla as well as former Socioeconomic Planning Secretary and Ateneo professor Cielito Habito.
If passed into law, the CREATE bill will immediate cut by five percentage points the present 30 percent corporate income tax, which they said "will benefit all businesses, especially micro, small and medium enterprises.”
The bill will also extend the net operating loss carryover (NOLCO) by two years, which the formers officials said will “provide businesses more resources to pay for their expenses and keep their employees" amid the coronavirus pandemic's economic fallout.
BSP Monetary Board Member Bruce Tolentino, former DOF Undersecretary and Foundation for Economic Freedom Vice Chairman Romeo Bernardo, former UP Los Baños Vice Chancellor and current Asian Development Bank Institute Board Member Fermin Adriano also supported the CREATE bill.
Other signatories are Dean Joel Tan-Torres, tax and incentives policy experts professor emeritus Epictetus Patalinghug of the UP Virata School of Business and professor Renato Reside of UP School of Economics.