March 13, 2006

Encouraging influx of investment in Dagupan from balikbayans, foreign investors

The following is an email I received from Dagupan City, Pangasinan, Philippines Councilor Joey Tamayo who is gathering reactions, comments or suggestions before this ordinance will be tackled in their session.

Dagupeños now working or based abroad are expected to benefit from this measure. Those who would like to send their feelings or sentiments, are enjoined to participate here and I feel this blogsite could be of use to achieve this purpose. Here, kindly read on.

Greetings, The writer of this message is Joey Tamayo, your humble councilor in Dagupan City. With the present policy of the City government of Dagupan to drum up investment to pour in to our beloved City, this representation wish to consult our fellow Pangasinenses, particularly Dagupenos based abroad to peruse the following draft of an ordinance designed to give certain incentives to would be investors in Dagupan.

Please take note however that your active involvement in this law making process is solicited by sending via email your questions, comments, reactions and or suggestions, if any, in regard the proposal. If you approve of the proposal, your email embodying your acquiescence shall be greatly appreciated, for record purposes for use during the plenary before the Sangguniang Panglungsod of Dagupan. It is required that public hearing be conducted before an ordinance of such nature as the following. But since most of the beneficiaries of this ordinance are expected to come from abroad, the proposed measure is communicated to you via web.

Please send in your comments to joeytamayo@yahoo.com copy furnished vmalvin@yahoo.com. Lastly, it is requested that you please forward this message to all Pangasinenses and Dagupenos wherever they may be. Thank you for your kind attention. JOSE NETU ‘JOEY’ TAMAYO

– DAGUPAN CITY REPUBLIC OF THE PHILIPPINES CITY OF DAGUPAN SANGGUNIANG, PANGLUNGSOD INTRODUCED BY COUNCILOR JOEY TAMAYO DRAFT ORDINANCE NO._________ ORDINANCE 1) ENCOURAGING THE INFLUX OF INVESTMENT OF CAPITAL IN DAGUPAN CITY FROM BALIKBAYANS, FOREIGN INVESTORS AND OTHER ENTERPRENEURS, AND FOR OTHER PURPOSES.


WHEREAS, the State recognizes the indispensable role of our returning balikbayans, overseas contract workers, and other foreign investors to nation building embodied in Republic Act 6768, thus too, this City, underscores this measure to accord distinction to them as potential source of capital necessary to effectuate a faster economic activity in our jurisdiction, as alternative formula to combat social costs posed by UNEMPLOYMENT in the City and in our neighboring municipalities, earmarked as priority, after a consultative assessment and evaluation of the achievements of the new administration, dictated by the people represented in an assembly of a cross-section of the community composed of cause oriented groups, other NGO’S attested by the prying eyes of the people’s media.

WHEREAS, to sustain the trademark of the City as trendsetter in the field of commerce, health, education and fish production, the administration is bent to pursue a bolder policy to open the City doors to all avenues of commerce espousing the " Deng Xiaopeng " formula to attain a bigger leap forward, far dynamic than the age old popular cry: Aliguas Dagupan! Thus, collective is the call for the imperative addendum to the old cry: "DAGUPAN SO ILUKAS, DIAD MAPLES YA IALIGUAS!"

WHEREFORE, on motion of councilor JOEY TAMAYO and CHARISSE PEREZ, _________________________ duly seconded by ______________________, this COUNCIL hereby underscores the need to entice the INFLUX OF CAPITAL, from whatever source, for the benefit of city inhabitants, THUS, by the mandate to serve, BE IT ORDAINED THAT:

Section 1. CREATION OF THE INFORMATION OFFICE FOR BALIKBAYAN AFFAIRS, PROSPECTIVE MIGRATING WORKERS, ENTERPRENEURS and, JOB PLACEMENT FOR DOMESTIC WORKERS, and a MIGRATING WORKER with SPECIAL SKILLS. There shall be created an Office to look into the Affairs of returning BALIKBAYANS, LAKBAY TURISTA, IMBESTOR (INVESTORS) at mga MANGAGAWA at DALUBHASA na may kakaibang kakayahan, (workers with special skills and professionals), hereafter referred as B.L.I.M. information center). These classes of persons are hereby earmarked as potential INVESTORS of foreign or domestic capital to the City or are endowed with skills and capability/ies necessary to trigger a more active economic activity that inures for the benefit of the inhabitants. This special office, under the control and supervision of the office of the City Mayor, shall be primarily tasked to extend service by, any useful and effective means, in providing relevant information and other useful data necessary for the attainment of goal/s of persons, whose stay, whether for temporary or permanent purpose, .

