Ecozone bills signed into law
PRESIDENT Gloria Macapagal Arroyo yesterday signed into law Republic Act 9400 providing tax privileges to enterprises operating within former military bases that have been converted into free ports or special economic zones in a bid to maintain and enhance the advantages that investors enjoy.
The President also signed into law Republic Act 9399 which declares a one-time amnesty on tax and duty liabilities incurred by certain enterprises within the said free ports or special economic zones as a result of the Supreme Court ruling in July 2005 revoking tax incentives to these entities.
The two new laws, which were signed by the President at the Clark Special Economic Zone in Pampanga, will benefit locators at Clark Field in Pampanga, Poro Point in La Union, Camp John Hay in Baguio and Morong in Bataan.
Significantly, the 4,400 hectare-Clark has been classified as a free port under RA 9400, which amends several provisions of the Bases Conversion and Development Act of 1992.
This means that Clark has been accorded the same status as the Subic Freeport and Special Economic Zone and can now be operated as a separate customs territory ensuring the free flow or movement of goods and capital equipment within, into and exported out of the economic free zone.
It shall also provide incentives such as tax and duty-free importation of raw materials and capital equipment to investors.
But the new law requires that exportations or removal of goods from the Clark territory to other parts of the Philippines shall be subject to customs duties and taxes.
CDC president Levy Laus said the new law specifically excludes a 30-hectare area near Clark’s main gate and the 7.5-hectare Bayanihan Park from being part of the freeport zone.
The former Clark Air Base is under the administration of the Clark Development Corp. Another 29,000 of reverted base lands are located in Angeles City, Mabalacat and Pork towns in Pampanga and Capas and Bamban in Tarlac and will be under the jurisdiction of the Philippine Economic Zone Authority.
“The said areas will not enjoy the same tax incentives extended to locators inside the designated free port area. This will give local business enterprises a level playing field,” Laus said.
Senator Ralph Recto, chairman of the Senate committee on ways and means, sponsored the enactment of the two Clark bills after the Supreme Court issued the ruling rescinding the tax and duty free privileges of the locators inside the special economic zone due to legal infirmities.
Malacañang and Congress gave priority to the approval of these bills in the wake of the threat of investors and locators to pull out of Clark unless the incentives were restored.
Under RA 9399, business enterprises operating in the said special economic zones shall be entitled to remedial amnesty for tax and duty liabilities, including fines, penalties, and interests. The law states that the enterprises are required to pay P25,000 amnesty tax within six months after the effectivity of the act.
The amendments to the BCDA Law include the declaration of Poro Point, Morong (Bataan) and John Hay as special economic zones where the same tax and duty free privileges are extended to investors.
By Fel V. Maragay - Manila Standard Today
The President also signed into law Republic Act 9399 which declares a one-time amnesty on tax and duty liabilities incurred by certain enterprises within the said free ports or special economic zones as a result of the Supreme Court ruling in July 2005 revoking tax incentives to these entities.
The two new laws, which were signed by the President at the Clark Special Economic Zone in Pampanga, will benefit locators at Clark Field in Pampanga, Poro Point in La Union, Camp John Hay in Baguio and Morong in Bataan.
Significantly, the 4,400 hectare-Clark has been classified as a free port under RA 9400, which amends several provisions of the Bases Conversion and Development Act of 1992.
This means that Clark has been accorded the same status as the Subic Freeport and Special Economic Zone and can now be operated as a separate customs territory ensuring the free flow or movement of goods and capital equipment within, into and exported out of the economic free zone.
It shall also provide incentives such as tax and duty-free importation of raw materials and capital equipment to investors.
But the new law requires that exportations or removal of goods from the Clark territory to other parts of the Philippines shall be subject to customs duties and taxes.
CDC president Levy Laus said the new law specifically excludes a 30-hectare area near Clark’s main gate and the 7.5-hectare Bayanihan Park from being part of the freeport zone.
The former Clark Air Base is under the administration of the Clark Development Corp. Another 29,000 of reverted base lands are located in Angeles City, Mabalacat and Pork towns in Pampanga and Capas and Bamban in Tarlac and will be under the jurisdiction of the Philippine Economic Zone Authority.
“The said areas will not enjoy the same tax incentives extended to locators inside the designated free port area. This will give local business enterprises a level playing field,” Laus said.
Senator Ralph Recto, chairman of the Senate committee on ways and means, sponsored the enactment of the two Clark bills after the Supreme Court issued the ruling rescinding the tax and duty free privileges of the locators inside the special economic zone due to legal infirmities.
Malacañang and Congress gave priority to the approval of these bills in the wake of the threat of investors and locators to pull out of Clark unless the incentives were restored.
Under RA 9399, business enterprises operating in the said special economic zones shall be entitled to remedial amnesty for tax and duty liabilities, including fines, penalties, and interests. The law states that the enterprises are required to pay P25,000 amnesty tax within six months after the effectivity of the act.
The amendments to the BCDA Law include the declaration of Poro Point, Morong (Bataan) and John Hay as special economic zones where the same tax and duty free privileges are extended to investors.
By Fel V. Maragay - Manila Standard Today
posted by OlongapoCity Zambales at
9:44 AM
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