PEZA denies PIATCO plea for tax exemption

The Philippine Economic Zone Authority (PEZA) has denied the request of the Philippine International Air Terminals Co. Inc. (PIATCO) for duty and tax exemptions for the importation of construction materials to be used in building the Ninoy Aquino International Airport (NAIA) Terminal 3.

PIATCO is seeking the exemptions on the basis of its being an ecozone enterprise.

But the PEZA does not agree with PIATCO’s contention, saying that tax and duty-free importations are allowed specifically for ecozone locators only.

According to PEZA, the PIATCO terminal project is not meant entirely for use within a free trade zone, but is intended for public use.

Controversy has been hounding PIATCO after it was granted the contract to construct and operate the NAIA Terminal 3.

The construction of the new airport is under a build-operate-transfer (BOT) scheme.

PIATCO will be allowed to operate the new terminal for 25 years and will be entitled to collect all concession fees within the airport.

PIATCO said the new terminal will have the capacity to handle 13 million passengers per year and will be equipped with facilities to ensure the safety and convenience of international carriers.

The NAIA Terminal 3, PIATCO said will be operated with technical support from Frankfurt Airport which is owned and operated by the Federal Republic of Germany.

The new terminal is expected to be operational by next year.

Earlier, Noel Kintanar, executive director of the Coordinating Council for Private Sector Participation (CCPSP), had vouched for the integrity of the contract awarded to PIATCO.

According to Kintanar, the BOT law assures transparency in the dealings between the government and the private sector proponent.

"There is no room for anomalies in contracts entered by the government with the private sector through the BOT law," Kintanar said.

He said "every project is given due diligence by the CCPSP, the national agency, and the National Economic and Development Authority Investment Coordinating Council."

Kintanar explained that under the implementing rules and regulations of RA 7718, clear-cut processes are stated on how the government and the private sector proponent should go through its infrastructure development programs.