What if I told you a place exists where investments flourish and businesses thrive with government support? That place is the Philippine Economic Zone Authority.
The Philippine Economic Zone Authority or PEZA is vital to the Philippines. It is a government agency attached to the Department of Trade and Industry. PEZA helps boost the economy by promoting investments. It focuses on export-oriented manufacturing industries.
PEZA assists investors in registering and running their businesses. The agency also provides tax incentives. These incentives attract businesses to locate within special economic zones. These zones are known as PEZA Special Economic Zones. Many are business process outsourcing and knowledge process outsourcing firms.
But PEZA’s scope extends beyond BPO and KPO companies. It includes tourism, medical tourism and logistics. Warehousing services, economic zone development and facilities providers also fall under PEZA.
To understand PEZA’s importance, let’s journey back in time. On June 21, 1969, Congressman Pablo Roman, Sr. made Mariveles, Bataan the first free trade zone. This was through Republic Act 5490. This act also created the Foreign Trade Zone Authority or FTZA.
In 1972, Roman, Roces, and Sarmiento aimed to transform the FTZA into a government corporation. This change would empower the project. It combined corporate power and government strength, but the bill faced opposition in Congress.
November 20, 1972 marked a significant milestone. The Bataan Export Processing Zone or BEPZ became the first official economic zone via Presidential Decree 66. The BEPZ thrived attracting over one hundred multinational companies.
In 1979, President Ferdinand E. Marcos Sr. established more zones. These included the Mactan Export Processing Zone and the Baguio City Export Processing Zone. The Cavite Export Processing Zone followed in 1980 and the Pampanga Export Processing Zone in 1981.
A key transformation occurred on February 21, 1995. The Export Processing Zone Authority or EPZA became PEZA. This was due to Republic Act 7916. The PEZA Board is led by the Secretary of the Department of Trade and Industry. The Vice-Chair is the Director General of PEZA.
PEZA offers numerous incentives to attract investors. These include income tax holidays. These holidays provide complete exemption from corporate income tax for a number of years. Tax and duty-free importation of raw materials is another major benefit. There are also exemptions from wharfage dues and export taxes. VAT zero-rating on local purchases further sweetens the deal.
As of February 2019, PEZA oversees over 396 operating economic zones nationwide. These zones are located in key areas like Bonifacio Global City and Makati. They also extend to next-wave cities like Batangas and Cebu.
PEZA’s client-focused approach has earned it trust from investors. The agency has also gained confidence from local business sectors. Foreign chambers of commerce in the Philippines also place confidence in PEZA. Industrial and Special Economic Zones are staffed with PEZA officers. They address stakeholder needs efficiently. Information Technology companies receive priority service. They have direct access to the PEZA Head Office in Metro Manila.
In conclusion, the Philippine Economic Zone Authority plays a vital role. It drives economic growth, attracts investments and supports businesses. Its history, strategic incentives and widespread presence make it a key player in the Philippine economy. PEZA continues to shape the nation’s economic landscape.