We are working towards a vision of the private sector where bustling local enterprises coexist, cooperate, and collaborate with foreign companies, all contributing to a fair, innovative, and socially conscious Philippine business environment.

Over the past years, macroeconomic factors suggest that we are on the right track with our stellar economic growth, much improved credit ratings, and the highest capital investment of US$8.74 billion from inward FDI in the last six years with over 58,000 associated jobs created in 2015.

However, there is still a lot we can do to attract and retain foreign investors to stimulate even more economic growth and achieve prosperity for more Filipinos. Furthermore, we must seize the opportunity to be a leader in the ASEAN as we harmonize our economies as a region.

It is imperative that we evaluate our corporate tax system. At present, we have the highest corporate income tax rate in the ASEAN at 30%. When the ASEAN Economic Community Declaration was signed, most members began to lower their own corporate income tax rates. Thailand gradually reduced its corporate income tax rate from 30% to 23%, and now it stands at 20%. Vietnam also lowered its corporate income tax rate from 25% to 20%. The average corporate income tax rate in the ASEAN is at 23%.

For the Philippines to attract more investors and to lure in more capital, we must be able to compete with our peers. Though this may result in a lower revenue collection for the government, the multiplier effect of having more investment, expanding our tax base and increasing economic activities will be tremendous.

In view of the foregoing, immediate approval of this bill is earnestly sought.