-
President Ferdinand Marcos, Jr has vetoed House Bill 7575, on his first day in office
-
He said the proposed measure, which establishes the Bulacan Airport City Special Economic Zone, poses “substantial fiscal risks” and conflicts with other agencies’ mandates
-
A law, the CREATE Act, also “already allows eligible enterprises to apply for and avail of tax incentives to eligible businesses outside economic zones”
-
The proposed measure will also “significantly narrow the tax base”, Marcos said
President Ferdinand Marcos, Jr vetoed on his first day in office a proposed measure establishing the Bulacan Airport City Special Economic Zone, saying its provisions pose “substantial fiscal risks” and conflicts with other agencies’ mandates.
“At the foreground, fiscal prudence must be exercised particularly when resources are scarce and needs are abundant,” Marcos said in his veto letter to the Senate President signed July 1 but only made public on July 3.
The proposed bill is contained in House Bill 7575.
“While this administration recognizes the objective of the proposed measure of accelerate economic growth in its locality, I cannot support the bill considering the provisions that pose fiscal risks to the country and its infringement on or conflict with other agencies’ mandates and authorities,” said Marcos in the veto letter.
He noted that Republic Act No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act “already allows eligible enterprises to apply for and avail of tax incentives to eligible businesses outside economic zones.”
In addition, he said the “measure lacks coherence with existing laws, rules, and regulations by failing to provide audit provisions for the Commission on Audit, procedures for the expropriation of land awarded to agrarian reform beneficiaries, and a master plan” that sets the boundaries of the proposed economic zone.
The economic zone will have jurisdiction over San Miguel Corp.’s $15-billion New Manila International Airport, located on a 2,500-hectare property in Bulakan, Bulacan.
READ: SMC unveils Bulacan aerocity master plan
An Airport City will also be constructed beside the airport, and other lands adjacent to Airport City.
The bill’s main sponsor in the Senate is Marcos’ sister, Imee Marcos, who chairs the Senate committee on economic affairs.
In May, 21 senators voted to approve HB 7575, with no opposition or abstention. The House approved the bill in September 2020.
Marcos said the bill gives the proposed economic zone authority “rule-making powers relative to environmental protection that is not found in the charter of other economic zones” as well as “grants blanket powers to handle technical airport operations in contravention of existing aeronautical laws.”
Advocates and environmentalists have strongly opposed the airport project, warning it would displace families and become prone to geohazards.
The proposed economic zone is likewise close to Clark Special Economic Zone, which Marcos said “is against the government’s policy on creating special economic zones in strategic locations.”
He noted the National Economic and Development Authority and the Regional Development Council “assert the need to thoroughly study and assess the costs to ensure that the establishment of the economic zone would be beneficial to the whole country.”
Marcos said the proposed measure would “significantly narrow the tax base with its mandated incentives applicable to registered enterprises.”
