Escudero: CREATE MORE bill will generate more jobs, attract new investors

The passage of Senate Bill 2762 or the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act will create more jobs and bring in new investors to the country, Senate President Francis “Chiz” Escudero said Sunday.

CREATE MORE exempts from value-added tax (VAT) goods and services such as janitorial, security, financial consultancy, marketing, and human resources.

To simplify the tax process for businesses, the measure also introduces a not more than 2% Registered Business Enterprise Local Tax (RBELT) based on gross income.

President Ferdinand "Bongbong" Marcos Jr. is set to sign the CREATE MORE Act into law on Monday.

It is among the Legislative-Executive Development Advisory Council's (LEDAC) 28 priority measures.

“CREATE MORE seeks to encourage more investors to come to the Philippines by providing a more predictable and sustainable playing field,” Escudero said.

“The bottom line is that it will create a more favorable investment climate that will create more jobs, spur progress without harming our revenue base. Ang hanap lang naman ng mga negosyante ay [Investors are looking for] clear, coherent, consistent rules subject to uniform interpretation and implementation,” he added.

The measure also increases the deductions in power expenses of registered business enterprises to 200% by reducing the corporate income tax rate of local and foreign companies to 20%.

“The Philippines has among the highest power rates in the region so this will help us in becoming competitive in bringing in investors,” Escudero said.

In September, the Senate approved the bill on third and final reading. — BM, GMA Integrated News