The Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act that aims to reduce corporate income tax will attract investments that will create up to 2 million more jobs from more than P200 billion in new investments, according to Department of Trade and Industry (DTI) Secretary Ramon Lopez said Monday.
“The passing of CREATE will unleash the growth potential of investments by removing uncertainties during the period that the bill was under deliberation,” Lopez said. “Based on our estimate and those from Cong. Joey Salceda, CREATE can bring in over P200 billion of new investments that can generate 1.4 (million) to 2 million incremental jobs,” he said.
The recent bicameral approval of the game-changing CREATE Act can also provide a big boost to the National Employment Recovery Strategy (NERS) Task Force chaired by the DTI and co-chaired by the Department of Labor and Employment (DOLE) and the Technical Education and Skills Development Authority (TESDA), which was signed last Feb. 5 by several agencies.
“The landmark tax and incentives reform bill that we expect to be signed by the President is expected to bring in (a) massive inflow of investments that will create more jobs, especially as we focus efforts in the National Employment Recovery during this period of the pandemic and beyond. The passing of CREATE will firm up the tax and incentive reforms that will make the investment climate significantly more attractive than the current tax and incentive regime,” Lopez said.
He said the bill will certainly encourage more investments with the lowering of the corporate income taxes rate from 30 percent to 20 percent for micro, small and medium enterprises (MSMEs), and 25 percent for large corporations.
CREATE was bill certified urgent by President Rodrigo Duterte upon the recommendation of the economic team led by Finance Secretary Carlos Dominguez 3rd. SOVEREIGNPH