PCCI backs Senate’s CITIRA version

Published March 10, 2020, 12:00 AM

by manilabulletin_admin

By Bernie Cahiles-Magkilat

The Philippine Chamber of Commerce and Industry (PCCI) is urging the Senate to immediately pass the Corporate Income Tax and Incentives Rationalization Act (CITIRA) to boost the competitiveness of micro, small and medium enterprises (MSMEs).

Benedicto V. Yujuico
Benedicto V. Yujuico

Benedicto V. Yujuico, president of PCCI, said in a statement that high corporate income tax marginalizes the MSME.

“They pay the 30% corporate income tax (CIT) and many do not benefit from tax incentives,” Yujuico said.

Under the CITIRA, the CIT will be reduced to 25 percent from the current 30 percent by 2030.

The measure also seeks to grant a host of other tax perks based on performance of targetted economic activities listed under the Strategic Investment Priorities Plan (SIPP).

The new incentive package is in lieu of the removal of the 5 percent tax on gross income earned being enjoyed by companies registered with the Philippine Economic Zone Authority.

The CITIRA will allow these enterprises to immediate benefit with the lowering of the CIT.

PCCI said the tax reform package proposed by government has been designed to benefit mainly the small and medium enterprises.

Earlier, PCCI joined various private business groups and organizations to support the passage of the CITIRA in order to eliminate the uncertainty of the country’s investment climate and create an estimated additional 1.5 million jobs.

Among them include Federation of Filipino Chinese Chamber of Commerce and Industry Inc (FFCCCII), UP School of Economics Alumni Association (UPSEAA), Organization of Housing Developers of the Philippines (OSHDP) and Subdivision and Housing Development of the Philippines (SHDA), Management Association of the Philippines, Financial Executives Institute of the Philippines (FINEX), Foundation for Economic Freedom and the Makati Business Club, EAA), Organization of Housing Developers of the Philippines (OSHDP) and Subdivision and Housing Development of the Philippines (SHDA), Management Association of the Philippines, Financial Executives Institute of the Philippines (FINEX), Foundation for Economic Freedom and the Makati Business Club.

Yujuico further cited another law that is going to boost MSME competitiveness is the Real Estate Investment Trust (REIT) Law.

The law will allow small investors especially in regional urban centers to invest in real estate investments without actually buying a piece of land and avoid the tedious processing of land titles and taxation procedures.

 
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