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Business groups and foreign chambers of commerce asked Congress to prioritize passage of 17 bills, including the amended Public Service Act, on its third and final session year
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An amended PSA effectively allows foreign ownership in transportation, telecommunications, broadcasting and other public services
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Other bills pushed include Amendments to the Foreign Investments Act, Amendments to the Retail Trade Liberalization Act, Department of Disaster Resilience, Department of Water Resources Management and Ease of Paying Taxes
Business groups and foreign chambers of commerce have recommended the passage of 17 bills, including one that amends the Public Service Act (PSA), during the 18th Congress’ third and final session year commencing on July 26.
An amended PSA aims to differentiate between what is a “public utility” and what is “public service,” limiting the former to just three services—distribution of electricity; transmission of electricity; and water pipeline distribution and sewerage pipeline systems.
Excluded from the definition of public utility are transportation, telecommunications, broadcasting, and other public services. Their exclusion will effectively allow 100% foreign ownership in these industries as they will no longer be considered public services or be covered by the 60%-40% ownership principle under the Constitution.
Cargo transportation groups have raised concerns about the amended PSA, saying it will usher in stiff competition from foreign-owned trucking companies and displace small- and medium-sized local players.
The 16 other priority measures are the Amendments to the Foreign Investments Act; Amendments to the Retail Trade Liberalization Act; Department of Disaster Resilience; Department of Water Resources Management; Ease of Paying Taxes; Electric Vehicles and Charging Stations; Freedom of Information; National Land Use and Management; Open Access in Data Transmission; Philippine Creative Industries; Promotion of Digital Payments; Public Private Partnership; Rural Agricultural and Fisheries Development Financing System; Secrecy of Bank Deposits Law amendments; Tax Reform Package 3: Property Valuation and Assessment Reform; and Tax Reform Package 4: Passive Income and Financial Intermediary Taxation.
“With one year left in the current Congress, we believe the 17 measures are achievable reforms that will generate substantial impact in achieving our shared vision of inclusive growth through job generation, poverty reduction, and global competitiveness,” the group said in a letter to President Rodrigo Duterte.
“These reforms will also support economic recovery and higher GDP growth in 2022 and beyond in the wake of the COVID-19 pandemic,” it added.
Business associations which signed the letter are Alyansa Agrikultura, Bankers Association of the Philippines, Financial Executives Institute of the Philippines, Foundation for Economic Freedom, IT and Business Process Association of the Philippines, Makati Business Club, Management Association of the Philippines, Philippine Association of Multinational Companies Regional Headquarters, Inc., and Semiconductor and Electronics Industries in the Philippines Foundation, Inc.
Foreign chambers include the American Chamber of Commerce of the Philippines, Australian-New Zealand Chamber of Commerce of the Philippines, Canadian Chamber of Commerce of the Philippines, European Chamber of Commerce of the Philippines, Japanese Chamber of Commerce and Industry of the Philippines, Inc., and Korean Chamber of Commerce of the Philippines, Inc.
According to the group, most of the 17 bills have reached advanced stages in Congress and require counterpart action in the House or Senate.
The letter was sent in anticipation of the President’s sixth State of the Nation Address when Congress opens its third regular session. Separate letters were also sent to Senate President Vicente Sotto III and House Speaker Lord Allan Velasco.
