Friday, May 30, 2008
Cebu’s fate as eco-zone mulled
IF the Senate approves, Cebu may soon become an economic zone and a free port.
Yesterday, the Committee on Economic Affairs of the House of Representatives, chaired by Congressman Ramon “Red” Durano VI, visited Danao City to check out the city’s industries.
The committee visited Danao City’s gun factory, which is managed by the Workers League of Danao (WORLD) multi-purpose cooperative, 7D Mango and the Cebu Mitsumi Industries, Inc.
According to Durano, they made the visit to see how the industries have affected the City and to address issues brought out during the hearings of bills filed for the establishment of economic zones in in the country.
Addressing issues
Earlier, Cebu, Vigan and Bataan have filed bills to become special economic zones.
“We would want to address the issues on what effects an economic zone would have in a particular area, or benefits or disadvantages,” said Durano.
One major issue of having Cebu as an economic zone would be to make it a free port. The committee would like to weigh its advantages and disadvantages.
“One of the provisions there in the proposed bill is to declare it as a free port. One issue there is security of the movement of goods,” said Durano.
Durano added that the reason for declaring a certain area as an economic zone is to be able to contain the area and secure the movement of goods.
However, with the intention of having the entire Cebu province as an economic zone, it may be difficult to secure it, especially if the province should become a free port.
Durano, however, said that issues on taxes would arise should there be a free port and that this will affect the government’s budget.
“That’s why they (Senate) are not so keen of having it as a free port, they are more comfortable with just declaring it as an economic zone,” said Durano.
However, Rep. Janette Garin (1st District, Iloilo) clarified that no collection of taxes was an “urban legend.”
“Actually, there will be payment of taxes but of course, these goods will be cheaper because you will have tax incentives,” she said.
Still, taxes
She said that after having seen the proposals of Rep. Eduardo Gullas and Rep. Raul del Mar, there will be a payment of taxes but not everything would go to the national government.
“There is a proportional distribution of income from the national level down to the local government,” she said.
Though she did admit that declaring the whole province of Cebu as a free port would be “difficult to contain,” it would still invite investors and possibly provide more job opportunities.
The bill to turn the entire Cebu province into an economic zone and a free port is being considered for a second hearing.
However, according to Durano, the Senate is generally opposed to the idea of free ports due to revenue losses. (EPB)
For Bisaya stories from Cebu. Click here. (May 30, 2008 issue)
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