On his first day in office, President Ferdinand 'Bongbong' Marcos Jr. vetoed a bill that seeks to create a special economic and freeport zone in conglomerate San Miguel Corporation’s $15 billion Bulacan Airport City.
In his letter addressed to the Senate President and members of the upper chamber dated July 1, 2022, Marcos said he was “constrained to veto” the enrolled House Bill No. 7575 or “An Act Establishing the Bulacan Airport City Special Economic Zone and Freeport, Province of Bulacan and Appropriating Funds Therefor.”
“Contrary to the government’s objective of developing a tax system with low rates and a broad tax base, the enrolled bill will significantly narrow our tax base with its mandated incentives applicable to registered entities,” he said.
“In view of these considerations, I am constrained to veto the above-mentioned enrolled bill,” he added.
Marcos also noted that the bill was in conflict with existing mandates of other government agencies and lacked “coherence with existing laws, rules and regulations by failing to provide audit provisions for the Commission on Audit, procedures for the expropriation of lands awarded to agrarian beneficiaries, and a master plan for the specific metes and bounds of the economic zone.”
He added that with the measure, the tax system would be rendered incapable of generating a yield sufficient to sustain the country’s social and economic infrastructure as the government would be forced to seek new sources of revenues through additional taxes or borrowings in the future, which could ultimately burden taxpayers.
Marcos also cited the Republic Act No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act that already allows eligible enterprises outside economic zones to apply for and avail of fiscal incentives without the need for creating new special economic zones.
San Miguel is one of the country’s largest companies with businesses spanning food, beverage, power, energy and infrastructure.
If enacted into law, Bulacan Airport Ecozone will cover San Miguel Corp.’s P740-billion New Manila International Airport (NMIA), the Airport City to be established adjacent to the airport, and lands adjacent to Airport City as may be later determined.
