Locators of the Philippine Economic Zone Authority (PEZA) will appeal for a 15-year transition in shifting to corporate income tax (CIT) to recover their investments.
In a statement, PEZA said it has prepared its refinements to the proposed Corporate Income Tax and Incentives Rationalization Act (CITIRA) bill following a second dialogue with its top sector locators, industry associations and foreign chambers on Tuesday in Taguig City.
Charito Plaza, PEZA director-general, PEZA said industry associations and foreign chambers will continue with their lobbying to legislators and to President Duterte for a longer transition period of 15 years to assure return on their investments.
This means, companies which enjoy a 5 percent tax rate on gross income earned will have 15 years to shift to the CIT.
Plaza said the locators will also continue to press for an enhanced incentive package to attract more foreign direct investments and be more competitive.
“(We) appeal for more transparency, openness, and a critical evaluation by the Senate, the bicameral conference committee and for wisdom and enlightenment by the President who will finally approve the kind of CITIRA law that the government will adopt,” Plaza added.
Plaza with the recommendations and inputs of the affected parties under PEZA, “we have now come up with our proposed refinements to better craft a beautiful legislation that’s beneficial for all.”
The proposed refinements to the CITIRA bill will be submitted and deliberated with Congress, the Department of Trade and Industry, and the Department of Finance once the session resumes.
“PEZA wants to end the agony of uncertainties which has created fears to industries’ possible exits and the massive job losses, affecting peace and prosperity in the country,” said Plaza.
Plaza consulted the ecozone locators and companies registered with PEZA for its proposed amendments. Plaza also affirmed support to the proposed amendments to the House-approved version of CITIRA, which is now being deliberated by the Senate.