PEZA dividends to NG reach ₱1.8 B

The Philippine Ecozone Zone Authority (PEZA) has remitted to the national government 11.8 billion in dividends or 81.21 percent already of the 12.2 billion the agency contributed during the six-year period of the previous administration.

PEZA Director General Charito “Ching” Plaza reported this PEZA contribution under the Duterte administration from 2016 to 2018.

“PEZA under my stewardship has grown and built on the gains of the past,” said Plaza of her agency’s accomplishment.

Plaza said that PEZA continues to perform as administrator of the tax incentives granted to export-oriented enterprises located at its various economic zones in the country despite the challenges posed by the move to overhaul its tax incentives regime under the CITIRA Bill. PEZA is also now restrained from approving IT-BPO firms wanting to locate in Metro Manila because of the Malacanang moratorium under Administrative Order No. 18 against the approval of IT Centers and Parks in the metro.

With these constraints hounding PEZA, Plaza has urged objective appreciation of its performance and exempt the agency from the CITIRA Bill.

“CITIRA is a major incentives revamp. Hence, it is dangerous to test on exporters who are efficiency-seekers and have chosen PEZA carefully to invest their huge capital because of its globally competitive, tried, proven and tested incentives,” said Plaza.

In terms of exports, PEZA enterprises account for the bulk of the country’s exports and GDP.

In 2018, Plaza said PEZA’s registered industries constituted 16.28 percent of the gross domestic product of the Philippines. PEZA’s registered industries created 1.5 million direct employment, 7 million indirect employment, contributed to higher income, and classification of LGUs hosting economic zones became highly urbanized into first-class cities and municipalities.

Aside from quantifying the contributions, PEZA’s industries contribute to social progress felt by the people, lowered the poverty and crime incidence, and helped eradicate insurgency.