u".
l[ation
Tourism
body gets l0
more years
to offerperks
CONGRESS has ratified a mea-
sure extending the power of the
Tourism Infrastmcture and En-
terprise Zone Authoity (TIEZA)
to graDt incentives to tourism en-
terpdses for another lO yea$.
The House of Representa-
tives and the Senate have agreed
to extend the body's authority
to Dec, 31,2029. The House ver-
sion of the bill had proposed an
extension to just Dec. 3I, 2026.
The bill amends Republic Act No.
9593 or tie TourismAct of2OO9.
The original law and suc-
ceeding regulatiols gave TIEZA
only until August 2019 to grant
incentives. The incentives TIEZA
grants tourism enterprises,in-
clude a six-year income tax holi-
day, a five percent preferential tax
on gross income, exemption"from
all taxes and customs dufies of
importation of capital,equipment
as well as ofspare parts.
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THURSDAY, FEERUARY 2I, 2Or9
"Ratifying this bicameral
conference committee report is
another milestone in the tour-
ism irdustry albeit delayed. The
primary purpose of the original
law which we authored was to
make sure that tourism becornes
a primary engine of growth for
our country because tourism
means jobs," Senator Richard J
i
Gordon said in his Feb. 6 speech
as he presented the bicameral
colrference committed report for
ratification.
It \r/as revealed in Senate
public hearings back in 2Ot6 that
TIEZA failed to grant incentives
since ihe enactment of the Tour-
ism Act due to the lack of a rev-
enue regulation. The Bureau of
Internal Revenue then issued a
revenue regulation in 2016 but
limited the pe od until 2019 due
to the lo-year period prescribed
in the original law. An extension
period for the grant of inceltives
to tourism enterprises was then
sought in Congress.
The new law also allows the
Joi;rt Congressional Oversight
Committee on Tourismto operate
indefinitely from 10 years previ-
ously. The committee consists of
the chairmen of both chambers,
committees oftourism, ways ard
means, appropriations ald of fi-
nance, amolg others.
A. Aguinaldo
- Canille