Foreign and local business groups on Wednesday lauded the enactment of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE), noting that the law will help create a more competitive business environment in the Philippines.
“With the CREATE MORE Act in place, the Chamber is optimistic about the stronger momentum this will generate for economic progress,” European Chamber of Commerce of the Philippines (ECCP) Executive Director Florian Gottein told the Philippine News Agency in a Viber message.
Signed by President Ferdinand R. Marcos Jr. last Monday, the CREATE MORE enhances the ease of doing business in the country, clarifies value-added tax rules, provides more attractive tax incentives, strengthens governance and accountability, and makes clear transitory rules for pre-CREATE registered business enterprises (RBEs).
A transparent and efficient rollout of the law will be essential to further enhance the Philippines’ tax regime and incentives framework, making it more attractive to both local and foreign investors, Gottein said.
“This will create a ripple effect, encouraging sustained investments, boosting job creation, and promoting a thriving business environment that supports inclusive growth,” he said.
The IT and Business Process Association of the Philippines (IBPAP), for its part, said the enactment of CREATE MORE is a “milestone for the business community in the Philippines.”
“This translates to increased opportunities in the IT-BPM sector in creating an attractive and competitive business environment that will bring in new investments, create new jobs, upskill our workforce, and reinforce our position in the global market,” IBPAP said.
In separate statements released Wednesday, the Philippine Chamber of Commerce and Industry (PCCI) and the Philippine Exporters Confederation, Inc. (PHILEXPORT) said local businesses, the export industry, and the whole economy will benefit from CREATE MORE.
PCCI president Eunina Mangio said CREATE MORE is a crucial step toward further enabling local businesses, empowering small and medium enterprises, and enhancing the country’s attractiveness as an investment destination.
PCCI welcomed in particular the simplification of tax administration, clearer guidelines for applying for tax incentives and the refinements made in the tax exemption system that offer performance-based tax holidays depending on an enterprise’s specific economic contributions.
“These provisions significantly improve tax certainty and create a more sustainable incentive framework. Under a more favorable and predictable tax environment, businesses can better plan for long-term growth. We can likewise expect to foster more foreign direct investments to come in,” Mangio said.
A feature of CREATE MORE that PCCI emphasized will boost the expansion of key industries is the deduction for power expenses to 100 percent from 50 percent.
“One of the major considerations for investing in energy-intensive industries such as manufacturing and data centers where our country is emerging as a preferred destination is (the) high cost of power. The increased deduction on power expenses is one way of addressing such concern,” Mangio said.
She said the Private Multi-Sectoral Group (PMSG) led by PCCI will be working closely with the Department of Finance and the Bureau of Internal Revenue to ensure that the CREATE MORE Act will be fully and consistently implemented according to the intent of the law.
PHILEXPORT, meanwhile, said the CREATE MORE law is set to bring transformative benefits to local industries by attracting new foreign investors who will enjoy a more liberalized investment policy environment while supporting local businesses in their expansion plans.
“Given its investor-friendly features, the new legislation has the potential to create more jobs and stimulate economic growth through enhancements in the country’s tax incentives regime, making it more competitive and attractive to both domestic and international investors,” PHILEXPORT president Sergio Ortiz-Luis Jr. said.
Ortiz-Luis said CREATE MORE is a government response to feedback gathered from the business community aimed at streamlining processes.
“We are grateful to President Marcos Jr.’s administration for its commitment to advancing policies that foster growth and innovation in our sector—and that includes bringing in business people like Secretary (Frederick) Go (of the Office of the Special Assistant to the President for Investment and Economic Affairs) into his team. This shows concrete proof of the government’s sincere efforts to hear our voices and lay the groundwork for a more sustainable and prosperous economy and future for our people,” he said.
The Management Association of the Philippines earlier said the CREATE MORE will help improve the global competitiveness of the Philippines by improving the ease of doing business, sustaining an enabling business environment for local and foreign investors, and attracting greater and more diverse job-creating investments for more Filipinos to be gainfully employed. (PNA)
