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RECEIVED
NINETEENTH CONGRESS OF THE) 2 paATes. ih
REPUBLIC OF THE PHILIPPINES ,) + yA; noon
First Regular Session ) ——
2074
HOUSE BILL NO.

Introduced by Representative JAIME EDUARDO MARC D. COJUANGCO,

EXPLANATORY NOTE

Investments are meant to create jobs. Foreign investments and
capital are needed to stimulate our local economy. Allowing foreign
investors to establish their businesses in the Philippines will provide
employment to our countrymen. Past and the present administrations
have worked hard to encourage foreign investors to the country. One
of the motivations that would be enticing to the investors is providing
them with tax incentives.

The Board of Investments (BOI) is the agency responsible for
promoting investments in the country. BOI is also responsible for
regulating investments. Its primary duty is to prepare the Annual
Investment Priorities Plan. The Plan shall contain a listing of specific
activities that can qualify for incentives. This Plan will also be
submitted to and will be approved by the President.

The usual requirement is the amount of investment. There is not
much regard for the jobs to be created. In such a case, the loss in
government revenues may outweigh whatever economic benefit such
an investment may have brought.

Under this measure, the primary criterion for the grant of fiscal
incentives would be the creation, perpetuation, growth and
development of employment opportunities. Further, the jobs created
should be for the Filipino people. Finally, it should be permanent and
not the usual contractual or project based jobs.

It isin this view that the immediate passage of the bill is earnestly
sought.
—
JAIME EDUARDO MARC D. COJUANGCO
Representative
1“ District of Tarlac


NINETEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES +)
First Regular Session )

2074
HOUSE BILLNO__*

Introduced by Representative JAIME EDUARDO MARC D, COJUANGCO

AN ACT

MANDATING THE CREATION, PERPETUATION,

GROWTH AND DEVELOPMENT OF EMPLOYMENT

OPPORTUNITIES AS THE MAIN CRITERIA FOR THE

GRANT OF FISCAL INCENTIVES FOR

INVESTMENTS, AMENDING FOR THE PURPOSE

ARTICLE 28 OF EXECUTIVE ORDER NO. 226, AS

AMENDED, OTHERWISE KNOWN AS_ THE

"OMNIBUS INVESTMENTS CODE OF 1987", AND

FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled.

SECTION 1. Short Title. - This Act shall be known as the
“Investment Incentives for Jobs Creation Act of 2022”.

SECTION 2. Declaration of Policy. - It shall be the policy of the
State to encourage investments in the country by providing for fiscal
and other incentives but only for industries or economic activities that
truly provide significant employment opportunities relative to the
amount of the capital being invested.

SECTION 3. Amendment of Article 28 of the Omnibus
Investments Code. - Article 28 of Executive Order No. 226, as
Amended, otherwise known as the "Omnibus Investments Code" of
1987, is hereby amended, to read as follows:

XXX


13 ARTICLE 28. Criteria in Investment Priority
4 Determination. — No economic activity shall be included
15 in the Investment Priorities Plan unless it is shown TO
16 CREATE REGULAR AND PERMANENT
17 EMPLOYMENT OPPORTUNITIES FOR FILIPINOS
18 AND to be economically, technically and financially sound
19 after thorough investigation and analysis by the Board.

20 The determination of preferred areas of investment
21 to be listed in the Investment Priorities Plan shall be based
22 ON THE CREATION, PERPETUATION, GROWTH
23 AND DEVELOPMENT OF REGULAR AND
24 PERMANENT EMPLOYMENT OPPORTUNITIES FOR
25 FILIPINOS; PROVIDED THAT, INCENTIVES
26 GRANTED UNDER THIS CODE SHALL PRIMARILY
27 BE BASED ON THE NUMBER OR VOLUME OF
28 EMPLOYMENT CREATED BY THE REGISTERED
29 ENTERPRISE, on long-run comparative advantage,
30 taking into account the value of social objectives and
31 employing economic criteria along with market, technical,
32 and financial analyses.

33 XXX

34 SECTION 4. Separability Clause. - If any provision of this Act,

35 or any parts thereof, is declared unconstitutional, the same shall not

6 affect the validity and effectivity of the other portions.

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SECTION 5. Repealing Clause. - All laws, executive orders,
presidential decrees, proclamations, rules, regulations, issuances and
enactments of parts thereof inconsistent with this Act are hereby
repealed or modified accordingly.

SECTION 6. Effectivity. - This Act shall take effect fifteen (15)
days from its complete publication in the Official Gazette of in a
newspaper of general circulation in the Philippines, whichever comes

earlier

APPROVED.