'The proposed amendments to Peza
law went through rigorous consultations and acquired the support of various stakeholders who see it an opportune time to update the 24-year-old law in the current global context of competition of economic zones,' she said.
'It is about time the Peza
charter be amended due to economic imperatives and to improve the operations of economic zones in the Philippines,' Plaza explained.
As the PEZA
incentive packages are put at risk under the second CRTP package, which is carried under the current Corporate Income Tax and Incentives Rationalization Act (CITIRA) Bill, a replacement of the old TRABAHO Bill filed in the previous Congress, Plaza has pushed for the amendment of the PEZA
Charter to strengthen the agency's authority over its menu of tax perks to its locators.
's push to strengthen its role and functions through House Bill (HB) 3747, Lopez said the proposal would face hurdles.
Director General Charito Plaza said they gave a copy of the proposal to Trade and Industry Secretary Ramon Lopez, who is Peza
It is the director general who filed it, not the Peza
As such, Plaza has reiterated the agency's position for Malacanang to lift the moratorium on the approval of PEZA
IT Centers/Parks located in Metro Manila.
As the proposed second package of the tax reform program or the Comprehensive Income Tax and Incentive Rationalization Act (CITIRA) bill would gradually lower the corporate income tax rate to 20 percent from 30 percent currently and change the incentives regime including removing the tax on GIE, the PEZA
is pushing for keeping the incentive but raising its rate to a higher seven percent.
Citing the implementing rules and regulations of the Special Economic Zone Act, Plaza pointed out the Peza
can suspend and revoke the business permit of a locator for failure to comply with the terms and conditions governing its incentives.