Philippines cuts corporate tax from 25% to 20%...Why?

The Philippines has lowered its corporate tax rate from 25% to 20% in order to attract domestic and foreign investment.
Indian President Marcos Benjamin Lee signed the CREATE MOREAct Act, which reduces corporate tax from 25% to 20%.
In addition, the period for which benefits such as import tariffs and value-added taxes are granted for strategic investments will be extended.
The agreement will extend the contract period from 10 years to 27 years and provide various benefits to companies. President Marcos Benjamin Lee said at the signing ceremony, "We are committed to building a globally competitive, investment-driven Philippine economy.
"Through this law, we will focus on the strategic industries that will shape our future and attract domestic and international investment," he said.
According to the United Nations Conference on Trade and Development (UNCTAD), foreign direct investment (FDI) into the Philippines last year was $6.2 billion (approximately 951,913,030,000 yen), followed by Singapore and
The figure is lower than other major Southeast Asian countries such as Indonesia and Vietnam. The AFP cited high electricity costs, foreign ownership restrictions and poor infrastructure as major obstacles to Philippine investment.
However, according to briefing materials released by the government, tax revenues will decrease by about $106 million over the next three years.
It is expected.