Neda opposes creation of new special ecozones

As the government moves to rationalize the granting of tax perks in the country’s economic zones, state planning agency National Economic and Development Authority (Neda) has opposed the creation of new development authorities and special ecozones across the country.

“In general, we find the creation of additional development authorities contrary to the government’s continuing efforts to rationalize the bureaucracy. Specifically, the Philippine Development Plan 2017-2022 … supports the full implementation of a national rightsizing program which requires agencies to rationalize their staffing pattern in consideration of other agencies’ mandates and functions to eliminate duplication,” Socioeconomic Planning Secretary and Neda chief Ernesto M. Pernia said in a Feb. 3 letter to House economic affairs committee chair, Rep. Sharon S. Garin.

Pending in the Lower House are bills to establish a Mega Cebu Development Authority (MCDA), a special defense ecozone in Bataan, and a number of special ecozones in the provinces of Bohol, Camarines Sur, Cavite, Cebu, Ilocos Norte, Ilocos Sur, Iloilo, Leyte, Misamis Oriental, Negros Occidental, Occidental Mindoro, Oriental Mindoro, Palawan, and Surigao del Sur.

“Unless there is no other body addressing the proposed mandate of a new development authority, the creation of such could be an additional tier that could cause delays in decision-making,” Pernia explained.

In the case of the proposed MCDA, Pernia pointed out that it would only duplicate the function of the existing Provincial Development Council created under the Local Government Code of 1991.

As for new ecozones, Pernia said the Philippine Economic Zone Authority Law under Republic Act No. 7916 had envisioned “self-reliant, self-sustaining and private-sector-led” special economic zones and free ports.

“Neda supports private sector-led initiatives rather than the establishment of new publicly owned ecozones and free ports,” Pernia said.

Also, the Neda chief said “the proposed fiscal and nonfiscal incentives for establishments within the proposed ecozones should be aligned with the current thrust of the national government to rationalize the fiscal incentives granted by different investment promotion agencies to make them performance-based, targeted, time-bound, and transparent.” INQ