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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
Third Regular Session 
House Bill No._____ 
Introduced by: Congressman BIENVENIDO M. ABANTE, JR. 
AN ACT 
ADJUSTING THE PAYMENT AND REMITTANCES OF TAXES TO THE GOVERNMENT 
OF ALL SPECIAL ECONOMIC ZONES AND FOR OTHER PURPOSES  
EXPLANATORY NOTE 
The eminent jurist Apostle Paul even instructed us on how to submit to the governing 
authorities,  
“Render therefore to all their dues: tribute to whom tribute is due; custom to whom 
custom; fear to whom fear; honour to whom honour.” Romans 13:7 KJV 
The concept of taxation dates back to ancient nations, where rulers imposed dues on 
agricultural produce and trade to support their troops and administrative functions. 
In our day and age, particularly in our jurisdiction, taxation is the power by which the 
sovereign, through its law-making body, raises revenue to defray the necessary expenses of 
government. It is merely a way of apportioning the cost of government among those who in some 
measures are privileged to enjoy its benefits and must bear its burdens. In one case the Supreme 
Court decided that it is a symbiotic relationship whereby in exchange for the protection that the 
citizens get from the government, taxes are paid.1 
On the other hand, The Philippine Economic Zone Authority (PEZA) is a government 
agency tasked to promote investments, extend assistance, register, grant incentives to, and 
facilitate the business operations of investors in export-oriented manufacturing and service 
facilities inside selected areas throughout the country proclaimed by the President of the 
Philippines as PEZA Special Economic Zones. Ecozones or “Special Economic Zones” refer to 
selected areas with highly developed or that have the potential to be developed into agri-
industrial, industrial, tourist, recreational, commercial, banking, investment, and financial 
centers whose boundaries are determined by Presidential Proclamation.2 
1 Commissioner if Internal Revenue v. Algue, Inc., et al.  
2 https://cpbrd.congress.gov.ph/images/PDF%20Attachments/Facts%20in%20Figures/FF2019-35_PEZA_1.pdf 
August 20, 2024
8:00 am
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Under the Philippine Development Plan 2023 to 2028, PEZA is tasked to expedite the 
implementation of the ecozone transformation roadmap which expands the different types of 
special economic zones registrable under PEZA. According to the Plan, “the creation of ecozones 
will maximize investments and promote industrial dispersion, especially outside metropolitan 
areas.3 
In this regard, the necessity to raise taxes has become increasingly evident, primarily due 
to the escalating demands for public services and infrastructure. As populations grow and urban 
centers expand, governments face mounting pressure to provide essential services such as 
healthcare, education, and transportation. A tax increase is not merely a financial obligation; it is 
an investment in the future of our communities. By adjusting our taxes, we can ensure that 
adequate resources are allocated toward improving public welfare and maintaining vital 
infrastructure. 
 
It is noteworthy that one of the principles of a sound tax system is Theoretical Justice ---a 
good tax system must be based on the taxpayer’s ability to pay. This suggests that taxation must 
be progressive conformably with the constitutional mandate that Congress shall evolve a 
progressive system of taxation.4 The constitutional provision is not an express grant of local 
taxing power but only a mandate for the legislature to implement and delegate. Thus, in order 
that corporate authorities of cities may be vested with the power to assess and collect taxes 
requires a legislative enactment to make it effective. 
 
In view of the foregoing, the immediate passage of this bill is earnestly sought. 
 
 
 
BIENVENIDO M. ABANTE, JR. 
 
 
 
 
 
 
 
 
 
 
 
 
3 https://businessmirror.com.ph/2023/02/10/peza-to-set-in-motion-3-new-ecozones-in-2023/ 
4 Sec. 28 [1], Art. VI, 1987 Constitution. 


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
Third Regular Session 
House Bill No._____ 
Introduced by: Congressman BIENVENIDO M. ABANTE, JR. 
AN ACT 
ADJUSTING THE PAYMENT AND REMITTANCES OF TAXES TO THE GOVERNMENT 
OF ALL SPECIAL ECONOMIC ZONES AND FOR OTHER PURPOSES  
Be it enacted by the Senate and the House of Representatives of the Philippines in session assembled: 
SECTION 1. Short Title. – This Act shall be known as the “Tax Payment Adjustment for 
Special Economic Zone Act of 2024” 
SEC. 2 Declaration of Policy. – It is the policy of the State that with regard to the power of 
taxation, it is indubitably the most effective instrument to raise needed revenues in financing and 
supporting myriad activities of the Local Government Unit for the delivery of basic services 
essential to the promotion of general welfare and enhancement of peace, progress, and prosperity 
of the people. 
SEC. 3 Tax Remittance to the Government – Any provision of existing law, rules, or 
regulations to the contrary notwithstanding, no taxes, local and national, shall be imposed on the 
business establishments operating within the Special Economic Zones. In lieu of paying taxes, 
said business establishments shall pay and remit to the national government nine per centum (%) 
of their gross income, to be divided as follows: 
(1) Two per centum (2%) shall accrue to the general fund of the national government, and
(2) Seven per centum (3%) to the Local Government Unit where the Special Economic Zone
created by a special law is situated.
SEC 4. Repealing Clause.  All laws, presidential decrees, executive orders, letters of 
instruction, administrative rules and regulations, or parts thereof which are contrary to or 
inconsistent with the provisions of this Act are hereby repealed or modified accordingly. 
SEC 5. Separability Clause. In case any provision of this Act is declared unconstitutional or 
invalid, the other provisions hereof which are not affected thereby shall continue in full force and 
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effect. 
 
SEC 6.  Effectivity.  This Act shall take effect fifteen (15) days after its complete publication 
in the Official Gazette or in two (2) national newspapers of general circulation whichever is 
earlier. 
 
 
Approved.