SBMA seeks similar incentives for Olongapo firms

The Subic Bay Metropolitan Authority is working out a scheme that will allow new investments in nearby Olongapo City to receive some incentives enjoyed by companies registered in the Subic Bay Freeport.

SBMA administrator Armand Arreza said the perks would include fiscal incentives such as sales tax and 5-percent gross income tax.

“We are now in the process of formulating the implementing rules,” Arreza said in a statement.

He said SBMA was in talks with with Olongapo City officials to allow companies enjoy some incentives under Executive Order 675.

President Gloria Macapagal Arroyo signed the order expanding the area where tax- and duty-free privileges for free port zones would apply.

EO 675 states that the tax- and duty-free privileges within the Subic Special Economic and Free Port Zone “shall apply within the secured area consisting of the presently fenced-in former Subic Naval Base and such other areas that may be identified, fenced, secured or declared as additional secured area by the SBMA.”

But since the planned expansion area in Olongapo was not yet fenced, Arreza said Olongapo-based investments could not yet avail of duty-free privileges.

“Our main concern is merchandise control. That is why we’re initially thinking of giving incentives on sales tax and the 5-percent gross income tax,” said Arreza.

He also said under the planned set-up, businesses wanting to avail of the perks must be endorsed by the Olongapo City government to the SBMA.

The system will be similar to that employed by the Philippine Economic Zone Authority, which registers and grants perks to investors in privately-owned economic zones.

SBMA offers tax- and duty-free importation, exemption from all local and national taxes, 5-percent corporate tax on gross income and unrestricted entry of foreign investments. By Elaine Ramos Alanguilan - Manila Standard Today

Subic authority mulls extension of perks to Olongapo

The state agency in charge of the Subic Freeport will be granting tax perks to qualified investments in the adjacent city outside the economic zone, it said in a statement on Friday.

Such a move will spread economic benefits to nearby communities and also help the agency fulfill its job creation mandate, the Subic Bay Metropolitan Authority (SBMA) said.

Ventures locating to Olangapo City may be granted sales tax breaks and the lower 5% gross income tax enjoyed by locators inside the freeport, SBMA said.

"We are now in the process of formulating the implementing rules [in line with Executive Order 675 signed in 2007]" SBMA Administrator Armand C. Arreza said in the statement.

The order had stated that tax perks for the Subic Freeport "shall apply...to other areas that may be identified, fenced, secured, or declared as additional secured area by SBMA."

But SBMA is mulling withholding duty-free privileges for imported materials for Olangapo locators because the "planned expansion area...is not yet fenced in."

It was not immediately clear if the "additional secured area" would encompass the entire city or just a section of it.

In relation to this, the agency is drafting the master plan that will increase road networks between the freeport and outlying areas, it said. — JADH

SBMA to grant incentives to investors

Administrator Arreza says fiscal perks could be granted to projects endorsed by the Olongapo City government

The Subic Bay Metropolitan Authority (SBMA) is currently working on the implementing rules for a scheme where investments in Olongapo City can also avail of some incentives granted to registered firms at the Subic Bay Freeport.

“We are working it out with Olongapo City officials so that businesses located in Olongapo would qualify for some incentives under Executive Order [EO] 675,” said Armand Arreza, SBMA administrator.

Under EO 675, the duty and tax-free privileges within the Subic Special Economic and Freeport Zone “shall apply within the secured area consisting of the presently fenced-in former Subic Naval Base and such other areas that may be identified, fenced, secured or declared as additional secured area by the SBMA.”

Arreza said fiscal incentives, such as sales tax and 5-percent gross income tax, could be granted to projects that will be endorsed by the Olongapo City government. “Our main concern is merchandise control. That is why we’re initially thinking of giving incentives on sales tax and the 5-percent gross income tax,” he said.

But Arreza said that as the planned expansion area in Olongapo is not fenced-in yet, duty-free privileges couldn’t be awarded.

Arreza said the SBMA’s expansion plan involves developing nearby areas in Dinalupihan, Hermosa and Morong in Bataan; Subic town in Zambales; and Olongapo City.

Arreza said investors who plan to locate outside Subic’s fenced-in area, but still within the Subic Special Economic and Free Port Zone, will enjoy privileges under EO 675.

Arreza said Subic Neocove Corp., which will develop a golf resort complex in Subic, Zambales, will be the first major investor to locate outside the base land. He said this investment was granted a full incentive package upon endorsements of Subic town and the Zambales provincial government.

Arreza said the SBMA is finalizing its master plan that would increase links and widen bridges between the Subic Bay Freeport and neighboring areas, especially Olongapo City. By Ben Arnold O. de Vera, Manila Times Reporter

SBMA eyes Subic as regional hub

SUBIC BAY FREEPORT – The Subic Bay Metropolitan Authority (SBMA) said it will establish Subic as a regional development center in Southeast Asia in the next 20 years.

The move would also spur the development of municipalities around the freeport, SBMA Administrator Armand Arreza said.

"Our big long-term goal would be to transform the greater Subic Bay area into a First World eco-urban center in 20 years," said Arreza. He said that the project is expected to bring significant investment, financial, and business opportunities.

"It would also complement Clark Freeport in our common posturing as the new catalyst for growth in the Mega Luzon area," said Arreza.

The plan has identified various development modules for government and private funding to include commercial areas in downtown Olongapo and Subic’s Gateway District; integrated resorts in Olongapo, Morong, Bataan and Subic, Zambales; industrial estates in Hermosa, Bataan and Castillejos, Zambales; and information technology (IT) parks at the Tipo area, also in Hermosa.

The plan also calls for development of an integrated port and logistics area, a medical city in Cubi, an education city, additional housing areas at the El Kabayo area and in Tipo, and a shipbuilding center at the Redondo Peninsula.

Arreza said the vision for Subic’s eco-urban center is boosted by Executive Order No. 675 and the Subic-Clark-Tarlac Expressway Project (SCTEP), set to open next month.

"These are the two ‘enablers’ that would help us deliver on our vision," he stressed.

He said that E.O. 675, which extended Subic’s tax- and duty-free regime to other areas within the Subic Special Economic and Freeport Zone (SSEFZ) that may be identified, fenced, and secured by the SBMA, would address the problem of limited space in Subic.

The SCTEP would have a "tremendous potential" because it would hasten the movement of goods and manpower in the area, he added.

"With this alliance between Subic and Clark, and now the surrounding areas as well, we will be able to compete against the best in the South East Asian region," he said.

At the same time, Arreza expressed confidence that the eco-urban development plan would be a viable project, given the SBMA’s success in generating more than $1 billion worth of investments per year since 2006.

By RIC SAPNU - The Philippine Star