The Philippine Economic Zone Authority (PEZA) has made a last-ditch effort to retain the powers, authority and the fiscal incentives it grants as the Senate deliberate the passage of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) bill.
PEZA maintains its recommendation that CREATE should be implemented first for domestic enterprises as they will benefit the most. This will in turn maximize the micro, small, and medium enterprises production, manufacturing export capabilities, complete supply chain, and encourage exporters to minimize import dependence.
With the global pandemic, PEZA director general Charito Plaza said that they “need to enhance our incentives to make it more attractive for getting investors who are moving out of other countries like China.”
Further, in a letter to senators and congressmen dated September 10, 2020, Plaza said, “While PEZA fully supports the goals of rationalizing corporate incentives, the current situation of the global economy is not the appropriate time to change the current incentives’ regime.
What the country needs now is stable economic policies and guarantee the sanctity of existing contracts. The government must focus on reducing the cost of doing business and increase the international competitiveness of the Philippines in export-oriented industries.”