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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 4081

Introduced by HON. GUS S, TAMBUNTING

EXPLANATORY NOTE

It is provided under Article Il, Section 20 of the Declaration of Principles of the
1987 Philippines Constitution that the State recognizes the indispensable role of the
private sector, encouraging private enterprise, and providing incentives to needed
investments.

This piece of legislation seeks to balance and correct the influx of incentives to
dormant industries or sectors. It aims to make best use of incentive provisions to
encourage investments and create a more harmonious and progressive local and
foreign business economy.

The Philippine economy as reported by Moody's is likely to grow the fastest in
Asia. The International Monetary Fund raised its 2014 economic growth forecast for
the Philippines to 6.5 percent.

The passage of this bill will provide for the impetus in creating a balance
between the current advantage of the Philippines as fertile investments and incentives
laws.

Hence, approval of this measure is earnestly sought.

GUS S. TAMBUNTING

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{> RECEIVED
© ovr; 12 OCT 2016


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS.
First Regular Session

House BILL No, 4084

Introduced by HON. GUS S. TAMBUNTING

AN ACT
REPEALING THE INCENTIVE PROVISIONS OF INDUSTRY AND SECTOR
SPECIFIC AND INVESTMENTS AND INCENTIVES RELATED LAWS, AND FOR
OTHER PURPOSES

Be enacted by the Senate and House of Representatives of the Philippines in
Congress as assembled:

SECTION 1. Title. - This Act shall be known as the "Repeal of Investment
Incentives Laws".

SECTION 2. Declaration of Policy. — It is the policy of the State to encourage
investments to accelerate the sound development of the national economy through,
among others, a cohesive investment incentives regime that is clear, consistent,
competitive and simple to administer for the guidance of domestic and foreign
investors.

Accordingly, amendment of the incentive provisions of industries, sectors and
investment related laws is required for a unified and strategic approach in the great
incentives.

SECTION 3. The provisions pertaining to incentives of the following laws are
hereby repealed:

a) Sections 83, 90, 91 and 93 of Republic Act NO. 7942, otherwise known as the
"Philippine Mining Act of 1995";

b) Section 9 of Republic Act No. 8497, otherwise known as the "Downstream Oil
Deregulation Act of 1998";

Cc) Section 45 of Republic Act No. 9003 otherwise known as the "Ecological Solid
Waste Management Act of 2007";

d) Section 36 (f) of Presidential Decree No. 705, also known as the "Revised
Forestry Code of the Philippines";


e) Section 26 Republic Act No. 9275, otherwise known as "the Philippine Clean
Water Act of 2004";

f) Section 12 of Republic Act No. 8047, also known as the "Book Publishing
Industry Development Act of the Philippines";

g) Sections 15 to 26 of Republic Act No. 9513, otherwise known as the "Renewable
Energy Act of 2008";

h) Sections 16 and 17 of Presidential Decree No. 972, also known as "Coal
Development Act of 1976";

Sections 16 to 17 of Presidential Decree No. 1442 entitled "An Act to promote
the exploration and Development of Geothermal resources";

j) Sections 6 and 7 of Republic Act NO. 7156, otherwise known as the "Iron and
Steel Industry Act";

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Sections 10 and 11 of Republic Act No. 7156, otherwise known as the "Mini-
hydroelectric Power Incentive Act";

Sections 19 and 20 of Republic Act No. 7279, otherwise known as the "Urban
Development and Housing Act of 1992";

m) Section 2 of Republic Act No. 9301, entitled "An Act Amending Republic Act NO.
7471, entitled An Act to Promote the Development of Philippine Overseas
Shipping, and for other purposes";

n

Sections 1, 2, 3 and 4 of Republic Act No. 7109, entitled "An Act Granting
Privileges to Local Water Districts";

0)

Section 18 of Republic Act NO. 7884, entitled "National Diary Development Act
of 1995";

p) Section 1 of Republic Act No. 9281, entitled "An Act to Strengthen Agriculture
and Fisheries Modernization in the Philippines by extending the Effectivity of
Tax Incentives and its Mandated Funding Support, Amending for this Purpose

