The Philippine Exporters Confederation, Inc. (PHILEXPORT) lauded the recent enactment of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) or Republic Act (RA) No. 12066, highlighting its benefits not only to the export industry but to the whole economy.

For its part, the Philippine Chamber of Commerce and Industry (PCCI)said local businesses, the export industry, and the whole economy will benefit from CREATE MORE.

“Given its investor-friendly features, the new legislation has the potential to create more jobs and stimulate economic growth through enhancements in the country’s tax incentives regime, making it more competitive and attractive to both domestic and international investors,” said PHILEXPORT president Sergio R. Ortiz-Luis Jr. who also leads the Employers Confederation of the Philippines (ECOP).

In ensuring that the amended law is responsive to industry needs, Ortiz-Luis cited the critical interventions and support of Special Assistant to the President for Investment and Economic Affairs, Frederick D. Go, and his office who championed the passage of the law.

“As we represent the interests of our entire sector, we would like to give credit where it is due. We recognize that it takes an entire village to get a piece of legislation passed, but it usually takes one individual championing it to see it through to completion. In the case of CREATE MORE, we found that ally in someone who fully understands how business and enterprise work, and that is Frederick Go,” said Ortiz-Luis. “Together with the leadership of our friends from other industry groups, including the Philippine Chamber of Commerce and Industry (PCCI), we saw and heard how he constantly assured us of exerting every effort and stopping at nothing to get CREATE MORE enacted into law. The President signing the law proved how he kept his word.”

The CREATE MORE Act extends the maximum duration of tax incentives from 17 years to 27 years, thereby encouraging long-term investments. It also introduces significant reforms such as a streamlined value-added tax (VAT) refund process, reduced corporate income tax rates for registered business enterprises (RBEs), and a simplified local taxation system. These changes are designed to promote transparency and predictability in business operations, fostering an environment where investors can thrive.

Furthermore, the law clarifies rules regarding VAT and duty incentives, expanding coverage to include non-registered exporters and high-value domestic market enterprises. By establishing clear timelines and compliance requirements, the government aims to enhance investor confidence and ensure a fair taxation system that benefits local businesses.

The PHILEXPORT leader likewise appreciates CREATE MORE as a government response to feedback gathered from the business community aimed at streamlining processes.

"We are grateful to President Marcos Jr.’s administration for its commitment to advancing policies that foster growth and innovation in our sector—and that includes bringing in business people like Secretary Go into his team. This shows concrete proof of the government’s sincere efforts to hear our voices and lay the groundwork for a more sustainable and prosperous economy and future for our people,” he said.

With the new law now up for implementation, the government is assured of continued private sector support in ensuring that CREATE MORE’s objectives are met.

"PHILEXPORT looks forward to collaborating with government officials and stakeholders to implement the provisions of this legislation effectively. We believe that with continued support, we can achieve our shared goals of economic development, job creation, and community well-being,” said Ortiz-Luis.

Meanwhile, the  PCCI welcomed in particular the simplification of tax administration, clearer guidelines for applying for tax incentives and the refinements made in the tax exemption system that offer performance-based tax holidays depending on an enterprise’s specific economic contributions.

PCCI president Eunina Mangio also said CREATE MORE is a crucial step toward further enabling local businesses, empowering small and medium enterprises, and enhancing the country’s attractiveness as an investment destination.
 
“These provisions significantly improve tax certainty and create a more sustainable incentive framework. Under a more favorable and predictable tax environment, businesses can better plan for long-term growth. We can likewise expect to foster more foreign direct investments to come in,” she said.
 
A feature of CREATE MORE that PCCI emphasized will boost the expansion of key industries is the deduction for power expenses to 100 percent from 50 percent.
 
“One of the major considerations for investing in energy-intensive industries such as manufacturing and data centers where our country is emerging as a preferred destination is (the) high cost of power. The increased deduction on power expenses is one way of addressing such concern,” Mangio said.
 
She said the Private Multi-Sectoral Group (PMSG) led by PCCI will be working closely with the Department of Finance and the Bureau of Internal Revenue to ensure that the CREATE MORE Act will be fully and consistently implemented according to the intent of the law.

Among the foreign chamber leaders, European Chamber of Commerce of the Philippines (ECCP) Executive Director Florian Gottein said a transparent and efficient rollout of the law will be essential to further enhance the Philippines’ tax regime and incentives framework, making it more attractive to both local and foreign investors.
 
"This will create a ripple effect, encouraging sustained investments, boosting job creation, and promoting a thriving business environment that supports inclusive growth," Gottein said.

The IT and Business Process Association of the Philippines (IBPAP), for its part, said the enactment of CREATE MORE is a "milestone for the business community in the Philippines."
 
"This translates to increased opportunities in the IT-BPM sector in creating an attractive and competitive business environment that will bring in new investments, create new jobs, upskill our workforce, and reinforce our position in the global market," IBPAP said.