BSP chief Diokno still hopeful Congress will pass CREATE bill

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno on Thursday said he is still hopeful that Congress will pass the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE), possibly through a special session given the limited time available.

According to Diokno, the CREATE Bill will be encourage foreign businesses—especially those waiting for the measure to be passed into law—to invest in the Philippines.

"Our hope is that it will be passed before the opening of the next Congress which is on the fourth Monday of July, so I was hoping that maybe the President will hold a special session for this purpose," he said.

"You know, the purpose of this really is not immediate, but it will send a signal to potential investors that we are changing the policy environment, improving the policy environment rather, of the Philippines," he added.

Congress is scheduled to end its first regular session for the 18th Congress on Friday, June 5.

CREATE is a repackaged version of the Corporate Income Tax and Incentives Rationalization Act (CITIRA), which seeks to immediately reduce the corporate income tax to 25% from 30% currently. 

"It's a long-time reform. It cannot be just a very short run. Investors are still thinking about where to put their money in the face of the pandemic, but it's a good law. It's long overdue," said Diokno. — BM, GMA News