By Genalyn Kabiling The government is pushing for the passage of a tax incentive bill and three other vital measures that aim to support the growth of industries and revitalize the economy in the face of the coronavirus pandemic. President Rodrigo Roa Duterte (ACE MORANDANTE / PRESIDENTIAL PHOTO / FILE PHOTO / MANILA BULLETIN) In his 11 weekly report to Congress, President Duterte said the economic team has endorsed the Corporate Recovery and Tax Incentive for Enterprises (CREATE) bill, the Rural Agricultural and Fisheries Development Financing System bill, Financial Institutions Strategic Transfer (FIST) bill, and Government Financial Institutions Unified Initiatives to Distressed Enterprises for Economic Recovery (GUIDE) bill under the administration's economic recovery program. "The departments, agencies, and instrumentalities of the Executive branch are tirelessly working in pursuit of our country's recovery from the effects of the COVID-19 pandemic," he said. "Our economic managers are pursuing measures to strengthen our economy and to boost the performance and financial standing of our industries," he added. The National Economic and Development Authority (NEDA) had earlier crafted the framework of the economic recovery program titled "Philippine Program for Recovery with Equity and Solidarity or PH-PROGRESO.” As part of the PH-PROGRESO, Duterte said the NEDA and DOF have pressed for the passage of the CREATE bill, a proposed fiscal stimulus program for enterprises. The recalibrated bill used to be the proposed Corporate Income Tax and Incentives Reform Act (CITIRA). The key provisions of the CREATE bill are the immediate reduction in the corporate income tax rate from 30% to 25% starting July 2020, an extended net operating loss carryover of up to five years from the current three years for small businesses, an extended sunset provision of up to nine years, and more flexibility for the President to grant a combination of fiscal and non-fiscal incentives. Duterte said the economic managers are also pushing for three other key reforms as part of the country's recovery plan. The administration-backed bills are the following:

• House Bill (HB) No. 6134, the "Rural Agricultural and Fisheries Development Financing System Act." The bill seeks to remove the distinction between agrarian and agriculture to free up more capital for agriculture and enhance the access of rural communities to private sector financing;
• HB No. 6816, the FIST bill that seeks to set mechanisms to allow banks and other financial institutions to dispose of non-performing loans and assets and transfer such loans and assets to FIST Corporations similar to Special Purpose Vehicles;
• HB No. 6795, the GUIDE bill that aims to provide financial assistance and access to distressed enterprises, including micro, small, and medium enterprises, and to strategically important companies critical to economic recovery.

Home construction fund, Balik Probinsya In the same report to Congress, the President mentioned other programs aimed at rebooting the domestic economy that has been adversely hit by the pandemic. He said the Home Development Mutual Fund (Pag-IBIG Fund) has set aside P10 billion for the implementation of the House Construction Financing Line (HCFL). The program aims to serve as an economic stimulus to the housing industry and encourage the construction of socialized and low-cost housing units. "The HCFL will serve as a bridge financing facility that would enable developers to produce more homes, boost business, support suppliers, and prevent layoffs of their workers," Duterte said. To facilitate the country's shift to the new normal, Duterte cited the "Balik Probinsya, Bagong Pag-asa" (BP2) program that facilitates the relocation of urban dwellers to the provinces. He said the BP2 Council recently approved the guidelines for the program to ensure balanced regional development and an equitable distribution of wealth, resources, and opportunities. P95.6-M for add’l virus testing equipment The President likewise informed Congress that government has released P95.6 million to the Department of Health (DOH) sourced from the pooled savings under the 2020 national budget to procure additional RT-PCR (reverse transcription polymerase chain reaction) detection kits. The purchase of 1,000 mechanical ventilators worth P946,000 has also started. The units will be delivered within July 2020 to March 2021. As of June 3, the President said DOH has facilitated 231 local and foreign donations of medical equipment and supplies. Of these, 167 have been delivered. The donations include 4,623,950 surgical masks, 101 ventilators, 377,940 N95 masks, and 224,779 PPEs/medical coveralls. The country has also received in donation 1,627,248 RT-PCR testing kits. The Office of Civil Defense (OCD) has so far received a total of P32 million cash donation from local donors and have been deposited to the OCD-National Disaster Risk Reduction and Management Council bank account. "Consequently the said financial donations will be remitted to the Bureau of Treasury and release thereof shall be made upon request to the DBM (Department of Budget and Management) once prior allocation has been determined," the President said. DOH budget for COVID response Of the P354.4 billion allocated for the government's COVID-19 response, at least P48.2 billion have been set aside for the DOH's coronavirus-related programs. The DOH funds include P45.7 billion to cover funding requirements for the efficient implementation of Republic Act No. 11469 (Bayanihan to Heal as One Act) programs, P1.9 billion for the procurement of RT-PCR detection kits, P500 million to replenish quick response funds to address the emerging threat of the COVID-19, and P100 million for the immediate and continued response to emerging diseases posed by polio and COVID-19.