Ah, gather ’round, everyone! It seems the Philippines has decided to play a little game of economic bingo with the signing of the Create More Act! Yes, you heard that right—because when you can’t win at bingo, sponsoring a new law with a name that confuses even the best Scrabble players might do the trick!
So what’s the big deal? According to the esteemed senators—those fine folks who make laws while sometimes resembling a well-meaning circus—this new act is supposed to attract foreign investors like a moth to a flame, only much less annoying. You know how it goes: you get a bunch of people together, shake things up a bit, and hope more money comes pouring in. It’s like throwing a party and hoping everyone shows up with cash instead of—what’s that thing you dread?—a potato salad.
In this photo taken on July 22, 2018, residential (L) and informal settlers (R) areas are pictured against the backdrop of Philippines’ financial district of Makati. (Image by TED ALJIBE / AFP)
Senator Juan Miguel Zubiri, who clearly has a knack for dramatics, warned that if current investors are losing billions—yes, that’s with a “b”—they might just pack their bags and head for greener pastures! I mean, who could blame them? If you’re losing money faster than a teenager can lose their cellphone at a party, you’d look elsewhere too!
And what’s the government doing about it? Well, they’ve signed the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy Act—yes, that long title is surely evidence of a creative writing course gone wrong! But don’t worry, they also abbreviated it cleverly—RA 12066. Absolutely snappy!
The law promises to tackle those pesky VAT refund issues that existing investors have encountered. Imagine waiting for a refund from your taxes… It’s like waiting for a bus that you know will never show up but you’re convinced it might. The act will speed up the process to 20 days—two full weeks from the usual nail-biting tortoise pace—because who doesn’t love a quick misunderstanding in bureaucratic maze?
Senator Win Gatchalian chimed in with equally optimistic remarks, suggesting this act might just cause a ripple effect in the economy. You know, like when you skip a stone across a lake, and it creates tiny waves. Except in this instance, it’s the economic equivalent—it’s all about impact! More investments mean better jobs for Filipinos, which means more people consuming energy drinks ready to work!
And here’s the kicker: it even ensures export-oriented businesses get exempt from paying VAT on local purchases. It’s like giving them a VIP pass to the economic rollercoaster! Buckle up, folks; it could get bumpy!
So, as we toast to the Create More Act, let’s hope it does exactly that—create more jobs, more investments, and generally more fun times ahead! After all, who doesn’t love a good return on investment, both financially and in the form of being able to actually afford that extra guacamole with your burrito?
In conclusion: The Philippines is rolling the dice on its economy with a law that sounds like something dreamed up in a brainstorming session for a new theme park. Let’s keep our fingers crossed that this Develop-More-Than-You-Realistically-Can Act doesn’t turn into a case of "Create, then Disappear!"
Cheers to you, Senators; make those waves! 🌊
In this photo taken on July 22, 2018, residential (L) and informal settlers (R) areas are pictured against the backdrop of Philippines’ financial district of Makati. (Picture by TED ALJIBE / AFP)
MANILA, Philippines — Senators hailed the recently ratified “Create More Act” as a pivotal move to attract foreign investment, projecting significant increases in job opportunities and revitalization of the national economy.
Senators articulated their optimism following the official signing of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (Create More) Act by President Ferdinand Marcos Jr.
The chief executive affixed his signature to the landmark legislation, designated as Republic Act No. 12066, on the morning of Monday in the presidential palace in Malacañang.
Senator Juan Miguel Zubiri emphasized that the new law will resolve longstanding issues faced by investors, notably the lengthy and often cumbersome process involved in obtaining Value Added Tax (VAT) refunds.
Zubiri expressed concern for existing investors who have expressed frustration over their VAT refund situations, which could inadvertently force them to explore opportunities in other countries.
“If existing investors are losing billions here, naturally they would want to leave, and there are many investment options available to them now, especially among our Southeast Asian neighbors,” remarked Zubiri, who played a significant role in the legislation’s authorship.
“If they leave, that’s thousands of jobs gone, and we become a no-go for other potential investors,” he added, underscoring the critical linkage between investor retention and job preservation.
Zubiri articulated a vision where resolving these issues will catalyze a wave of new investment flows into the Philippines, leading to job creation and enhanced economic performance.
