The House of Representatives has approved a bill creating a special economic zone in the City of Bislig, Province of Surigao del Sur.
House Bill 2672, authored by Rep. Johnny Ty Pimentel of Surigao del Sur, principal author of the bill, said that special economic zones are created to lay alternative areas of investment across the country.
“They are intended to disperse economic development which has been confined in the main metropolitan areas,” Pimentel said.
Pimentel added that by introducing industrialization, rural communities are given equitable access to the said growth giving its people employment opportunities and growth.
“The same also contributes to the overall economic development of the country in establishing competitive centers,” he added.
Pimentel’s bill sought the establishment of the Bislig Special Economic Zone in the Province of Surigao del Sur, to be referred to as the Bislig Ecozone which shall cover a particular area located in the City of Bislig, Surigao del Sur. The bill was substituted by HB 9091.
HB 9091 mandates the creation of a body corporate to be known as the “Bislig Special Economic Zone Authority” to be referred as the BSEZA which shall manage and and operate the Bislig Special Economic Zone.
Pimentel said the establishment of the Bislig City Special Economic Zone shall again harness Bislig City and the contiguous areas within and around their immediate vicinities, maximizing them as an engine of socio-economic development in Caraga Region.
He described Bislig City as the seat of Paper Industries Corporation (PICP), one of the then major industries of the Philippines, saying it was both a national center for trade and commerce.
“Nevertheless, with the cessation of the PICOP operations in Surigao del Sur in the 1990s, so did the decline of the steady economic growth in the province,” Pimentel said.
Among the powers and functions of the BSEZA are to 1) operate, administer, manage and develop the Bislig Ecozone according to the principles and provisions set forth in the Act; 2) register, regulate and supervise the enterprises in the Bislig Ecozone in an efficient and decentralized manner, subject to existing laws; 3) coordinate with LGUs and exercise general provision over the development plans, activities and operations of the Bislig Ecozone; and 4) establish one-stop shops for the issuance of all necessary permits, clearances, licenses and other similar certifications to conduct such activities intended to improve the ease of doing business within the Bislig Ecozone, in coordination with government agencies having jurisdiction over activities therein, among others.
The powers of the BSEZA shall be vested in and exercised by a Board of Directors to be composed by a Chairperson, who shall be at the same time functions as administrator of the BSEZA, and the board whose members shall include the Governor or a duly authorized representative from the Provincial Government of Surigao del Sur; the mayor of the City of Bislig; one representatives from the investor’s group; and one representative from among the workers in the ecozone.
The Chairperson-Administrator and members of the Board, except the ex-officio members, shall be appointed by the President of the Philippines to serve for a term of six years.
Registered enterprises operating within the Bislig Ecozone may be entitled to the existing pertinent fiscal incentives as provided for under Republic Act (RA) No. 7916, as amended by RA 8748, also known as the Special Economic Zone Act of 1995, or those provided under Executive Order 226, as amended, otherwise known as the Omnibus Investment Code of 1987; and or those that may be further granted as the need and necessity arises by the appropriate government department, agency or office.
Moreover, no taxes local or national shall be imposed on business establishments operating within the Bislig Ecozone, including income tax, withholding tax, donor’s tax, percentage tax, and documentary stamp tax. Said business establishments shall pay a five percent final tax on their gross income earned.
For purposes of policy direction and coordination, the BSEZA shall be under the direct control and supervision of the Office of the President of the Philippines.