MANILA, Philippines — With Congress set to resume sessions today, the country’s largest business organization made a renewed call to focus on the passage of the proposed Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.
“Congress is in a good position to do this as CREATE is in the last step before being enacted into a legislation,” Philippine Chamber of Commerce and Industry (PCCI) president Benedicto Yujuico said.
The proposed measure has been passed on third and final reading at the House of Representatives and the Senate.
After the bicameral conference committee to reconcile provisions of the bill, it can already be endorsed to the President for approval.
Certified as urgent by the President, the measure is considered by both economic managers and business groups as crucial in restoring market confidence and helping businesses recover from the pandemic.
CREATE, when approved and implemented, would trim the corporate income tax (CIT) rate to 20 percent from the current 30 percent for enterprises with net taxable income not over P5 million.
As for other businesses, the CIT rate would be reduced to 25 percent.
With 70 percent of PCCI’s members being micro, small and medium enterprises, the immediate cut in CIT will provide instant relief and help in the recovery of these businesses.
In addition to lowering the CIT rate, CREATE will rationalize fiscal incentives given to investment projects.
PCCI said the passage of the bill would remove the uncertainty on the country’s tax incentives regime which is among the reasons why some foreign businesses have held back on making investments.