Lower corporate tax means more jobs – Cayetano
SEN. Pilar Juliana “Pia” Cayetano is batting for lower corporate income tax and rationalized fiscal incentives, saying these would lead to more jobs and sustained economic growth.
“I do believe that the time is right to study the rationalization of our corporate holidays and various incentives so that we can prioritize the corporations that are really contributing to our sustainable economic growth,” said Cayetano, who heads the Senate Ways and Means committee.
Cayetano’s panel is looking into the government’s Comprehensive Tax Reform Program, particularly Package 2, which seeks to lower the country’s corporate income tax rate from 30 to 20 percent.
It also seeks to rationalize incentives being given to companies investing in the country to ensure that such advantages granted to them can generate domestic growth and employment for Filipinos.
“Very clear presentation of the Department of Finance. Compared to other countries in the region, the Philippines has a high taxation rate. The objective is to lower that rate to make us more competitive… so that we will have more jobs,” Cayetano stressed.
“We should also not grant incentives to businesses that are not really contributing to our economy,” she added.
On the other hand, the senator assured all concerned sectors that her committee would consider all positions before finalizing the committee report and passing a tax reform bill in the Senate.
