Bulacan Special EcoZone Bill lapses into law

MANILA, Philippines — A measure establishing the Bulacan Special Economic Zone and Freeport and creating its management board has lapsed into law.

Under Republic Act 11999, the facility will be known as the Bulacan EcoZone or BuZ. It covers the airport project and the airport city project of San Miguel Aerocity – a wholly owned subsidiary of San Miguel Holdings – in Bulakan, Bulacan.

The law also creates the Bulacan Special Economic Zone and Freeport Authority or BEZA, which will manage the BuZ.

The bill lapsed into law on June 13.           

House committee on ways and means chair Joey Salceda said the newly enacted law is expected to create $200 billion in exports, boosting the country’s gross domestic product (GDP).

Salceda said the Bulacan Ecozone has been envisioned to boost the GDP by at least P130 billion per year while the land value gains will be at least P226 billion.

“That will create massive revenue gains in income taxes and property taxes, so the forgone revenue from tax incentives will get offset,” Salceda said.

“Ninoy Aquino International Airport was a mess. It should not be where it is. We did not build an industrial base around it, or even plan transport and logistics. As a result, it does not realize its industrial potential and is a bane on the traffic and congestion situation in Manila,” Salceda added.

He hopes that investors interested in logistics chains “will start investing in Bulacan before the airport gets completed.”

During the 18th Congress, President Marcos vetoed the measure, citing defects such as low tax base and lack of coherence with existing laws, rules and regulations.

Salceda filed a new version in the 19th Congress to cure the deficiencies.

The BEZA, to be organized within 180 days after effectivity of the law, will establish the general framework for land use, planning and development for the BuZ and will have an authorized capital stock of P2 billion.

The BEZA and affected local government units are entitled to a share in the special corporate income tax: 40 percent to the national government, 20 percent to BEZA for infrastructure development, and 40 percent to concerned LGUs. — Sheila Crisostomo