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Friday, August 19, 2005
Clark company: High court ruling not final
By Reynaldo G. Navales
* Granting of tax, duty-free incentives on status quo
* Scrapping of privileges 'not final and executory'
CLARK ECOZONE -- The Clark Development Corporation (CDC) Thursday assured that it is maintaining a status quo on the grant of tax and duty-free incentives to the more than 400 investors inside this economic zone.
The assurance came following a decision issued by the Supreme Court on July 29, 2005, which disallows the granting of tax and duty free privileges to the locators of Clark Special Economic Zone (CSEZ).
In a press statement, CDC president Antonio R. Ng said investors in Clark will still enjoy the tax and duty-free privileges because the SC decision to scrap the tax and duty perks is "not final and executory."
The decision, Ng claimed, must first be resolved with finality before it becomes executory.
"During this period, while the status quo continues to prevail, CDC will undertake and has in fact already undertaken measures to cure the situation and set in place fundamental and specific laws to legalize and reinforce the grant and maintenance of these tax incentives in the CSEZ," Ng said.
According to him, CDC will be meeting with officials of the Bureau of Internal Revenue (BIR) and Bureau of Customs (BoC) to reiterate previous agreements "to hold-off any actions" pending the final resolution.
Ng said he has also sought legislative remedies to keep the tax incentives for Clark investors.
He said Congress has approved Joint Resolution No. 9, originally authored by House Speaker Jose de Venecia and co-authored by the 157 members of the Congress, and has been submitted to the Senate.
The SC decision declares "null and void" Section 5 of Executive Order No. 80 and Section 4 of the Bases Conversion and Development Authority Board Resolution No. 03-05-034. With this, the granting of tax and duty-free privileges in Clark ecozone will no longer be allowed.
Ng said legislative matters involving tax and incentives emanate from Congress and not from the Executive Branch.
Presidential adviser Edgardo Pamintuan of the Office of External Affairs said the joint resolution issued by the House of Representatives and the Senate manifests the urgency to resolve the issue of incentives for Clark locators.
He added that President Gloria Macapagal-Arroyo is inclined to seek measures expected to boost the investment climate in CSEZ.
(August 19, 2005 issue)
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