DTI favors status quo on corporate tax
The Department of Trade and Industry prefers status quo over the Senate bill that would tax companies based on their ability to pay, pitting itself against the country’s group of exporters that wanted a more progressive taxation system.
Trade and Industry Secretary Ramon Lopez said that he would still have to study the issue before he would come up with a solid position. But for now, he was okay with status quo, wherein every company —no matter the size—pays the same corporate income tax (CIT) rate.
“I have to study it because it’s like you’re making it same as personal [income tax] basically,” he said last week, when asked for comment.
“In my view, we should stick to status quo in the meantime. It’s too progressive in my view,” he said, without expounding.
The Philippine Exporters Confederation Inc. is pushing for Senate Bill No. 595, which will essentially broaden the definition of corporate personhood, or the legal concept that corporations, like people, have rights too.
The bill, filed by Sen. Ralph Recto last July, argued that since companies were legally people too, they could sue and be sued and engage in contracts, among other liberties.
Recto wanted to extend this corporate personhood to apply to taxation as well, a process which would take effect immediately if the law is passed and would impose a CIT range of 5-percent to 25-percent.