MANILA -- The House of Representatives has unanimously approved a proposal seeking to strengthen the powers and functions of the Authority of the Freeport Area of Bataan (AFAB) to enhance its competitiveness and expand investment opportunities.
With 206 affirmative votes, the House approved House Bill 6524, which seeks to amend the provisions of the "Freeport Area of Bataan Act of 2009" or Republic Act No. 9728.
The bill seeks to widen the coverage of Bataan Freeport to include land and water territories in the Municipality of Mariveles, Bataan along with other territories indicated as part of the Freeport Area of Bataan (FAB) in the existing law.
Under the bill, the AFAB shall be given exclusive enforcement and administration of the provisions of the National Building Code and the Fire Code of the Philippines on all building structures situated inside the FAB.
The AFAB shall exercise police authority and maintenance of law and order within the boundaries of the Freeport area.
It is also granted the power to act as an offshore center to engage in all offshore fund activities or collective investment system as provided in applicable laws.
Furthermore, the AFAB shall establish all-inclusive international economic relations for the operation of regional or area headquarters within the territorial jurisdiction of FAB.
The AFAB is granted exemption from payment of all national and local taxes.
FAB enterprises may generate income from sources within the customs territory of up to 70 percent of its total income from all sources, and will be subject to tax laws of the territory should it exceed 70 percent.
Meanwhile, enterprises engaged in activities that address climate change, improve disaster risk reduction and management capacity of the country, and/or deemed priority investments are allowed to generate 100 percent of their total income from the customs territory without loss of eligibility to the incentives of HB 6524.
The bill mandates local government units and the AFAB to provide an immediate and responsive mechanism to undertake best management practice through coastal zone management program to address the abuse and inappropriate exploitation of the natural environment and disrupted land use within the jurisdiction of the FAB.
The bill states that the capital of PHP2.5 billion to be contributed by the government shall consist of all lands embraced and covered by the FAB including properties conveyed to the GSIS and/or SSS under Proclamation 740, as amended by Proclamation 900. (PNA)
