The Philippine Stock Exchange, Inc. (PSE) strongly supports the tax reforms under the Corporate Income Tax and Incentives Reform Act (CITIRA).
The CITIRA provision that gradually lowers corporate income tax to 25% by 2024 and 20% by 2029 will be considerably beneficial to Philippine corporates. Once corporate income tax reaches this level, the country will be within the same corporate income tax range as its peers in the ASEAN region. This will make the Philippines an attractive investment destination for new foreign and domestic businesses and encourage existing companies to expand their operations. All these will redound to job creation, higher income, increased spending and more money in circulation, a cycle that can continue indefinitely as a result of the multiplier effect.
The PSE also commends the imminent countryside development through fiscal incentives that will be granted to businesses in less developed areas through CITIRA. The fiscal multiplier effect in these areas will help boost economic growth in third or fourth class municipalities.
The PSE appreciates that while CITIRA provides fiscal incentives, government’s revenue raising mandate is still upheld with the time-bound and performance-based conditions for the said incentives.
The PSE lauds the Department of Finance headed by Secretary Carlos G. Dominguez III and the Senate Committee on Ways and Means chaired by Senator Pia S. Cayetano for coming up with the necessary reforms that will make the tax system more efficient, equitable, and attractive to investors.
The PSE respectfully urges said Senate Committee to prioritize the immediate passage of the CITIRA bill as we all look forward to jumpstart its short- and long-term benefits to Filipinos.
Original SignedOriginal Signed
JOSE T. PARDO RAMON S. MONZON
Chairman President & CEO