DOF asks JFC for proof of CITIRA job losses claim

DOF Asks JFC For Proof Of CITIRA Job Losses Claim

The Department of Finance (DOF) has asked the Joint Foreign Chambers of the Philippines (JFC) to provide proof of its claim that the Corporate Income Tax and Incentives Rationalization Act (CITIRA) will lead to thousands of job losses. Finance undersecretary Karl Kendrick Chua said they have been urging the JFC for two years to provide details of the types of jobs that will be lost, and in which industries and areas of the country, but the JFC has failed to do so. Chua added that the government maintains its stand that the CITIRA will actually generate 1.5 million jobs.

The proposed CITIRA bill will also benefit many JFC members who currently pay the regular income tax rates as CITIRA seeks to cut corporate income tax rates, said Chua. Aside from reduced CIT rates, businesses in high-labor industries could also get additional 50% deduction on labor charges and deductions for the training or up-skilling of their employees, particularly those in the business process outsourcing sector.