A longer transition period is needed if the rationalization of tax incentives under the proposed Corporate Income Tax and Incentives Rationalization Act (Citira) pushes through, according to the Philippine Chamber of Commerce and Industry (PCCI).
On the sidelines of a briefing in Taguig City on Thursday, PCCI President Alegria Limjoco said it supported Citira for its proposal to “reduce the corporate income tax from 30 to 20 percent.…”
“Now, for the [rationalization of] incentives and all that, instead of five years, we are hoping that they give us…10 years,” she added.
Formally known as House Bill 4157, Citira is the second package of the Duterte administration’s Comprehensive Tax Reform Program. It was formerly known as the Tax Reform for Attracting Better and High-quality Opportunities measure.
The House of Representatives approved HB 4157 on third and final reading on September 13. A counterpart bill is being studied by the Senate ways and means committee.
Limjoco’s remarks echoes that of Trade Secretary Ramon Lopez, who told legislators during a Senate hearing earlier this week that “if we adopt the bill as it is currently structured, there is [a] potential risk, and that is the reason we are suggesting a softer landing [for it] by extending the transition period.”
On Tuesday, the Joint Foreign Chambers (JFC) of the Philippines warned that if Citira was implemented, 700,000 jobs in the country would be lost in the first year of implementation.
“[W]e project from the industry associations that are with me today a job loss of 121,000 direct jobs in the first year of Citira if it’s implemented as is, and indirect job [losses] of 582,000 for a total of around 700,000 jobs,” JFC representative John Forbes told the Senate.
WITH A REPORT FROM MAYVELIN U. CARABALLO