Dana Mae D.

Salgado February 21, 2017

2015-00587 Econ 101 THDE

PEZA, DOE ink deal on ecozone investments

By Danessa Rivera (The Philippine Star) | Updated February 19, 2017 - 12:00am

MANILA, Philippines - The Department of Energy and the Philippine Economic Zone
Authority have signed a memorandum of understanding to accelerate the development
of regional economic zones or ecozones in the country.

Energy Secretary Alfonso Cusi said the MOU is an initiative consistent with the long-
term economic vision of President Rodrigo Duterte known as Ambisyon 2040 and
complements his 10-point socio-economic agenda.

With the MOU in place, the country can expect the flow of critical investment which in
the long-run creates more job opportunities and spurs rural development, Cusi said.

Under the partnership, the DOE will develop energy policies to facilitate the reduction
of the cost of doing business in the country, including the ecozones, the DOE chief
said.

Energy efficiency programs, like the adoption of the Energy Management Systems
(ISO 50001), will be given importance to help the locator companies to be more efficient
in their use of energy resources. This will result in lower power costs to sustain the
companies competitiveness, while also encouraging the establishment of more energy
efficient ecozones in the country, Cusi said.

The DOE secretary also underscored the importance of policies that would streamline
the permitting processes for energy projects, to ensure stable and reliable supply of
energy to drive the economic activities in the ecozones.

Since he took office, Cusi has stressed the need to streamline the process for power
plants and to lower power rates during his term.

In terms of bringing down electricity rates, he said the DOE was looking at it from the
perspective of the consumer.

Currently, Philippine electricity rateparticularly that of Manila Electric Co. (Meralco)

is the third highest in Asia, fourth in Asia Pacific and 16th worldwide in 2016, based on a
report dome by Australia-based International Energy Consultants (IEC).
Dana Mae D. Salgado February 21, 2017
2015-00587 Econ 101 THDE

BUSINESS / ECONOMY
PCCI backs first package of tax reform program
By: Roy Stephen C. Canivel - @inquirerdotnet
Philippine Daily Inquirer / 05:58 PM February 17, 2017

The Philippine Chamber of Commerce and Industry (PCCI) said it fully supports the first package
of the comprehensive tax reform, which would lower personal income taxes while broadening the
base for revenue generation.

In a statement, PCCI President George T. Barcelon said that the tax reform package, which was
filed in Congress last January, would leave a positive impact on the economy.

The Tax Reform for Acceleration and Inclusion Act would amend the decades-old tax schedule for
personal income, which is one of the highest within the Asean.

Lowering personal income tax will increase disposable income, spurring savings and
consumption, which leads to increased production, Barcelon said in a statement.

A virtuous cycle could ensue, where greater consumption and production could lead to a rise in
tax collection, he added.

This comes as PCCI is holding a roadshow in key locations across the country to raise a more
comprehensive understanding of the tax reform program.

Barcelon said that inflation has graduated many low income earners into progressively higher tax
bracket. He said that this therefore requires the tax brackets to be adjusted.

The bill, backed by the Department of Finance, readjusts the tax rates last put in place in 1997 to
allow more take home pay for the largely middle class demographic while slapping higher rates for
the ultra-rich.

For example, the first taxable bracket covers an individual earning P250,000 to P400,000
annually. Under the bill, the individual would pay for 20% of the value exceeding the P250,000
level. In comparison, the National Internal Revenue Code of 1997 would slap a P50,000 fee plus
30% of what goes beyond the same P250,000 mark.

Filed as House Bill No. 4774 by Rep. Dakila Carlo E. Cua, the proposal is expected to take effect
by July this year, assuming it gets passed in Congress.

Adjustments in the proposal, which would include reduced rates for estate and donors tax, are
expected to incur revenue losses. The bill proposes certain offsetting measures, including the
hiking the excise tax rates for petroleum products and automobiles. Mr. Barcelon said that PCCI
welcomed such measures.

On top of this, Mr. Barcelon said that the local chamber wants more funds channeled into social
services as well as lowered corporate tax rates. Moreover, he added that the tax administration
needs to be further simplified for the sake of small, and medium-sized enterprises (SMEs).