CREATE MORE bill reaches Senate plenary
A PHILIPPINE senator on Monday sponsored in plenary the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) bill, which seeks to lower taxes on domestic and foreign companies to 20% from 25%.
Senator Sherwin T. Gatchalian, who heads the ways and means committee, said Senate Bill No. 2762 would remove the value-added tax (VAT) on goods and services to essential services such as janitorial, security, financial consultancy, marketing and human resources.
He added that high-value domestic market enterprises with a capital of more than P20 billion would be eligible for VAT zero rating on local purchases, VAT exemption on imports and duty exemptions on imports of capital equipment, raw materials, spare parts and accessories.
Under the priority bill, registered business enterprises would also be entitled to a 100% additional deduction on power expenses incurred in a taxable year, up from 50% under the Tax Code, to address high power costs.
The responsibility of processing VAT refund claims will be transferred to the Department of Finance from the Bureau of Internal Revenue (BIR) to cut delays.
It will also allow local companies to implement a work-from-home setup for up to 50% of their workforce to cut costs.
The House of Representatives passed the CREATE MORE bill on final reading in March.
“While the CREATE law lays the foundation for tax and incentive reforms, the CREATE MORE bill aims to build on this foundation by offering enhanced and more targeted incentives to further drive investment and economic recovery in the Philippines,” Mr. Gatchalian said.
“It is not merely an update of policies; it is about creating a more dynamic future that is more responsive, more supportive and more capable of fostering growth and innovation in the Filipino people.” — John Victor D. Ordoñez