The Senate Bill No. 1357 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Bill, formerly known as Corporate Income Tax and Incentives Reform Act (CITIRA) was passed on its third and final reading by the Senate on 26 November 2020 with twenty out of twenty-one (20/21) senators voted in favor, and one (1) opposed.
Once it has been enacted into law, corporate income taxes (CIT) will be reduced from 30% to 25%, time-bound & performance-based incentives will be induced, and fiscal incentives will be rationalized to further attract necessary foreign direct investments.
Continue reading Senate passes the CREATE bill on final reading
The Export Development Council (EDC) through its Networking Committee on Legislative Advocacy and Monitoring (NCLAM) has prioritized the export sector’s legislative agenda for the 18thCongress to have a more competitive export industry.
EDC supports the amendment of the Public Service Act (PSA) to have a clear statutory definition of public utilities and public services. Also, the measure aims to provide greater competition and investment and lower costs to support the flow of goods and services.
On transport and logistics, some of the recommendations include the Amendment of the Philippine Ports Authority (PPA) and Civil Aviation Authority of the Philippines (CAAP) Charter in order to separate the regulatory and operator functions of both agencies.
On trade financing, EDC advocates the amendments to Republic Act 9501 (Magna Carta for MSMEs) to provide an extension of the mandatory allocation of credit resources to set aside 10 percent of their loan portfolio for lending to MSMEs. The amendments will also strengthen the Small Business Corporation (SB Corp.), both in terms of capitalization and exemption from Bangko Sentral ng Pilipinas’ supervisory powers.
There is also a proposal for the amendment of Republic Act 8172 (ASIN Law). EDC acknowledges that there is a need to clarify an exemption in all salt incorporated in export food products.
The EDC- NCLAM as mandated in the Export Development Act aims to assist in the effective implementation of the Act through advocacy of necessary legislative actions that shall promote Philippine exports. The Committee is composed of members from both the relevant public and private sector. –MDGTD