The Philippine Chamber of Commerce and Industry (PCCI) is urging the Senate to immediately pass the Corporate Income Tax and Incentives Rationalization Act (CITIRA) as it will boost the competitiveness of micro, small and medium enterprises (MSMEs).
Benedicto Yujuico, president of PCCI, said in a statement today that high corporate income tax marginalizes the MSME.
“They pay the 30 percent corporate income tax (CIT) and many do not benefit from tax incentives,” Yujuico said. The CITIRA will allow these enterprises to immediate benefit with the lowering of the CIT.
PCCI said the tax reform package proposed by government has been designed to benefit mainly the small and medium enterprises.
Earlier, PCCI joined private business groups and organizations to support the passage of the CITIRA in order to eliminate the uncertainty of the country’s investment climate and create an estimated additional 1.5 million jobs.
Meanwhile, Sen. Imee Marcos yesterday suggested to delay passage of Senate Bill No. 1357 or CITIRA due to the projected negative effects of the termination of the RP-US Visiting Forces Agreement (VFA) and corona virus disease (COVID 19).
Marcos, Senate economic affairs chairperson, said the abrogation of the VFA and threat of COVID-19 are slowly taking their toll on business, which will result to the loss of jobs as well as the decline in local and international tourism.
She said the threat of the African swine flu has also added to downfall of the agriculture sector, aside from the negative effects brought about by the eruption of Taal Volcano last January and the numerous earthquakes which hit parts of Mindanao the past months.
She said government will not be at the losing edge if CITIRA will not be immediately passed. (With R. Africa)
