NEDA backs CREATE changes

MANILA, Philippines — The National Economic and Development Authority (NEDA) is supporting amendments to the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act to encourage the entry of more investments into the country.

Speaking at the Arangkada Philippines Forum, NEDA Secretary Arsenio Balisacan said among the reforms being pushed is the amendments to the CREATE Act.

He said reforms like amendments to the CREATE “aim to facilitate more significant investment, enhance efficiency and productivity and promote private sector activity.”

He told reporters the amendments to the CREATE seek to address concerns raised by the business community, particularly those located in economic zones.

Among the concerns raised is on the slow process on the value-added tax refund claims.

“The President wants those concerns addressed and the leadership of both Houses of Congress also took those seriously because as you know, we are aggressively promoting our country as a preferred investment destination. So we don’t want those kind of concerns,” Balisacan said.

If the concerns being raised are resolved, he said the country could be seen in a more favorable light, particularly by foreign investors.

He said the country would need to attract investments for high economic growth.

“To ensure a robust recovery and sustain its high growth trajectory in the medium term, the Philippine economy must significantly increase investment to match or surpass its dynamic neighbors’ economic momentum,” he said.

He said more would need to be done to foster a favorable business climate.

Approved during the previous administration, the CREATE Act was touted as a game-changer in attracting more investments into the country.

Under the CREATE, the country’s corporate income tax rate, which was considered among the highest in Southeast Asia, was reduced from 30 to 25 percent for large corporations, and to 20 percent for those earning P5 million and below.

Changes were also made to incentives being given by the government under the law to make these performance-based, time-bound, targeted and transparent.