Arroyo creates more economic zones
By Michael Lim Ubac - Inquirer
In line with her goal to develop more economic zones, President Gloria Macapagal-Arroyo has ordered the creation of seven more economic zones in places adjacent to geothermal-energy-producing sites.
The President, in Executive Order No. 661 signed on September 10 but made public only on Wednesday, directed that local government units "in areas near or adjacent to the following geothermal-producing sites shall develop economic zones in coordination with the Philippine Economic Zone Authority (Peza)."
The areas to be developed into economic zones are Tiwi in Albay; Makban, which borders Makiling and Banahaw mountains in Laguna; Tongonan, which borders Ormoc and Kananga in Leyte; Palinpinon in Valencia, Negros Oriental; Bacman, which borders Bacon and Manito in Sorsogon and Albay, respectively; Mt. Apo in the border of Kidapawan in North Cotabato; and Murcia in Negros Occidental.
President Arroyo directed Peza to assist the LGUs concerned in the "creation and development" of the zones in areas which, she said, were "potential sources of power."
"This Executive Order shall take effect immediately," she said.
In issuing EO 661, the President said "the government is adopting measures to give open access to private and publicly owned economic zones in sourcing their power with the end in view of lowering the power cost in the economic zones and to promote competitiveness."
She noted that the country had one of the highest industrial power rates in Southeast Asia, and that majority of the biggest power consumers were industrial locators in economic zones.
"There is a compelling need for more reliable, economical, competitive and efficient power supply to provide quality electricity to power-sensitive industrial locators in the economic zones and to encourage future locators."
The two-page EO made no mention of the potential benefits to the residents of the seven identified areas.
But in a speech in New York, the President provided answers.
She said that due to the creation of these zones, "areas which are usually far from Metro Manila will now have industries."
"Business will relocate there," she said, stressing that business locators would have the "usual incentives" aside from the cheaper power rates since the economic zones would be sourcing their power supply from geothermal plants.
She said the presence of economic zones would give jobs to residents and allow LGUs, which will collect royalties from the use of the geothermal zones, to utilize the added revenues to subsidize electricity rates in their areas.
To curb smuggling, President Arroyo also issued another EO to rationalize tax privileges in the Subic Special Economic Zone.
The President signed EO 660, which covers a new policy on importation by registered enterprises in Subic Bay, on September 13. It takes effect immediately.
The EO will impose taxes on imported goods and equipment "in excess of the requirements of their registered business."
The President noted that under existing law, registered businesses, enterprises and locators within Subic were exempt from national internal revenues and custom duties on their importation of raw materials, capital goods and equipment for their business operations.
"There is a need to ensure that raw materials... are only those required for their business activities and operations," she said, stressing that the "government needs additional revenue to finance the country's economic and development programs and projects."
Arroyo said that imported goods and equipment “in excess of the requirements of their registered business ... shall be deemed brought into or sold within the customs territory, and, therefore, subject to the payment of taxes and custom duties in accordance with existing customs and tax laws.”
She directed the Bureau of Customs and the Bureau of Internal Revenue, in coordination with the Subic Bay Metropolitan Authority, to issue appropriate circulars to "clarify and or simplify" the documentation, procedures, tax treatment and payment of taxes and duties of the excess importations."
In line with her goal to develop more economic zones, President Gloria Macapagal-Arroyo has ordered the creation of seven more economic zones in places adjacent to geothermal-energy-producing sites.
The President, in Executive Order No. 661 signed on September 10 but made public only on Wednesday, directed that local government units "in areas near or adjacent to the following geothermal-producing sites shall develop economic zones in coordination with the Philippine Economic Zone Authority (Peza)."
The areas to be developed into economic zones are Tiwi in Albay; Makban, which borders Makiling and Banahaw mountains in Laguna; Tongonan, which borders Ormoc and Kananga in Leyte; Palinpinon in Valencia, Negros Oriental; Bacman, which borders Bacon and Manito in Sorsogon and Albay, respectively; Mt. Apo in the border of Kidapawan in North Cotabato; and Murcia in Negros Occidental.
President Arroyo directed Peza to assist the LGUs concerned in the "creation and development" of the zones in areas which, she said, were "potential sources of power."
"This Executive Order shall take effect immediately," she said.
In issuing EO 661, the President said "the government is adopting measures to give open access to private and publicly owned economic zones in sourcing their power with the end in view of lowering the power cost in the economic zones and to promote competitiveness."
She noted that the country had one of the highest industrial power rates in Southeast Asia, and that majority of the biggest power consumers were industrial locators in economic zones.
"There is a compelling need for more reliable, economical, competitive and efficient power supply to provide quality electricity to power-sensitive industrial locators in the economic zones and to encourage future locators."
The two-page EO made no mention of the potential benefits to the residents of the seven identified areas.
But in a speech in New York, the President provided answers.
She said that due to the creation of these zones, "areas which are usually far from Metro Manila will now have industries."
"Business will relocate there," she said, stressing that business locators would have the "usual incentives" aside from the cheaper power rates since the economic zones would be sourcing their power supply from geothermal plants.
She said the presence of economic zones would give jobs to residents and allow LGUs, which will collect royalties from the use of the geothermal zones, to utilize the added revenues to subsidize electricity rates in their areas.
To curb smuggling, President Arroyo also issued another EO to rationalize tax privileges in the Subic Special Economic Zone.
The President signed EO 660, which covers a new policy on importation by registered enterprises in Subic Bay, on September 13. It takes effect immediately.
The EO will impose taxes on imported goods and equipment "in excess of the requirements of their registered business."
The President noted that under existing law, registered businesses, enterprises and locators within Subic were exempt from national internal revenues and custom duties on their importation of raw materials, capital goods and equipment for their business operations.
"There is a need to ensure that raw materials... are only those required for their business activities and operations," she said, stressing that the "government needs additional revenue to finance the country's economic and development programs and projects."
Arroyo said that imported goods and equipment “in excess of the requirements of their registered business ... shall be deemed brought into or sold within the customs territory, and, therefore, subject to the payment of taxes and custom duties in accordance with existing customs and tax laws.”
She directed the Bureau of Customs and the Bureau of Internal Revenue, in coordination with the Subic Bay Metropolitan Authority, to issue appropriate circulars to "clarify and or simplify" the documentation, procedures, tax treatment and payment of taxes and duties of the excess importations."
Labels: economic zone, peza
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