QuestionsQuestions (Republic Act No. 8748)
RA 8748 amends specific provisions of RA 7916, particularly on (1) the PEZA Board structure and composition, (2) administration of ECOZONES, (3) personnel and compensation rules for PEZA, (4) tax incentives/exemptions, (5) treatment of national and local taxes generally, (6) eminent domain/disturbance compensation, and (7) non-applicability to areas covered by RA 7227.
The Director General is appointed by the President. The Director General must be at least 40 years old, with proven probity and integrity, and a degree holder in economics, business, public administration, law, management or equivalent, with at least 10 years relevant working experience, preferably in management or public administration.
They are appointed by the PEZA Board upon the recommendation of the Director General. They must be at least 35 years old, with proven probity and integrity, and be degree holders in the fields listed (economics, business, public administration, law, management or equivalent).
The Board has 13 members: (1) Secretary of the Department of Trade and Industry (Chairman), (2) Director General of PEZA (Vice Chairman), (3) undersecretaries of the Department of Finance, DOLE, DILG, DENR, DA, DPWH, DOST, and Department of Energy, (4) Deputy Director General of NEDA, (5) one representative from the labor sector, and (6) one representative from the investors/business sector in the ECOZONE.
The Director General of PEZA shall act as Chairman.
Except for privately-owned, managed or operated ECOZONES, each ECOZONE is organized, administered, managed and operated by an ECOZONE executive committee composed of the persons specified in the original RA 7916 provision (as referenced by the amendment).
Privately-owned ECOZONES retain autonomy and independence, but they are monitored by PEZA to ensure incentives and operations adhere to the law.
The PEZA Board has exclusive and final authority to promote, transfer, assign or reassign PEZA officers, notwithstanding any provision of existing law to the contrary.
The Director General may carry out the removal of such officers and employees.
All PEZA positions are governed by a compensation, position classification system, and qualification standards approved by the Director General with Board concurrence, based on comprehensive job analysis and audit of actual duties.
The compensation plan must be comparable with prevailing compensation plans in SBMA, CDC, BCDA, and the private sector. It is subject to periodic review by the Board not more than once every two years, without prejudice to yearly merit reviews or increases based on productivity and profitability.
Yes. PEZA is exempt from existing laws, rules and regulations on compensation, position classification and qualification standards. However, it should endeavor to make its system conform as closely as possible to the principles under RA 6758.
They may not engage directly or indirectly in partisan activities or take part in any election, except to vote.
Except for real property taxes on land owned by developers, no national or local taxes are imposed on business establishments operating within the ECOZONE. Instead, 5% of gross income is paid/remitted: 3% to the National Government and 2% remitted directly by business establishments to the treasurer’s office of the municipality/city where the enterprise is located.
It states that all persons and service establishments in the ECOZONE are subject to national and local taxes under the National Internal Revenue Code and the Local Government Code.
If occupants of a parcel within the zone must be evicted, PEZA must provide proper disturbance compensation.
They are entitled to benefits under the Comprehensive Agrarian Reform Law (including Section 36 of RA 3844), in addition to a homelot in the relocation site and preferential employment in the project being undertaken.
RA 7916 (as amended) does not apply to economic zones and areas already created or to be created under RA 7227 or other special laws, governed by authorities constituted pursuant thereto.