Foreign chambers back move to amend PH land ownership laws
MANILA -Three foreign chambers are backing moves to amend land ownership laws in the Philippines, saying the issue is an important concern for investors from their respective countries who want to do business in the Philippines.
Foreign chambers from the United States, Europe and South Korea—overseas markets that have huge investments in the Philippines—last week expressed varying degrees of support toward changing the Philippines’ land ownership rules, which is being considered as part of the bigger plan to amend the Philippine Constitution.
“Most US companies would prefer to own the land they build on rather than a 50- or 75-year lease. One of the reasons for the preference is when the lease is up the landlord can raise the rent to extremes because they know the company will not be able to relocate the factory,” American Chamber of Commerce of the Philippines executive director Ebb Hinchcliffe said in message sent to the Inquirer.
“There are also some tax reasons of depreciation of land versus a lease. Land ownership may not be a show stopper for investment, but in most cases, it would be a plus and another reason to invest here,” he added.
Meanwhile, Korean Chamber of Commerce of the Philippines president Joseph Um expressed similar sentiments, reinforcing the notion that land ownership makes a huge difference, with him comparing it to 50- or even a 100-year lease.
“Definitely, it will boost foreign investments, as well as the increase of property value,” Um said in another message to the Inquirer.
Sought for his reaction as well, European Chamber of Commerce of the Philippines (ECCP) president Lars Wittig did not particularly hone in on land ownership, commenting instead that they will back moves to further liberalize the economy.
“The ECCP appreciates the ongoing deliberation on amending the economic provisions of the Constitution. Further, ECCP supports measures that will aid the country’s bid to attract more foreign direct investments, generate more jobs, as well as broaden the tax base,” Wittig said.
Sen. Aquilino Pimentel III earlier warned that inserting provisions that will allow foreigners to own land in the country will intensify opposition to amend or revise the 36-year-old charter.
In a similar vein, Trade Secretary Alfredo Pascual also downplayed the need to allow foreigners to own land in the country saying that it was not a “big issue” nor was it a “critical” aspect in conducting their businesses in the Philippines.
Despite this, Pascual had urged lawmakers to study the issue to come up with an objective assessment of the matter. INQ
RELATED STORIES:
Deletion of all economic provisions in 1987 Constitution sought
