Twelve business groups have expressed support to the Corporate Income Tax and Incentives Rationalization Act (CITIRA) bill but noted the scheduled reduction in the CIT rate should be fixed and not conditional.
The government set a clause that it would only reduce the CIT rate once it collects a certain level of revenues.
In a joint statement yesterday, the business groups said there should also be a reasonable fixed transition period for concerned firms under the gross income earned regime to adjust their operations and prevent dislocation.
“The lowering of the CIT rate from 30 percent to 20 percent, although over a long period of 10 years, will eventually put us within the Asean range. This will not only make us more competitive in attracting foreign investments, but it will also make our domestic corporates at par with their counterparts,” the groups said.
The groups back the tightening of tax incentives which certain sectors are opposed to. “We believe in equitable sharing of tax burden,” they said.
The groups expressed support to a one-stop shop approach for registered enterprises that would allow them to deal with only one tax agency to avoid going through difficult processes and different rules of local government units.
The groups include Bankers Association of the Philippines, Cebu Business Club, Federation of Filipino-Chinese Chambers of Commerce & Industry Inc., Financial Executives Institute of the Philippines, Foundation for Economic Freedom, Management
Association of the Philippines, Organization of Socialized Housing Developers of the Philippines, Subdivision and Housing Developers Association, Tax Management of the Philippines, UP School of Economics Alumni Association and Women’s Business Council Philippines.