CREATE MORE to reinvigorate manufacturing, bank says

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The resolution of tax issues through the passage of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE)  is hoped to reinvigorate manufacturing investments, particularly from Japan, according to an official of RCBC.

Yasuhiro Matsumoto, senior adviser, head of Japanese and Economic Zone Corporate Banking Group, told reporters on Friday manufacturing investments have slowed down because of the tax issues in the current version of CREATE, including value-added tax (VAT) treatment.

“But now government is fixing CREATE. After (things) stabilize, I think investors will come back, manufacturing will come back.  That is the situation,” Matsumoto said on the sidelines of the JICA-RCBC-SMBC Business Matching Event held  in Makati City.

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The bicameral conference committee last week approved CREATE MORE bill. The measure proposes to reduce the  income tax for local and resident foreign entities from 25% to 20%. It also recommends exemptions from import duties and VAT on imports, along with zero VAT for manufacturers.

He said Japanese businesses see the potential of Philippine consumer market which continues to expand, “The Filipino buying power, consumption very strong Japanese products are coming in to sell to the domestic market,” Matsumoto said, citing the entry of  retailers Uniqlo Muji and  Nitori.

On Friday, 17 Japanese companies engaged in advanced technologies in agriculture, disaster risk reduction, and environment connected with local companies at the business matching even organized by the Japan International Cooperation Agency (JICA).

The participating Japanese companies have worked with JICA Philippines under its Public-Private Partnership Promotion Program.

Those in the agriculture sector like E-supportlink Ltd., Kuwanosato, Inc., and Takara Inc. shared their distribution system or unique agricultural products, while Aster Co. Ltd., Iida Ironsmith Co., Ltd., and Spectee Inc. talked about their specially-designed products for disaster risk reduction and management.

Advantec Philippines Inc.; BEMAC Electric Transportation PH Inc.; FujiClean Co. Ltd.; Hinodesangyo Co. Ltd.; Kanazawa Engineering Systems Inc.; Nihon Genryo Co. Ltd.; Nippon Steel Engineering Co. Ltd.; Phil Japan Worldwide Management Services Inc.; SM GUUN Environmental Company, Inc.; Takaoka Toko Co., Ltd.; and TAU Corp. showcased a wide range of environment related innovative products and services for water and wastewater treatment system, renewable energy, and plant engineering.

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