HOUSE Speaker and Pampanga Second District Representative Gloria Macapagal Arroyo Friday downplayed the possible effect of “rationalization” of fiscal incentives to the income of investors in the country amid talks on the Fiscal Incentives Rationalization Bill.
During her visit at the San Simon Industrial Park (SSIP) in San Simon town Friday, August 17, 2018, Arroyo said that businessmen consider different factors for investment decisions and the fiscal incentive, while it plays a big role, is just one of them.
She said that government recognizes the need for incentives of some businesses, particularly locators near freeport zones, which are export-oriented and cannot afford to lose export-related incentives.
However, she noted that there are also businessmen and investors that do not look solely on fiscal incentives, but rather focus on the existence of necessary infrastructures and ease of doing business in their prospective area of investment.
“The government recognizes that there are footloose industries that need incentives but there are also businesses that invest because of infrastructure and the ease of doing business,” said Arroyo.
Arroyo cited as an example the influx of investors and the industrial growth in San Simon town, particularly in the portion of Quezon Road where several local and international investors have put up businesses despite minimal incentives offered by the local government.
“This beautiful industrial town of San Simon is a perfect example of the importance of infrastructure and ease of doing business for the influx of investors. I asked the investors why they came here. None of them is getting fiscal incentives. They came here because of the infrastructure and the ease of doing business,” she said.
Arroyo pointed to Quezon Road which was rehabilitated and became fully-cemented during her term as president and provided access to the then almost deserted area of San Simon and would later become the industrial area of the town.
She also noted of the local government’s proper implementation of business and investment-related measures, especially the automated and streamlined processing of business licensing, construction and building permits, which ease the conduct of business in San Simon town.
In support of Arroyo’s claim, San Simon Mayor Leonora Wong recalled the first industrial investment in the town, the SSIP, which started its business in San Simon in a 27 hectare-lot along the Barangay San Isidro portion of the Quezon Road.
“There were no tax incentives and even discounts. But they still started their business here because they saw the potential in our town, with the presence of many access roads including Quezon Road and our automated and streamlined business permit licensing operation,” she said.
Wong said that until today, the local government is still not offering tax incentives or discounts to investors and businessmen, yet multi-national investors continue to conduct business in this town.