IF all else fails, a special session of Congress should be called to pass two key measures—a stimulus plan and a corporate recovery bill—to revive the economy and help millions impacted by the Covid-19 pandemic, a key House leader said on Thursday, as both chambers are nearing a June 5 adjournment.
House Ways and Means Chairman Joey Sarte Salceda urged President Duterte to call for a special session of Congress to pass the economic stimulus plan and the proposed Corporate Recovery and Tax Incentives for Enterprises (Create) Act to secure a “V-shaped” economic recovery after the Covid-19 pandemic.
Salceda explained that a delay in the passage of an “adequate” economic recovery plan costs the economy up to P100 billion in new economic activity every week.
“Every single week that we are unable to pass an economic stimulus plan and the corporate tax reform causes us hundreds of billions of pesos in foregone opportunities every week,” he said.
Salceda estimates that up to $12 billion in foreign investments have already been foregone due to the two-year delay in passing the Citira (Create’s previous name), which was approved by the Cabinet in January 2018.
“At that rate, [we can’t allow this legislative process to go beyond] July. June is the time to get them enacted into law, so that we can still reap the benefits in the second half. In the House, we are confident that if we have to, we can get both approved by June 3. If the Senate cannot, the President should extend the session and not terminate until they get both passed,” he added.
The proposed P1.3-trillion Accelerated Recovery and Investments Stimulus for the Economy (ARISE) bill, which will be used to mitigate the impact of Covid-19 on the country, is still pending for plenary approval as of this writing.
Salceda said the special session ought to be called in case the House and the Senate are unable to pass an economic recovery plan to supplement the Bayanihan to Heal as One Act, and the proposed Create Act.
“We need both by June if we want a V-shaped recovery,” Salceda said. The National Economic and Development Authority had explained that a “V-shaped” economic recovery is characterized by a sharp decline in growth, followed by a sharp recovery.
According to Salceda, the government cannot delay covering the “economy’s wounds.”
“We must stop the bleeding now. At this point, any imperfect bill will be much better than no reform by June,” Salceda added.
Salceda said the House intends to pass its stimulus recovery program before it adjourns, and that it has already “done its duty of passing the old version of CREATE, which is Citira, and will in fact adopt the Senate version if they pass it on Monday or Tuesday next week.”
However, Salceda warned that “the economy cannot afford to pass any of these measures later than June.”
“We have to get both of these measures done now. I would of course prefer to have them approved for the President’s signature next week, but if we cannot, the best alternative is a special session,” he said.
Under Article VI, Section 15 of the 1987 Constitution, the President may call for a special session at any time.
“Our hesitation to do special sessions in the past was due to constituency work. We wanted to take advantage of breaks, in the past, to serve our districts. With the rules that allow us to convene virtually, we can do both constituency work and legislation during the scheduled adjournment. So, Congress would not mind a special session,” Salceda said.
Image credits: Bernard Testa, Nonoy Lacza
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