Subic Freeport post P3.5-B revenue in 1st half
The Subic Bay Metropolitan Authority reported over the weekend that combined revenue derived from duties and taxes collected by the Bureau of Customs (BoC) and the Bureau of Internal Revenue (BIR) in the Subic Bay Freeport reached a total of P3.478 billion in just the first half of the year.
The total amount already exceeded the first semester revenue record last year, said Subic Bay Metropolitan Authority (SBMA) administrator Armand Arreza.
“The first half collection is actually 62 percent of the entire 2009 figure. So at this rate, we could be looking at a P6-billion plus total at the end of the year,” he added.
Figures submitted by the BoC and the BIR showed that in June alone, the two government collection agencies posted a total of P826.52 million, the highest monthly cash collection in the six-month period, as the two collecting agencies came up with P473.93 million and P352.59 million, respectively.
For the whole six-month period, the BoC recorded cash collections totaling P2.508 billion. This exceeded last year’s total of P2.206 billion by P301.6 million or 13.67 percent.
In addition, BoC also processed government-to-government transactions amounting to P2.818 billion, thereby increasing its total cash and non-cash collections to P5.326 billion.
Duties and taxes collected by the BoC were derived from domestic and foreign ship calls, transshipment operations, and the taxes and duties paid for by the Freeport investors, including importation of oil, importation of motor vehicles, and other general merchandise.
For the same period, the BoC also exceeded its target of P2.054 billion by almost half a billion or 22.12 percent.
Meanwhile, the BIR posted a total of P970 million in cash collections derived from income taxes, value-added taxes, percentage taxes and other taxes paid for by the more than 1,000 Freeport business locators and their employees, as well as an increasing number of port users.
BIR’s cash collection in January-June 2010 topped last year’s P706.38 million, surpassing it by P263.86 million or 37.35 percent.
Arreza noted that part of the taxes collected by the BIR is the corporate tax, which comprises five percent of the gross income of locators here, and which the law imposes on business enterprises operating within the zone in lieu of national and local taxes.
He said that part of the corporate tax paid by Subic enterprises is allotted to local government units (LGUs) affected by or contiguous to the Subic Bay Freeport Zone.
Arreza added that starting in the second quarter of this year, the SBMA implemented a new scheme in collecting the two percent share of the LGUs.
Instead of going entirely to the BIR, the corporate taxes are split into 60 percent, which remains with the BIR, and 40 percent with the SBMA Treasury Department for direct remittance to the LGUs.
The LGU shares are intended to fund LGU development projects and provide for basic support services in health, education, and peace and order.
60 % of the 2% collected as share of the LGU stays with the BIR and 40 % remains with SBMA Treasury for direct remittance? I wonder how much of that really goes back to the LGU? The original Subic municipality is experiencing unprecedented population growth and yet no corresponding improvement in public services. The town has no wastewater system to speak of, storm water drains are being used to convey wastewater to the bay. Squatters have taken over the once beautiful hillsides and coastlines, on the road to the Hanjin site. The once pristine bay is now full of muck, biowaste, garbage, muddy sediments due to erosion from construction and developments, and unseen pollutants in the water discharged from several industries onto the bay. Dengue fever and malaria cases are increasing and the limited or non-existent health services cannot cope. There is no library, no clean and hygenic market place, no clean public toilets, and available subsidized/cheap public housing for the growing employees of Hanjin and SBMA industries. Where is the money going? To the construction company owned by the incumbent mayor of Subic? This is appalling. Subicenos need to wake up and learn to demand from their government the basic services they need. The government officials need to learn how to become public servants. Subic does not need a decorating project like the municipal building expansion; it needs health, utility, educational, public housing, environmental services and infrastructures.