CREATE MORE Act decreases corporate income tax

📷Former Bayan Muna Rep. Neri Colmenares

Former Bayan Muna Representative Neri Colmenares expressed that although the CREATE MORE Act offers tax reductions for small and medium enterprises, it indiscriminately lowers corporate income taxes.

In an interview with the At The Forefront program on Bilyonaryo News Channel, Colmenares emphasized that the obstacles to investment in the Philippines are not primarily related to taxation; instead, they arise from a range of issues, including insufficient infrastructure and corruption.

The former legislator contends that these challenges should be the central focus of any reform initiatives, advocating for changes that align with constitutional principles and promote progressive taxation, where individuals contribute a higher percentage as their income increases.

It is noteworthy that Bayan Muna has opposed value-added tax (VAT) and other consumption taxes, as they do not reflect a progressive taxation system.

Colmenares stated, “The reduction of corporate tax rates is not advantageous; if tax revenue is to be generated, it should predominantly come from large corporations and billionaires. This raises the question of why these entities should be exempt from such taxes. We have previously opposed this measure and will persist in doing so, regardless of any future attempts to reintroduce or create additional legislation.” (ZIA LUNA)