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materials like supplies and fuels used in production and if factory leases and utility charges associated with production.

The total net tax would reach up to 12-15 percent as against the 30 percent tax to regular firms.

“This is already attractive to investors, and it is not so much of a revenue loss to the government since their domestic sales is subject to the regular sales tax,” he said.

The most important incentive, he said, is that companies will be spared from local government unit intervention. Some companies have been discouraged to invest outside of PEZA because of various harassments they face in dealing with LGUs.

In addition, these domestic ecozones to be developed by private investors will all be located in the poor provinces only. It will create jobs in the countryside and economic activities.