House panel OKs tax provision in SMC’s franchise for New Manila International Airport
NEW GATEWAY The artists’ rendition of the P734-billion New Manila International Airport that will rise in Bulakan. /Contributed photo
MANILA, Philippines — The House committee on ways and means approved Wednesday tax exemptions for San Miguel Corporation (SMC) during the 10-year construction of the “New Manila International Airport” in Bulacan.
With 25 affirmative votes and two negative votes, the members of the committee approved the tax provisions of the still unnumbered substitute bill which grants San Miguel Aerocity Inc. a franchise to construct, develop, establish, operate, and maintain a domestic and international airport in Bulakan town in Bulacan.
The franchise also covers the construction, operation, and maintenance of an adjacent “Airport City.”
Albay Rep. Joey Salceda, who chairs the committee, said the airport is expected to decongest the Ninoy Aquino International Airport and support growth and development in Central Luzon.
“On its own, the project was already going to be beneficial, as a P740-billion infrastructure investment that will come entirely out of the private sector’s hands. That’s 4 percent of GDP,” Salceda said in a statement.
“In return, we are being asked to provide some tax concessions. By tempering the tax provisions, we made sure that the Filipino people will get even more economic benefits for less taxpayer cost,” the lawmaker added.
Salceda said that by making the tax provisions of the franchise fairer, “we are making sure that the public gets more returns from this project”, adding that the Bulacan airport will “make a lot of money.”
The lawmaker further underscored that it is critical that “all other income derived outside airport operations should be taxed regularly.”
“There will be hotels and restaurants in the surrounding ‘Airport City,’ so we want to make sure that the franchise’s tax privileges only extend to the airport operations,” Salceda said.
SMC will invest P735 billion for the construction of the proposed “New Manila International Airport,” which will be built in the coastal areas of Bulakan town in Bulacan, or around 30 kilometers north of Metro Manila.
The House committee on legislative franchises earlier approved SMC’s franchise for the construction of the airport before it was passed to the ways and means committee for the approval of its tax provisions.
“This is probably the biggest single-item investment in the country’s history,” Salceda said.
“I want the airport to happen on fair and equitable terms. That is why I worked with the leadership and my colleagues to come up with fairer tax provisions for the franchise. I am proud to have pushed for fairer tax benefits and an attractive profit-sharing scheme for the country,” the lawmaker added.
Salceda assured that his committee will look into the social impact on the communities directly affected by the project, the estimated foregone revenues due to the tax exemptions to be granted under the measure, and the projected employment generation, among others. [ac]
