THE'PHILIPPINE STAR
88
Tourism infra agency
gets extended tax perks
The Tourism Infrastructure and
Enterprise Zone Authority (TIEZA)
has lauded Congress' adoption of
the Bicameral Conference Committee
Report seeking to extend the grant of
fiscal incentives for tourism enterprise
zones (TEZs) until Dec. 31, 2029 or an
additional 10 years.
RA 9593 or the Tourism Act of 2009
stipulates that ihe incentive schemes
for the tourism enterprises shail be in
effect for a period of 10 years from the
effectiviW of the said law
The la-w specifies that these incen-
tives include income tax holidays,
gross income taxation of five percent
100 percent exemption on ail taxes and
customs duties on the importation of
capital equipmen! as well as the ex-
emption of transportation and spare
parts from tariffs and duties.
The sponsors of the bill - Sen. Rich-
ard Gordon and Davao Oriental Rep.
n PAq.-69,
. TEZs with tourism enterprises will create
MONDAY I APRIL 8' 2OI9
Corazon Nufrez-Malanyaon asserted the
need to extend the sunset clause in order
to give life to the intent of ihe law ihat the
incentive scheme should be implemented
for 10 years.
TIEZA chief operating officer Pocholo
Paragas noted that the extension of the fis-
cal incmtives until2029 will help encour-
age more tourism-related investments
into the country which are exPected to
create more jobs and stimulate growth in
the tourist destinations.
"The approved measure of the bicam-
eral conference committee sought to end
the confusion and apprehension among
prospective investors in flagship TEZs
and private tourism enterpdse zones,"
he added.
The TourismAct of 2009 provided full
govemment assistance by way of com-
petitive investment incentives, long-term
development fund and other financing
schemes extended to tourism related in-
vestments. Howeve4 it took seven years
before *he Bureau of Internal Revenue
(BIR) to iesue the regulations to enable
TIEZA to grant the incentive schemes.
Rep, Malanyaon, chairperson of the
House committee on tourism, sdid the.-'
extension seeks to rectifv the time lost for
the TIEZA to implemerit these incentive
schemes. On the other hand, Sen. Gor.
don in his eponsorship speech, cited that
this measure will be a major contributor
toward the countrv's socio-economic
Browth which will'help the economy
and alleviate poverty through creation
of more jobs and business opportunities.
Gordon also noted thai the amend-
ment to the Tourism Act was part of the
recommendations of Committee Report
159, filed on Nov 29, 2017, as a product
of the investigation due to the BIR's non-
$suance of the required revenue regula'
tions which led to the continuous delay
in the implemenlation of the Tourism Act.
As of Dec. 31, 2018, TIEZAhas already
designated five flagship TEZs which is
proiected to generate one million jobs
in a span of 10 years while 10 privaie
52000 jobs during the construction and
operation stage. The prorected invest-
ments for the flagship TEZs and private
TEZs are estimated to readr P106 billion.