These are the proposed Tax Incentives Management and Transparency Act (TIMTA) and Philippine Competition Act, as well as easing of the Cabotage Law.

The House of Representatives gave its nod on the TIMTA late Tuesday night, just a day after the Senate gave its nod to the measure. The TIMTA puts in place a monitoring and reporting scheme for tax perks granted to businesses operating in the Philippines. It requires the Finance department to maintain a database of tax incentives prepared by state investment promotion agencies, and the National Economic and Development Authority to do a cost-benefit analysis on the impact of these incentives on the Philippine economy. The House and Senate versions will now have to be reconciled in a bicameral conference committee meeting that will be held during the chamber’s six-week break, said Marikina Rep. Romero Federico S. Quimbo (2nd district), chairman of the House committee on ways and means.

The House had earlier passed amendments to the proposed road right-of-way act to facilitate government infrastructure projects. The Senate version is pending at the committee level.

The Senate has also approved the bill establishing a Department of Information and Communications Technology (DICT) to boost interconnectivity and data protection in the country. The House version remains at the committee level.

Ratified by both chambers just before Congressional sessions ended were the proposed Philippine Competition Act, which forms a Philippine Competition Commission to guard against unfair trade practices, as well as changes to the Cabotage Law that will allow foreign ships to load and unload cargo for overseas trade directly at any local port.

The two measures will soon be submitted to Malacañang for the President’s signature.

As of early evening, the House was poised to vote for approval on third and final reading on the Resolution of Both Houses (RBH) 1 that seeks to open the Constitution to lifting of restrictions of foreign ownership and participation in various sectors -- long cited by business groups as a disincentive to prospective investors.

The House and Senate also approved other measures not deemed priorities, but still meant to boost the economy.

Among other bills approved by the House were the bill merging the state-run Land Bank of the Philippines with the Development Bank of the Philippines, the proposed Free Public Wi-Fi Act; and the bill hiking private social pensions by P2,000. All are pending at the committee level in Senate.

Others approved by the Senate are the proposed youth entrepreneurship law, the modernization of the Philippine military, and the Freedom of Information bill, which are awaiting similar approval at the House.

Other measures, such as a bill upgrading the capability of Sandiganbayan anti-graft court to speed up case disposition and the bill raising the tax exemption cap on employee bonuses to P82,000, have been enacted into law in the second regular session.

These all add to priorities that were enacted in the first regular session, among them the bill authorizing the full entry of foreign banks and the Philippine Lemon Law covering motor vehicle sales.

Two business leaders lauded the progress of the bills, which are seen to improve the local investment climate.

“These are all important economic reforms, especially Fair Competition and charter change,” John D. Forbes, senior advisor of the American Chamber of Commerce of the Philippines, said in a text message. “After the SONA (State of the Nation Address on July 27) there is still time to do many more bills that have advanced in the legislative process.”

Henry J. Schumacher, vice-president for external affairs of the European Chamber of Commerce of the Philippines, also said via text: “Although we would still like to see improvements to TIMTA, we are impressed with the progress made by Congress -- a big step forward to attract more investment and employment and create more competition which is good for everyone.”

Aside from the DICT and the fair competition bills, other priorities that form part of a condensed list of a legislative “wish list” of foreign and local business groups are the Freedom of Information Act, the RBH 1, improvements to the Build-Operate-Transfer law, the proposed Customs Modernization and Tariff Act, and a Comprehensive Tax Reform Bill.

The business groups submitted the list to Malacañang last month in hopes of action before the Aquino administration ends on June 30 next year.

Congress has adjourned for a six-week break and will return on July 27 for the president’s last SONA. The third regular session is expected to end in February ahead of the May 2016 elections. 

Source: Business Wolrd Online