Business Bayani PH

Secretary Frederick Go from the Office of the Special Assistant to the President for Investment and Economic Affairs is making important changes in a move to make it easier for local and foreign investors. These changes are part of the effort to improve the Corporate Recovery and Tax Incentives for Enterprises Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) bill.

Go highlighted the top priorities at the Economic and Ease of Doing Business briefing on January 24, organized by the Anti-Red Tape Authority (ARTA). One key focus is restoring power to Investment Promotion Agencies (IPAs). 

Speaking before the audience, Go said, “We want to restore the powers of the investment promotion agencies… We want to give the IPAs back their power over their own locators in their respective zones.” This move aims to reduce bureaucracy and make it faster for companies to get incentives.

He emphasized that bringing back autonomy to IPAs will protect companies from confusing rules and unnecessary delays. This change is intended to speed up the process for companies to apply for incentives and go back to how things were before the CREATE Law in 2021.

Go is also proposing a longer time, 12 years, for businesses to enjoy incentives under the CREATE bill. Currently, the law sets a limit on how long businesses can get tax perks. Go thinks a longer time will help businesses plan better and align with global practices.

According to Go, “I think the main objective of CREATE is to harmonize the income tax incentives that investors can enjoy that are subject to a sunset provision.” 

He explained that in economic zones worldwide, businesses usually get tax breaks for a longer time. This is different from what the CREATE law currently allows.

To simplify things further, Go wants to work with Congress to clear up confusion about VAT (value-added tax) rules. He aims to make it easier for businesses to get VAT refunds. His idea includes reducing paperwork and letting businesses ask for a reconsideration if their request is denied.

In supporting a business-friendly environment, Go stressed the need to get rid of old and confusing laws. He said, “It burdens the public. It burdens enterprises. Sometimes everybody’s confused which one are we supposed to follow, because they overlap or they conflict… Which law do you follow?”

To sum it up, Go’s goal is clear: “Our goals are to improve the ease of doing business, to reduce the costs of doing business, and to find solutions to the bureaucratic challenges to create a conducive and enabling environment for both domestic and foreign enterprises.” 

These changes aim to make it simpler and more attractive for businesses to invest, signaling positive prospects for economic growth.◼