MANILA – The Department of Trade and Industry (DTI) is hoping for the immediate passage of legislation lowering the corporate income tax rate and providing more incentives for companies, as stakeholders in the government sector seek a “win-win” type of support for industries.
DTI secretary Ramon Lopez said Senator Pia Cayetano will file a new version of the proposed Comprehensive Income Tax and Incentives Rationalization Act (CITIRA) integrating “many of improved provisions” discussed by agencies involved.
“We already have a good CITIRA draft now,” he said Tuesday during the Manufacturing Summit 2019. “We are discussing with the DOF (Department of Finance) and other agencies what will be a more effective and win-win type of support for industries.”
Lopez said CITIRA will benefit the industry sector with the lowering of corporate income tax rate from 30 percent to 20 percent.
New industries and new companies registered under the strategic investment priority plan (SIPP) will also be provided more incentives under the CITIRA legislation, he said.
“So it’s not true that incentives will be removed or taken away. In fact, the incentives are being enhanced especially for new projects. And of course, for the existing projects like the PEZA (Philippine Economic Zone Authority) benefiting from incentives, we have worked on a more gradual transition for all the existing locators,” he added.
Lopez said the Department of Finance stood firm on two to five-year transition period for CITIRA, while the DTI for longer five to 10 years.
“We can expect from the Senate (a) more exhaustive deliberation of the issues around the bill – from transition to incentives of the new projects as well,” he told reporters.
CITIRA is the second package of the comprehensive tax reform program.
“We all want early conclusion kung kaya this year or January, but ako ideally this year para mag-start next year kaagad,” he added. (PNA)
