Marcos calls for deferred implementation of some CITIRA provisions amid COVID-19 situation

Senator Imee Marcos on Monday said she is not in favor of implementing some provisions of the proposed Corporate Income Tax and Incentives Reform Act (CITIRA), considering the economic threats of the coronavirus disease 2019 (COVID-19) to the country.

"Napakaraming problema, huwag na muna dagdagan muna ng CITIRA hangga't maaari kung hindi naman urgent at malaki naman ang kinita doon sa ating additional sin taxes, maaari bang i-postpone muna 'yung TIRA portion? Kahit ayusin muna 'yung corporate income," Marcos said after conducting a Senate hearing on the matter.

"Bakit di na lang unahin muna ang corporate income deduction, unahin muna 'yan pero ang tax incentives parang di ko tanggap masyado nang mabigat ang dinadala ng ating employees, employers, foreign investors, lahat hirap na," she added.

CITIRA, the second package of the Duterte administration's comprehensive tax reform program, seeks to reduce the corporate income tax (CIT) rates from the current 30% to 20% in 2029, on a staggered basis.

It is under the period of interpellation in the Senate.

The proposal also aims to foster a more competitive fiscal incentives system by making tax perks time-bound, transparent, targeted, and performance-based.

Marcos said that she is concerned about the 1.5 million employees in different economic zones and BPO firms in the country who may bear the brunt of the changes in the incentives that will be made available for foreign investors under the CITIRA, on top of the adverse economic global impact of COVID-19.

"Talagang alam natin na ito ay mahihirapan lumawak at lumaganap at madagdagan kapag nawala ang incentives, pupunta sila sa Vietnam, Cambodia at ibang bansa na may malaking incentives," she said.—AOL, GMA News