Concerns over the new CREATE MORE act

BusinessWorld B-Side

Philippine President Ferdinand “Bongbong” Marcos Jr. has signed the CREATE MORE Act this November, a law that promises to attract more foreign investments and boost economic growth by reducing the corporate income tax rate from 25% to 20% for registered business enterprises (RBEs).

The CREATE MORE Act also offers a VAT zero-rating on essential services like marketing and human resources, among others, that are "directly attributable" to the registered project or activity of a registered company.

However, some economic experts have expressed concern that the newly signed law could potentially create more problems and undermine the existing CREATE Law, which was signed in March 2021.

To take a closer look at CREATE MORE, we spoke with Pia Rodrigo, a Communications Officer at Action for Economic Reforms.