Sen. Ralph G. Recto Renz Michael Anthony C.

Ocampo Informatics College

R.A. No. 9400 Amendments to BCDA This law being a companion measure to RA 9399, grants fiscal incentives to registered export enterprises in the special ecozones in Clark, John Hay, Poro Point and Morong, and aligns them with some incentives granted to Subic, such as the imposition of a 5% tax on gross income earned in lieu of national and local taxes, except VAT and real property tax on land. This lays down an equitable system of tax incentives that is uniform to all ecozones and freeports. This bill does not only correct an error in the past but becomes a tool to draw in future investments. (March 20, 2007) This bill is said to imposed 5% in National Governmentand local Government taxes in ecozones in clark,johnhay,poropoint and morong in subic and shall be operated and managed as a separate customs territory ensuring free flow or movement of goods and capital within, into and exported out of this places, as well as provide incentives such as tax and duty-free importations of raw materials, capital and equipment. The governing authorities shall be responsible for the administration and implementation of the incentives granted to their respective registered enterprises and must submit their respective annual tax expenditures based on the computed costs in terms of revenue forgone on the tax incentives granted to their registered enterprises. Registered business enterprise found guilty of smuggling by final judgment, either as principal, accomplice or accessory shall be perpetually barred from doing business in any freeport and special economic zone. In addition to the penalties and sanctions imposed by existing laws. This bill is good in our society because the said bill will add protection to the investors.

R.A. No. 9399

BSDA's One Time Tax Amnesty

This law seeks to grant a one-time tax amnesty which will cover only the difference between all national and local tax impositions and the 5% tax on gross income earned by registered business enterprises within the special economic zones and freeports created under presidential proclamations pursuant to Sec. 15 of RA 7227. This corrects the oversight, which became subject of a Supreme Court ruling voiding all tax incentives to investors in Clark, John Hay, Morong, and Poro Point because RA 7227 granted incentives only to Subic and to no one else. (March 20, 2007)

All Registered business enterprises operating prior investors in Clark, John Hay, Morong, and Poro Pointshall promulgate and publish the necessary rules and regulations for the effective implementation of this Act within two months from the date of effectively of this Act. Those who have availed themselves of the tax amnesty and have fully complied with all its conditions shall be relieved of any civil, criminal and/or administrative liabilities arising from or incident to the nonpayment of taxes, duties and other charges covered by the tax amnesty granted under Section 1. And one time amnesty on certain tax and duty liabilities, inclusive of fees, fines, penalties, interest and other addition and incurred by certain business enterprises operating with the special economic zones and Freeports.

R.A. No. 9367 Biofuels Act of 2006 (Co-Authored) This law increases rural employment and income by developing our indigenous renewable energy sources and reducing dependence on imported fuels through the grant of incentives and financial assistance to firms engaged in the production and distribution of biofuels. (Jan. 12, 2007). This bill insure a clean energy and reduce dependence on imported fuels with due regard to the protection of public health, the environment, and the natural ecosystems consistent with the country's sustainable economic growth that would expand opportunities for livelihood our society and will phase out the use of harmful gasoline that destroy our ecosystem and etc.. The use of biofuels which is the most chipper in imported gasoline will undoubtedly a useful tool to a clean and responsible development. Biofuels have less tax percent and the gasoline and diesel fuel component, shall remain subject to the prevailing specific tax rate.

Sources: http://www.recto.ph/ www.chanrobles.com/republicacts/republicactno9400.html www.lawphil.net/statutes/repacts/ra2007/ra_9399_2007.html http://www.lawphil.net/statutes/repacts/ra2007/ra_9367_2007.html