Ecozone officials alarmed over Senate version of incentives bill
Special economic zone officials have expressed apprehension over the current version of a Senate bill that seeks to grant amnesty and fiscal incentives only to export-oriented firms.
According to the ecozone officials who requested anonymity, the Senate bill was intended to restore the incentives that were stripped from their locators following a Supreme Court ruling that only the Subic Freeport was entitled to the incentives while other ecozones such as Clark and elsewhere in the country were not.
Unfortunately, the ecozone officials said, the pending Senate bill limits the grant of fiscal incentives and amnesty to export-oriented firms.
The sources said the limitation was a new addition to Senate Bill 2259 which originally sought to cover all locators in the Clark Special Economic Zone, John Hay, Poro Point, Morong and other special ecozones.
If the Senate bill is passed with the limitation to export-oriented firms, the ecozones officials pointed out, foreign and local locators in the disenfranchised ecozones would have to return all the incentives they enjoyed since the early 1990s.
They would also have to pay the regular tax rate instead of the preferential five-percent of gross corporate income tax. To avert the possible adverse effect to existing ecozone locators, Mala-cañang has reportedly asked the House of Representatives and the Senate to came out with remedial legislations.
The upper chamber come out with SB 2259 while the Lower House has presented House Bill 5064 which would grant amnesty and incentives to all types of enterprises located within the ecozones. However, the Senate version limits the grant of perks to export-oriented firms.
The limitation, sources said, would endanger not only the existing locators, but also the new investments that are expected to come in.
Ecozone locators such as power utility firms would be adversely affected, making the cost of electricity in the ecozones rise which, in turn, would turn off potential investors looking for low power cost.
Based on their computation, source said, the loss of fiscal incentives such as duty-free importation of capital equipment and raw materials would translate to at least a 30 percent increase in electricity and water rates as the utilities firms would have to add the cost of their tax payments.
"This is bad because right now, our power rate is already among the highest in the region," the officials said. By Marianne V. Go - The Philippine Star
According to the ecozone officials who requested anonymity, the Senate bill was intended to restore the incentives that were stripped from their locators following a Supreme Court ruling that only the Subic Freeport was entitled to the incentives while other ecozones such as Clark and elsewhere in the country were not.
Unfortunately, the ecozone officials said, the pending Senate bill limits the grant of fiscal incentives and amnesty to export-oriented firms.
The sources said the limitation was a new addition to Senate Bill 2259 which originally sought to cover all locators in the Clark Special Economic Zone, John Hay, Poro Point, Morong and other special ecozones.
If the Senate bill is passed with the limitation to export-oriented firms, the ecozones officials pointed out, foreign and local locators in the disenfranchised ecozones would have to return all the incentives they enjoyed since the early 1990s.
They would also have to pay the regular tax rate instead of the preferential five-percent of gross corporate income tax. To avert the possible adverse effect to existing ecozone locators, Mala-cañang has reportedly asked the House of Representatives and the Senate to came out with remedial legislations.
The upper chamber come out with SB 2259 while the Lower House has presented House Bill 5064 which would grant amnesty and incentives to all types of enterprises located within the ecozones. However, the Senate version limits the grant of perks to export-oriented firms.
The limitation, sources said, would endanger not only the existing locators, but also the new investments that are expected to come in.
Ecozone locators such as power utility firms would be adversely affected, making the cost of electricity in the ecozones rise which, in turn, would turn off potential investors looking for low power cost.
Based on their computation, source said, the loss of fiscal incentives such as duty-free importation of capital equipment and raw materials would translate to at least a 30 percent increase in electricity and water rates as the utilities firms would have to add the cost of their tax payments.
"This is bad because right now, our power rate is already among the highest in the region," the officials said. By Marianne V. Go - The Philippine Star
posted by OlongapoCity Zambales at
9:38 AM
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