Gov’t eyes new laws to support COVID-19 recovery plan

President Rodrigo Duterte’s economic team has pushed for the passage of new laws that will support plans to ensure the country’s recovery from the coronavirus disease (COVID-19) pandemic.

The proposals identified by Duterte in his report to Congress on Monday are the following:

• reducing the corporate income tax (CIT) rate from 30 to 25% starting July 2020 and other investor-friendly reforms under the Corporate Recovery and Tax Incentives for Enterprises bill
• amending the Agri-Agra Reform Credit Act to make it easier for banks to pump fresh capital into the farm sector (House Bill 6134)
• allowing banks to dispose of non-performing loans and assets (House Bill 6816)
• providing financial assistance and access to distressed businesses, including micro, small and medium enterprises (MSMEs), and to strategically important companies critical to economic recovery.

"Our economic managers are pursuing measures to strengthen our economy, and to boost the performance and financial standing of our industries," Duterte said.

The government has projected the economic output to shrink by 2.0% to 3.4% this year. For 2021, the government said it expects the country to recover with a GDP growth of 7.1% to 8.1%. -- BAP, GMA News