Congress urged to restore perks for all economic zone locators
The National Economic and Development Authority (NEDA) is urging Congress to come up with a law clarifying the tax incentives for locators at economic zones.
NEDA deputy director-general Nestor R. Mijares IV suggested that lawmakers, for starters, resolve the issue of incentives for businesses at the Clark Special Economic Zone.
The Supreme Court recently forfeited the tax privileges enjoyed by Clark locators. It ruled that the Clark Special Economic Zone should not enjoy the incentives granted to the Subic Special Economic and Free Port Zone in the absence of an express grant of the same perks under Republic Act 7227, also known as the Bases Conversion and Development Act of 1992.
"Even if we want to give incentives to Clark locators, the legal framework does not allow it. It would only be through legislation that we could allow it," Mr. Mijares said.
The NEDA official said discussions on the tax perks could be incorporated in a planned law rationalizing the government’s fiscal incentives.
The House of Representatives is currently deliberating the Rationalization of Fiscal Incentives Bill. It is part of the Arroyo administration’s legislative agenda aimed at boosting revenues.
Sen. Richard J. Gordon, meanwhile, has filed a separate bill specifically seeking to restore the tax and other incentives given for ecozone locators.
Affected by the Supreme Court decision, in addition to Clark, are investors in Camp John Hay, Poro Point and other ecozones.
"Because of this unexpected development has been perceived as suddenly changing the rules in the middle of the game, some investors have threatened to shut down operations and layoff workers, with some already contemplating the country," Mr. Gordon said in the bill’s explanatory note.
Senate Bill 2098 explicitly allows businesses and enterprises within SPEZs created under the bases conversion law the perks granted to Subic locators
NEDA deputy director-general Nestor R. Mijares IV suggested that lawmakers, for starters, resolve the issue of incentives for businesses at the Clark Special Economic Zone.
The Supreme Court recently forfeited the tax privileges enjoyed by Clark locators. It ruled that the Clark Special Economic Zone should not enjoy the incentives granted to the Subic Special Economic and Free Port Zone in the absence of an express grant of the same perks under Republic Act 7227, also known as the Bases Conversion and Development Act of 1992.
"Even if we want to give incentives to Clark locators, the legal framework does not allow it. It would only be through legislation that we could allow it," Mr. Mijares said.
The NEDA official said discussions on the tax perks could be incorporated in a planned law rationalizing the government’s fiscal incentives.
The House of Representatives is currently deliberating the Rationalization of Fiscal Incentives Bill. It is part of the Arroyo administration’s legislative agenda aimed at boosting revenues.
Sen. Richard J. Gordon, meanwhile, has filed a separate bill specifically seeking to restore the tax and other incentives given for ecozone locators.
Affected by the Supreme Court decision, in addition to Clark, are investors in Camp John Hay, Poro Point and other ecozones.
"Because of this unexpected development has been perceived as suddenly changing the rules in the middle of the game, some investors have threatened to shut down operations and layoff workers, with some already contemplating the country," Mr. Gordon said in the bill’s explanatory note.
Senate Bill 2098 explicitly allows businesses and enterprises within SPEZs created under the bases conversion law the perks granted to Subic locators
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