The country’s equities and fixed-income exchanges have called on Congress to swiftly pass the proposed Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) to make the Philippines an attractive investment hub in the region and the domestic capital market a viable venue for raising funds.
In a joint statement sent to Finance Secretary Carlos Dominguez 3rd, the Philippine Stock Exchange, Inc. (PSE) and the Philippine Dealing System Holdings Corp. (PDS) expressed their strong support for CREATE, which they described as “a landmark bill in a series of reform measures undertaken by this administration.”
“We respectfully urge both houses of Congress to prioritize the immediate passage of the CREATE bill so that the country can fully reap the benefits of this reform bill without delay,” they said in their statement.
The statement of support was signed by PSE president Jose Pardo; PDS chairman Cezar Consing; and Ramon Monzon, the president-chief executive officer of both the PSE and PDS.
Both the PSE and PDS thanked the Department of Finance (DOF) under Dominguez’s leadership “for tirelessly working to ensure the timely approval” of CREATE, which represents the second package of the Duterte administration’s Comprehensive Tax Reform Program (CTRP).
The immediate lowering of the corporate income (CIT) tax to 25 percent for large businesses and foreign corporations, and to 20 percent for micro, small and medium enterprises (MSMEs) with a net taxable income of P5 million and below and total assets of not more than P100 million (excluding land), will leave more funds in the hands of publicly listed companies either for business expansion or distribution to stockholders, the PSE and PDS said.
“The investment of said tax savings in other business undertakings or investment vehicles can set off a chain of positive economic consequences such as employment generation, higher spending, and increased domestic business activity as a result of the multiplier effect,” they said. SOVEREIGNPH