Business groups throw support for critical Citira

Business groups are urging the government to pass the Duterte administration’s latest tax reform package.

Ten business groups voiced their support for the Senate version of the Corporate Income Tax and Incentives Reform Act (CITIRA), which already includes some refinements they have previously proposed.

“While there remain few key issues in the [Senate Bill No. 1357] that need to be addressed, we strongly believe that passing the law will provide long-delayed certainty that will help the Philippines compete for job-creating investments,” the statement said.

The signatories are: Anvil Business Club, Bankers Association of the Philippines, Federation of Filipino Chinese Chambers of Commerce and Industry, Inc., Financial Executives Institute of the Philippines, Foundation for Economic Freedom, Makati Business Club, Management Association of the Philippines, Organization of Socialized Housing Developers of the Philippines, Subdivision and Housing Developers Association and the UP School of Economics Alumni Association.

“We humbly request the Senate and the House of Representatives to move quickly and decisively to push the CITIRA forward, and ensure its passage at the soonest possible time. The uncertainty over CITIRA must end,” the groups said.

Time is running out for Citira. Congress will take a break from its current session on March 13, giving both its chambers barely more than a week to pass the Citira.

If the bill is not passed before March 13, stakeholders will have to wait until May 4, when Congress resumes session again.

The Citira will lower the corporate income tax in a span of a decade, a welcome sign for companies in the Philippines which has the highest tax rate in Southeast Asia.

But the more contentious part of the bill is the plan to rationalize tax breaks, casting a shadow of uncertainty in economic zones as industry groups representing thousands of companies fight to keep the status quo.

Investment pledges under the Philippine Economic Zone Authority have been on a decline for two years in a row.