Friday, September 4, 2009 | MANILA, PHILIPPINES [ BusinessWorld Online ]
THE HOUSE of Representatives committees on economic affairs and on trade and industry approved a bill that seeks to create an economic zone in Antique province.
In filing House Bill No. 5865, or "An Act Establishing the Antique Special Economic and Tourism Zone," ways and means committee chairman Rep. Exequiel B. Javier of Antique said: "The poorest Filipinos are the islanders because the source of livelihood is seasonal. The proposal can become a source of employment for those people living in Caluya and its component islands. Since Semirara exports buoy the country and also boost the local power industry such as the Calaca, surrounding islands can be used for developing tourist destinations. Also, the presence of Semirara coal has a way of attracting other industries like cement and shipping."
Semirara is one of the nine islands comprising Caluya town in Antique at the northern end of Panay Island and Semirara Mining Corp. is the only large-scale coal producer in the Philippines.
Under the bill, locators in the proposed economic zone will be entitled to income tax holiday (ITH) for six years; upon expiry of ITH, 5% special tax on gross income — in lieu of the regular 30% corporate income tax — and exemption from all national and local taxes; tax- and duty-free importation of raw materials and capital equipment; exemption from wharfage dues and export tax; zero-rated value-added tax on local purchases; and exemption from expanded withholding tax.
The bill’s tax components will now have to secure the approval of the ways and means committee. — J. F. S. Valdez
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