IS this a sign of no progress? Business groups on Monday submitted to President Duterte the same legislative wishlist of 27 measures they relayed to him last year for his State of the Nation Address (Sona).
In a statement, the groups said they wrote to the President and leaders of Congress to affirm their support for the passage of 27 economic and investment reforms. However, the measures they are hoping to get legislated were the same ones they asked for in 2019.
They said there is no better time to enact the reforms now that the country is trying to recover from the economic damages of the coronavirus pandemic.
“Eight of the reforms were included in the President’s fourth Sona, while 19 are included on the legislative agenda of the Philippine Development Plan’s Midterm Update. When the first regular session of Congress adjourned, however, only nine of the 28 [recommendations have] reached at least second-reading approval in either House or Senate,” the groups lamented.
The passage of the 27 measures will promote inclusive growth, generate jobs, reduce poverty, improve national competitiveness, support economic recovery and boost GDP performance in 2021 and thereafter, the groups pitched.
Of the 28 reforms they appealed to be enacted last year, only the imposition of excise taxes on alcoholic beverages was fulfilled. The remaining 27 bills, most of which would liberalize certain industries, never made it to bicameral discussion, more so Duterte’s desk.
3 key bills
Among these measures were the amendments to the 84-year-old Public Services Act, Foreign Investments Act of 1991 and Retail Trade Liberalization Act of 2000.
The groups are also asking lawmakers to conclude deliberations on the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) bill. The CREATE bill will bring down corporate income tax to 25 percent, from 30 percent at present, and rationalize fiscal incentives granted to investors in exchange.
However, they clarified they are only in favor of reducing the corporate tax rate and maintained their opposition to the lifting of incentives, especially the 5-percent tax on gross income earned in lieu of all local and national taxes. They had said earlier that retention of such incentives had become even more crucial once the Covid-19 pandemic struck, gouging out almost all sectors with crippling lockdowns.
The groups are also hoping for the passage of changes to the Apprenticeship Program, Build- Operate-and-Transfer Law, Bank Secrecy Law and constitutional restrictions on foreign equity. Likewise, they are pushing for the legislation of the Freedom of Information Act, TRAIN 3 and 4, Open Access in Data Transmission Act, and Water Department Act, among others.
As with every year, the business community expects the President in his Sona to call on his legislative allies to prioritize discussions on the proposed reforms.
The statement was signed by the Joint Foreign Chambers of the Philippines. It was also signed by Alyansa Agrikultura; Federation of Filipino-Chinese Chambers of Commerce and Industry; Foundation for Economic Freedom; Information Technology and Business Process Association of the Philippines; Makati Business Club; Management Association of the Philippines; and the Semiconductor and Electronics Industries in the Philippines Foundation.
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