The Philippine Exporters Confederation, Inc. (PHILEXPORT) commends the recent enactment of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, emphasizing its potential benefits for both the export sector and the broader economy.
Republic Act (RA) No. 12066, known as the CREATE MORE Act, aims to transform local industries by attracting foreign investors through a more liberalized investment policy. This legislation is expected to support local businesses in their expansion efforts while enhancing job creation and economic growth.
The new law extends the maximum duration of tax incentives from 17 years to 27 years, encouraging long-term investments. It introduces significant reforms, including a streamlined VAT refund process, reduced corporate income tax rates for registered business enterprises (RBEs), and a simplified local taxation system. These changes are designed to foster transparency and predictability in business operations, creating a favorable environment for investors.
The CREATE MORE Act also clarifies rules regarding VAT and duty incentives, expanding coverage to include non-registered exporters and high-value domestic market enterprises. By establishing clear timelines and compliance requirements, the government aims to enhance investor confidence and ensure a fair taxation system that benefits local businesses.
PHILEXPORT, through its president Sergio R. Ortiz-Luis, Jr., recognizes the critical interventions of Frederick D. Go, Special Assistant to the President for Investment and Economic Affairs, who played a vital role in championing the passage of this law. The collaboration among various industry groups, including the Philippine Chamber of Commerce and Industry (PCCI), was instrumental in advancing this legislation.
The act responds directly to feedback from the business community, aiming to streamline processes and improve the investment climate in the Philippines. PHILEXPORT appreciates the administration’s commitment to policies that promote growth and innovation within the sector.
With the implementation of this law underway, PHILEXPORT anticipates continued support from the private sector to meet CREATE MORE’s objectives. The organization looks forward to collaborating with government officials and stakeholders to effectively implement this legislation. By working together, they aim to achieve shared goals of economic development, job creation, and community well-being.
