PCCI wants 10-year transition for fiscal incentives rationalization

The Philippine Chamber of Commerce and Industry organized and Investour Forum in Taguig City on Thursday, Sept. 26, 2019. In photo from left are National Capital Region Police Office chief Guillermo Eleazar, PCCI director for Tourism Samie Lim, and PCCI president Alegria Limjoco. Ted Cordero, GMA News

The Philippine Chamber of Commerce and Industry (PCCI) is pushing for a longer transition period for the proposed rationalization of fiscal incentives under the second package of the government’s tax reform program.

The idea is to give companies currently enjoying tax perks enough time to adjust to the new tax regime, PCCI president Alegria Limjoco said.

“Now, for the incentives and all that, instead of five years, we are hoping that they give us more time … to 10 years for the transition period,” Limjoco noted.

Under the proposed Corporate Income Tax and Incentive Rationalization Act (CITIRA), companies have two to five years to enjoy the tax perks they currently have before the incentives are removed.

CITIRA aims to gradually slash the corporate income tax to 20% in 20209 from 30% and rationalize fiscal incentives by amending or repealing 123 laws on tax incentives and consolidating these into a single omnibus code.

The House of Representatives has approved CITIRA on third and final reading on Sept. 13.

“We support the CITIRA because of course we want to reduce the corporate income tax from 30% to 20%,” Limjoco said.

The Philippine Economic Zone Authority (PEZA) is fighting to keep the incentives.

The American Chamber of Commerce of the Philippines warned that removing fiscal incentives might result in more than 700,000 of potential job losses for Filipinos. —VDS, GMA News