BCCP Pushes the Philippines to Boost CREATE Tax Incentives to Attract More FDIs
The British Chamber of Commerce of the Philippines (BCCP) Executive Director Chris Nelson noted that the Philippines should boost the tax incentives under the Republic Act 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act to attract more foreign direct investments (FDI).
According to Nelson, the need for the Philippines to strengthen further its attractiveness as an investment destination.
Nelson stated, “I think what is needed with CREATE and others is to continue looking at how you can bring in investments through tax incentives.”
Philip Morris Philippines mentioned the need to streamline the system in availing the tax incentive under CREATE. The measure lessens the corporate income tax (CIT) from 30%. to 25% for large businesses and 20% for micro, small and medium enterprises (MSMEs).
Nelson believes that CREATE is a great course of action in alluring foreign investments. In addition, he also stated that it came during the pandemic in which economies are forced to go digital. Hence CREATE should be boosted by further tax reform.
For this reason, Nelson pushed for the passage of three economic bills which are the Retail Trade Liberalization Act (RTLA), Foreign Investments Act (FIA), and Public Service Act (PSA).
In accordance with the three economic bills, the RTLA is already in Malacañang for President Duterte’s signature, however, FIA and PSA are still at the legislative mill.
Nelson quoted, the Philippines needs these legislations to open up the economy to drive more foreign investment to assist the economy in its recuperation from the pandemic.
Nelson expressed, the British Business Council is trying to get support from the UK companies to invest in the country and make the Philippines its staging point into the immense Southeast Asia market.
Nelson noted that the Philippines’ number one strength is the local talents and domestic market of 110 million people. However, the country has to compete with the neighboring region and therefore needs to move ahead in economic reforms.