FFCCII backs TRAIN 2
The FFCCII is in favor of the proposed TRAIN 2 as the contemplated reduction in corporate income tax rates will improve the competitiveness standing of domestic corporations, particularly in the ASEAN region, and allow them to reinvest the tax savings in their business. Lower taxes could make businesses pass on the tax savings to consumers by way of lower prices to stay competitive.
According to FFCCII president Domingo Yap, “We agree that rationalization of fiscal incentives reform is long overdue. The regime of incentives must be well targeted to assist the more deserving, and be time-bound rather than indefinite. They must be performance based to ensure they are attuned to the government’s objectives in generating employment and attracting investments.”
Yap added “We are with the consumers in expressing concern over the higher inflation being currently experienced and have urged our members to do their part by not unnecessarily raising prices.
It is unfortunate that TRAIN 1 took some time to legislate and, by the time it was passed into law, coincided with a weaker peso and much higher fuel prices.
Hence, TRAIN 1 is seen as a contributory cause to inflation, although objective analysis shows otherwise. We reaffirm our support for tax reform to sustain fast and inclusive economic growth for the Philippines. “