Salceda eyes corporate income tax cuts in the next 10 years
By JOHN CARLO M. CAHINHINAN
House Committee on Ways and Means chair Joey Salceda (Albay) said it’s time to do the work needed to make the Philippines more competitive in encouraging domestic investments by reducing corporate income tax from 30 percent to 20 percent by 2029.
Salceda, who is set to chair the ways and means panel after more than a decade, said reducing corporate income tax will allow the country’s economy to be more competitive “in attracting foreign investors to create business opportunities, generate jobs and increase incomes.”
“We do this by reducing corporate income tax from 30 percent to 20 percent by 2029, or two percent every two years,” said.
Salceda said the proposed tax cuts for corporate income tax is expected to generate additional 1.4-million new jobs from domestic enterprises during the period.
He explained that rationalizing incentives is the best way to implement the proposal “so they could be targeted to investments that could generate more investments and more jobs.”
According to Salceda, the proposal is at best revenue neutral and it comes with a new name— CITIRA or the proposed Corporate Income Tax and Incentive Reform Act.
Since the measure was certified as urgent by President Rodrigo Duterte, Salceda said they will resort to Rule 48 House Rules which requires only one hearing if the measure has been approved on final reading in the prior congress.
“The key to this reform is to get done quickly and remove any uncertainty from the business atmosphere,” said Salceda.