Roxas: Clark conversion to freeport would aggravate smuggling?
CLARK authorities have vowed to enforce strictly the campaign against smuggling in the economic zone following strong opposition by domestic industries to convert it into a freeport zone. The vow was aired Thursday by president and chief executive officer (CEO) Levy P. Laus of Clark Development Corp. during an interview after his speech before the joint meeting of 15 Rotary Clubs in Pampanga held at Rib-Eye Restaurant in Angeles City.
The Federation of Philippine Industries (FPI), headed by Jess Arranza, has prepared a position paper it submitted to Senator Ralph Recto and Representative Herminio Teves, chairmen of the Ways and Means Committees of the Senate and the House of Representatives, respectively, stating that “we could not in conscience stop registering our vehement opposition to Clark’s becoming a Freeport.”
Earlier, the Congressional bicameral conference committee approved in principle the reconciled House Bill and Senate Bills returning tax incentives and duty-free privileges to special economic zones in the country, similar to those being enjoyed by locators/investors at Subic Bay Freeport as provided for under RA Act or the Bases Conversion law. It will be recalled that the Clark Investors and Locators Association (Cila) passed a resolution recently “expressing its lost (sic) of confidence to immediate CDC past president Tony Ng” for alleged lax of security measures inside the zone.
This column learned later that some duty-free shop operators lost their confidence to Ng and even worked for his replacement because of his strict campaign against smuggling.
In its position paper, FPI stated that intelligence reports submitted to the Cabinet Oversight Committee on Anti-Smuggling have exposed “countless untaxed goods that passed through Clark.”
The same paper further stated that CDC “could not even explain the non-liquidation of imports and the so-called constructive exports where goods are categorized and brought out of Clark without payment of duties and taxes.”
According to Arranza, many Clark investors/locators have not liquidated for three to four years but still continued to import tax-free goods despite this violation.
FPI explained in its position paper that Clark zone should not be converted as a free port because Clark investors are already enjoying incentives for having been located in a special economic zone. It was also pointed out that the volume of goods, being shipped in Clark only by plane is minimal because it has no seaport, “hence converting Clark as a free port is unjustified.”
The Bases Conversion and Development Authority (BCDA) has lauded Congress for resolving the tax perks issue which spelled doom to Clark and other economic zone locators as a result of the Supreme Court decision on Oct. 24, 2003 declaring null and void the tax-free privileges which were granted temporarily through an executive order issued by former President Fidel Ramos.
The approval in principle by the bicameral conference committee of Congress on the reconciled Senate and Lower House Bills granting tax-free privileges in special economic zones will be effective and implemented only upon signing it into law by President Gloria Macapagal-Arroyo, according to some Clark locators/investors and CDC officials.
If not signed into law, economic zone locators/investors will be required to pay back taxes and duties as feared by many locators. However, Central Luzon senators and congressmen expressed hope that President Arroyo would sign the tax incentive bills for the protection of more than 40,000 persons employed in various duty-free shops and locators in Clark zone alone.
Furthermore, big-time foreign and local investors will not be forced to transfer their operations in other tax-friendly nations. When the high cribunal removed the tax privileges in special economic zone, many locators/investors have threatened to leave Clark zone.
Officials of Cila and the Metro Clark Advisory Council have appealed to President Arroyo to sign into law the reconciled tax incentive bills, saying that the efforts and sacrifices of the “silent heroes” composed of CDC officials and employees in lobbying for the approval of the Senate and Lower tax perks bills save them from being “put to naught.”
The Federation of Philippine Industries (FPI), headed by Jess Arranza, has prepared a position paper it submitted to Senator Ralph Recto and Representative Herminio Teves, chairmen of the Ways and Means Committees of the Senate and the House of Representatives, respectively, stating that “we could not in conscience stop registering our vehement opposition to Clark’s becoming a Freeport.”
Earlier, the Congressional bicameral conference committee approved in principle the reconciled House Bill and Senate Bills returning tax incentives and duty-free privileges to special economic zones in the country, similar to those being enjoyed by locators/investors at Subic Bay Freeport as provided for under RA Act or the Bases Conversion law. It will be recalled that the Clark Investors and Locators Association (Cila) passed a resolution recently “expressing its lost (sic) of confidence to immediate CDC past president Tony Ng” for alleged lax of security measures inside the zone.
This column learned later that some duty-free shop operators lost their confidence to Ng and even worked for his replacement because of his strict campaign against smuggling.
In its position paper, FPI stated that intelligence reports submitted to the Cabinet Oversight Committee on Anti-Smuggling have exposed “countless untaxed goods that passed through Clark.”
The same paper further stated that CDC “could not even explain the non-liquidation of imports and the so-called constructive exports where goods are categorized and brought out of Clark without payment of duties and taxes.”
According to Arranza, many Clark investors/locators have not liquidated for three to four years but still continued to import tax-free goods despite this violation.
FPI explained in its position paper that Clark zone should not be converted as a free port because Clark investors are already enjoying incentives for having been located in a special economic zone. It was also pointed out that the volume of goods, being shipped in Clark only by plane is minimal because it has no seaport, “hence converting Clark as a free port is unjustified.”
The Bases Conversion and Development Authority (BCDA) has lauded Congress for resolving the tax perks issue which spelled doom to Clark and other economic zone locators as a result of the Supreme Court decision on Oct. 24, 2003 declaring null and void the tax-free privileges which were granted temporarily through an executive order issued by former President Fidel Ramos.
The approval in principle by the bicameral conference committee of Congress on the reconciled Senate and Lower House Bills granting tax-free privileges in special economic zones will be effective and implemented only upon signing it into law by President Gloria Macapagal-Arroyo, according to some Clark locators/investors and CDC officials.
If not signed into law, economic zone locators/investors will be required to pay back taxes and duties as feared by many locators. However, Central Luzon senators and congressmen expressed hope that President Arroyo would sign the tax incentive bills for the protection of more than 40,000 persons employed in various duty-free shops and locators in Clark zone alone.
Furthermore, big-time foreign and local investors will not be forced to transfer their operations in other tax-friendly nations. When the high cribunal removed the tax privileges in special economic zone, many locators/investors have threatened to leave Clark zone.
Officials of Cila and the Metro Clark Advisory Council have appealed to President Arroyo to sign into law the reconciled tax incentive bills, saying that the efforts and sacrifices of the “silent heroes” composed of CDC officials and employees in lobbying for the approval of the Senate and Lower tax perks bills save them from being “put to naught.”
By Fred Roxas - Countryside Pulse, Sun Star
posted by OlongapoCity Zambales at
7:16 PM
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