Cabinet cluster pushes nine priority measures

The Finance department, in a statement, said that its chief, Cesar V. Purisima, proposed the measures in a Cabinet meeting yesterday.

The list is expected to be considered by President Benigno S. C. Aquino III for possible inclusion in priority laws he will ask Congress to pass.

The measures, which Mr. Purisima noted would “answer key economic concerns of both the government and private sector,” comprise the following:

• amendments to the Build-Operate-Transfer (BOT) Law or Republic Act (RA) 7718;

• rationalization of the fiscal regime for mining;

• rationalization of the Fiscal Incentives Law and the Tax Incentives Monitoring and Transparency Act (TIMTA);

• Customs Modernization and Tariff ACT;

• amendments to the Bangko Sentral ng Pilipinas charter;

• further amendments to the Anti-Money Laundering Act;

• removal of restrictions in specific laws cited in the Foreign Investment Negative List;

• amendments to RA 8974, also known as the Act to Facilitate the Acquisition of Right-of-Way, Site or Location for National Government Infrastructure Projects and For Other Purpose; and

• amendments to the Cabotage Law.

Mr. Purisima leads the economic development cluster of the Cabinet. Its members include the heads of the National Economic and Development Authority (NEDA) and the Agriculture, Budget, Interior and Local Government, Trade, Public Works, Transportation, Energy, Science and Technology, and Tourism departments.

The Finance chief said amendments to the BOT Law would help the government implement its flagship public-private partnership (PPP) program.

“We propose to amend the inclusion of other PPP modalities such as joint ventures, concession and management contract, and enhancing provisions on unsolicited proposals including the conduct of competitive challenge,” he said.

“We also need to make sure that the PPP Governing Board is properly accounted for in legislation. These measures will make sure that the lessons we learned from our PPP experience are institutionalized.”

As for the rationalization of fiscal perks, Mr. Purisima said the measure would make the country’s incentives system more efficient.

He said the Finance and Trade departments, together with the NEDA, were discussing the measure.

“A monitoring and accountability mechanism through the TIMTA bill will effectively account for the utilization of public monies, including monies that are “spent” through the grant of tax incentives to businesses and activities,” Mr. Purisima added.

Source: Bettina Faye V. Roc, Business World, 15 July 2013