32 business groups push for CREATE bill passage

Thirty-two business groups are urging for the swift passage of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) bill, calling it a significant economic reform.

They support the immediate reduction of the corporate income tax (CIT) rate from 30 percent to 25 percent by July 2020, with a further reduction to 20 percent by 2027.

This tax cut is seen as a direct financial assistance to businesses, enabling them to retain employees and manage financial difficulties.

The groups also lauded the extension of the net operating loss carryover (NOLCO) period from three to five years for losses incurred in 2020, viewing it as a robust job protection measure.

They are in favor of granting flexible authority to the Fiscal Incentives Review Board (FIRB) and the President in granting incentives, provided safeguards are in place.

The business sector supports a maximum transitory period of 9 years for current incentive holders and appropriate gross income earned (GIE) tax rate.

The groups emphasized that any further delay in passing the CREATE bill risks job losses and investment hemorrhages.