On motion of Rep. Alvarez and as duly seconded by Rep. Pichay, the Committee
approved the consolidation of the bills and a substitute bill shall be prepared for the purpose
that will incorporate the amendments that were endorsed by Rep; Datumanong.
.
IV.
FIRST DELIBERATION
on HEl 3816, entitled "AN ACT ro EXEMPT THE CITIES
DEVELOPMENT
INITI,lITIVE
FOR
ASIA
OR
ITS
SUCCESSORS
FROM
THE
PAYMENT OF GIFT, FRANCHISE, SPECtFIC, PERCENTAGE,
REAL PROPERTY,
EXCHANGE, IMPORT, EXPORT, AND OTHER TAXES AND THE MEMBERS OF ITS
SCIENTIFIC AND TECHNICAL STAFF FROM PAYMENT GF INCOME AND VALUE
ADDED TAX," by Reps. Trenas and Arnaiz
in sponsoring the bill, Rep. Trenas cited the Cities Development Initiative for Asia
(COlA) as all established Asia-wide regional technical assistance partnership facility supported
by the Asian Development
Bank, the Swedish SIOA, and the respective governments
of
. Germany, Austria, Singapore and Spain It is- the intent of COlA to solicit sustainable support
from the countries of the Asiareqion.
The Initiative provides assistanceto medium-sized Asian
cities to bridge the gap between
their
development
plans and implementation
of, their
infrastructure investments, COlA uses a demand-driven approach to support the identification
and development of urban investment prolects in the framework of existing city development
plans, emphasizing environmental sustainability, pro-poor development, climate change, and
good governance. In view of the iaudable goals of the Initiative, the Philippines has agreed to
host the CDIA
headquarters
ill
Manila
and to be a member
of its governing
council.
Considering the non-profit nature of the Initiative, Rep. Trenas stressed that it is prudent to
exempt COlA from taxation in the Philippines.
Mr. Michael Lindfield, Program Manager of Asia Development Bank and the principal
proponent of COlA, said that COlA was formed three (3) years ago and had been active in
several cities in Asia. It spends around $10 million per year in the form of technical assistance
to help cities realize their respective investment projects. Mr. LindfieJd likened the Initiative to
the International
Rice Research Institute (IRRI) which was established
precisely to attain
certain development goals for the benefit of Asian countries. He believes that the Philippines
will be benefited in hosting the COlA. Mr, 'Emiel Wegelin, Program Coordinator of COlA,
remarked that to enable COlA sustain its technical assistance program unless it is established
as an international status institution in the country.
In reaction to the query from Rep. Suarez whether there would be no loss' in revenue if
COlA is exernpted from taxes, Ms. Montejo of OOF expressed support to the bill although she'
noted that there is that precondition
that COlA
be recognized
first as an international
institution. Ally. Bernardo of SIR likewise expressed support to the measure but clarified that it
is not revenue neutral and that it may support the bili for as long as COlA is aligned with the tax
exemption benefits- given the international organizations. He promised to submit a position
paper on the matter.
In reply to the observation of Rep. Suarez that provinces should likewise benefit from
the program, Rep, Trenas remarked that inasmuch that COlA will be based in the Philippines it
will be prudent for it to seriously look into the matter and study how provinces could partake of
the program's benefits.
Ms. Ma. Paz Javier of OOF manifested that OOF supports the' grant of tax exemption
to COlA provided that Congress enacts the enabling law that will establish it as a regional-
international institution so that it will qualify to the tax exemptions
under the National Internal
3