The Philippine Economic Zone Authority (PEZA) is pushing for the inclusion in the list of economic activities entitled to incentives enterprises supporting export companies in ecozones.
The agency will also press for the entitlement of ecozone development to incentives in the soon-to-be-issue Strategic Investment Priorities Plan (SIPP)
“In the (SIPP), ecozone development is not in the list. And we want to emphasize ecozone development, including efficiency factors like ports and other infrastructure should be included in the SIPP. There are huge industries which need their own seaport ,their own utilities, facilities,” said Charito Plaza, PEZA director, in a press conference last week.
PEZA deputy director-general Tereso Panga said while the IPP 2020 which is the transitory guideline being used in granting incentives still include ecozone development, the provisions of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) only provides for information technology parks in the definition of ecozone development.
“There is no mention of the other types of economic zones,” he said.
Panga said support to export such as the likes of ecozone utilities, facilities and developers, are contained in the PEZA law which is not repealed by CREATE, thus should be entitled to incentives.
“We gathered … that there have been second thoughts in including activities in support to export as among those eligible to incentives. We are in talks with the (Board of Investments which is drafting the SIPP) . We are arguing that this has been the selling point of the ecozones… we are able to manage the cost of doing business because of this support to export. These are dedicated facilities because they are barred from selling to the domestic market. And so we feel strongly that these types of enterprises which are dedicated, directly supporting the viability of corporations which export must be eligible for registration with incentives,” Panga said. – Irma Isip
