LEGISLATORS must reinstate the 5% gross income tax (GIT) incentive in amendments to the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, the chip industry said, noting that the option to pay tax on the basis of gross income will make the Philippines more competitive.

“We would still hope to see the reinstatement of the 5% GIT, at least until Philippine operating costs are comparable with Vietnam, Malaysia & other ASEAN (Association of Southeast Asian Nations) competitors for foreign direct investments,” Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) President Dan Lachica said in a Viber message.

“The 5% GIT was part of the original agreement when foreign investors set up their factories in the Philippines,” Mr. Lachica added.

The House committee on ways and means approved the CREATE MORE bill in November 2023. A copy of the committee report was sent to reporters on Thursday.

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https://www.bworldonline.com/economy/2024/01/21/570243/chip-industry-bats-for-create-amendment-reinstating-5-git/