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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First 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 measure, 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, 
1 Commissioner if Internal Revenue v. Algue, Inc., et al. 
August 5, 2025
12:07 pm
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recreational, commercial, banking, investment, and financial centers whose 
boundaries are determined by Presidential Proclamation.2 
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 is required to make it effective. 
In view of the foregoing, the immediate passage of this bill is earnestly sought. 
BIENVENIDO M. ABANTE, JR. 
2 https://cpbrd.congress.gov.ph/images/PDF%20Attachments/Facts%20in%20Figures/FF2019-35_PEZA_1.pdf 
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 
TWENTIETH CONGRESS 
First 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 2025” 
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 
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unconstitutional or invalid, the other provisions hereof which are not affected thereby 
shall continue in full force and 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.