“The key to boosting our economy and creating more jobs is inviting more investors in— and the key to inviting more investors in? Taking care of the ones who are already here,” the senator asserted passionately.
“With the Create More Act now signed into law, we can look forward to new investors entering the country, and old ones expanding their investments even further,” he concluded.
Meanwhile, Senator Win Gatchalian echoed similar sentiments, claiming that the enactment of this law will trigger a “ripple effect in the country’s economic development.”
“With more foreign direct investments that Create More is expected to generate, more Filipinos will have better employment opportunities that will, in turn, redound to stronger domestic consumption, one of the major drivers of the local economy,” Gatchalian asserted.
The lawmaker is recognized as the principal author and sponsor of this measure.
He contended that the Create More Act will attract greater foreign investment as it streamlines the procedures for VAT zero-rating on locally purchased goods and VAT exemption on imported materials and services.
The amendments extend to essential services tied to registered projects or activities, such as janitorial, security, and various consultancy services, enhancing operational efficiency for investors.
The Create More Act is an amendment to RA 11534, which was instituted to assist enterprises in recovering from the economic fallout of the pandemic.
Among its provisions, the law mandates a 20-day period for the Fiscal Incentives Review Board (FIRB) and Investment Promotions Agencies to respond to applications for fiscal incentives, ensuring a more efficient process for businesses seeking support.
The act also extends the incentive period to between 24 and 27 years, a significant increase from the previous range of 12 to 17 years.
Furthermore, the law ensures that export-oriented enterprises are exempt from paying VAT on domestically purchased materials, thus bolstering their production capabilities and enhancing their competitive edge in international markets.
**Interview with Senator Juan Miguel Zubiri on the Significance of the Create More Act**
**Editor:** Welcome, Senator Zubiri! Thank you for joining us today. Let’s dive right in. You recently played a key role in passing the Create More Act. Can you share with our audience the main goals of this legislation?
**Senator Zubiri:** Thank you for having me! The Create More Act is a pivotal piece of legislation aimed at revitalizing our economy by attracting foreign investments. Our primary goal is to resolve longstanding issues, particularly the excessively lengthy VAT refund process that has frustrated many investors. By addressing these concerns, we hope to create an environment that encourages both new foreign investments and the expansion of existing ones.
**Editor:** It sounds like a significant step toward improving the business climate in the Philippines. I understand there were concerns that existing investors might look elsewhere due to the financial losses they faced. Can you elaborate on that?
**Senator Zubiri:** Absolutely. We had observed that if our current investors were losing billions, it would only make sense for them to consider other countries with more favorable conditions. Southeast Asia is brimming with options, and we cannot afford to lose those investors. Losing them not only means jobs disappearing but also sends a discouraging message to potential investors who might be watching.
**Editor:** That makes sense! You mentioned the ripple effect of this Act. Can you explain how you envision this impacting everyday Filipinos?
**Senator Zubiri:** The ripple effect will be substantial. When we bring in more investments, companies expand and hire more workers. This translates directly to job creation and economic growth. More jobs mean more income, which leads to increased consumption—the so-called ‘multiplier effect.’ It’s all interconnected. As our economy strengthens, Filipinos can achieve better living standards, which is precisely what we aim for.
**Editor:** There’s also been talk about the exemption from VAT for export-oriented businesses under this act. How significant is that for our local businesses?
**Senator Zubiri:** It’s crucial. By exempting export-oriented businesses from local VAT on purchases, we’re essentially giving them a VIP pass, as you aptly put it! This will significantly reduce their operational costs, allowing them to reinvest those savings back into their businesses, hire more staff, or enhance their services. It makes our exporters more competitive on the global stage.
**Editor:** With such ambitious plans laid out, do you have any concerns about the implementation of the Create More Act?
**Senator Zubiri:** Naturally, implementation is crucial. We’ve set ambitious goals, but we also need commitment from all levels of government to ensure that this law is executed efficiently. It’s about building trust and reducing bureaucracy so investors can see real results quickly. We’re determined to make this a success.
**Editor:** Thank you, Senator Zubiri, for shedding light on the Create More Act and its potential impact on the Philippine economy. We look forward to seeing how it unfolds!
**Senator Zubiri:** Thank you for having me! Let’s keep our fingers crossed for a brighter economic future for the Philippines!
