QuestionsQuestions (MANILA CITY ORDICE NO. 8495)
The ordinance invokes the 1987 Constitution’s local autonomy (Art. X, Sec. 2) and cites Section 109(4), Title VI, Book I of RA 7160, which mandates LGUs to formulate local investment incentives through the City Development Council to promote inflow and direction of private investment.
The MIIB is created as the implementing body of the Code. Its primary responsibility is to implement the ordinance, establish a favorable business climate, and oversee registration and availment of incentives through its functions.
The MIIB is chaired by the City Mayor, with a Vice-Chair from the Manila Chamber of Commerce and Industry (or accredited private business association), and members including designated Investment Promotion Officer and heads of relevant city offices/bureaus plus Sanggunian committee chairpersons and a private sector representative appointed by the City Mayor for a two-year term.
Quorum is the presence of at least a majority of all MIIB members. Decisions/policies acted upon by at least a majority of members present during a meeting with quorum are considered valid.
The IPC is created as the lead office on investments promotion and serves as the One-Stop-Shop and the Technical Secretariat of the MIIB. It receives and evaluates applications, assists investors, monitors projects, and submits recommendations to the MIIB.
Incentives may be granted to projects meeting general criteria such as high growth sectors, high employment generation, location in depressed/undeveloped areas, leveraging local growth resources, accelerating existing enterprise advantages, significant contributions by new enterprises, complementing national priorities, promoting a “Green economy” and environmental management, boosting commercial district activity, promoting local tourism, and maximizing use of idle industrial/commercial lands.
Applicants must (1) meet pre-qualification requirements; (2) file the application with the IPC; (3) undergo document completeness/consistency checking; (4) only complete applications are officially accepted (date-stamped as official acceptance); (5) IPC evaluates and may conduct ocular inspection; (6) IPC presents recommendation to MIIB; (7) MIIB approves/denies via resolution, and IPC notifies the applicant and informs City Treasurer/Assessor when approved; (8) upon approval, a Certificate of Registration is issued stating incentives and terms.
A registered enterprise cannot be allowed incentives under this Code if it already previously availed of the same incentives under other laws or investment incentive programs. It prevents overlapping or duplicative tax/fee benefits for the same incentive category.
Fiscal incentives include exemption from local business taxes pursuant to Sec. 133(g) of the LGC; tax exemption privilege via ordinances under Sec. 192; exemption from postal charges/fees under Art. 282; and exemption from special levy on real property under Sec. 235 (as stated in the text).
The exemption under Sec. 133(g) is for six (6) years for pioneer enterprises and four (4) years for non-pioneer enterprises, counted from the date of registration.
Postal charges exemption/privileges should not be more than one (1) year from the actual start of business operations; special levy exemption should not be more than one (1) year and applies only to Manila’s share; and the exemptions exclude fees and charges for services rendered by the city (e.g., garbage fees, inspections, actual consumption charges, and tolls) and rentals for city-owned utilities.
Non-fiscal incentives include: one-stop-shop for simplified documentation/registration; industrial piece through reconciliation/mediation; assistance in securing power and water connections; coordination for special utility rates for industries with a minimum load; help in site selection/right-of-way negotiation; networking with TESDA and training institutions; facilitating investor missions; and other after-care services.
Registered enterprises must not operate without required pollution control devices, waste-water treatment, and solid waste management facilities; must operate within the capacity of their waste treatment to maintain effluent standards; and must undergo periodic environmental compliance monitoring coordinated with DENR. Refusal to be inspected is sufficient ground for forfeiture of incentives and revocation of the Certificate of Registration/business permit.
The ordinance allows registration for New Projects, Extension Projects, Modernization Projects, and Diversification Projects.
Projects covered or allowed under PPP arrangements under RA 6977 (as amended) shall enjoy incentives under the ordinance in addition to those provided under RA 6977.
The ordinance provides a penal clause: any violation of the provisions on registration of a project/business may lead to cancellation of the Certificate of Registration. Cancellation means withdrawal of incentives granted under the Code and that previously granted fees/charges become due and demandable.