Duterte certifies CITIRA bill as urgent

President Rodrigo Duterte certified as urgent Monday a bill seeking to reduce corporate income taxes and rationalize fiscal incentives system.

In a letter to Senate President Vicente Sotto III, Duterte said the bill’s immediate passage was necessary in order “to promote foreign direct investment inflows and the expansion of business ventures conducive to economic growth and job generation."

President Rodrigo Duterte certifies CITIRA bill as urgent @gmanetwork @gmanews @gmanewsbreaking pic.twitter.com/zBFxGoi3tU

— Amita O. Legaspi (@amitalegaspi) March 9, 2020

Senator Pia Cayetano, Senate ways and means chairperson, in her sponsorship speech described Senate Bill No. 1357, or the proposed Corporate Income Tax and Incentives Rationalization Act (CITIRA) as fair and the best deal for all.

Under the bill endorsed by Duterte, the CIT rate will be gradually lowered by one percent every year, from 30 percent to 20 percent by 2030.

It will also rationalize fiscal incentives given to firms to make these “performance-based, time-bound, targeted, and transparent.”

The bill intends to prioritize incentives to business activities that generate domestic employment; promote research, development and innovation; promote agribusiness; and invest in areas that are less developed or are recovering from disasters and conflicts, among others.

It will also offer additional tax deductions to reward corporations’ good behavior, such as local job creation, exports, and investment in high technology.

The committee is also proposing to implement sunset provisions for firms currently enjoying fiscal incentives to help them transition to the new tax regime under CITIRA.

Business groups have expressed support for the bill, saying this will help create an enabling environment for Filipino businesses, generate quality jobs and spur growth.

The bill is currently under the period of interpellation where  senators ask questions and seek clarification on the provisions.  After that, the measure will be put under period of amendments where the changes and amendments will be included in the proposal.

The certification will allow the Senate to approve the bill on third and final reading immediately after it is passed on second reading and disregard the three-day rule—AOL, GMA News