SBMA, San Antonio to jointly develop 10,000-ha. ecozone

SUBIC BAY FREEPORT – The municipal council of San Antonio, Zambales formally turned over to the Subic Bay Metropolitan Authority (SBMA) an area covering 10,000 hectares for development into an economic zone.

The turnover was made possible by virtue of Sangguniang Bayan Resolution No. 13-080, which declared over 10,000 hectares of land and water as the San Antonio Economic Development Area, and allowing it for conversion as an additional secured area of the Subic Bay Freeport Zone.

The resolution further declared that the areas of Sitio Silangin, Nagsasa and Talisayin in the Redondo Peninsula be included within the additional area and entitled to the tax- and duty-free privileges of the Subic Freeport.

The resolution was passed by the San Antonio town council on November 19, 2013.

SBMA Chairman Roberto V. Garcia formally received a copy of the resolution from San Antonio municipal mayor Estela Antipolo during a turnover ceremony here on Monday, December 2.

Garcia said that he was pleasantly surprised by the swift action of the San Antonio municipal council in passing the resolution.

He added that the decision is very timely, since the Freeport is already lacking available land area for development.

“Many foreign investors are inquiring, and we are having a hard time to respond to them due to the lack of available land,” Garcia said, pointing out that there are only less than 300 hectares of land available within Subic’s fenced area.

The SBMA official, who just returned from an investment mission in Japan to promote the Subic-Clark Corridor, related that Japanese investors are very interested in doing business in the country.

“So the resolution comes at a very good time because of the high interest of foreign investors in the Philippines in spite of the difficulties that we are having right now because of Yolanda. We should take advantage of this,” Garcia said, stressing that investor confidence in the country remains strong.

Antipolo, for her part, said that the town council came up with the resolution to ensure the progress of San Antonio.

“We are doing this for the welfare of the people, to ensure economic prosperity, increase revenue for the local government, and provide employment opportunities for the people of San Antonio,” she said.

Antipolo assured everyone that the local government of San Antonio will do its part in attracting investors through programs that will promote transparency in government and cut red tape in business transactions.

“On behalf of the people of San Antonio, I look forward to an enhanced cooperation between our offices,” Antipolo told Garcia and other SBMA officials. (FMD/MPD-SBMA)

PHOTO:
Mayor Estela Antipolo of San Antonio, Zambales hands over to SBMA Chairman Roberto V. Garcia a copy of the resolution declaring a portion of the town's southern coastal tip as economic development zone. The area is being eyed for development by the Subic Bay Metropolitan Authority under its expansion program. Also in photo are members of the San Antonio town council led by Vice-Mayor Lugil Ragadio and other SBMA officers.

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SBMA tax break guidelines out

THE SUBIC Bay Metropolitan Authority yesterday released the registration guidelines for aviation and logistics companies in the economic zone that are seeking import tax breaks.

According to Resolution No. 13-05-4772 published yesterday, locators in Subic Bay Freeport Zone (SBFZ) “shall be allowed admissions of TEDFA (tax-exempt and duty-free aircraft), engines, parts and accessories on the premise that the units shall be used primarily in support of and in furtherance to the business operations of the locator in the SBFZ.”

“The minimum condition set by SBFZ is that the units are principally based in SBFZ ... and that these TEDFA return [to], stay [in], and use SBFZ as their core base of operations such that at the end of each flying sortie, these TEDFA return [to], stay [in], use and maintain physical presence at the SBIA (Subic Bay International Airport),” read the notice.

If these conditions are not met, locators will have to pay duties and taxes for their aircraft, engines, parts and accessories.

Another condition is that locators should have “sufficient, reasonable hangar space [to] justify the need for admission of aircraft units in relation to their business operation in Subic.”

Otherwise, locators will have to prove that they have put up actual investment of at least P100 million, read the notice.

Locators are also prohibited from transferring ownership of TEDFA within three years of admission.

Those who fail to observe the guidelines will have to pay P250,000 as well as duties and taxes if TEDFA units were sold to an entity not entitled to tax incentives. Another fine of P250,000 will also be charged to those who fail to prove active hub presence in Subic.

The SBFZ, 110 kilometers north of Manila, was established in 1992 as the country’s first freeport zone after the closure of the American naval base there. (Daryll Edisonn D. Saclag, BusinessWorld)

http://www.bworldonline.com/content.php?section=Economy&title=SBMA-tax-break-guidelines-out&id=78263

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