BAGUIO CITY March 21 – The strict implementation of the American First policy of United States President Donald Trump could result in the further decline of the city’s share from the Philippine Economic Zone Authority (PEZA) because of the expected retrenchment in American companies hiring Filipino workers operating in the economic zones, Mayor Mauricio G. Domogan said here recently.
The local chief executive was alarmed over the report of City Accountant Antonio Tabin that the city’s share from the Loakan-based PEZA had been significantly decreasing over the past three years which is complicated by Trump’s recent pronouncement that he will embark on the America First policy which means that American citizens will be prioritized for employment in American companies.
In the city, the Amercian companies operating in the Loakan-based PEZA are Texas Instruments Philippines, MOOG Controls Corporation, and the business process outsourcing company Sitel Philippines.
Tabin reported in 2014, the local government collected a share of P224 million from the PEZA which dropped to P196 million in 2015 and further dropped to P160 million last year.
Under the PEZA law, local governments hosting the PEZA are guaranteed a 2-percent share from the gross receipts of the economic zone to be directly remitted to the coffers of the host locality by the administration of the economic zone.
Tabin underscored the city’s share from the PEZA is one of the local government’s major external sources of income, thus, the continuous drop in the city’s PEZA share due to outside factors like Trump’s American First policy will definitely affect the fiscal position of the city in the coming years.
For his part, Domogan pointed out there is a need for the local government to look for available sources of funds to replace the funds that will be lost once US President Trump will strictly implement his American First policy wherein American companies will prioritize American citizens as their employees.
He underscored the importance of introducing the needed revisions to the city’s real property and business taxes that were not amended the past several years to help the local government.
Domogan pointed out people must understand that taxes are the lifeblood of the national and local governments that is why concerned government agencies are closely monitoring the compliance of local governments in updating their taxes.**By Dexter A. See
