Metro Manila (CNN Philippines, September 2) — A House of Representatives panel has approved tax breaks for foreign investors in the bill that would create an economic zone around San Miguel Corporation’s Bulacan airport.
House Ways and Means Committee members voted in favor of the tax provisions under the proposed Bulacan Airport City Special Economic Zone and Freeport Act.
This came after the House Economic Affairs Committee led by Albay Rep. Joey Salceda approved the House Bill 7483 itself on Tuesday morning.
READ: House panel approves bill creating economic zone around SMC’s Bulacan airport
The bill gives incentives such as tax and duty-free importation of raw materials, capital and equipment to registered enterprises inside the proposed Bulacan ecozone.
Companies are also entitled to existing fiscal incentives granted under the Omnibus Investments Code of 1987, such as tax holidays and tax credits.
The ecozone will complement SMC’s soon-to-rise New Manila International Airport in the town of Bulakan in Bulacan province, just north of Metro Manila.
SMC’s ₱735.6-billion masterpiece, also dubbed as a “game changer,” is seen to boost economic growth and ease traffic at the Ninoy Aquino International Airport.
The lawmakers also approved on second reading Tuesday evening HB 7507 granting San Miguel the franchise for the construction and operation of the airport.
READ: House OKs franchise for SMC’s Bulacan airport project on 2nd reading
Salceda, explaining the approval of the proposed bills, said the airport and the ecozone are a “package deal” that will attract more foreign investors to the country.
The planned airport, which can accommodate six runways, will cover a land area of 2,500 hectares, bigger than the size of Makati City or Mandaluyong City.
“Once you have a new big airport that is the gateway to the Philippines then like even I think, for example, mga other industries that fly-in, fly-out for hours could certainly locate there and they could take advantage of [the new facility],” the committee chair said during the hearing.
SMC Holdings operations head Engr. Edgar Dona also told the committee that the area can be extended twice to “cover all airport-related activities.”
Dona was citing the 50-year concession agreement between Department of Transportation and SMC representatives signed in 2019.
SMC will undertake the financing, design, construction, supply, completion, testing, commissioning, and operation and maintenance of the airport for half a century.
“But of course the final metes and bounds will be determined by the granting agency, the DOTr, as we finally submit the airport plan,” Dona told the solons.
The country’s top diversified conglomerate earlier said the huge airport can handle up to 100 million passengers from around the world once its fully operational.
“Because as you very well know, if it’s an ecozone, many of the products that have been produced there will be exported to other countries. And within the airport area, definitely cost and logistics will be reduced,” DOTr Undersecretary for Planning and Project Development Ruben Reinoso Jr. said when asked by Salceda.
