Congress to prioritize EPIRA changes as Senate junks ‘Cha-cha’
THE PHILIPPINE Senate would put proposals to change the 1987 Constitution on the back burner and would instead focus on measures to boost the military amid growing tensions with China, according to the Senate president.
The chamber would also pass bills that seek to boost healthcare and jobs while easing hunger, Senate President Francis “Chiz” G. Escudero said in a speech as Congress resumed sessions on Monday.
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At the weekend, he said they would tackle a proposal to amend the Electric Power Industry Reform Act (EPIRA) amid blackouts.
The Senate will also push changes to the Corporate Recovery and Tax Incentives for Enterprises (CREATE), particularly lower taxes on domestic and foreign companies.
Mr. Escudero said Congress should go beyond laws that only benefit big business, and find solutions to problems with healthcare, joblessness and poverty.
“We will take peaceful measures to defend our people’s right to sail in our seas and fish in our waters, as what our ancestors had done, and what our children and grandchildren shall do,” he added.
The Senate in December passed a bill that seeks to boost the country’s defense program through investments in local defense equipment manufacturing. The measure will give the Department of National Defense P1 billion in seed funding.
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Also on Monday, Speaker and Leyte Rep. Ferdinand Martin G. Romualdez said the House of Representatives would also seek changes to EPIRA.
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He said changes to EPIRA, which liberalized the power industry, would bring down electricity prices and ease inflation.
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It would now fast-track changes to EPIRA and a bill that seeks to extend the lease period for foreign investors. Other pending measures include amendments to the Agrarian Reform law and another that will modernize national defense.
“We have to continue building roads, highways, ports, school buildings and climate change-proof structures to maintain and expand economic growth,” Mr. Romualdez said. “I emphasize our commitment to pass the remaining priority bills before the end of the third regular session.”
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Jose Enrique “Sonny” A. Africa, executive director of think tank IBON Foundation, said it is wrong to equate economic progress with growth given the increasing number of poor Filipino families.
“Most Filipinos haven’t become better off because of this growth,” he told BusinessWorld. “The number of self-rated poor families has soared by 3.4 million since the start of the Marcos administration from 12.6 million in June 2022 to 16 million in June 2024.”
Related:
Philippines Eyes Constitutional Amendments to Ease Economic Restrictions
The amendments, he said, will allow lawmakers to “regulate” economic sectors that can be opened for foreign investors.
Foreign business chambers have been urging Congress to lift current limits to foreign investment, including the so-called 60-40 rule, which caps foreign ownership of local firms at 40%.
Find Out The Bills That PH, Foreign Chambers Want Marcos To Prioritize
Top of the list is the liberalization of foreign equity restrictions in the Constitution, which sought to remove limitations for foreign investors in participating in economic activities in the country.
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Signatories to the letter are the American Chamber of Commerce of the Philippines, Inc., the Association of International Shipping Lines, Inc., the Canadian Chamber of Commerce of the Philippines, Inc., the Chamber of Customs Brokers, Inc., the Confederation of Wearable Exporters of the Philippines, the European Chamber of Commerce of the Philippines, the Japanese Chamber of Commerce and Industry of the Philippines, Inc., the Korean Chamber of Commerce Philippines, the Makati Business Club, the Management Association of the Philippines, the Philippine Association of Multinational Companies Regional Headquarters, Incorporated (PAMURI), and the Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (PNA).
Rethinking the necessity of amending economic provisions of 1987 Constitution
It is worth mentioning that some of the needed legislation that would potentially be instrumental if implemented effectively and fully in shaping the country’s competitiveness include the game changer Corporate Recovery and Tax Incentives for Enterprises Act (Create); amendments to the Retail Trade Liberalization Act (RTLA), the Foreign Investment Act (FIA) and the Public Service Act (PSA); and the passage of the Ease of Doing Business Act.
Create was signed into law on March 26, 2021 to attract more FDI by providing fiscal relief. It lowers the corporate tax rate from 30 percent to 25 percent. This number will be reduced by 1 percentage point annually from 2023 to 2027. Before this law, the Philippines had one of the highest corporate income tax among Asean (Association of Southeast Asian Nations) member states, if not the highest. Create intends to rationalize fiscal incentives to attract more local and foreign enterprises to invest in the country. Meanwhile, the RTLA, enacted on Dec. 10, 2021, lowers the paid-up capital requirement for foreign retail enterprises. It will simplify and ease restrictions for foreign retailers that want to set up business in the country.
Ms. Cat’s Chronicles 