Business group presses Congress to pass tax cut measure
MANILA, Philippines — The Philippine Chamber of Commerce and Industry (PCCI) joined 51 other business groups in urging members of the House of Representatives to finally enact the long-awaited tax cuts measure that has been sitting in a congressional conference committee since last year.
PCCI president Benedicto Yujuico urged lawmakers to finalize the reforms in the country’s tax incentives regime, which has been a deterrent to foreign investments, as Congress prepared to resume its regular session on Jan. 18.
The Corporate Recovery and Tax Incentives for Enterprises Act (Create), or Senate Bill No. 1357, is the second package of the comprehensive tax reform program that the Duterte administration initially implemented through Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion Law that was enacted in December 2017.
The House of Representatives passed its version of the second package in 2019 when it approved House Bill No. 4157, or the Corporate Income Tax and Incentives Rationalization Act.
However, the government redesigned several aspects of the program and included them in the Create bill, which the Senate passed in November.
But the House, which initially said it would adopt Create to hasten the program’s passage into law, decided in December to convene a bicameral conference committee to reconcile differences in the two measures.
The PCCI, like the 51 other business groups that also expressed support for Create on Friday, said it was the most balanced of all versions of the tax package.
“Create will provide the momentum for the country to attract foreign direct investments,” Yujuico said as the Department of Finance pushed Congress to pass the bill before the end of the month, so that taxpayers can adjust their tax returns before the tax filing season ends in April.
“Congress is in a good position to do this as Create is in the last step before being enacted into law,” Yujuico said on Saturday.
The Create bill will cut corporate income taxes from 30 percent—the highest in Southeast Asia—to 25 percent and eventually to 20 percent by 2027.
