THE PHILIPPINE STAR
B4
New CITIRA bill version to be f,iled in Senate
By LOUELLA DESIDERIO
A bill is set to be filed at the Senate
for the second package of the govern-
ment's tax reform program or the Com-
prehensive Income Tax and Incentives
Rationalization Act (CITIRA) which the
Department of Trade and Industry (DTI)
hopdswould address concems raised by
stakeholders on the version passed at th-e
House of Representatives.
Speaking at the Manufacturing Sum-
mit 2019 yesterday, Trade Secretarl'
Rarnon Lopez said a new version of the
CITIRA bill would be filed by Sen. pia
Cavetano.
. Lopez hopes the bill woutd integrate
the positions put forward by stalcefiold-
ers, as well as by DTI and'the Depart-
ment of Finance.
"What stakeholders can expect is
one that would address the specific
interests, needs of stakeholde;s.,, he
told reporters.
Various groups such as the Phi tippine
*Ecozones
Association, Semiconductor
and Electronics Industries in the phil-
ippines Foundation Inc., In-formation
Technology and Business Process Asso-
ciation ofthe Phili ppines, Con{ederation
of Wearable Exporters of the philippines
\ FAq6- Bq t,
. WEDNESDAY I DECEMBER 4,2019
and the Joint Foreign Chambers (fFC)
earlier raised concems on the CIIIRA,
saying its implementation based on iti
curreni form would affect existing op-
erations of firms, as well as the country's
attractiveness to new investments.
In its position paper submitted to
Cayetano, who serves as chair of the Sen-
ate Committee on Ways and Means, the
JFC said fiscal incentives are important
in attracting more foreign investments
as they make_ up ,cor the high costs of
operatlng rn the country.
JFC also said implementation of the
CITIM in the first yEar iould lead to
an estimated loss of 121,000 direct and
582,000 indirect jobs.
Approve{ on third and final reading
at the House of Representatives, the
CITIRA bill aims to gradually cut the
countrv's corporate income tax rate to
20 percent from the current 30 percent,
which is considered among the'highest
in Southeast Asia
In additior; the bill would rational-
ize fiscal incentives which includes the
removal of the five percent tax on gross
income eamed (GIE) firms operating in
economic zones pay ir lieu of aJl national
and local taxes after their income tair
holiday period ends.