Clark investors bewail non-passage of perks’ bills

CLARK FIELD, Pampanga — The president of the Clark Investors and Locators Association (CILA) warned yesterday that some investors at this special economic zone may finally decide to move out of the country following the failure of Congress, which went on recess the other day, to approve two bills assuring them of tax privileges.

"Many Clark locators will be forced soon to pull out their investments and move to another country. Many of the more than 38,000 workers at the zone will be affected," said CILA president Francisco Villanueva. 

The CILA reiterated its appeal to Congress to immediately pass House Bills 5064 and 4900 "that would rectify the inconsistent investment policy under Republic Act 7227 and keep investors in special economic zones from pulling out multibillion-peso investments."

HB 5064 and 4900, sponsored by Tarlac Rep. Jesli Lapus, chairman of the House ways and means committee, are expected to resolve the impasse arising from the Supreme Court decision in July last year declaring that Clark investors are not entitled to tax perks enjoyed by their counterparts at the Subic Bay Freeport.

One of the twin bills confirms the tax perks denied by the Supreme Court ruling, while the other grants tax amnesty to Clark investors who otherwise would be obligated to pay back taxes to the government.

Villanueva said the Supreme Court’s decision "has severely prejudiced the interests of (Clark ecozone) locators, impaired their competitiveness in the global arena, undermined their continued operations inside the zone, shaken their confidence in doing business in the country, and badly damaged the credibility of the government."

President Arroyo recently placed the Clark ecozone under the Philippine Export Processing Authority (PEZA), which would entitle Clark investors to tax perks enjoyed, too, in export processing zones.

Investors, however, argued that this move could sow confusion on the role of the Clark Development Corp. (CDC), which is supposed to be the autonomous implementing arm of the Bases Conversion Development Authority (BCDA).

"The role of the BCDA is also under question with regards to Clark being under PEZA. Eventually, these matters could affect the investment climate at the zone," said one investor, who asked not to be named.  

House Majority Deputy Leader Rodolfo Antonino said HB 5064 and 4900 still have to be debated upon by the committee on rules headed by Rep. Prospero Nograles before they could be approved in a plenary session.

"As the majority deputy leader, the tax perks’ bill passed through me and I signed it, but it still has to pass the committee on rules where more questions could be raised," he told The STAR.

Close to 400 investors at the Clark ecozone employ some 38,000 workers whose combined salaries are estimated to reach P4.1 billion yearly.

Last year, the Clark ecozone registered a 15 percent export growth, posted an income of P54 billion, and remitted P1.2 billion in taxes to the national treasury.