Lopez hopes for speedy passage of CITIRA bill

MANILA - The Department of Trade and Industry (DTI) is hoping for the immediate passage of legislation lowering the corporate income tax rate and providing more incentives for companies, as stakeholders in the government sector seek a “winwin” type of support for industries.

DTI Secretary Ramon Lopez said Senator Pia Cayetano will file a new version of the proposed Comprehensive Income Tax and Incentives Rationalization Act (CITIRA) integrating “many of improved provisions” discussed by agencies involved.

“We have already a good CITIRA draft now,” he said Tuesday during the Manufacturing Summit 2019. “We are discussing with the DOF (Department of Finance) and other agencies what will be a more effective and win-win type of support for industries.”

Lopez said the CITIRA will benefit the industry sector with the lowering of corporate income tax rate from 30 percent to 20 percent.

New industries and new companies that will be registered under the strategic investment priority plan (SIPP) will also be provided more incentives under the CITIRA legislation, he said.

“So it’s not true that incentives will be removed or taken away. In fact, the incentives are being enhanced especially for new projects. And of course, for the existing projects like the PEZA (Philippine Economic Zone Authority) benefiting from incentives, we have worked on a more gradual transition for all the existing locators,” he added.