MARIVELES, Bataan — House Speaker Gloria Macapagal Arroyo took time out Thursday afternoon to hear the concerns on the proposed second package of the Tax Reform for Acceleration and Inclusion (TRAIN) of locators at the Freeport Area of Bataan (FAB) here.
She met with representatives of 136 investors who aired their apprehension on the proposed bill in a closed-door meeting.
Quirino Rep. Dakila Carlo Cua, chair of House Ways and Means, said they were giving importance to investors who are providing jobs in the country.
“Narito kami para makinig sa kanila at ma-address concerns nila. Gusto naming lumago ang negosyo nila at makapagbigay ng maraming trabaho (We are here to listen to them and to address their concerns. We want their business to grow in order to generate more employment),” he said.
With Arroyo and Cua were Undersecretary Karl Kendrick Chua of the Department of Finance (DOF) and Bataan Rep. Jose Enrique Garcia III.
Governor Albert Garcia, Mariveles Mayor Ace Jello Concepcion and FAB chairman Emmanuel Pineda were also present in the meeting attended by Patrick Martinez, managing director of Essilor Manufacturing and president of FAB locators, and other investors.
Martinez, a French national, said that he has informed those in the meeting the incentives being offered by other countries.
“One of the concerns of companies is the cost increase and I think they have understood it,” he said. “With TRAIN 2, tax will be multiplied by two.”
Edwardo Joson, Essilor Finance and Administrative manager, said they were concerned with the 5 percent tax on lost income that they are currently enjoying.
“With the new proposed law, there is a sunset provision that after a few years, we will be paying 18 percent on net income. In our company, for example, we will be paying about 80 – 90 percent more in terms of income taxes,” Joson said.
Congressman Garcia, Governor Garcia and Mayor Concepcion were all hopeful that the concerns voiced out by the locators would be acted upon positively.
Congressman Garcia said that the House Speaker pushed for the meeting.
“Gusto niya makaharap ang mga locators para malaman kung ano nangyayari sa ground (She wants to meet the locators to find out what is happening on the ground),” he said.
The Bataan solon said the main discussion was about the provision of TRAIN 2 on the length of incentive, rate of incentives and Value Added Tax exemption that would be lost if the investor is not exporting.
He said that the result of the discussion was good.
“We are hoping that with Congressman Carlo Cua present and the House Speaker present, we can come up with some amendments that will be win-win for both revenue generation on the government side and job generation which we want to happen in our country,” the lawmaker said.
Governor Garcia said it was a good opportunity for the House Committee on Ways and Means and the DOF to hear the concerns of locators on TRAIN 2.
He said the locators are giving employment.
“Kapag walang trabaho gutom tayong lahat (If there is no job, all of us will get hungry),” he said in jest.
“Once the TRAIN 2 is passed, I hope jobs will not lessen but rather increase and the tax base will likewise expand to support Build, Build, Build program of the President,” the governor said.
He said that the locators would be satisfied if Congress would listen to them and address their concerns.
“Hopefully, it would be considered by the House Ways and Means and the DOF. The main concern of the locators is about the incentives that might be limited or lost,” he said.
Mayor Concepcion feared that the local economy will be greatly affected if the investors will leave because their concerns were not heard.
“Take a look at the performance of freeports and study what should be improved and should be taken into account when it comes to tax provision,” he said.
The Bataan officials said that FAB is successful and that DOF has acknowledged it.
They called for a performance-based implementation of the TRAIN 2 House bill. (Ernie Esconde/PNA)