Section 2. DEFINITION OF TERMS. — For purposes of this Act: (a) The term "balikbayan" shall mean a Filipino citizen who has been continuously out of the Philippines for a period of at least one (1) year, a Filipino overseas worker, or a former Filipino citizen and his family, as this term is defined hereunder, who had been naturalized in a foreign country and comes or returns to the Philippines; (b) The term "family" shall mean the spouse and the children of the balikbayan who are not balikbayan in their own right traveling with the latter to the Philippines. © The term local "migrant worker/entrepreneur or professional" shall mean any person, who originates from outside Dagupan but not abroad, and comes into Dagupan City to establish a permanent or temporary residence for the purpose of obtaining some work, or to establish a business; (d) The term "visitor" shall mean any alien, or Filipino citizen, who comes to, or sojourns within, Dagupan City for tourism purposes or any other legitimate purpose/s other than establishing some business, or obtaining some gainful employment for livelihood for his family or himself; (e) The term "non-migrant worker/entrepreneur or professional" shall mean any person who originates from outside Dagupan City but not from abroad, but comes to City to establish or maintain a business, or to practice a profession or to obtain gainful employment; (f) The term resident entrepreneur shall mean any person, natural or juridical, which establishes or conducts business within the City;

Sec. 3. BENEFITS AND PRIVILEGES — AFTER THE DATE OF THE EFFECTIVITY OF THIS ORDINANCE, the following BENEFITS are available, to, A. THE BALIKBAYAN AND/OR HIS FAMILY, INDUCED TO INVEST IN BUSINESS IN DAGUPAN, WHETHER AS PROPREITOR OR AS PARTNER IN WHATEVER CAPACITY IN PARTNERSHIP BUSINESS, SHALL, IN ADDITION TO THE PRIVILEGES UNDER THE BALIKBAYAN PROGRAM ACT, are entitled to the following mandatory tax incentives granted by the inhabitants of this City, as follows, to wit, 1) ON REAL PROPERTY TAX ON LAND AND BUILDINGS WHERE BUSINESS IS LAWFULLY CONDUCTED Discount of twenty-five (25%) percent in the assessment of Real property tax payable, pursuant to the applicable local tax ordinance at the time of the assessment, imposed UPON such land, and the building standing thereon, where at least a portion of eighty (80%) thereof is devoted for business introduced, or acquired by the balikbayan and/ or any member of his family, for a period of three (3) years from the inception of said business. Real property tax payable, assessed and imposed upon such land and building, where at least eight (80%) thereof is devoted for a business introduced or acquired by the balikbayan and/or any member of his family, initiated and operated by said investor on the first year, shall be assessed at a lower discounted rate of fifteen (15%), during the operation of such business on the fourth (4th) and fifth (5th) year. Provided, the proper discount as provided herein, may be availed by the balikbayan and/or his family, upon such sworn certification that, the latter wholly owns or controls such interest of at least sixty (60%) percent of the business conducted upon such land and the building, where at least eighty (80%) of the land or building, is devoted for the purpose of the business of the person entitled to the incentive. Provided lastly, that such tax incentive applicable to real property tax, shall apply, irrespective of whether or not the land and the building where business is operated is owned or leased by the Balikbayan and/or his family. In the latter case, the owner-lessor of the land and building upon which the balikbayan conducts business may claim the incentives hereto granted, to facilitate the entry of the intended lessee balikbayan, and as an incentive for the lessor to allow with the former to occupy the business place leased upon such terms, mutually acceptable, taking into consideration the policy that is established in this ordinance. (2) ON BUSINESS TAXES Any balikbayan and/or his family that shall conduct any legitimate business, whether in the form of single proprietorship, or as partner in a legitimate partnership in Dagupan City, shall be entitled to a discount in the payment of business tax payable duly assessed pursuant to the Local Tax Code and the applicable Local Tax Ordinance at the time of assessment, FOR A PERIOD OF TWO (2) YEARS, from and after the inception of the business owned or partly owned by the subject persons herein, as follows, a) Essential commodities – 30% discount of the business tax assessed and payable on the first year, and 10% discount thereof on the second (2nd) year of operation of the new business, computed pursuant to the local tax code and subject to such limitations prescribed hereunder. b) Other commodities - 30% discount of the business tax properly assessed and payable on the first year, and 5% discount thereof on the second (2nd) year of operation of the new business, computed pursuant to the local tax code, subject to such limitations prescribed hereunder. OTHER SPECIAL PRIVELEGES A BALIKBAYAN and HIS FAMILY, and A TOURIST shall be entitled to privileges, as follows, under this