Cayetano, chair of the Senate Ways and Means Committee and sponsor of the bill, said the measure aims to provide a balance to achieve economic growth and at the same time rationalize the tax incentives being offered by the government to businesses.
The bill seeks to lower the corporate income tax from 30 percent to 25 percent and eventually to 20 percent by 2027. The bill also ensures that exporters and domestic industries are treated differently under CREATE due to the particular differences in their subject markets, as well as their needs and their ability to profit.
“The total incentive duration for both exporters and domestic industries is 17 years. That is coming from the four to seven years of income tax holiday, and then the 10 years for the availment of the special CIT rate or the enhanced deduction,” she said.