CREATE to give Phl ‘fighting chance’
Philippine Chamber of Commerce and Industry (PCCI) president Benedicto Yujuico said the revisions to the original Corporate Income Tax and Incentives Rationalization Act (CITIRA), which is now known as the CREATE bill, will boost the recovery of firms reeling from the economic slowdown spawned by the coronavirus crisis.
As the head of the largest umbrella group of business organizations representing some 30,000 large and micro, small and medium enterprises (MSMEs) across the country, Yujuico calls for the immediate passage of the proposed Corporate Recovery and Tax Incentives for Enterprises Act (CREATE), to give the Philippines a “fighting chance” in attracting more foreign direct investments (FDIs) under the “new normal.”
Yujuico said the immediate reduction of the corporate income tax (CIT) from 30 percent to 25 percent will bring the country’s rate closer to the ASEAN average, and help “draw in multinational firms seeking alternative sourcing markets and manufacturing base.”
“The damage COVID-19 and the corresponding lockdown imposed to mitigate its spread has seriously damaged the economy. The business sector needs the package of reforms introduced under CREATE to help businesses recover, ensure their resilience and create more sustainable economic opportunities,” Yujuico said.
“We therefore call on the Senate and the House of Representatives to accelerate the enactment of the law,” he added.
The PCCI’s membership roster includes private companies and enterprises, industry associations, local chambers of commerce and foundations operating in the Philippines.
Most of these member-companies are MSMEs that represent different areas of activities such as export and import, manufacturing and processing, distribution and logistics, among others.