ordinance, (a) Discounts from services provided by hotels, restaurant, and other entertainment businesses (at such rate subject to consultation with business groups and other establishments within the City); (Not applicable to resident entrepreneurs) (b) Other package/bonanza afforded by the City government (after consultation with the City Mayor’s Office); B. FOREIGN CORPORATIONS, PARTNERSHIPS ALLOWED AND AUTHORIZED TO CONDUCT BUSINESS, WHERE AT LEAST FORTY (40%) OF ITS STOCKS OR INTEREST ARE OWNED, SUBSCRIBED OR CONTROLLED BY ALIENS, DOMESTIC CORPORATIONS, 100% OF WHICH STOCKS ARE FILIPINO OWNED, OR ANY ALIEN NATIONALE WHO SHALL ESTABLISH, OPERATE AND CONDUCT ITS BUSINESS WITHIN THE CITY OTHER THAN ENGAGING IN A BANKING ACTIVITY, shall UPON the affectivity of this ordinance, be entitled to the following mandatory tax incentives for such number of years specified herein from its initial operation as follows, to wit, 1) ON REAL PROPERTY TAX ON LAND AND BUILDINGS WHERE BUSINESS IS LAWFULLY CONDUCTED FOREIGN CORPORATION OR ALIEN NATIONALE THAT SHALL INVEST and OPERATE A BUSINESS AUTHORIZED BY THE STATE WITHIN DAGUPAN CITY. AN ALIEN NATIONALE or A FOREIGN CORPORATION, doing business in Dagupan, obliged to pay Real property tax under the terms of its contract of lease, shall be entitled discount of TWENTY (20%) percent in the assessment of real property tax payable, pursuant to the applicable local tax ordinance at the time of the assessment, imposed UPON such land, and the building standing thereon, where at least a portion of eighty (80%) thereof is devoted for business introduced, or acquired by the alien corporation or nationale, within the period of two (2) years from the inception of the operation of the business. Such persons authorized to conduct business in the Philippines that are granted discount in the payment of real property tax on land and buildings, as described in the immediately preceding paragraph, INCLUDING THEIR RESPECTIVE LESSORS may claim a reduced discount of five (5%) percent from the real property tax assessed and payable on the third (3rd) to the fifth (5th) year in operation of the business, whether partly funded by foreign capital, or wholly controlled by an alien nationale. DOMESTIC CORPORATION THAT SHALL INVEST OR OPERATE IN BUSINESS IN DAGUPAN CITY. A domestic corporation, that shall engage in and operate business in Dagupan City on or after the affectivity of this ordinance, bound to pay real property tax under its lease contract, or as owner thereof, shall be entitled to a flat rate discount of five (5) percent of the real property tax payable duly assessed pursuant to the local tax code and the existing applicable local tax ordinance at the time of assessment. The lessor-owner of the land and building occupied by an alien, a foreign or domestic corporation, if applicable, may claim the same incentive of discount in real property taxes provided herein, to encourage investments in real estate and construction industry suited for business or commercial purposes in Dagupan City. (2) ON BUSINESS TAXES A FOREIGN CORPORATION, at least forty percent of its stockholdings belong to aliens, or FOREIGN NATIONALS, that shall invest capital, whether in the form of single proprietorship, or as partner in a legitimate partnership, upon a business that are by law NOT reserved to Filipino citizens or domestic corporations in Dagupan City, shall be entitled to discount in the payment of business taxes payable, duly assessed pursuant to the Local Tax Code and the applicable Local Tax Ordinance at the time of assessment, FOR A PERIOD OF TWO (2) YEARS, from and after the inception of the business owned or partly owned by the subject persons herein, as follows, FOR SELLING COMMODITIES other than ESSENTIAL, pursuant to the Local Tax Code – 10% discount of the business tax assessed and payable on the first (1st) year of operation, and 5% discount thereof on the second (2nd) year of operation of the new business, computed pursuant to the local tax code and subject to such limitations prescribed hereunder. A DOMESTIC CORPORATION and RESIDENT ENTERPRENEUR/ INVESTOR doing business in the Philippines, shall be assessed business taxes with incentives, FOR DEALING IN ESSENTIAL COMMODITIES – 15% discount of the business tax assessed and payable on the first (1st) year of operation, and 10% discount of the business tax on the second (2nd) year of operation. FOR DEALING IN COMMODITIES OTHER THAN ESSENTIAL - 10% discount of the business tax assessed and payable on the first (1st) year of operation, and 5% discount of the business tax due and payable on the second (2nd) year of operation
(N.B. RATE OF DISCOUNTS HEREIN INSCRIBED ARE TENTATIVE, AND ARE SUBJECT TO CONSULTATION WITH THE TREASURER AND THE ASSESSOR, UPON THE BLESSINGS OF THE MAYOR AND THE VICE-MAYOR, FOR CONSULTATION WITH COLLEAGUES IN THE SANGGUNIAN)
Thank you. Atty. Joey Tamayo - 0921-793-8088

Filed under , by Eva C. Visperas.
Permalink • Print • 

Track this entry:

Trackback url

Comments

Leave a comment

Powered by: BNS Hosting - Bitstop, Inc | Web Hosting Philippines | Dedicated Servers | Network Monitoring Service and the Semiologic CMS | Design by Mesoconcepts |