Pia Cayetano asks Senate to prioritize CREATE bill discussion

Senate Committee on Ways and Means chairperson Pia Cayetano on Monday appealed to her colleagues to prioritize the discussion on corporate income tax reform over the franchise bill for the construction of the Bulacan airport.

Just before the senators resumed the period of interpellation for House Bill No. 7507, Cayetano made a manifestation and requested that the Corporate Recovery and Tax Incentives for Enterprises (CREATE) bill be taken up first.

"My understanding is our priority is CREATE. I have 10 people on the list, Mr. President, to interpellate. Can we please proceed with CREATE first? Because I need to spend time, a little bit of time for each day," Cayetano said, admitting that she feels pressured on passing the bill on time.

Senate Majority Leader Juan Miguel Zubiri bargained to keep the interpellation for the franchise bill involving San Miguel Aerocity Inc. short before they proceed with CREATE.

"The problem with the franchise holders, when we have a break, if we don't approve it this week, magkakaproblema sila on third reading and ratification of the bills, unlike CREATE [which is] a certified measure. We can approve it anytime on third reading," Zubiri said.

The franchise bill is scheduled for second reading this Monday, subject to the scheduled interpellation of minority senators Francis "Kiko" Pangilinan and Risa Hontiveros.

Cayetano, however, pointed out that she also wants to interpellate the said franchise bill but she just needs time to focus on CREATE first.

"That committee report is also referred to my committee. I think I'm not asking for a lot if I will also be given time to interpellate and to ask questions. I think you all know there are also tax incentives there," she said.

During the period of interpellation last week, Senator Grace Poe said the tax incentives to be given to the airport developer will not be affected by the passage of the CREATE bill.

The CREATE bill seeks to reduce the corporate income tax rate from 30% to 25%. The rate would be further slowed to 20% in the succeeding years on a staggered basis. It also seeks to rationalize tax incentives enjoyed by investors by making them time-bound and performance-based.

On the other hand, the franchise bill for the construction of the New Manila International Airport and an adjacent Airport City in Bulacan exempts San Miguel Aerocity Inc. from direct and indirect taxes and fees during the 10-year construction period. For the remaining 40 years of the franchise, it shall be exempted from income and property taxes.

Cayetano asserted that she has the right to ask questions and introduce amendments to the bill too.

"Why would you not consider it naman? I am your duly elected chairman of the Committee on Ways and Means. 'Di ba tama na dine-defend ko 'yung CREATE, it's very much related doon sa incentives na pinapasa [sa franchise bill] kasi otherwise, what is the purpose na nagde-defend ako ng CREATE if we're going to carve out mga ano [incentives]?" she said.

Senate President Vicente Sotto III clarified that no one is being prevented from asking questions on the franchise bill.

Upon the request of the senators, the session was suspended. After a couple of minutes, it resumed at 4:56 p.m., and CREATE was taken up first. Sotto said the franchise bill will be tackled after. — DVM, GMA News