AS THE trade war between the United States (US) and China continues, Malacañang said measures are being prepared to counter the possible negative impact of the rising tensions betweem the two largest economies.
Presidential Spokesperson Salvador Panelo said Thursday, September 6, said President Rodrigo Duterte approved the proposed measures presented by the National Economic and Development Authority (Neda) and the Department of Trade and Industry (DTI) during the 41st Cabinet meeting held Wednesday, September 4.
Neda and DTI proposed the government's push for the passage of the proposed Corporate Income Tax Realization Act and the amendment of the Foreign Investment Act.
"[The recommendations were] approved. [Those were] immediately approved," Panelo said, when asked about the President's response to the proposed measures.
The proposed Corporate Income Tax and Incentives Rationalization Act, which was refiled in the 18th Congress, aims to lower corporate income taxes to 20 percent from the current 30 percent and rationalize fiscal incentives.
There is also a proposal to introduce amendments to the Foreign Investments Act of 1991 to provide a renewed boost to the entry of foreign direct investments into the country and stimulate job creation.
Panelo said the Neda and the DTI also proposed to intensify investment campaigns in East Asia, expedite business processes, and reduce processing time for exports.
"The Neda and the Department of Trade and Industry shared the impact of the US-China Trade Conflict. While the Philippines is not as vulnerable in the trade war. In the long run, any prolonged trade war will have negative effects," the Palace official said.
Over the past year, the United States and China have imposed tariffs on billions of dollars worth of one another's goods.
In a statement on Thursday, China's Commerce Ministry said Washington and Beijing have agreed to return to the negotiation table in "early October" to discuss the rapid escalation of the trade war between the two countries. (SunStar Philippines)