Wednesday, November 29, 2006 Biz groups back city investments, incentives ordinance
POTENTIAL investors in Baguio could soon avail of tax holidays, expedite processing of business papers and other privileges once the City Council passes the Incentives and Investments Code proposed by Acting Vice Mayor Leandro Yangot Jr. and Councilors Daniel Fariñas, Faustino Olowan and Antonio Tabora Jr.
Over the weekend, members of the Philippine Chamber of Commerce and Industry (PCCI), its local counterpart the Baguio-Benguet Chamber of the Commerce and Industry Incorporated (BBCCII), and the Department of Trade and Industry (DTI) regional office already suggested amendments in the proposal.
The private sector would now occupy 60 percent of the composition of the Investments and Incentives Board (IIB) as per the suggestion of BBCCII president Alfonso Lao and PCCI governor Carl Estepa.
Representatives from the banking, tourism, transportation, cooperatives and the academe sectors would also have representations in the board as agreed upon in the recent public hearing.
The creation of an investments code in every local government unit (LGU) is a priority project of the government. The DTI and the Department of the Interior and Local Government (DILG) have been issued memoranda to check on the compliance of local governments in the crafting of ordinances that would grant incentives to investors.
Councilor Elmer Datuin, chairman of the Philippine Councilors League (PCL), said an incentives code is also part of the legislative agenda of the group.
Priority businesses in the proposal include those involve in employment, manufacturing, electronic, tourism, services, water and power resources development, telecommunications, agribusiness and educational enterprises.
The code provides that businesses with an initial capital of P50 million will be granted an exemption from paying tax on the transfer of real property ownership and exemption from amusement taxes for not more than one year upon the actual date of operation.
The board, on the other hand, is empowered to implement the rules of the code, formulate investment priority plans, institutionalize an investment promotion unit as its technical arm; approve or disapprove applications for exemption and issue certificates of registration; inspect book of accounts; require submission of financial statements; suspend incentives; and conduct hearings on issues concerning violations of the code.
It is also authorized to enter into agreements with other agencies or private organizations for the purpose of simplifying systems, procedures and requirements in establishing new investments for Baguio; carry out short and medium term investment promotion activities; and source out additional funding to supplement the budgetary support allocated by the City Government.
The board, likewise, could come up with rationalization plans, rules to facilitate processing of applications for incentives, and establish a one-stop documentation and action center. (RO)
