MANILA – The Department of Finance (DOF) is urging Congress to give the department authority in governing investment promotion agencies (IPAs).
In a congressional hearing over the proposed second package of tax reforms on Tuesday, Finance undersecretary Karl Kendrick Chua said the DOF should be part of the board of all IPAs in the country.
IPAs are “agencies tasked to formulate and develop strategies to position the country as among prime destinations for investments with each one having distinct functions and offering incentive packages,” according to the Department of Trade and Industry (DTI).
“We propose that the DOF, as fiscal manager, be included in all IPAs,” Chua said, noting there should be a parent board which also includes the DOF.
“In the spirit of collegiality, the veto power is something we can let go,” he said.
The DOF is only part of the board of two IPAs, one of which is the Philippine Economic Zone Authority (PEZA).
IPAs also include the Aurora Pacific Ecozone (APECO), the Authority Freeport Area of Bataan (AFAB), the Clark Development Corp. (CDC), the Cagayan Economic Zone Authority (CEZA), the Phivdec Industrial Authority (PIA), and the Philippine Retirement Authority (PRA).
Other IPAs are the Regional Board of Investments (RBOI), the Subic Bay Metropolitan Authority (SBMA), the Tourism Infrastructure and Enterprise Zone Authority (TEZ), and the Zamboanga City Special Economic Zone.
Under the proposed Tax Reform for Acceleration and Inclusion 2, the DOF seeks to amend or repeal at least 123 special laws on investment incentives and consolidate what’s left into one omnibus incentive code. (GMA News)
