According to SBMA Administrator Armand Arreza, the SBMAs interpretation of its charter exempts its locators from the payment of the 12-percent VAT.
As a freeport, Arreza pointed out that locators are exempted from these taxes and import duties.
Thus, he said even food and restaurants outlets located inside Subic should not be subject to the imposition of the 12-percent VAT.
Establishing the freeport as a VAT-exempt area was intended as an added attraction to investors and locators. For instance, one benefit to potential airlines interested in making the freeport a hub is the purchase of tax-free aviation fuel, Arreza said.