Solons urge Senate to pass CITIRA measure
Published Apr 13, 2020 12:00 am
By Charissa Luci-Atienza
Quezon City 2nd district Rep. Precious Hipolito- Castelo reminded the Senate on Monday (April 13) of the urgency to pass the proposed Corporate Income Tax and Incentives Reform Act (CITIRA) to encourage foreign companies that moved out of China to invest in the Philippines.
Quezon City Rep. Precious Hipolito-Castelo (FACEBOOK/ Precious Hipolito/MANILA BULLETIN FILE PHOTO)
She made the call as the Japanese government is seeking to financially assist Japanese companies operating in China to relocate their businesses.
“We can offer these businesses incentives that are comparable or better than those available in other countries in the region to attract them to move here,” she said in a statement.
She noted that even American and European companies are looking to transfer their operations from China due to supply disruptions caused by the COVID-19 pandemic crisis.
She said it would be unlikely for these companies to move their operations back to their home countries which have high labor cost and living standards.
“I would imagine that if they decide to relocate, they would be looking for places where it would be less expensive for them to operate and the supply chain would not be vulnerable to disruptions even in times of emergencies,” Castelo said.
She urged the Senate to pass the CITIRA when Congress buckles down to work in May.
She said by passing its version of the CITIRA in September last year, the House of Representatives showed the country's readiness "to do business" with foreign companies.
In September last year, the House of Representatives approved on third and final reading House Bill (HB) No. 4157 or the CITIRA, which was dubbed the "Tax Reform for Attracting Better and High-Quality Opportunities" (TRABAHO) bill during the 17th Congress.
CITIRA seeks to gradually reduce the Philippines’s corporate income tax (CIT) beginning 2021 from 30 percent to 20 percent.
The bill also seeks to remove the option for corporations, including resident foreign corporations, to avail themselves of the 15-percent gross income tax.
Albay 2nd district Rep. Joey Salceda earlier cited the need for the Senate to consider CITIRA as part of COVID-19 measures.
“CITIRA needs to be passed; the sooner we pass it, the earlier we can realize its positive GDP impact,” he said. He said $12 billion has been lost over the past two years due to the delay in the passage of CITIRA.
Salceda said COVID-19’s damage to the country's economy is estimated at 1.2 percent of the gross domestic product (GDP) or P218.5 billion, on the assumption that the length of the pandemic could be an entire year.
He warned that COVID-19’s impact on the national economy “could be bigger considering the spillover effects.”
He noted that among the sectors that will be affected by COVID-19 are tourism, trade, and services.
Quezon City Rep. Precious Hipolito-Castelo (FACEBOOK/ Precious Hipolito/MANILA BULLETIN FILE PHOTO)
She made the call as the Japanese government is seeking to financially assist Japanese companies operating in China to relocate their businesses.
“We can offer these businesses incentives that are comparable or better than those available in other countries in the region to attract them to move here,” she said in a statement.
She noted that even American and European companies are looking to transfer their operations from China due to supply disruptions caused by the COVID-19 pandemic crisis.
She said it would be unlikely for these companies to move their operations back to their home countries which have high labor cost and living standards.
“I would imagine that if they decide to relocate, they would be looking for places where it would be less expensive for them to operate and the supply chain would not be vulnerable to disruptions even in times of emergencies,” Castelo said.
She urged the Senate to pass the CITIRA when Congress buckles down to work in May.
She said by passing its version of the CITIRA in September last year, the House of Representatives showed the country's readiness "to do business" with foreign companies.
In September last year, the House of Representatives approved on third and final reading House Bill (HB) No. 4157 or the CITIRA, which was dubbed the "Tax Reform for Attracting Better and High-Quality Opportunities" (TRABAHO) bill during the 17th Congress.
CITIRA seeks to gradually reduce the Philippines’s corporate income tax (CIT) beginning 2021 from 30 percent to 20 percent.
The bill also seeks to remove the option for corporations, including resident foreign corporations, to avail themselves of the 15-percent gross income tax.
Albay 2nd district Rep. Joey Salceda earlier cited the need for the Senate to consider CITIRA as part of COVID-19 measures.
“CITIRA needs to be passed; the sooner we pass it, the earlier we can realize its positive GDP impact,” he said. He said $12 billion has been lost over the past two years due to the delay in the passage of CITIRA.
Salceda said COVID-19’s damage to the country's economy is estimated at 1.2 percent of the gross domestic product (GDP) or P218.5 billion, on the assumption that the length of the pandemic could be an entire year.
He warned that COVID-19’s impact on the national economy “could be bigger considering the spillover effects.”
He noted that among the sectors that will be affected by COVID-19 are tourism, trade, and services.