BAGUIO CITY – The City Council, during last Monday’s regular session, approved on third and final reading a proposed ordinance amending certain provisions of Ordinance No. 71, series of 2012 or the Baguio City Investments and Incentives Code amending Ordinance No. 35, series of 2008.
Under the proposed ordinance, it shall be a policy of the city government to catalyze the holistic economic development of its constituents through programs designed to maintain and enhance the city’s environmental resources and preserve ecological balance; promote the socio-economic life of every citizen critical to the realization of an image for the city; rationalize the systems and process of investment accreditation and intensify promotional and business development activities; forge partnerships with both foreign and domestic institutions; promote participation of non-governmental organizations; determine by way of clear policies which areas of investments may best accomplish the goals declared; provide package of incentives for investors in the preferred or priority investment areas; investment project must preserve biodiversity and use natural resources responsibly and investments shall not compromise nor impose upon the people’s socio-cultural values.
The ordinance stipulates that the preferred investment areas are green manufacturing and exporting industries; creative industries; tourism-oriented and related establishments; pioneering strategic projects; mass housing; water and energy resource development; research and development; ecologically sound solid and liquid waste management enterprise; mass transportation and facilities; sports facilities development that complies with international standards and preservation and development of historical and heritage sites.
In addition to the incentives provided by the Local Government Code of 1991, a registered enterprise qualified under the Code shall be exempt from mayor’s permit fees, building permit fees, business sales taxes, real property tax due to the city, including the barangay share under the tax code, and other fees and charges imposed under existing ordinances on a graduated basis.
However, the Code shall not apply to financing and banking institutions and other enterprises which are governed by the Bangko Sentral ng Pilipinas (BSP) Act and which are under the supervision and control of the BSP.
The ordinance pointed out that any person, partnership, corporation, association and cooperative whose application has been granted under the Code must employ at least 80 percent of the required number of bonafide Baguio residents provided for in the measure.
The ordinance claimed that violation of any of the provision under the Code or of the terms and conditions of registration, or the rules and regulations implementing the Code, or the act of abating or aiding in any manner, the commission of any such violation, shall be punished by a fine not to exceed PhP5,000 or imprisonment for not more than six months or both at the discretion of the court.
Further, all the incentives and privileges granted to the enterprise shall be forfeited in favor of the city and the violator shall be required to pay all the taxes, fees and charges due to the same to be computed from the commencement of the business operation. By Dexter A. See
