Senator Win Gatchalian said the enactment of CREATE MORE is expected to create a ripple effect in the country’s economic development.
“With more foreign direct investments that CREATE MORE is expected to generate, more Filipinos will have better employment opportunities that will, in turn, redound to stronger domestic consumption, one of the major drivers of the local economy,” said Gatchalian, chair of the Senate Committee on Ways and Means and principal author and sponsor of the measure.
Gatchalian made the statement following the President’s signing of Republic Act _, amending certain provisions of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.
According to Gatchalian, numerous incentives provided under CREATE MORE are expected to enhance the country’s competitiveness in attracting foreign investors.
He explained that CREATE MORE aims to provide clarity on the application of VAT zero-rating on local purchases and VAT exemption on importation of goods and services. As provided by the measure, VAT zero-rating and exemption will now apply to goods and services clearly linked to the registered project or activity. This includes essential services like janitorial, security, financial, consultancy, marketing, and even administrative functions such as human resources, legal, and accounting services.
In addition, the measure also introduces a fixed 2% Registered Business Enterprise Local Tax, or RBELT, based on gross income to simplify the tax process for businesses. “Kapag ang mga negosyong nahihikayat natin na mamuhunan sa ating bansa ay yumayabong, nagreresulta ito sa mas magandang kalidad ng buhay, mas abot-kayang halaga ng pamumuhay, at mas maayos na imprastraktura para sa lahat ng Pilipino,” he said.
“Sa pamamagitan ng CREATE MORE, ang mga proyekto at aktibidad na may malaking pakinabang sa ating bansa — tulad ng mga food security-related activities, green ecosystems, health-related activities, at defense-related activities — ay mabibigyan ng suporta at insentibo. Kapag ang mga sektor na ito ay umunlad, tiyak na magbubunga ito ng mga positibong pagbabago sa ating mga komunidad. Mula sa pagbaba ng presyo ng mga produkto hanggang sa paglikha ng mas maraming trabaho para sa ating mga kababayan, makikita natin ang positibong epekto ng CREATE MORE sa ating pang-araw-araw na buhay,” he added.
