TEA NATIOITNS EADING NEWiPAPDN
THURSDAY August 15, 2019
House panel OKs bill lowering
corporate income tax
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The House Committee on Ways
and Means overwhelmingly approved
yesterday a bill seeking to reduce the
corporate income ta:r rate from 30 per-
cent to.20 nercent anlt rati_onlize the
, House panel OKs...
pal author of the bill said, before his panel
approved the measure and endorsed it for
plenary discussion.
HB 313 is the rrersion of the measune ap-
prorred on third dnO nnU reading during tlie
prwious 17th Congess. It is former$ known aB
the Tlur Reform for Athacting Better and High-
quality Opportunities ffR"ABAIIO) bill.
It yas Nueva*Ec[ia Rep. Estrellita Su-
ansing vice chairman of the House Committee
on Ways and Means and one of the authors of
the bill, who moved for the apprural of the bill
for plenary cunsideration.
The former chairperson of the House
Committee on Ways and Means during the
previous l?th Congress again invoked Rule
10 Sqtion 48 of the llouse of Representatirres,
wtrich'provides that the measunes that harre
been dpprorred'on third and final reading by the
L,ower Charnberin thepreviouq Congrcss may
be refened to the plenary upon the approval of
'
the majority of the panel members.
"In case of bills or resolutions that arc
identified as priority meariunes of the House,
which were previously filed in the immediateg
preeeding Congess and have already been
appry,gpon ttrird reading, the same may be
grant of fiscal incentives to investors
and locators.
Voting 27 f.or and 2 against,'the
House panel, chaired by Albay Rep.
Joey Salceda, passed House Bill (HB)
313, the Corporate Income Tax and
Incentive Rationalization Act (CITIM)
<1
disposed of as matters ake-ady qeported upon
the approval of majorityof fhe nnEmbers of the
,committee presenf therc being a quorumn"
dccordingto the House Rule.
me Cmng bil was approved, a day after
the Salcnda panel passed House Bill 1026, which
seeks to raise the excise tax on alcohol products.
fire pmposed imposition of higher excise tax
rates onalcohol pruducts'is the kckage 2 Plus B
of the Duterte adminishation's Comprehensive
Tbx Reform Pnogram CITRP).
. Bayan Muira party-list Rep. Carlos Isagani
Zamte and Gabriela partylist Rep. Arlene
Brosas stron$y opposed the passage of the
CITINAbiU
HB 313 seeks to reduce the currentS0 per-
cent corporate incume tax by two per two years.
Itpursues to exempt the Home Derrelopment
Mutual Fbnd fuom ineome taxation, given that
the Social Security Sptem (SSS), Philippine
Health Insuranse Corporation (PHIC), and
Corrernment Sewice Insurance System (GSIS)
are alreadyexempted.
fire measUne also seela to rcmove the op-
tion for corporations, ihcluding resident fureign
corp,orations, lo avail of the 15 percerrt gross
income tax and subject corporate taxpayers
u 7:eoilr toAq€,t
Bill. The measure is the second paek-
age of the Duterte administration's
Comprehensive Tax Reform Program-
(CTRP).
"This is a national imperative. We
need to lower taxes to remain \
competitive," Sai..A", ptingi- >4
who enjoyprcferential rates, to the 30percent
ClTorthe adjusted CIT ,
The bill grants the President the powbr to
,
grant incentives if the project has a compre.
hensive sustainable development plan and will
bring in at least US$ 200 million.
Itwill grant income incentives for a ma:ci-
mum of five years, removing perpetual five-
percent on gross income earned (GIE) and
limiting income tax holiday 0TfD,
Tlrc measure provides that in lieu of ITII or
rcduced CII incentives may be extended on a
per industrybasis, upon BOI approval. It also
reduces the 18 percent CIT by one pereentage
point every cittreryeaq and adds trvo years io
incentives 0nclusive of one-year ITHP) for the
following pmjects: those located in lagging ar-
eas, in areas recovering foom armed cordict or
mqior disasbrE, in agri{usinds outside major
urban areas, and those relocatdfrom Mebo
Manila and nearbyurban aseas.
"This bill will strive to eneourage investors
and locators to reapply after the five-year or
seven-)rear period, to qualiff br another firre
years of incentives, and the mqasure also
specifies that VAT treatment shall be based on
location and export sales," Salceda said.
He said the plenary deliberation on the
CITIRA bill is e:rpected next week (Charissa
M. Luci-Atienza)