Early passage of JDV measure on Clark tax incentives sought

Early passage of JDV measure on Clark tax incentives sought Business leaders fear transfer of investors to China or Vietnam

By FRED ROXAS, MB

SAN FERNANDO CITY, Pampanga — Members of the provincial board have endorsed the early passage by Congress of a bill seeking the retention of tax and duty-free incentives to locators and investors at the Clark Special Economic Zone.

Joint House Resolution No. 9, originally authored by Speaker Jose de Venecia and co-authored by 180 congressmen, was designed to assure the 375 foreign and local investors-locators in Clark zone that the tax incentives they had been enjoying would be retained.

The House resolution was filed after the Supreme Court nullified last July 29 the tax incentives granted by Clark zone locators through an executive order issued by former President Ramos in 1993.

The De Venecia measure was endorsed by Pampanga Gov. Mark T. Lapid, members of the provincial board, in a recently approved resolution authored by Tars Halili.

The Pampanga Mayors League also passed a similar resolution authored by Marino Morales of Mabalacat.

Halili said that based on the Supreme Court decision, Clark locators-investors are required to pay back taxes for the past several years.

De Venecia’s measure is entitled "Joint Resolution confirming the legislative intent of the Bases Conversion and Development Act of 1992 (RA 7227) to grant tax and duty-free incentives to the Clark Special Economic Zone and other special economic zones created under Section 15 of the said Act."

Victor Jose Luciano, executive vice president of the Clark Development Corp. (CDC), said that Clark executives have been working on the retention of duty-free incentives to the investors. He said that Sen. Ralph Recto has sponsored a resolution in the Senate on the rationalization of tax incentives.

Central Luzon business and civic leaders headed by Romy P. Yusi Sr., regional governor for Central Luzon of the Philippine Chamber of Commerce and Industry Inc. (PPCCII), have joined local officials in endorsing the De Venecia resolution.

Yusi said that if the Supreme Court decision is enforced, foreign and local investors-locators in the Clark zone would transfer their operations to other tax-friendly nations, such as China and Vietnam.

Yusi said that this would result in the dislocation of some 34,600 workers.

He added that Clark’s estimated annual exports of $869 million and the locator’s tax contributions of more than R272 million yearly and CDC’s income of R38 million would be lost.

 

 

Visit  http://SubicBay.Ph
for latest developments in Olongapo Freeport City, GawangGapo, Sanggunian, BagumbayanVolunteers, InterGapo Wow Wow Win Subik edPiano