Stimulus for COVID Fight Nears, Senate Passes Bayanihan 2

(UPDATE) Without a vaccine, the fight against COVID-19 continues and the Bayanihan to Recover as One or Bayanihan 2 will provide a P140-billion stimulus to jump start the economy hobbled by business closures and layoffs, a House leader said Tuesday.

Albay Rep. Joey Salceda said the House passed its version of the bill, and the Senate approved it Tuesday afternoon—just a day after President Rodrigo Duterte, during his State of the Nation Address on Monday, asked the Senate and the House to pass the bill, as infections continued to rise.

Half of the stimulus will be given to government financial institutions, to allow them to extend loans for micro, small and medium enterprises, Salceda said, citing the House version. The remaining half will be for joint ventures that will help revive industries like travel and tourism, he said.

Salceda also called for the passage of the Corporate Recovery and Tax Incentives for Enterprises Act or CREATE bill, which seeks to reduce corporate income tax from 30% to 25%. Tax breaks are expected to encourage businessmen to protect jobs and avoid laying off workers during the pandemic.

“Nakalatag na po ang mga kailangang gawin ng gobyerno (What the government needs to do has been laid out.),” Salceda said.

A third stimulus is being eyed on top of the 2021 national budget, he said.