Business NEWS

Think tank Action for Economic Reforms (AER) has called on President Duterte to line item veto some provisions of the ratified corporate recovery and tax incentives for enterprises (CREATE) bill.

The Department of Finance (DOF) worked closely with lawmakers last year in providing technical support leading to swift congressional action on legislative measures that aim to rescue businesses, provide emergency assistance to vulnerable sectors and keep the economy afloat amid the crisis arising from the COVID-19 pandemic.

With less than two-years left before the Duterte administration ends its term, the Department of Finance (DOF) urged lawmakers during the House constitutional amendments hearing that they should focus on pending measures that are “immediately doable.”

Amending the economic provisions of the Constitution will not result in revenue losses for the government unlike the Corporate Recovery and Tax Incentives (CREATE) bill where P1.073 trillion in revenues would be lost once the pending is passed, according to economist congressman Joey Sarte-Salceda.

The P65 billion worth of liquefied natural gas (LNG) import terminal projects cornered by the government had been proposed for pioneer incentives availment under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Bill that is under continued deliberations in Congress.       

As Congress resumes sessions today, January 18, the Philippine Chamber of Commerce and Industry (PCCI), the largest umbrella of business organizations in the country reiterated its call for the august body to focus on the passage of the Corporate Recovery and Tax Incentives for Enterprises (CREATE), a key economic measure seen to help the country’s economy bounce back from the slump it is experiencing as a result of COVID-19 and the lockdown on economic activities.

Multisectoral groups, comprising of 51 largest and widely-represented private sector associations, have urged for the immediate enactment of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) bill to boost market confidence, save jobs and provide instant relief to businesses’ suffering from the COVID-19 impact.

At least 30 business organizations are signing a Joint Statement of Support calling for the immediate passage of the long delayed Corporate Recovery and Tax Incentives for Enterprises (CREATE) Bill with all the critical features to boost businesses and attract more investors into the country.

The Philippine Stock Exchange, Inc. and the Philippine Dealing System Holdings Corporation have expressed strong support for the passage of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Bill. 

The Philippine Chamber of Commerce and Industry, the country’s largest business organization, is calling on government to focus on economic recovery and building resilience against natural and man-made disasters measures rather than the proposed amendments on the Constitution.

The Philippine electronics industry is projecting a 7 percent rebound in exports this year back to the 2019 level at $43.3 billion on strong demand following shortages of automotive electronics for some of the world’s car giants and the prospects of more favorable incentives provision under the CREATE (Corporate Recovery and Tax Incentives for Enterprises) law.

The National Economic and Development Authority (NEDA) said the favorable trade performance last November signaled that the country is well-positioned to take advantage of the improvements in external demand.

Firms on wait-and-see mode

The Philippine Chamber of Commerce and Industry (PCCI) has strongly pushed to fast track the enactment of the Corporate Recovery and Tax Incentives Reform or CREATE bill before yearend.

Despite the expected Malacanang approval of the CREATE bill following Senate passage, the Management Association of the Philippines (MAP) said there is still so much to do to attract foreign direct investments.

Foreign business groups target a more bullish $50 billion foreign direct investment inflows to Philippines and creation of 3 million jobs over the next ten years with new capital flows into IT-business process management, manufacturing, infrastructure, tourism and mining sectors, encouraged by the approval of a better Corporate Recovery Recovery and Tax Incentives for Enterprises (CREATE) bill at the Senate.

The Department of Finance (DOF) sees the light at the end of the tunnel as the Senate is seen to pass the corporate recovery and tax incentives for enterprises (CREATE) bill before the Congress takes its traditional Christmas break in December.

As the domestic economy continued to battle the impact of COVID-19 and the devastation from successive typhoons, Senator Imee Marcos urged the Duterte administration’s economic managers to be ‘bold, aggressive and quick’ economic stimulus response instead of the current “anemic” stimulus economic package and craft incentive policies that will lure foreign investments rather than scaring investors away.