Malig: Clark as Peza zone
By Jun A. Malig, Sun Star
BARELY two weeks ago, President Gloria Macapagal-Arroyo disclosed her intention to convert the Clark Special Economic Zone (CSEZ) into a zone under the Philippine Economic Zone Authority (Peza).
In a roundtable interaction with Manila and Pampanga-based journalists at the Holiday Inn Resort Clark Field last February 10, Mrs. Arroyo said subjecting CSEZ under the Peza law (Republic Act 7916) would enable hundreds of foreign and local business locators in the former United States military base to enjoy the same tax and duty privileges given to locators in Subic Freeport Zone in Zambales.
However, the President said placing CSEZ under the Peza would be resorted to only if the Supreme Court decided with finality that business locators at Clark are indeed not covered by tax and duty privileges as provided for by Republic Act (RA) 7227, the Bases Conversion and Development Act.
The tax incentives at Clark were authorized by Presidential Proclamation 420 of former President Fidel Ramos, pursuant to RA7227. It may be recalled that on Oct. 23, 2003 the Supreme Court nullified the second sentence of Section 3 of Presidential Proclamation 420 that granted tax incentives to business locators in Clark, John Hay, and in Poro Point. The high court clarified that the tax exemptions is lawful only in Subic Bay Freeport Zone, which is the only existing special economic zone when RA7227 was passed in 1992.
On Mar. 29, 2005, the high court confirmed with finality its Oct. 23, 2003 ruling through an en banc resolution (John Hay People's Alternative Coalition vs. Victor Lim, et al.) with GR No. 119775. The case was filed by the coalition on Apr. 25, 1995 when Lim was still the head of the Bases Conversion and Development Authority.
In response, the Clark Development Corp. (CDC) and the BCDA filed a motion for reconsideration before the high court. However, the Supreme Court junked the two agencies' petition in its ruling last December 13. The CDC got a copy of the high court resolution only last February 3.
CDC president Antonio Ng told this columnist last February 10 that the state-owned corporation had already re-filed another motion for reconsideration before the Supreme Court. He also disclosed that the CDC had formally applied before Peza last February 3, the same day it received its copy of the high court's unfavorable resolution. "The board of directors of Peza is set to meet and decide on our application on February 15," Ng added. (Perhaps Ng or the other high ranking officials of the CDC would like to enlighten the public on the outcome of Peza board meeting.)
In the interaction, Mrs. Arroyo said she would like to make Clark and Subic as her legacy. She said once Clark embraced the Peza law, all business locators at Clark, except the duty-free stores, would enjoy the privileges given to locators of Peza zones.
But duty-free stores would be given "transitory opportunity" to adjust to the shifting of policies, Ng disclosed to this columnist. Would this mean allowing duty-free stores like Puregold, Parkson and Oriental to continue selling their merchandise to anybody who happens to be at Clark? Well, I guess we have to wait for the texts of the "transitory" regulation to know the extent of such "opportunity".
During the interview, Ng reiterated his optimism that House Bills 4900 and 4901 sponsored by Tarlac Representative Jesli Lapus would soon provide reprieve to some 350 business locators at Clark. He said even if Clark becomes a Peza zone, it could again be reverted back to operate under the Bases Conversion and Development law (RA7227) once the bills of Lapus become laws.
After the media interaction, Mrs. Arroyo addressed the Fifth Conference on Philippine Rotary Concern also in Holiday Inn where she urged the Rotary governors to "use their moral influence" to help convince others in helping the government in its "poverty alleviation" program.
BARELY two weeks ago, President Gloria Macapagal-Arroyo disclosed her intention to convert the Clark Special Economic Zone (CSEZ) into a zone under the Philippine Economic Zone Authority (Peza).
In a roundtable interaction with Manila and Pampanga-based journalists at the Holiday Inn Resort Clark Field last February 10, Mrs. Arroyo said subjecting CSEZ under the Peza law (Republic Act 7916) would enable hundreds of foreign and local business locators in the former United States military base to enjoy the same tax and duty privileges given to locators in Subic Freeport Zone in Zambales.
However, the President said placing CSEZ under the Peza would be resorted to only if the Supreme Court decided with finality that business locators at Clark are indeed not covered by tax and duty privileges as provided for by Republic Act (RA) 7227, the Bases Conversion and Development Act.
The tax incentives at Clark were authorized by Presidential Proclamation 420 of former President Fidel Ramos, pursuant to RA7227. It may be recalled that on Oct. 23, 2003 the Supreme Court nullified the second sentence of Section 3 of Presidential Proclamation 420 that granted tax incentives to business locators in Clark, John Hay, and in Poro Point. The high court clarified that the tax exemptions is lawful only in Subic Bay Freeport Zone, which is the only existing special economic zone when RA7227 was passed in 1992.
On Mar. 29, 2005, the high court confirmed with finality its Oct. 23, 2003 ruling through an en banc resolution (John Hay People's Alternative Coalition vs. Victor Lim, et al.) with GR No. 119775. The case was filed by the coalition on Apr. 25, 1995 when Lim was still the head of the Bases Conversion and Development Authority.
In response, the Clark Development Corp. (CDC) and the BCDA filed a motion for reconsideration before the high court. However, the Supreme Court junked the two agencies' petition in its ruling last December 13. The CDC got a copy of the high court resolution only last February 3.
CDC president Antonio Ng told this columnist last February 10 that the state-owned corporation had already re-filed another motion for reconsideration before the Supreme Court. He also disclosed that the CDC had formally applied before Peza last February 3, the same day it received its copy of the high court's unfavorable resolution. "The board of directors of Peza is set to meet and decide on our application on February 15," Ng added. (Perhaps Ng or the other high ranking officials of the CDC would like to enlighten the public on the outcome of Peza board meeting.)
In the interaction, Mrs. Arroyo said she would like to make Clark and Subic as her legacy. She said once Clark embraced the Peza law, all business locators at Clark, except the duty-free stores, would enjoy the privileges given to locators of Peza zones.
But duty-free stores would be given "transitory opportunity" to adjust to the shifting of policies, Ng disclosed to this columnist. Would this mean allowing duty-free stores like Puregold, Parkson and Oriental to continue selling their merchandise to anybody who happens to be at Clark? Well, I guess we have to wait for the texts of the "transitory" regulation to know the extent of such "opportunity".
During the interview, Ng reiterated his optimism that House Bills 4900 and 4901 sponsored by Tarlac Representative Jesli Lapus would soon provide reprieve to some 350 business locators at Clark. He said even if Clark becomes a Peza zone, it could again be reverted back to operate under the Bases Conversion and Development law (RA7227) once the bills of Lapus become laws.
After the media interaction, Mrs. Arroyo addressed the Fifth Conference on Philippine Rotary Concern also in Holiday Inn where she urged the Rotary governors to "use their moral influence" to help convince others in helping the government in its "poverty alleviation" program.
posted by OlongapoCity Zambales at
1:29 AM
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