Duterte vetoes enrolled bill creating investment hub in Central Luzon
President Rodrigo Duterte has vetoed an enrolled bill creating the regional investment and infrastructure coordinating hub of Central Luzon.
In his veto message dated March 13 and addressed to the leaders of the Senate and the House of Representatives, Duterte said while the bill espouses growth objectives and policies, he could not support it considering some provisions that tend to defeat the very objectives and policies in the long run.
"In particular, the bill has several provisions which would pose substantial fiscal risks to the country and are thus inimical to its growth," he said.
He noted that the bill significantly narrows the tax base with its mandated incentives applicable to registered enterprises in an entire region.
"This renders the whole system incapable of generating a yield sufficient to sustain the country's social and economic infrastructure, and this would necessitate finding new sources of revenue through additional taxes or borrowings in the future. In the end, it is the taxpayers all over the country, who are excluded from the tax incentives, that will bear the brunt of the burden," Duterte explained.
Under the bill, he said mandated fiscal incentives regime would be for 50 years and could be extended for another 50 years.
"Prolonging such a situation for half a century or more is likely to bring negative revenue and fiscal implications to succeeding administrations and unnecessarily burden future generations," said Duterte. Celerina Monte/DMS