Foreign chambers decry loss of incentives in CSEZ

The Joint Foreign Chambers of Commerce of the Philippines have raised their concerns about the loss of investors’ incentives in the Clark Special Economic Zone (CSEZ) to no less than President Arroyo and are appealing for some legislative action.

In a letter dated Sept. 5, Rick Santos of the American Chamber, Richard Barclay of the Australia-New Zealand Chamber, Stewart Hall of the Canadian Chamber, William Bailey of the European Chamber, Ryukichi Kawaguchi of the Japanese Chamber, Lee Gil Gu of the Korean Chamber and Shameem Qurashi of the Philippine Association of Multinational Companies Regional Headquarters Inc. voiced their concern to President Arroyo.

The Joint Foreign Chambers has been made aware of the concerns of a large number of foreign locators who operate in the CSEZ.

The concerns of the foreign locators stem from the recent Supreme Court ruling that only Subic Freeport can legally grant tax incentives under Republic Act. No. (RA) 7227.

The foreign locators are fearful that without proper legislation, the tax incentives they currently enjoy in the CSEZ will be forfeited.

The Foreign Chambers locators of CSEZ themselves have appealed, through the Clark Development Corp. (CDC) for the immediate amendment of RA 7227.

The Joint Foreign Chambers informed President Arroyo that they are asking the legislature for the amendment of the law, "but at the same time, we know this might take too long."

They are also aware of another bill under consideration which would streamline investment incentives being given to various export processing zones.

As such, they are requesting President Arroyo to certify as urgent to the LEDAC the amendment of RA 7227 and the bill streamlining investment incentives for export processing zones.