Stimulus bill to combat COVID-19 fallout gets business’ support

The country’s largest business group is backing the proposed stimulus package prepared by lawmakers at the House of Representatives, as it hoped the Senate would also file a counterpart bill to address the economic meltdown brought about by the pandemic.

In a statement on Monday, the Philippine Chamber of Commerce and Industry (PCCI) voiced its support for the proposed Philippine Economic Stimulus Act of 2020 (Pesa), aimed at helping the Philippine economy recover from the COVID-19 crisis. The bill, which consolidates the proposals of Albay 2nd District Rep. Joey Salceda and Marikina Rep. Stella Luz Quimbo, will inject P1.3 trillion into the economy.

It includes, among others, a budget of P650 billion for an expanded infrastructure program on health care, education and food security. It will also set aside hundreds of billions of wage subsidies and interest-free loans to micro, small and medium-sized (MSMEs) enterprises.PCCI president Benedicto Yujuico said the group two weeks ago drafted a road map identifying sectors that needed prioritization: construction, agrifishery and its supply chain, MSMEs and land transportation.

“The Pesa, as it currently stands, strongly supports and concretizes our road map and it is for this reason that we support the enactment of the bill subject to further enhancements,” he said.

PCCI said it hoped both chambers would immediately reconcile their versions of the bill.

However, the bill, as it stands now, does not have the full support of the Duterte administration’s chief economic manager. The Department of Finance instead wants Congress to act on the Corporate Income Tax and Incentives Rationalization Act (Citira).

The Citira, which will rationalize tax incentives and lower corporate income tax, has yet to muster votes from senators after getting the go signal from the House of Representatives last year. INQ