A LEGISLATOR is urging the leadership of the House of Representatives to immediately approve the legislation seeking to create the Metropolitan Clark Freeport Zone, (MCFZ) which could make Clark Freeport Zone live up to its true economic potential.

House Bill 4843, or the proposed Metropolitan Clark Freeport Zone Act of 2011 seeks to replace the Clark Development Council (CDC) and be developed and operated as a self-sustaining, commercial, financial, investment and tourism metropolis.

Lakas-Kampi-CMD Rep. Carmelo Lazatin of Pampanga, author of the bill, said the proposed new free-port zone will have a recreational center and free port with suitable retirement and residential areas to create employment opportunities and attract local and foreign investors.

 “It is the declared policy of the government to actively encourage, promote, induce and accelerate a sound and balanced industrial, economic and social development of the country in order to provide jobs to the people especially those in the rural areas,” said Lazatin.

Lazatin said “the state shall improve the level and quality of their condition through the establishment, among others, of special economic zones and free ports in suitable and strategic locations in the country and through measures that shall effectively attract legitimate and productive foreign investments.”

He said the MCFZ shall be governed by a corporate body to be known as the Metropolitan Clark Freeport Zone Authority to manage and operate the zone.

As embodied in the bill, business establishments operating within the zone shall be entitled to the existing fiscal incentives as provided under Presidential Decree 66, the law creating The Export Processing Zone Authority And Revising Republic Act 5490, or those provided under Book IV of Executive Order 226, or the Omnibus Investments Code of 1987.

The measure provides that no local and national taxes shall be imposed on business establishments operating within the zone.  In lieu of paying taxes, business establishments shall pay and remit to the national government 5 percent of their gross income.

Under the bill, existing banking laws and the Bangko Sentral ng Pilipinas (BSP) rules and regulations shall apply on foreign exchange and other current account transactions (trade and nontrade), local and foreign borrowings, foreign investments, establishment and operation of local and foreign banks, foreign-currency deposit units, offshore banking units and other financial institutions under the supervision of the BSP.

The proposed free-port zone shall have an authorized capital stock of P2 billion on par shares with a minimum issue value of P10 each. The national government shall initially subscribe and fully pay P300 million shares of capital stock.