“Millions of jobs” will be created if the government’s second tax reform package is approved by Congress, a senior Finance department official claimed on Tuesday, rejecting claims that the proposed law could lead to massive layoffs. “[N]umber one, there … [will be a]significant reduction in CIT (corporate income tax) that creates a lot of new money to invest and expand and create jobs,” Finance Undersecretary Karl Kendrick Chua told reporters following the Senate’s first hearing on Package 2 of the government’s Comprehensive Tax Reform Program (CTRP). “With lower tax rates, such a proposal is hardly inflationary while creating millions of jobs over the medium term as firms expand with more money at their disposal,” Chua said. “So we can preserve the good jobs, we are going to ‘sunset’ those that do not deserve [incentives]because maybe they are very profitable and even without incentives they will continue to operate and keep the jobs,” Chua said. In response, Chua said a jobs assessment at this point in time “cannot be done.”“Because first, everyone gets a chance to apply for new incentives.

Source: Manila Times September 25, 2018 16:52 UTC