The Senate is not keen on approving the Corporate Income Tax and Incentives Rationalization Act (Citira) in its current form, citing the burden of creating a more “simple and unified” version for the benefit of several stakeholders.
In a four-hour hearing on Tuesday, the Senate Committee on Ways and Means discussed with various stakeholders their position on the bill and whether or not they approve of the current bill filed for legislation.
Among the stakeholders were the Department of Trade and Industry (DTI), the Department of Labor and Employment (DOLE), the Securities and Exchange Commission (SEC), Philippine Ecozones Association (Philea), the Tax Management Association of the Philippines (TMAP), Management Association of the Philippines (MAP), foreign business chambers, among others.
“It’s clear to me that the different IPAs [Investment Promotion Agencies], the different representations of economic zones, investment groups, sectors—each obviously would protect their own turf. Now, the burden really is to come up with a simple and yet as general, as we can, goals that will govern everybody because sa kanila rin naman nanggaling, eh [it came from them anyway]. We’re after simplicity,” Senate Ways and Means Chairman Pia Cayetano said in a press briefing after the hearing.
Finance Undersecretary Karl Chua said while the Department of Finance already agrees with the version passed by the House, they will still consider all proposals and try to include them in the bill.
“I think the first, most important thing we learned today is that many of them are increasingly moving from oppose to negotiate. And many of them are understanding the principles that we are fighting for, which are performance-based, time-bound, targeted and transparent. So, we hear them, I commit to responding to each of their position papers, but it’s not something we can agree piecemeal. We have to put them all together and see the package work,” Chua said in the press conference.
“What we will do onwards is to go through all their position papers, put together all their requests, and see if this is something that is doable. And I’ll discuss with Senator Pia and the team how we can proceed on this,” he added.
As for how much longer it is going to take to see a unified version of the bill, Cayetano said she would like to see it through “no matter how long it takes.”
The senator said that while a lot of changes are still needed to be taken into consideration, prolonging the debate on the Citira has no real benefit and that time is of the essence.
“The Filipino business community, and therefore the Filipinos, demand that we provide for stability and predictability. So, there’s nothing to gain even if I say I can be patient, I’ll listen to all the questions. We don’t gain from that,” Cayetano said.
“So, I would be able to ask my colleagues once I present it to them to work with me within a reasonable period,” she added.
A week ago, the House of Representatives passed on third and final reading the bill including the Citira, saying it will ensure that the grant of fiscal incentives will help bring greater benefits to the country in the form of higher and more dispersed investments, more jobs and better technology.
Asked whether they did not accept the House’s version as passed, Cayetano said, “They have their reasons for passing the version that they passed. And I will have reasons for passing the version that I will pass.”