Press Release
February 3, 2021


The Corporate Recovery and Tax Incentives Act or CREATE is a much-needed tax break for many pandemic-hit companies that are struggling with their finances and as a result, could prevent a wave of insolvencies that could affect the country's economic growth in the long run.

The reduction of the corporate income tax would be a considerable assistance especially to the Micro, Small and Medium Enterprises (MSMEs) which comprise 99.5 percent of business establishments in the country and employing approximately 62.4 percent of the workforce.

One of the challenges faced by MSMEs is the difficulty in raising money to maintain or resume its operations and the tax relief offered by CREATE, instead of taking money away, will put more money in the pockets of businesses who are consumers themselves, which as a result will boost spending on a sustained basis and stimulate the economy. Increasing consumption and spending could translate to continuing businesses and retaining workers or even expanding businesses which means more work opportunities and more money in the hands of ordinary Filipinos.

Saving jobs is crucial at this time. While adult joblessness, based on the latest SWS survey, has somehow eased in November last year, we still need to find ways to help those who lost their jobs and small businesses recover from the economic difficulties brought about by the COVID-19 pandemic through a hefty income tax cut.

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