The Semiconductor and Electronics Industries in the Philippines Inc. revised its 2021 growth projections to 7 percent from 5 percent.
The group also revised its 2020 exports growth target to -5 percent from -15 percent.
“We’ve upgraded our industry projection from -15 percent contraction to -5 percent due to COVID and higher cost of operations. Our 2021 forecast is +7 percent, assuming favorable CREATE [Corporate Recovery and Tax Incentives for Enterprises] outcome and availability of vaccine,” said SEIPI president Dan Lachica.
The CREATE bill, if approved, will reduce the corporate income tax rate from 30 percent to 25 percent. It also has a provision on the grandfather rule that will allow corporations to keep or maintain their existing incentives.
The measure will allow companies, especially export enterprises, to heal quickly and recover from COVID-induced crisis, Lachica said.