Domingo backs JFC call for more new industrial zones
December 21, 2015 at 11:00
Domingo backs JFC call for more new industrial zones
(The Philippine Star) | Updated December 21, 2015 – 12:00am
MANILA, Philippines – The Joint Foreign Chambers has received the backing of Trade Secretary Gregory Domingo in its call for the establishment of new industrial zones to be managed by the Philippine Economic Zone Authority (PEZA) amid the issues faced by the proposal with the Bureau of Internal Revenue (BIR).
The European Chamber of Commerce of the Philippines (ECCP) said Domingo, in a recent meeting, agreed the zones are needed to create inclusive growth and move manufacturing and agriculture supply chains to new locations.
During the meeting, the ECCP said the team from PEZA referred to the objections coming from the BIR as the primary factor stopping the proposal from taking off.
The ECCP said BIR’s reasons have something to do with the incentives PEZA would give to the new economic zones.
The Joint Foreign Chambers has long been calling for the establishment of Domestic Economic and Export Zones managed by the PEZA which would be open even to firms producing for the domestic market.
The recommendation was made to spread out manufacturing activities and support the goal of inclusive economic growth.
The ECCP said PEZA director general Lilia De Lima is set to meet with BIR Commissioner Kim Henares to thresh out the issue.
American Chamber of Commerce of the Philippines, Inc. senior advisor John Forbes aired his disappointment with the delay in implementation of the Domestic Economic and Export Zones, saying that the proposal could have provided new investments and employment to the economy.
“Implementation of Domestic Enterprise Zones on provinces with high poverty or undergoing post-disaster reconstruction was again delayed in 2015, which is unfortunate because they can attract investment and create needed jobs,” Forbes said.
De Lima earlier said the proposed new economic zones are important given there are a lot foreign companies wanting to come in to the country and manufacture for the domestic market.
She noted, however, that if firms catering to the domestic market would be allowed to operate in PEZA zones, the government would want such enterprises to locate in less developed areas to create jobs there.
Source: www.philstar.com/business
