THE Cebu Chamber of Commerce and Industry (CCCI) is supporting the government's move to develop more domestic economic and export zones in the countryside to boost economic and employment opportunities.
"This initiative bodes well for the country's supply chain development," said CCCI president Melanie Ng. She said the chamber is committed to help the government in identifying potential ecozone sites in the province.
"We still have plenty of potential areas here," she said.
According to Ng, the establishment of domestic ecozones could attract more foreign investors to locate their businesses in the country, such as in the fields of agriculture and agri-business.
She added that domestic ecozones also offer opportunities for local government units (LGUs) to pursue PPP (private-public partnership) projects with local investors.
According to the Department of Trade and Industry, domestic ecozones also encourage local industry development. The agency said it is one way to raise the competitiveness of domestic industries amid the influx of cheaper imported goods at zero tariff, particularly those coming from China and ASEAN member-countries, due to the region’s economic integration.
These could also benefit small and medium enterprises and connect them to the supply-chain economy.
A report said that the Duterte administration will start establishing economic zones for companies targeting the local market, so they can also avail themselves of fiscal incentives being enjoyed by their export-oriented counterparts.
Trade Secretary Ramon Lopez said no proposal has been crafted for an incentives package for locators in these proposed domestic ecozones, but there could be a “differentiated approach” in luring investors via fiscal or non-fiscal perks.
“The incentives could be different, but they’d still receive benefits, because of the facilitation measures given to set up their businesses inside ecozones. That’s an incentive in itself,” Lopez said in a report.
Peza-registered firms enjoy, among other perks, tax and duty-free importation of raw materials, capital equipment, machineries and parts. The biggest perk is income- tax holiday (ITH), ranging from four to eight years, depending on the type of project registered.