Bases conversion agency welcomes Clark tax perk restoration
CLARK ECOZONE -- The Bases Conversion and Development Authority (BCDA) has welcomed the restoration of tax incentives and duty-free privileges at the Clark Special Economic Zone (CSEZ).
BCDA president and CEO Narciso L. Abaya said the restoration of the tax and duty-free privileges in the ecozone should give a relief to the 342 locators and the 38,323 personnel employed in the former military base.
“We are still pushing for the long-term resolution of the tax incentives component of the laws transforming the former American military bases, particularly Clark, John Hay and Poro Point. Only legislation from Congress will be able to do that,” Abaya said.
President Gloria Macapagal-Arroyo recently signed Proclamation 1035 declaring the land in the former American military base as a special economic zone area under the Philippine Economic Zone Authority (Peza).
With the conversion of Clark into a Peza area, its locators and other firms conducting business in the BCDA subsidiary can now avail again of the tax incentive and duty free privileges revoked by the Supreme Court (SC) last year.
Proclamation No. 1035 designated 337,650 square meters of former military base located in Angeles City and the municipalities of Mabalacat and Porac, Pampanga as special economic zone.
It reiterated Proclamation 163 issued in 1996 by former President Fidel V. Ramos which designated the area covered by the CSEZ. The lands were later transferred to the BCDA for conversion to alternative productive uses and the promotion of the economic and social development for Central Luzon.
The Clark Development Cooperation (CDC) has been created to be an implementing and operating arm of the BCDA to manage the ecozone.
BCDA earlier hailed the move of Congress to restore these privileges in the CSEZ.
Senator Ralph Recto sponsored two bills that will restore the tax incentives now lost to the investors of Clark, John Hay and Poro Point.
The first bill will amend Republic Act 7227 (Bases Conversion Development Act) which explicitly states that locators in BCDA’s subsidiaries including Clark, John Hay, and Poro Point economic zones will enjoy a tax incentive of five percent of their gross income earned (GIE).
The second bill on the other hand will grant tax amnesty investors inside the three ecozones from the time they established stores until the amendments to RA 7227 takes effect.
The tax amnesty aims to address the possible retroactivity of application of the taxes because of the SC decision.
With these, there will no longer be tax liabilities for locators who established their investments in the economic zones.
Senate President Franklin Drilon and Senators Ralph Recto, and Richard Gordon have authored several bills for John Hay and other BCDA-administered ecozones in the rationalization of tax incentives.
The Congress has also supported House Bills 4900 and 4901 authored by Tarlac Representative Jesli Lapus. The bills will provide measures to resolve the tax incentives and duty-free issues in the former American military bases.
By Reynaldo G. Navales - Sun Star
BCDA president and CEO Narciso L. Abaya said the restoration of the tax and duty-free privileges in the ecozone should give a relief to the 342 locators and the 38,323 personnel employed in the former military base.
“We are still pushing for the long-term resolution of the tax incentives component of the laws transforming the former American military bases, particularly Clark, John Hay and Poro Point. Only legislation from Congress will be able to do that,” Abaya said.
President Gloria Macapagal-Arroyo recently signed Proclamation 1035 declaring the land in the former American military base as a special economic zone area under the Philippine Economic Zone Authority (Peza).
With the conversion of Clark into a Peza area, its locators and other firms conducting business in the BCDA subsidiary can now avail again of the tax incentive and duty free privileges revoked by the Supreme Court (SC) last year.
Proclamation No. 1035 designated 337,650 square meters of former military base located in Angeles City and the municipalities of Mabalacat and Porac, Pampanga as special economic zone.
It reiterated Proclamation 163 issued in 1996 by former President Fidel V. Ramos which designated the area covered by the CSEZ. The lands were later transferred to the BCDA for conversion to alternative productive uses and the promotion of the economic and social development for Central Luzon.
The Clark Development Cooperation (CDC) has been created to be an implementing and operating arm of the BCDA to manage the ecozone.
BCDA earlier hailed the move of Congress to restore these privileges in the CSEZ.
Senator Ralph Recto sponsored two bills that will restore the tax incentives now lost to the investors of Clark, John Hay and Poro Point.
The first bill will amend Republic Act 7227 (Bases Conversion Development Act) which explicitly states that locators in BCDA’s subsidiaries including Clark, John Hay, and Poro Point economic zones will enjoy a tax incentive of five percent of their gross income earned (GIE).
The second bill on the other hand will grant tax amnesty investors inside the three ecozones from the time they established stores until the amendments to RA 7227 takes effect.
The tax amnesty aims to address the possible retroactivity of application of the taxes because of the SC decision.
With these, there will no longer be tax liabilities for locators who established their investments in the economic zones.
Senate President Franklin Drilon and Senators Ralph Recto, and Richard Gordon have authored several bills for John Hay and other BCDA-administered ecozones in the rationalization of tax incentives.
The Congress has also supported House Bills 4900 and 4901 authored by Tarlac Representative Jesli Lapus. The bills will provide measures to resolve the tax incentives and duty-free issues in the former American military bases.
By Reynaldo G. Navales - Sun Star
posted by OlongapoCity Zambales at
8:19 AM
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