MANILA, Philippines — The proposed Comprehensive Income Tax and Incentives Reform Act (CITIRA) should come with safeguards to better prepare for unintended consequences of the measure, the Ateneo School of Government said. CITIRA seeks to gradually reduce the corporate income tax (CIT) rate, considered to be among the highest in Southeast Asia, to 20 percent from 30 percent, as well as rationalize incentives given to investors. Another set of empirical questions relate to the projected investment and job-creation impact (if at all) of the CIT tax cut. The net impact of all these adjustments could better inform us of the full implications — hence the necessary safety nets and policy roll out protocols — supporting this reform,” Mendoza said. With agencies for and against the CITIRA not in agreement on evidence and data being presented, he said there is also a need to review empirical evidence related to the proposed measure.

Source: Philippine Star October 09, 2019 16:41 UTC