Alyansa Para sa Pagbabago senatorial aspirant Benjamin “Benhur” Abalos Jr. lauded the recent signing of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, saying the new law is a “big boost for the economy.”
Abalos said the CREATE MORE law will address a major barrier to foreign direct investment, which is high electricity costs.
“With the Philippines having the highest electricity rates in Southeast Asia, this law will address a major deterrent for locators and investors by providing them additional deductions to offset the high electricity costs in the country,” he said.
He noted that in the Philippines, the average cost of electricity is US$0.18 or P11 per kilowatt-hour, compared to US$0.10 in Indonesia, US$0.08 in Vietnam, and US$0.03 in Malaysia.
The former secretary of the Department of the Interior and Local Government said having reliable electricity is critical in the government’s bid to attract more investments to create more jobs and improve the economy.
“A key question is, why is electricity so expensive, and why do some areas still lack reliable power supply? Reliable electricity is a necessity for our people and a critical factor for investment,” Abalos said.
He recalled that when he was DILG Secretary, the National Grid Corporation of the Philippines raised their problem in installing transmission lines, citing permit delays, with some taking up to 10 years.
Abalos noted he immediately created a committee to tackle the concern, and within six months, the DILG was able to assist NGCP in addressing the delays and setting up about 20 transmission lines in Mindanao.
He commended the effort of Congress, in particular the leadership of House Speaker Martin Romualdez and Senate President Francis Escudero, for prioritizing CREATE MORE.
The new law seeks to expedite VAT refunds and streamline documentation requirements to facilitate release of VAT refund claims.
It imposes a 20-day deadline for the Fiscal Incentives Review Board (FIRB) and Investment Promotion Agencies (IPAs) to respond to applications for tax incentives, improving processing efficiency.
