Several business groups have called on the Senate to accelerate the reduction of the corporate income tax (CIT) to 20 percent in 2025 instead of 2027 under the proposed Corporate Recovery and Tax Incentives for Enterprises (CREATE) bill.
In a joint statement over the weekend, 12 business groups also urged senators to consider the insertion to the current version of CREATE the grandfathering of incentives that they said will ensure the retention of competitiveness of the industries engaged in export activities such as manufacturing, business process outsourcing (BPO), and shared services.
Senator Ralph Recto earlier proposed that a grandfather rule should be included in the proposed law. This would allow current investors to enjoy their current incentives while the new set of incentives would be applied to future investors.
They also urged senators to include in the proposed bill a provision that will allow currently operating registered business enterprises (RBEs) to avail of incentives for their existing and expansion export activities.