Statement of Senator Pia S. Cayetano
Chair, Committee on Ways and Means
February 18, 2020
The two top international credit rating agencies, first, Fitch Ratings, and now Moody’s have both given the Philippines an outlook upgrade. This signifies an upgrade from stable to positive.
This is good news because it sends a signal to the global business world that the Philippines is now a prime candidate for a credit ratings upgrade, which would mean lower borrowing costs from international creditors, both for the government and private sector investors.
The work I am currently doing on tax reforms in the Senate complements this.
Soon to be sponsored is Corporate Income Tax and Incentives Rationalization Act (CITIRA), which is made up of 2 parts: 1) gradually lowering corporate income tax from 30% to 20%; and 2) rationalizing fiscal incentives.
The CITIRA committee report I will be sponsoring is a product of numerous hearings and consultations with government representatives and the business sector. Knowing that we have reached out to all of them and have worked out very favorable terms for existing investors, the groups I have met expressed satisfaction and are now looking forward to the swift passage of the measure once it’s sponsored on the floor.