CREATE TO YIELD 1.4-M NEW JOBS IN 10 YEARS–SALCEDA

THE chairman of the House Committee on Ways and Means on Monday said the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act is expected to yield 1.4 million new jobs over the next decade.

Following a briefing with the Tax Committee of the Financial Executives Institute of the Philippines (Finex), Albay Rep. Joey Sarte Salceda said CREATE is the largest infusion of tax savings in the private sector in the country’s modern history.

“Based on a standard net present valuation of the cut in corporate income tax alone, the value is P7.1 trillion. We expect CREATE to yield 1.1 million to 1.4 million jobs over the next decade,” Salceda said.

“I think the rules and regulations are also mostly ready, so I am calling on BIR [Bureau of Internal Revenue] to issue the rules and regulations soon,” Salceda added.

During the same briefing, the BIR said it is eyeing to issue the IRR by the second week of April.

Moreover, Salceda also appealed to the BIR to ease filing restrictions in view of the declaration of enhanced community quarantine (ECQ) and the looming April 15 deadline.

“I don’t think we can extend the deadline. We need the money, especially given the plan for a SAP 3. But there are other adjustments we can make,” Salceda said.

Among the adjustments Salceda proposed are the relaxation of venue rules on filing of tax returns.

“The venue restrictions are the most irrational part of the BIR tax regulations. It’s also the hardest to navigate, especially given the pandemic,” Salceda added.

Salceda also asked the withholding tax to be reduced in light of the reduction in the tax rate.

“Withholding tax rate was 15 percent when the CIT was 30 percent. It follows that when we lowered to 20 percent, the rate should be 10 percent. It’s not for anything else but logic,” Salceda added.

Under CREATE, the Department of Finance is required to review rules on withholding taxes every three years.

“Because we changed the rules this year, we should review the revenue regulations on withholding also this year. Again, it’s the logical thing to do,” Salceda added, in the presence of the BIR.

Salceda said he will also hold briefings with the BIR to ensure that the rules and regulations can be issued without delay.