News Roundup 02 July 2022
Jul 02, 2022 • 5 min Read
Marcos Jr. vetoes bill creating SMC’s Bulacan Airport City economic zone, freeport | PHILSTAR.COM – On his first day in office, President Ferdinand Marcos Jr. vetoed a house bill which creates a special economic zone and freeport in conglomerate San Miguel Corp.’s (SMC) Bulacan Airport City, over the project’s fiscal risks. The measure was earlier passed by both chambers of Congress on May 31. The veto of the measure, known as House Bill No. 7575, is among the first official acts of Marcos Jr., who earlier took his oath of office. The bill would have created a Bulacan ecozone authority with a corporate life of 50 years. The economic zone would have covered San Miguel Corp.’s P740-billion New Manila International Airport, which can serve up to 100 million passengers per year and is expected to decongest the Philippines’ main gateway, Ninoy Aquino International Airport. Marcos said Republic Act No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act already allows eligible enterprises to apply for and avail of tax incentives outside economic zones by providing a favorable incentive package without the need for creating new special economic zones. He noted that tax incentives may be availed of by qualified enterprises and would be enjoyed longer if investments are located in less-developed areas, subject to the review and approval of the Fiscal Incentives Review Board (FIRB). “At the foreground, fiscal prudence must be exercised particularly at times when resources are scarce and needs are abundant,” Marcos Jr. said of the enrolled bill in a July 1 letter addressed to the Senate president and senators. “While this administration recognizes the objective of the proposed measure to accelerate economic growth in its locality, I cannot support the bill considering the provisions that pose subtantial fiscal risks to the country and its infringement on or conflict with other agencies’ mandates and authorities,” he added. For him, the bill will “significantly narrow” the country’s tax base which is not aligned with the government’s objective to develop a tax system with a broad base and low rates. “The Government would be forced to seek new sources of revenue through additional taxes or borrowings in the future. In the end, it is the taxpayers who will ultimately bear the brunt of the burden,” he said. Marcos Jr. explained that the proposed measure lacks coherence with existing laws since it was not able to provide audit provisions for the Commission on Audit, procedures for expropriation of lands and a master plan for the economic zone. He pointed out that the enrolled bill gives authority to the economic zone to make rules on environmental protection— one which is not found in the charters of similar zones. “It is also granted blanket powers to handle technical airport operations in contravention of existing aeronautical laws,” he said. Marcos Jr. added that the proposed economic zone is located near the Clark Special Economic Zone, which goes against the state’s policy on creating special economic zones in strategic locations. He emphasized that eligible enterprises outside of economic zones can already apply and avail of tax incentives, according to the Corporate Recovery and Tax Incentives for Enterprises Act or CREATE.
DOE expects fuel rollbacks as high as P3 per liter next week | PHILSTAR.COM – Consumers can expect to see rollbacks in gas, diesel and kerosene from July 5 to 11, according to estimates from the Department of Energy (DOE). Diesel and kerosene are seen to decrease by P2 to P3 per liter starting next week, DOE Oil Industry Management Bureau Director Rino Abad told Philstar.com in an online message on Saturday. Meanwhile, a liter of gas is expected to decrease by less than P1, he added. In a separate fuel forecast, oil company Unioil said gas may experience a rollback of up to P0.10 per liter beginning next week. “[The prices are] indicative of rollback next week due to the following major reasons: China lockdown [and] effect of various interest hikes all over the world which depresses economic activity and, ultimately, fuel demand,” DOE’s Abad said.
Ombudsman orders 3 ex-NTF-Elcac execs to answer red-tagging raps | INQUIRER.NET – The Office of the Ombudsman has ordered three former officials of the National Task Force to End Local Communist Armed Conflict (NTF-Elcac) to respond to the complaints of grave misconduct and grave abuse of authority and other violations that were filed against them over the alleged red-tagging of a lawyer’s group in December 2020. In an order dated June 16 but was only furnished to the media on Saturday, former National Security Adviser Hermogenes Esperon, who was then NTF-Elcac vice chairperson; retired Lieutenant General Antonio Parlade Jr, and former NTF-Elcac spokesperson and former Presidential Communications Operations Office Undersecretary Lorraine Badoy, were directed to file their respective counter affidavits to answer the complaints filed by the National Union of People’s Lawyers (NUPL). The NUPL filed the complaint after the three former NTF-Elcac officials supposedly tagged the group as an alleged front of the Communist Party of the Philippines, the New People’s Army, and the National Democratic Front. The Ombudsman gave Esperon, Parlade and Badoy 10 days to file their respective counter affidavits. “The respondent’s failure to file Counter Affidavits within the aforesaid period shall be deemed a waiver of their right to submit controverting evidence(s) and the investigation shall proceed accordingly,” the Ombudsman said in its order. Meanwhile, the NUPL was also given 10 days by the Ombudsman file its reply to the counter affidavits to be filed by the three former NTF-Elcac officials. “Quite belated as it is, we have mixed feelings this complaint is taking off somehow,” NUPL Secretary-General Edre Olalia said in a statement. “Regrettably, the respondents are for now already out of office.
