Gatchalian Confident CREATE MORE Economic Benefits Can Outweigh Possible Tax Collection Dent

Senator Win Gatchalian said he is confident that the economic benefits of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act will far outweigh any potential downside risks to the government's revenue collection efforts.

The Bureau of Internal Revenue (BIR) had earlier expressed concerns about the potential impact of CREATE MORE on tax collection.

"CREATE MORE gives us a competitive advantage in attracting foreign direct investments. The economic benefits that we will generate from such investments will not only lead to job creation, but also increased export competitiveness and overall economic development, which would then lead to increased revenue collection for the government," said Gatchalian, principal author and sponsor of the measure.

Republic Act 12066, also known as CREATE MORE was enacted into law in November last year and provides a more targeted set of incentives to attract more foreign direct investments into the country.

"Sa pagkakaroon ng mas maraming pamumuhunan sa bansa, inaasahan ang pagdami ng trabaho na kalaunan ay magpapataas sa koleksyon ng buwis," he reiterated.

With the implementation of CREATE MORE, the government is hoping to bring back the country's foreign direct investments to its level prior to the pandemic, he added. Foreign direct investments into the country inched up by 0.1 percent to reach $8.93 billion in 2024.

Gatchalian Tiwalang Higit ang Benepisyong Pang-Ekonomiya ng CREATE MORE Kaysa sa Epekto Nito sa Koleksyon ng Buwis

Sinabi ni Senador Win Gatchalian na kumpiyansa siya na ang mga benepisyong pang-ekonomiya na idudulot ng Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) sa bansa ay higit na malalampasan ang anumang posibleng epekto nito sa pagkolekta ng buwis ng gobyerno.

Dati nang sinabi ng Bureau of Internal Revenue (BIR) na maaaring makaapekto sa pangongolekta ng buwis ang CREATE MORE.

"Ang CREATE MORE ay nagbibigay sa atin ng competitive advantage sa pag-akit ng foreign direct investments. Ang mga benepisyong pang-ekonomiya na makukuha natin mula sa mga pamumuhunang ito ay hindi lamang hahantong sa paglikha ng trabaho, kundi pati na rin sa pagtaas ng competitiveness sa pag-eexport at pangkalahatang pag-unlad ng ekonomiya, na siya namang magpapataas ng koleksyon ng buwis para sa gobyerno," sabi ni Gatchalian, punong may-akda at sponsor ng batas.

Ang Republic Act 12066, na kilala rin bilang CREATE MORE, ay isinabatas noong Nobyembre ng nakaraang taon. Ito ay nagbibigay ng tinatawag na targeted incentives upang makaakit ng mas maraming foreign direct investment sa bansa.

"Sa pagkakaroon ng mas maraming pamumuhunan sa bansa, inaasahan ang pagdami ng trabaho na kalaunan ay magpapataas sa koleksyon ng buwis," aniya.

Sa pagpapatupad ng CREATE MORE, umaasa ang gobyerno na maibabalik ang foreign direct investments ng bansa sa dating antas nito bago ang pandemya, dagdag niya. Ang foreign direct investments sa bansa ay tumaas ng 0.1% at umabot sa $8.93 bilyon noong 2024.