THE Philippine Stock Exchange Inc. (PSE) said it strongly supports the tax reforms under the Corporate Income Tax and Incentives Reform Act (Citira).
The local bourse said the Citira provision that gradually lowers corporate income tax to 25 percent by 2024 and 20 percent by 2029 will be considerably beneficial to Philippine corporates.
“Once the corporate income tax reaches this level, the country will be within the same corporate income tax range as its peers in the Association of Southeast Asian region. This will make the Philippines an attractive investment destination for new foreign and domestic businesses and encourage existing companies to expand their operations,” the PSE said.
“All these will redound to job creation, higher income, increased spending and more money in circulation, a cycle that can continue indefinitely as a result of the multiplier effect,” it added.
The PSE said it commends the imminent countryside development through fiscal incentives that will be granted to businesses in less developed areas through Citira.
“The fiscal multiplier effect in these areas will help boost economic growth in third or fourth class municipalities,” it said.
It noted that while Citira provides fiscal incentives, government’s revenue raising mandate is still upheld with the time-bound and performance-based conditions for the said incentives.
The PSE also urged the Senate committee to prioritize immediate the passage of the Citira bill as it looks forward to jumpstart its short-and long-term benefits to Filipinos. (PR)