Pacquiao wants to further lower corporate tax
MANILA, Philippines — To further help the business sector and entice investments in the Philippines with the goal of creating more jobs, presidential aspirant senator Manny Pacquiao on Thursday proposed to further lower corporate income tax.
He said many businessmen have backed out from investing in the country because of the high corporate tax, the unstable electricity supply, and the slow internet connectivity, all of which have to be addressed.
For the corporate tax, he cited Singapore which has it pegged on 17%.
“Pag sinabing corporate tax, ang taas natin, hindi natin kayang pantayan ‘yung corporate tax ng Singapore na 17% kaya look at Singapore, well developed ang Singapore, talagang nandun ang mga businesses,” he said in a forum with Rotary Club Manila, the first time he spoke before a big business group since he declared his presidential bid.
“Kailangan po nating ibaba ‘yung corporate tax natin,” he added.
President Rodrigo Duterte signed this year the Corporate Recovery and Tax Incentives for Enterprises Act, or CREATE, which already cuts corporate income taxes and provides incentives to help businesses recover from the pandemic and encourage foreign investments.
The law brought the corporate tax rate to as low as 20% and for micro, small and medium enterprises, and to 25% for other corporate taxpayers from the previous 30%
Pacquiao also said the Philippines must focus on non-tax revenue income to up its income and decrease its debt.
“Sugpuin natin corporate tax para lumaki ‘yung income ng non-tax revenue income at hindi tayo mag-rely sa tax revenue income,” he said.
Non-tax revenues refer to all other impositions or collections of the government in exchange for services rendered, assets conveyed, penalties imposed, etc.
