The newly-created National Employment Recovery Strategy (NERS) Task Force expressed confidence the enactment into law of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) would generate P200 billion of new investments that can in turn create 1.4 million two million incremental jobs.
Secretary Ramon Lopez of the Department of Trade and Industry (DTI) who co-chairs NERS said in statement yesterday these figures are based on the task force’s estimate and those from Rep. Joey Salceda, principal author of the bill.
The target job generation would be achieved earlier than the 10-year timeframe earlier set by the Department of Finance under CREATE’s predecessor, the Tax Reform for Attracting Better and High Quality Opportunities.
“CREATE will help achieve the task of the national employment recovery group,” said Lopez.
DTI co-chairs the NERS Task Force with the Department of Labor and Employment (DOLE) and the Technical Education and Skills Development Authority which was created last February 5 by several agencies on the heels of the bicameral approval of CREATE.
“The landmark tax and incentives reform bill that we expect to be signed by the President is expected to bring in massive inflow of investments that will create more jobs, especially as we focus efforts in the National Employment Recovery during this period of the pandemic and beyond. The passing of CREATE will firm up the tax and incentive reforms that will make the investment climate significantly more attractive than the current tax and incentive regime.”
“The bill will certainly encourage more investments with the lowering of the corporate income taxes rate from 30 percent to 20 percent for micro, small and medium enterprises (MSMEs), and 25 percent for large corporations. The passing of CREATE will unleash the growth potential of investments by removing uncertainties during the period that the bill was under deliberation,” Lopez said.
He added CREATE will help boost investments in the Philippines, which would support the 2021 target of the Board of Investments of P1.25-trillion investment approvals.
NERS was formed to consolidate all measures, programs, and institutions that influence the demand and supply of labor, as well as the functioning of labor markets.
The NERS 2021-2023 is a medium-term plan anchored on the updated Philippine Development Plan 2017-2022 and ReCharge PH by expanding the Trabaho, Negosyo, Kabuhayan initiative and improving access and security of employment. The strategy also takes into consideration the changes in the labor market brought about by the pandemic and the fast adoption of Fourth Industrial Revolution technologies.