MANILA – The Philippine Chamber of Commerce and Industry (PCCI), the country’s largest business organization, is pressing the Senate to immediately pass the Corporate Income Tax and Incentives Rationalization Act (CITIRA) to boost the competitiveness of micro, small, and medium enterprises (MSMEs).
In a statement Monday, PCCI President Benedicto Yujuico said the CITIRA will benefit MSMEs from lower corporate income tax (CIT).
“They pay 30 percent corporate income tax and many do not benefit from tax incentives,” Yujuico said.
Under this tax reform package, CIT will gradually reduce by one percentage point every year from 30 percent to 20 percent over 10 years. This aims to make the country’s tax rate competitive in the region.
The CITIRA also targets to rationalize fiscal incentives that are mostly enjoyed by big companies, while small-scale businesses do not benefit from these tax perks.
MSMEs comprised 99 percent of businesses in the country, created 63 percent of jobs, and shared 25 percent on export revenues.
PCCI said the passage of the CITIRA bill will eliminate uncertainties in investing in the country with the clear tax law. (PNA)