MANILA, Philippines – To further support the corporate sector and attract investment in the Philippines to create more jobs, aspiring Senator Manny Pacquiao proposed on Thursday that corporate tax cuts should be made further.
He said many business people have withdrawn from investments in the country due to high corporate taxes, unstable power supplies and slow internet connection, all of which need to be addressed.
For corporate income tax, he named Singapore, which is set at 17%.
“If we say corporate tax, our level, we can’t keep up with Singapore’s 17% corporate tax. So look at Singapore, Singapore is well developed, businesses are really there,” he said in a forum with the Manila Rotary Club he spoke to in front of a large group of companies since he announced his candidacy for president.
“We need to lower our corporate tax,” he added.
President Rodrigo Duterte signed the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act (CREATE) earlier this year, which already cuts corporate taxes and provides incentives to help businesses recover from the pandemic and encourage foreign investment.
The law lowered the corporate tax rate for micro, small and medium-sized enterprises to just 20% and for other corporate taxpayers to 25% from previously 30%.
Pacquiao also said the Philippines need to focus on non-tax revenue in order to increase their income and reduce their debt.
“Let’s suppress corporate tax so that non-tax revenue can increase and we don’t rely on tax revenue,” he said.
Non-tax revenue refers to any other government impositions or recoveries in exchange for services rendered, assets transferred, penalties imposed, etc.
Subscribe to our daily newsletter
Do not miss any news and information.
Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer and other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4 a.m. and share articles on social media. Call 896 6000