Gov’t drafts measures to keep incentives enjoyed by EPZ locators
By BERNIE CAHILES–MAGKILAT, MANILA BULLETIN
The government is eyeing some measures to enable locators inside Clark, Camp John Hay, Morong and Poro Point special economic zones to continue with their tax and fiscal incentives following the Supreme Court decision denying the government’s petition for reconsideration of its earlier ruling that declared null and void the incentives granted to the locators of these ecozones.
Trade and Industry Secretary Peter B. Favila said the two urgent options: To declare each of the affected ecozones as one huge customs bonded warehouse and get them registered with the Board of Investments or with the Philippine Export Processing Authority (PEZA).
According to Favila, he has talked to Finance Secretary Margarito Teves and Bureau of Customs commissioner Napoleon Morales about his proposal to assess the legality of such measures.
"This a temporary measure to assure investors they continue to enjoy the government perks on which their investments are promised to enjoy," he said.
If these are legal doable, Favila said, they would be allowed to register with the BoI and avail of income tax holiday incentives instead of the privilege of paying only five percent tax on gross income in lieu of all other taxes.
As a BoI-registered company, the firm would be slapped with the normal duty for its raw materials plus the value- added tax although it can avail of a duty drawback and VAT refund once it starts exporting.
The affected firms have also the option to register with the PEZA but there is a limitation to this because PEZA only grants incentives to export-oriented enterprises.
Favila stressed these measures are being looked into in tandem with the government efforts of passing a bill that would extend incentives to locators of the affected ecozones.
A bill granting incentives to locators in the four affected ecozones has been filed in both the Lower and Upper Houses of Congress and have been certified as urgent by the President.
Twenty congressmen from the Central Luzon bloc are supporting the passage of two bills House bills 4900 and 4901 sponsored by Tarlac 3rd District Representative Jesli Lapus to protect 36,000 workers, who may be displaced once the investors pullout from the affected ecozones.
HB 4900 calls for the declaration of a one-time amnesty on tax and duty free liabilities, including fines, penalties and interests incurred by locators inside special economic zones and freeports.
On the other hand, HB 4901 calls for the amendments to Republic Act (RA) 7227 or the Bases Conversion and Development Act of 1992.
It could be recalled that the Supreme Court voided the incentives to the four special ecozones, which were granted incentives through an Executive Order issued by then President Fidel V. Ramos based on Republic Act No. 7227 or the Bases Conversion and Development Act of 1992.
The court ruling said that the executive branch does not have the power to grant tax incentives as it is the purview of Congress.
Locators are also being apprised of the steps being taken by the government through Clark Development Corp. chairman Rizalino S. Navarro and CDC president Antonio Ng.(BCM)
The government is eyeing some measures to enable locators inside Clark, Camp John Hay, Morong and Poro Point special economic zones to continue with their tax and fiscal incentives following the Supreme Court decision denying the government’s petition for reconsideration of its earlier ruling that declared null and void the incentives granted to the locators of these ecozones.
Trade and Industry Secretary Peter B. Favila said the two urgent options: To declare each of the affected ecozones as one huge customs bonded warehouse and get them registered with the Board of Investments or with the Philippine Export Processing Authority (PEZA).
According to Favila, he has talked to Finance Secretary Margarito Teves and Bureau of Customs commissioner Napoleon Morales about his proposal to assess the legality of such measures.
"This a temporary measure to assure investors they continue to enjoy the government perks on which their investments are promised to enjoy," he said.
If these are legal doable, Favila said, they would be allowed to register with the BoI and avail of income tax holiday incentives instead of the privilege of paying only five percent tax on gross income in lieu of all other taxes.
As a BoI-registered company, the firm would be slapped with the normal duty for its raw materials plus the value- added tax although it can avail of a duty drawback and VAT refund once it starts exporting.
The affected firms have also the option to register with the PEZA but there is a limitation to this because PEZA only grants incentives to export-oriented enterprises.
Favila stressed these measures are being looked into in tandem with the government efforts of passing a bill that would extend incentives to locators of the affected ecozones.
A bill granting incentives to locators in the four affected ecozones has been filed in both the Lower and Upper Houses of Congress and have been certified as urgent by the President.
Twenty congressmen from the Central Luzon bloc are supporting the passage of two bills House bills 4900 and 4901 sponsored by Tarlac 3rd District Representative Jesli Lapus to protect 36,000 workers, who may be displaced once the investors pullout from the affected ecozones.
HB 4900 calls for the declaration of a one-time amnesty on tax and duty free liabilities, including fines, penalties and interests incurred by locators inside special economic zones and freeports.
On the other hand, HB 4901 calls for the amendments to Republic Act (RA) 7227 or the Bases Conversion and Development Act of 1992.
It could be recalled that the Supreme Court voided the incentives to the four special ecozones, which were granted incentives through an Executive Order issued by then President Fidel V. Ramos based on Republic Act No. 7227 or the Bases Conversion and Development Act of 1992.
The court ruling said that the executive branch does not have the power to grant tax incentives as it is the purview of Congress.
Locators are also being apprised of the steps being taken by the government through Clark Development Corp. chairman Rizalino S. Navarro and CDC president Antonio Ng.(BCM)
posted by OlongapoCity Zambales at
8:31 PM
0 Comments:
Post a Comment
<< Home