PCCI sees CREATE MORE yielding sustained growth

THE Philippine Chamber of Commerce and Industry (PCCI) expects the latest round of tax reforms to support long-term growth of the business sector.

In a statement on Thursday, the PCCI said the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) law’s business-friendly features include simplified tax administration, clearer guidelines for tax incentive applications, and refinements in the tax exemption system, adding that these features add predictability to business operations.

“These provisions significantly improve tax certainty and create a more sustainable incentive framework,” PCCI President Enunina V. Mangio said.

“Under a more favorable and predictable tax environment, businesses can better plan for long-term growth. We can likewise expect to attract more foreign direct investment,” she added.

President Ferdinand R. Marcos, Jr. on Monday signed into law the CREATE MORE Act, which further reduces the corporate income tax to 20% from 25% for registered business enterprises (RBEs).

It also allows RBEs to take a 100% deduction on power expenses in a taxable year, up from 50% allowed by the Tax Code.

“One of the major considerations for investing in energy-intensive industries such as manufacturing and data centers where our country is emerging as a preferred destination is the high cost of power,” Ms. Mangio said.

“The increased deduction on power expenses is one way of addressing such concerns,” she added.

In a statement on Wednesday, the Philippine Exporters Confederation, Inc. (Philexport) also welcomed the new law, noting that it will attract more foreign investment and support business expansion plans.

“The CREATE MORE Act is set to bring transformative benefits by attracting new foreign investors who will now enjoy a more liberalized investment policy environment while supporting local businesses in their expansion plans,” said Philexport President Sergio R. Ortiz-Luis, Jr.

“Given its investor-friendly features, it has the potential to create more jobs and stimulate economic growth through enhancements in the country’s tax incentives regime, making it more competitive and attractive to both domestic and international investors,” he added. — Justine Irish D. Tabile