SOURCE: Press and Public Affairs Bureau
16 May 2022 04:13:18 PM
The House Committee on Ways and Means chaired by Rep. Joey Sarte Salceda (2nd District, Albay) conducted a briefing Monday on Revenue Memorandum Circular (RMC) No. 24-2022, which clarifies issues pertaining to the value-added tax (VAT) zero-rating provisions under Revenue Regulation No. 21-2021, particularly under Section 295 (D) Title XIII of the National Internal Revenue Code of 1997. This is in line with the additional tax incentives introduced by Republic Act 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law. Salceda underscored that the CREATE Law intends to protect registered business enterprises (RBEs) under the country’s Investment Promotion Agencies (IPAs), which are at the forefront of attracting foreign investments. However, he said that the CREATE implementing rules and regulations (IRR) crafted by the Bureau of Internal Revenue (BIR) would cause: 1) negative economic impact, as it favors importation over the purchase of domestic products, 2) undermining of contracts with foreign investors, and 3) sever cash flow constraints, particularly on small enterprises. Salceda then raised that the BIR did not consult with the House in formulating the IRR. Meanwhile, Philippine Economic Zone Authority (PEZA) Director General Charito Plaza thanked the panel for supporting the IPAs and the foreign businesses that seek to maintain their investments in the Philippines and continuously offer jobs to Filipinos. Prior to adjournment, Finance Assistant Secretaries Dakila Napao and Juvy Danofrata assured the legislators that they will revisit the provisions of the CREATE Law as well as other tax measures, including the Tax Reform for Acceleration and Inclusion (TRAIN) Act, to better reinforce the country’s economy and the sectors which keep it afloat.