Sections 109 and 112 of Republic Act NO. 8435";

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Section 3 of Republic Act No. 9290, also known as the "Footwear, Leather
Goods and Tannery Industries Development Act";

r) Section 4 of Republic Act No. 9295, also known as the "Domestic Shipping
Development Act of 2004";

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Section 14 of Republic Act No. 7308, also known as the "Seed Industry
Development Act of 1992";


t) Section 9 (e), (f), and (i) of Republic Act No. 7900 also known as the "High
Value Crops Development Act of 1995";

u) Section 35 (b), (c), (d) of Republic Act 8550, also known as "The Philippine
Fisheries Code of 1998";

v) Section 3 of Republic Act 8502, otherwise known as the "Jewelry Industry
Development Act of 1998";

w) Section 14 (a) of Republic Act 7076, also known as the "People's shall Scale
Mining Act of 1991";

x) Section 24 of Republic Act No. 10068, also known as the "Organic Agriculture
Act of 2010";

y) Section 23 of Republic Act No. 7925, also known as the Public
Telecommunications Policy Act of the Philippines"; and

Z) Section 12 of Republic Act No. 7718, entitled "An Act Amending Certain Sections
of Republic Act No. 6957, entitled An Act Authorizing the Financing,
Construction, Operation and Maintenance of Infrastructure Projects by the
Private Sector, and for Other Purposes";

SECTION 4. Investments Priorities Plan (IPP). - The Board of Investments
(BOI) created and existing under Executive Order No. 226, upon consultation with the
Office of the President, concerned IPAs and appropriate government agencies and the
private sector, shall formulate an IPP to be submitted to the President for his approval,
which shall be valid for a period of three (3) years.

In the listing of the activity in the IPP, the following shall be complied with:

1) The activity shall be covered by the current Medium Term Philippine
Development Plan (MTPDP) and Medium Term Philippine Investment Plan
(MTPIP) or its equivalent.

2) The activity shall satisfy the following conditions:
a. Substantial amount of investments
b. Considerable generation of employment
c. Use of modern or new technology
d. Installation of adequate environmental protection system

Provided, That items 2 (a) and 2 (b) above shall be present in all activities, and
the threshold amount of investment and employment generation required for a specific
activity shall be subject to a periodic review every three (3) years taking into
consideration international standards and other indicators.


3) The activity must comply with the specific qualification requirements and/or
conditions for a particular sector or industry as set by the BOI and other
limitations it may determine.

SECTION 5. Amendments. - Subject to publication requirements and the
criteria for investment priority determination, the BOI may, at any time, include
additional areas in the IPP, alter any of the terms of the declaration of an investment
area, and temporarily or permanently suspend activities on the IPP if it considers that
such activity is no longer a priority. In no case, however, shall any amendment of the
IPP impair the incentives conferred on a registered enterprise. The Board shall not
accept applications in an area of investment prior to the approval of the same as a
preferred area or after approval of its deletion as a preferred area of investment in
the IPP.

SECTION 6. Publication. - Upon approval of the IPP, in whole or in part, or
upon approval of an amendment thereof, the IPP or the amendment, specifying and
declaring the areas of investment shall be published in at least one (1) newspaper of
general circulation and all such areas shall be open for application until publication of
an amendment or deletion thereof.

SECTION 7. Vested Rights. - Notwithstanding any provision of law to the
contrary, incentives granted to existing registered enterprises pursuant to contracts
or agreements entered into by government agencies, instrumentalities, and
corporations shall continue to be legally binding in accordance with the term and
conditions stated in their respective contracts or agreements, as provided under the
laws covered herein.

SECTION 8. Separability Clause. - If any portion or provision of this Act is
declared unconstitutional, the remainder of this Act or any provision not affected
thereby shall remain in force and effect.

SECTION 9. Repealing Clause. ~ All laws, decrees, orders, proclamations, rules
and regulations or other issuances or parts thereof inconsistent with the provision of
this Act are hereby repealed or modified accordingly.

SECTION 10. Effectivity. - This Act shall take fifteen (15) days following its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,