Parañaque gov’t sees higher earnings under tax accord | Inquirer News

Parañaque gov’t sees higher earnings under tax accord

/ 04:42 AM March 21, 2014

MANILA, Philippines—The Parañaque City government sees a dramatic increase in revenues following the recent signing of a tax agreement with Philippine Economic Zone Authority (Peza), whose registered locators include Pagcor Entertainment City.

Mayor Edwin Olivarez said the memorandum of agreement (MOA) which he and Peza Director General Lilia de Lima signed on Wednesday spells out the tax obligations of locators, whether they are registered with Peza or not.

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“This is a breakthrough that is several years in the making, and this agreement will now be the basis in computing all the legal financial obligations of Peza-accredited enterprises due the city of Parañaque,” the mayor said in a statement Thursday.

“Definitely, this will put Parañaque in the big leagues,” he said.

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Parañaque plays host to the Pagcor (Philippine Amusement and Gaming Corp.) Entertainment City along the coast of Manila Bay. Upon full operation, it will have at least four world-class casino-hotels that feature entertainment centers, theaters, amusement parks and marinas, among others.

The Solaire Resort & Casino is currently the only locator in full operation and set for expansion at Entertainment City. The city also hosts other Peza-administered zones.

Olivarez noted that in the past there was “uncertainty” as to what Peza locators really owed local government units (LGUs) because of the income tax holiday and the 5-percent tax on gross income and other incentives offered by the national government to investors.

“This MOA has lifted the veil of uncertainty as to what we in the LGU can rightfully collect, and this will definitely go a long way toward increasing our collections that, in turn, should allow us to better plan and expand our services for the people of Parañaque,” he said.

The mayor said he expected to collect significantly higher revenues, particularly from real property taxes and taxes on machinery, as well as from regulatory fees for sanitation inspection, waste management and mayor’s permit, as spelled out in the agreement.

Once the income tax holidays granted by Peza to accredited and registered locators expire, the city will be entitled to 2 percent of the gross income earned by the locators and will also continue to collect real property taxes and regulatory fees.—Niña P. Calleja

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TAGS: Parañaque, Philippine Economic Zone Authority, Philippines - Metro, tax accord, tax agreement, Tax revenues
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