The proposed Corporate Recovery and Tax Incentives for Enterprises (CREATE) law would cover training incentives to cushion the impact of automation in employment and up-skill workers, Sen. Joel Villanueva said on Wednesday.
Villanueva, chair of the Senate Committee on Labor and Employment, made this assurance following Congress’ ratification of the bicameral conference committee report of the measure.
The bill primarily seeks to lower corporate income tax (CIT) and amend the country’s tax incentives system.
Villanueva thanked his fellow legislators who supported his proposals for the expansion of tax deductibility of training expense, specifically for dual or enterprise-based trainings for students in senior high school, technical-vocational (tech-voc), and tertiary education.
“This will help address the jobs-skills mismatch in the country and improve employability of our graduates,” said Villanueva.
“Kaya’t pinagtuunan po natin ng pansin ang training ng mga manggagawa. Skills upgrading po ang nakikita nating solusyon para protektahan ang trabaho ng ating mga kababayan, (That’s why we focused on the training of our workers. We see skills upgrading as a solution to protect the jobs of our fellowmen),” he added.
Villanueva said he hopes state economic managers will act on their pledge to attract P12-trillion worth of local and foreign investments in the next decade through the proposed CREATE law and create more than 1.8 million jobs in the next 10 years.
He also urged the Department of Finance (DoF) and the Foreign Investment Review Board (FIRB) to fulfill the pledge that more than one million new jobs would be created once the measure is enacted into law and implemented by the executive department.
“I support the provision under CREATE to reduce the Corporate Income Tax rates, which for so many years have been so uninviting to investors. This will be a huge relief especially to our medium and small-scale enterprises that are reeling from the economic turmoil brought about by the COVID-19 pandemic and the calamities that struck the country,” Villanueva said.