Foreign investors now has a say in Senate hearing
Also present were Senator Cynthia Villar as well as Senator JV Ejercito and Senator Win Gatchalian. Clark Investors and Locators Association (CILA) Chairman Mr. Steven Virata and Vice-Chairman Dr. Andreas Klippe attended the tenth Senate hearing on the lifting of the Value-added tax exemptions of the Clark Freeport Zone last July 12, 2017. As officers of CILA, they asked for clarification of the status of the tax incentive given to investors at Clark and to ease the custom duties of the products they produced in the zone.
The Department of Finance has reported to Congress the tax status shall remain the same and will not be affected the pending bill that will lift the VAT exemptions in certain business entities. It assured the representatives of CILA they will enjoy the same tax privileges.
CILA chairman Mr. Virata thanked the Ways and Means committee for the continued exemptions in the economic zone in regards to the VAT.
Also in the hearing, Dr. Klippe has asked the Ways and Means Committee for better explanation on the subject of the 12-percent VAT payment on the delivery of goods outside of Clark Freeport Zone. For example, sometimes the services inside are not enough and would require items not available inside the zone. As to the custom duties when importing the goods they need better clarifications about the rules in importing their goods.
After the more than four-hour hearing session, Senator Angara thanked all the participants of the various sectors and officially closed the session.