Pia: Time to re-study our corporate tax rates
Says lowering corporate income tax, rationalizing fiscal incentives to lead to more jobs, sustained growth

"The time is right to re-study our tax rates and incentives."

Senate Ways and Means Committee Chair Pia S. Cayetano said this on Thursday (August 15), following the panel's organizational meeting to discuss the Duterte government's Comprehensive Tax Reform Program (CTRP).

Cayetano heads the Senate body tasked to tackle the remaining tax proposals under CTRP, including Package 2, which seeks to lower corporate income taxes (CIT) and rationalize incentives given to investors.

"I do believe that the time is right to study the rationalization of our corporate holidays and various incentives so that we can prioritize the corporations that are really contributing to our sustainable economic growth," she stressed.

The senator said the ultimate goal is to come up with a measure that would generate the needed funds for programs that will benefit Filipino families, especially those belonging to the vulnerable sectors.

Furthermore, she said ensuring the people's access to basic social services would allow the country to fulfill its commitment to the United Nations' Sustainable Development Goals (SDGs), which serves as a blueprint in achieving a more sustainable future for the country.

Package 2 of the CTRP proposes to lower the country's CIT rate from 30 to 20 percent. It also seeks to rationalize incentives being given to companies investing in the country, to ensure that such advantages granted to them can generate domestic growth and employment for Filipinos.

"Very clear naman ang presentation ng Department of Finance (DOF). Compared to other countries in the region, the Philippines has a high taxation rate. The objective is to lower that rate to make us more competitive and so that we will have more jobs," Cayetano stressed.

"We should also not grant incentives to businesses that are not really contributing to our economy," she further said.

On the other hand, the senator assured all concerned sectors that her committee would consider all positions, including those of her fellow senators, before finalizing the committee report and passing a tax reform bill in the Senate.

"We intend to have weekly hearings [to discuss all tax measures]. Kailangan mag-double time kaming lahat," she said.

The Ways and Means committee is set to conduct its second hearing on Tuesday (August 20), which will primarily focus on Packages 2 and 2+ of the tax reform program.